According to the Financial Report on the Public Pension System for Fiscal 2014 released on Sept. 8 by the Ministry of Health, Labour and Welfare, the public pension reserve in fiscal 2014 was 203.6 trillion yen, an increase of 17.3 trillion yen from fiscal 2013. This is the first time in eight years (since fiscal 2006) that the reserve exceeded 200 trillion yen. In those days, the market environment was looking up due to firm stock prices among other factors.

In addition to the employees’ pension, the public pension also includes mutual aid associations for national and local public service personnel among others. Total revenues in fiscal 2014, excluding investment gains (losses), were 47.8 trillion yen while expenditures were 50.6 trillion yen. Thus, once expenditures are subtracted, revenues were negative 2.8 trillion yen.

Pension benefits, which make up the majority of expenditures, declined by 0.3%. This was because benefits decreased with the lowering of the special level of pension payments. Seen from a long-term perspective, pension benefits are on a rising trend with the aging of society.