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Funding Sources of Mutual Aid Association


The costs incurred by the three services of the Mutual Aid Association (Short-Term benefits, long-term benefits, and welfare) are funded by the members’ insurance premiums and contributions from the national government and Independent Administrative Institutes.


1 Insurance Premiums and Contributions

The insurance premium is calculated by multiplying the standard monthly salary, standard bonuses and other allowances by the insurance premium rate. The resulting premium amount is deducted from the member’s monthly salary, bonuses, and other allowances. The contributions are a specified percentage of the member’s standard monthly salary, standard bonuses, and other allowances paid by the national government Independent Administrative Institutes as employers.


Insurance Premiums and Contribution Rates (April 1, 2019)
Member Type Insurance Premium Rate (Member)
Short-Term Nursing Care Employees' pension Retirement pension
Long-Term Member (1.08)
40.47/1,000
7.54/1,000 91.50/1,000 7.5/1,000
Mariner Member (1.08)
38.45/1,000
7.54/1,000 91.50/1,000 7.5/1,000
Voluntarily-Continuing Member 80.94/1,000 15.08/1,000 --- ---
Continuing Long-Term Member --- --- 91.50/1,000 7.5/1,000

Member Type Insurance Premium Rate (Member)
Short-Term Nursing Care Employees' pension Retirement pension
Long-Term Member (1.08)
40.47/1,000
7.54/1,000 91.50/1,000 7.5/1,000
Mariner Member (1.08)
42.49/1,000
7.54/1,000 91.50/1,000 7.5/1,000
Voluntarily-Continuing Member --- --- --- ---
Continuing Long-Term Member --- --- 91.50/1,000 7.5/1,000
  Short-term insurance premium rates and contribution rates include funding for the welfare services (1.02/1,000).

Members who are on childbirth or childcare leave are exempted from premium payment starting in the month to which the first day of such leave belongs, and ending in the month prior to the month to which the day after the last day of such leave belongs, provided an application is filed.

Note: The numbers in parentheses in the table above indicate the short-term insurance premium rate and the contribution rate for members who are under the late-stage geriatric medical care plan.



2 Insurance Premiums for Voluntarily-Continuing Insurance Members

The premium amount for voluntarily-continuing insurance members is calculated by multiplying the standard monthly salary, which is the basis of the premium amount, by the insurance premium rate. The premium can be paid monthly or prepaid for a specified length of time. There is a discount for prepaid premiums.

1Monthly Payments

i. The first insurance premium should be paid within 20 days of the member’s retirement, e.g., by April 19 if you retired on March 31.
  ii. After the first month, the premium for the month the member intends to continue membership should be paid by the end of the month prior to such month..

2Prepaid Premiums

  Periods of Prepayment
If the premiums are prepaid using the prepayment discount system, they can be paid in the following monthly increments as a rule.
i. A six-month period from April to September, or from October to June of the following year
  ii. A twelve-month period from April to March of the following year
  iii. However, a period of at least two months from either i or ii above when a voluntarily-continuing insurance member becomes qualified for the first time, or when it is known that the member will lose that qualification.
If a member retires at the end of a month and wishes to become a voluntarily-continuing insurance member beginning in the following month, the prepayment period continues to the following month as long as the member pays the premium for the voluntarily-continuing insurance by the day before the retirement date.

  Prepayment Rate
The prepayment amount is calculated by multiplying the premium amount for one month by the rate for the number of months you wish to prepay specified in the table below (rounded to the nearest yen).

Prepayment Period Rate   Prepayment Period Rate
2months 1.990221   8months 7.883420
3months 2.980464   9months 8.854433
4months 3.967476   10months 9.822277
5months 4.951267   11months 10.786964
6months 5.931847   12months 11.748502
7months 6.909228      
  If the member loses his/her membership, during a prepaid period, unused portion of the premiums will be returned to the member upon request.


The Structure of the Mutual Aid Association
Outline of the Mutual Aid Association
Members  
Membership Card  
Dependents  
Standard Monthly Salary and Standard Bonus  
Funding Sources of Mutual Aid Association