关于加强日本固定缴款养老金制度和日本个人储蓄账户计划的建议（pdf）

FE B RUA RY 2024 ICI POLICY PAPER Recommendations to Enhance Japan’sDefined Contribution Pension System ICI and ICI Global1applaud Japan’s leadership in developing policy reforms to strengthen theasset management industry and encourage greater household participation in the capital markets,including through its “Doubling Asset-Based Income Plan” and the “Policy Plan for Promoting Japan In furtherance of these policy goals, we encourage Japan to enhance its defined contribution (DC)pension system and to continue building on the recent and welcome enhancements to the NipponIndividual Savings Account (NISA) program. Facilitating a shift from savings to investment will be The experience in the United States and other jurisdictions illustrates that reforms by Japan toexpand and improve the functioning of its DC pension system, as well as continued enhancements to »Given aging demographics, private DC plans—both corporate and individual—can serve asan important complement to the Japanese public pension system, providing households with »Tax-advantaged DC pensions and savings programs can be powerful tools to help foster aninvestment culture, with increased participation in the programs also leading to increased »Larger pools of investable assets within the DC plan system will also foster additionalcompetition and growth in the asset management industry, which over time can lead to lowerDC plan and investment fees and improved services for households, while facilitating the In this context, this paper presents ICI’s recommendations to foster a more robust DC pensionsystem in Japan, thereby enhancing retirement security, increasing household participation in SUMMARY OF KEY RECOMMENDATIONS gIncrease the contribution limits for corporate DC plans and for individual-type hFacilitate additional employee contributions to DC plans by removing therestriction that an employee cannot contribute more than the employer, and jEncourage greater use of diversified long-term investment vehicles as the kMake it easier for plan sponsors to change investment products in DC plans. lFurther expand the scope of eligible diversified investment products for NISA. zEncourage plan sponsors and financial services firms to provide additional RECOMMENDATION 1: Increase the contribution limits for corporate DC plans and for individual-type DC pension plans (iDeCo). For a successful DC pension framework, contribution limits (both participant limits and totalcontribution limits) must be high enough to allow participants to accumulate sufficient investableassets to meaningfully contribute to a household’s long-term retirement needs. As illustrated below, As an important complement to the Japanese public pension system, expanding the size of DCpension plan assets over time through increased contribution limits can enhance future retirement Increasing contribution limits, and thereby permitting larger pools of investable assets within the DCplan system, will not only benefit each participant, it will also foster growth in the asset managementindustry supporting these DC plans. We anticipate that a larger pool of DC plan assets would For example, in the United States, the growth in 401(k) plans coincided with the developmentof lower-cost investment services for the mass market.4Through competition and innovation,401(k) plan participants with modest account balances today can invest in a diversified investment RECOMMENDATION 2: Facilitate additional employee contributions to DC plans by removing therestriction that an employee cannot contribute more than the employer, and We recommend that Japan take steps to facilitate additional employee contributions to DC plans.Along with supporting retirement security, employee contributions can help foster a stronger We suggest two specific policy measures to facilitate additional employee contributions: »Eliminate the restriction that an employee cannot contribute more to a corporateDC plan than the employer.Current restrictions result in differing treatment foremployees across firms based on differences in employer contributions and can limit »Allow older workers to make “catch-up” contributions.A catch-up contribution is anadditional contribution that may be made to a DC plan by employees that are beyonda certain age. In the United States, for example, workers that are age 50 or older are RECOMMENDATION 3: Encourage greater use of diversified long-term investment vehicles as thedefault investment for corporate DC plans and iDeCo. To help foster a shift from saving to investing for retirement, we recommend that Japan generallyencourage investment in diversified, long-term products as the default investment for DC plans, ratherthan an overreliance on cash or capital preservation products. Using diversified investments as the Currently, nearly 30 percent of the assets held in corporate DC and iDeCo plans in Japan are heldin cash deposits (¥ 6.6 trillion) and another approximately