National Pension Act

A director must not, for the purpose of securing a benefit for the director or for a third party other than the National Pension Fund Association, commit an act specified by Order of the Ministry of Health, Labour and Welfare as one that impairs the propriety of the management and investment of the reserve fund.

The National Pension Fund Association may, as provided by the articles and through a resolution of the board of councilors, replace a director who has violated the preceding paragraph.

With respect to a matter in which the interests of the National Pension Fund Association and the president (including a person who acts on behalf of, or performs the duties of, the president under Article 137-13, paragraph (1); hereinafter the same applies in this Article) conflict, the president does not have representative authority. In this case, the auditor appointed from among persons having knowledge and experience represents the National Pension Fund Association.

A National Pension Fund may apply to the National Pension Fund Association and become a member of it; provided, however, that this does not apply when it is a member of another National Pension Fund Association.

When the Minister of Health, Labour and Welfare finds it necessary for the convenience of a National Pension Fund or its members, the Minister may order the National Pension Fund to join one of the National Pension Fund Associations.

The National Pension Fund Association is to pay a pension, or a lump-sum benefit whose ground for payment is death, to an early leaver that is to be paid a pension or lump-sum benefit under Article 137-17, paragraph (4), and to a member of a dissolved fund relating to a National Pension Fund that is a member of the National Pension Fund Association.

The National Pension Fund Association may conduct the following projects; provided, however, that when it conducts the project listed in item (i), it must obtain the authorization of the Minister of Health, Labour and Welfare.

A project that adds to the amount of the reserve fund of a National Pension Fund, using the contributions, etc. of the National Pension Fund as the source of funds, so that a fixed amount is secured for the pension and lump-sum benefit paid by the National Pension Fund;

A project that conducts part of the operations of a National Pension Fund under entrustment under Article 128, paragraph (5);

A project that provides advice or guidance to a National Pension Fund, and any other project specified by Cabinet Order as one that promotes the sound development of the projects conducted by a National Pension Fund;

A project that carries out awareness-raising activities and public relations activities concerning the National Pension Fund system.

The National Pension Fund Association may establish facilities necessary to promote the welfare of members of a National Pension Fund and persons who were members.

When the National Pension Fund Association concludes, with a trust company, a financial institution engaged in trust business, a life insurance company, a federation of agricultural cooperatives or a federation of fishery cooperatives for mutual aid, or a financial instruments business operator, a contract of trust, insurance or mutual aid, or a discretionary investment contract, concerning the expenses required for the pension or lump-sum benefit paid by that National Pension Fund Association, it must do so as provided by Cabinet Order.

The provisions of Article 128, paragraph (4) apply mutatis mutandis to the trust contract under the preceding paragraph (excluding a trust contract that specifies the method of investment and that is specified by Cabinet Order), insurance or mutual aid contract, or discretionary investment contract.

The National Pension Fund Association may, with the authorization of the Minister of Health, Labour and Welfare, entrust part of its operations to a trust company, a financial institution engaged in trust business, a life insurance company, a federation of agricultural cooperatives, a federation of fishery cooperatives for mutual aid, or any other juridical person specified by Cabinet Order.

The National Pension Fund Association must conduct its operations based on appropriate actuarial calculations.

A National Pension Fund that is a member of the National Pension Fund Association may, as provided by Cabinet Order, apply to that National Pension Fund Association for the delivery of the amount equivalent to the present value of the pension relating to the membership period with that National Pension Fund of an early leaver (meaning a person who has lost the status as a member of that National Pension Fund (excluding a person who has, on the day of losing that status as a member, the right to receive a pension paid by that National Pension Fund), and whose membership period with that National Pension Fund, calculated as provided by Cabinet Order, is less than the period specified by Cabinet Order; the same applies below) (hereinafter referred to as the "present value amount").

When an application for the delivery of the present value amount is made under the preceding paragraph, the National Pension Fund Association must not refuse it.

The calculation of the present value amount relating to an application for delivery under paragraph (1) is specified by Cabinet Order.

When the National Pension Fund Association receives the delivery of the present value amount relating to an application for delivery under paragraph (1), it is to pay a pension or lump-sum benefit relating to that early leaver, using that delivered amount as the source of funds.

The provisions of Article 129 through Article 131 apply mutatis mutandis to the pension or lump-sum benefit under the preceding paragraph.

When a National Pension Fund delivers the present value amount relating to an application for delivery under paragraph (1), it is released from the obligation to pay a pension and lump-sum benefit relating to that early leaver.

When the National Pension Fund Association becomes obligated to pay a pension or lump-sum benefit relating to an early leaver under paragraph (4), it must notify that early leaver to that effect.

When the National Pension Fund Association is unable to give the notice under the preceding paragraph because the whereabouts of the early leaver are not clear, it must, in lieu of the notice under that paragraph, give public notice of the matters that should be notified.

When an early leaver who is to be paid a pension or lump-sum benefit by the National Pension Fund Association under paragraph (4) of the preceding Article again becomes a member of the original National Pension Fund, that National Pension Fund is to request that National Pension Fund Association to deliver the present value amount of the pension relating to that early leaver.

The calculation of the present value amount relating to a request for delivery under the preceding paragraph is specified by Cabinet Order.

When a National Pension Fund receives the delivery of the present value amount relating to a request for delivery under paragraph (1), it is to pay a pension or lump-sum benefit relating to that early leaver, using that delivered amount as the source of funds.

When the National Pension Fund Association delivers the present value amount relating to a request for delivery under paragraph (1), it is released from the obligation to pay a pension and lump-sum benefit relating to that early leaver.

The provisions of paragraph (2) of the preceding Article apply mutatis mutandis to a request for delivery under paragraph (1).

