Nenkin Net (Pension Net) A case of the Japan Pension Service (Nippon Nenkin Kiko)

Transcription

1 Good Practices in Social Security Good practice in operation since: 2011 Nenkin Net (Pension Net) A case of the Japan Pension Service (Nippon Nenkin Kiko) Japan Pension Service (Nippon Nenkin Kiko) Japan Published

2 1 Summary In February 2011, the Japan Pension Service (JPS) launched "Nenkin Net", an internet service for its customers to use personal computers to access their pension information at any time 24 hours a day. The Nenkin Net started as a service for customers to refer to their coverage history, number of covered months, their base income for benefits calculation purposes, contribution amount, and contribution payments records. Subsequently reflecting customers' needs, the service has been gradually improved with new functions; customers can now have their future benefits estimated, view various types of letters and notices which are mailed by post to customers, receive support when preparing reports to be submitted to the JPS. The service is also available on a smartphone. The JPS's exclusive call centre supports customers to use the Nenkin Net. Customers without computers may receive the service at selected municipal offices, where their pension records and benefits estimate information can be printed. CRITERIA 1 What was the issue/problem/challenge addressed by your good practice? The Nenkin Net was developed as one of the main solutions to the unmatched pension records problem. Until 1997 each public pension system had a respective numbering system for the people it covered, and one insured person may have had several pension numbers as they changed work. Then in January 1997, the Basic Pension Number system was introduced, which integrated all pension numbering systems into one, i.e., one person has one Basic Pension Number for life irrespective of their job changes and pension system changes. In 2007 it was discovered that there were many unmatched pension records, whose owners were not known. These unmatched records were still recorded under the old numbering system or were the result of clerical errors in the transcription process from paper based records to the computer database. The government developed a national project to solve this unmatched pension records problem and to prevent its recurrence.

3 2 CRITERIA 2 What were the main objectives and the expected outcomes? The JPS's objective in the promotion of the Nenkin Net service is to contribute to constant and accurate pension records keeping and thus to the payment of correct benefits, by inviting customers to confirm their own records and involving them in finding missing records or correcting incorrect records. For other objectives such as customer service enhancement and more operational efficiency, the JPS improves and adds new functions to the Nenkin Net taking advantage of ICT. The Nenkin Net allows customers to check at any time 24 hours a day: their coverage history; the number of covered months; income (monthly salary) and contribution payments under coverage; and also instantly provides the estimated amount of individual future benefits based on their coverage history, or benefits amount simulated according to their options of retirement age or work. Since other various pension information is also available via the Nenkin Net, we expect customers can save frequent trips to the JPS Branch Offices. CRITERIA 3 What is the innovative approach/strategy followed to achieve the objectives? One of the innovative features of the Nenkin Net is the "benefits estimates" service, making use of ICT. One click on the Nenkin Net on a computer or a smartphone will instantly show our customers the amount of their estimated pension benefits based on the assumption that the person will work until age 60 with the same income. It provides not only the standard estimate, but the Nenkin Net can also provide instantly the simulated amount of benefits based on the various detailed options each customer selects. Options available are:

4 3 If there are any unpaid contribution months in the past, customers can select the specific month for which they plan to pay the monthly contribution. Customers can select type of pension system and hypothetical future income. Customers can select future retirement age to claim pension benefits or delayed/early retirement. The Nenkin Net provides customers with estimates tailored to their needs at any time, so they can save frequent trip to the JPS branch offices. Not only does it improve customer service, but it also contributes to operational efficiency by reducing demand for frontline services. CRITERIA 4 Have the resources and inputs been used in an optimal way to achieve the set objectives and the expected outcomes? Please specify what internal or external evaluations of the practice have taken place and what impact/results have been identified/achieved so far. The budget and operation/business plan of the JPS including the Nenkin Net are approved by the Minister of Health, Labour and Welfare and the Minister of Finance. Specific systems developments for the Nenkin Net are examined and approved by the councils hosted by the Ministry of Health, Labour and Welfare as well as the council hosted by the JPS. About 3.77 million users have their ID to access the Nenkin Net as at June The average number of accesses per day is 23 thousand. CRITERIA 5 What lessons have been learned? To what extent would your good practice be appropriate for replication by other social security institutions? The Japanese people are very much interested in public pension systems to provide income security in their retired life. However, they are generally anxious about the pension systems because the systems are complex. Their non-specific anxiety then causes low contribution payment rates and other problems. To clear people's anxiety and solve such problems, inevitably public relations or communication aimed at educating people in simple terms so as to relieve their anxiety are necessary, yet within limited resources.

5 4 Therefore the JPS takes advantage of the vast possibility of web pages to publicize pension system information. In addition to this general information, using ICT enables the JPS to provide customers with 24-hour access to their individual pension coverage records online in an easy-to-understand format. Also the JPS's innovative approach is the instant benefits estimates service on whatever assumptions the customers may individually enter. The JPS encourages customers to take full advantage of the internet service. This ICT-supported service approach may be a reference for other social security administrations who have difficulty in building local administrative offices nationwide.