When a National Pension Fund that is a member is dissolved, the National Pension Fund Association collects, from that dissolved National Pension Fund, the amount equivalent to the policy reserve prescribed in Article 95-2 relating to the members of a dissolved fund of that National Pension Fund.

When a member of a dissolved fund relating to a National Pension Fund from which the National Pension Fund Association collected the amount equivalent to the policy reserve under the preceding paragraph acquires the right to receive an old-age basic pension, or when a member of a dissolved fund relating to that National Pension Fund had, on the day of that National Pension Fund's dissolution, the right to receive an old-age basic pension, the National Pension Fund Association is to pay a pension to that member of a dissolved fund, and, if that member of a dissolved fund dies and the survivors receive a death lump-sum payment, is to pay a lump-sum benefit to those survivors.

The amount of the pension under the preceding paragraph is the amount obtained by multiplying 200 yen by the number of months of the membership period relating to that dissolved National Pension Fund, and the amount of the lump-sum benefit under that paragraph is 8,500 yen.

A dissolved National Pension Fund may, as provided by the articles, apply to the National Pension Fund Association that collected the amount equivalent to the policy reserve under paragraph (1), for the delivery of the residual assets that are to be distributed to a member of a dissolved fund under Article 137, paragraph (4).

When the National Pension Fund Association receives the delivery of residual assets that are to be distributed to a member of a dissolved fund in accordance with an application under the preceding paragraph, it is to add to the amount of the pension or lump-sum benefit relating to that member of a dissolved fund, using that delivered amount as the source of funds, as provided by Cabinet Order.

When the National Pension Fund Association receives the delivery of the residual assets prescribed in the preceding paragraph, for the purpose of the application of Article 137, paragraph (4), those residual assets are deemed to have been distributed to that member of a dissolved fund.

When the National Pension Fund Association becomes obligated to add to the amount of the pension or lump-sum benefit relating to a member of a dissolved fund under paragraph (5), it must notify that member of a dissolved fund to that effect.

The provisions of Article 137-17, paragraph (2) apply mutatis mutandis to an application under paragraph (4), and the provisions of paragraph (8) of that Article apply mutatis mutandis to a notice under the preceding paragraph.

Payment of a pension that the National Pension Fund Association pays under paragraph (2) of the preceding Article is, while payment of the whole amount of the old-age basic pension to which that member of a dissolved fund has the right to receive is suspended, to be suspended during that period; provided, however, that this does not apply to the part of the amount of that pension that exceeds the amount obtained by multiplying 200 yen by the number of months of the membership period relating to that dissolved National Pension Fund.

The provisions of Article 16 and Article 24 apply mutatis mutandis to the right to receive a pension or lump-sum benefit paid by the National Pension Fund Association; the provisions of Article 18, paragraphs (1) and (2) and Article 19, paragraph (1) and paragraphs (3) through (5) apply mutatis mutandis to a pension paid by the National Pension Fund Association; the provisions of Article 21-2 apply mutatis mutandis to a pension and a lump-sum benefit paid by the National Pension Fund Association; the provisions of Article 22 and Article 23 apply mutatis mutandis to the National Pension Fund Association; the provisions of Article 25, the second sentence of Article 70 and Article 71, paragraph (1) apply mutatis mutandis to a lump-sum benefit paid by the National Pension Fund Association; and the provisions of Article 29 apply mutatis mutandis to a pension that the National Pension Fund Association pays under Article 137-19, paragraph (2). In this case, the term "Minister of Health, Labour and Welfare" in Article 16 is deemed to be replaced with "National Pension Fund Association"; the terms "pension benefit payable" and "payment of a pension benefit" in Article 21-2 are deemed to be replaced with "lump-sum benefit payable" and "payment of a lump-sum benefit", respectively; the term "old-age basic pension" in Article 24 is deemed to be replaced with "pension paid by the National Pension Fund Association"; the term "person entitled to receive a benefit" in Article 29 is deemed to be replaced with "person who has the right to receive"; and the term "an insured person or a person who was an insured person" in Article 71, paragraph (1) is deemed to be replaced with "a member or a person who was a member".

The provisions of Article 95, Article 96, paragraphs (1) through (5), Article 97 and Article 98 apply mutatis mutandis to the amount to be collected under Article 23 as applied mutatis mutandis under the preceding paragraph and under Article 137-19, paragraph (1). In this case, the term "Minister of Health, Labour and Welfare" in Article 96, paragraphs (1), (2), (4) and (5) and Article 97, paragraph (1) is deemed to be replaced with "National Pension Fund Association"; the term "paragraph (1) of the preceding Article" is deemed to be replaced with "paragraph (1) of the preceding Article as applied mutatis mutandis under Article 137-21, paragraph (2)"; and the term "14.6% per annum (or, when that demand relates to a premium, 7.3% per annum for the period until the day three months have elapsed from the day following that due date for payment)" is deemed to be replaced with "14.6% per annum".

The provisions of Article 131-2 and Article 132 apply mutatis mutandis to the accumulation and investment of the reserve fund of the National Pension Fund Association, the investment of surplus funds arising in the course of its operations, and its business year and other financial matters. In this case, the term "the preceding Article and the preceding two paragraphs" in paragraph (3) of that Article is deemed to be replaced with "the preceding Article and the preceding two paragraphs as applied mutatis mutandis under Article 137-21, paragraph (3)".

The National Pension Fund Association is dissolved for the following reasons:

A resolution of the board of councilors adopted by a majority of at least three-quarters of the fixed number of councilors;

An order of dissolution under Article 142, paragraph (5).

When the National Pension Fund Association intends to dissolve for the reason set forth in item (i) of the preceding paragraph, it must obtain the authorization of the Minister of Health, Labour and Welfare.