The Future of Corporate Pensions in the United States and Japan

Sponsored by:

The Asia Foundation, The German Institute for Japanese Studies

In co-operation with:

Nikko Financial Intelligence, Inc, Japan Pension Research Council

Time:

April 15, 2003 Tuesday, 1:00 p.m to 5:00 p.m

Place:

Hitotsubashi Memorial Hall, National Center of Sciences Map

The Japanese pension market is one of the largest in the world, second only to that of the United States. However, with the Japanese population aging rapidly, securing old-age provisions has become increasingly difficult. Public pension benefits have been curtailed substantially in recent years, whereas new corporate pension legislation is aimed at increasing the role of employment-based pensions within a new public-private pension mix.

The most recent regulations regarding the Japanese corporate pension market have been influenced strongly by the US experience, and hopes are that the Japanese pension market might achieve results similar to those experienced by the US market since the mid-1970s. However, prospects for future returns seem less promising given the current slowdown of world stock markets and the uncertainty regarding the extent of financial scandals that have occurred in the United States (e.g., Enron, WorldCom) and Europe (e.g., Ahold). These concerns have observers wondering whether and how corporate pension plans can adapt to these challenges to effectively manage their funds in the best interest of their sponsors. By comparing recent developments in regulations and practices in the US and Japan, this symposium addresses these issues from a comparative perspective: What role should pension funds play in corporate governance? How and where can pension funds invest to overcome the current slump in stock markets? What are the likely effects of demographic changes on pre-funded pension plans? What kind of regulatory changes and tax policies are necessary to ensure stability and growth in future?

Speakers: William Dale Crist, Former President of the Board of Administration,
California Public Employees' Retirement System (CalPERS)
Tomomi Yano, Executive Managing Director, Pension Fund Association
Franck Wiebe, Chief Economist, The Asia Foundation
Discussants and Chair:
Tomoyuki Kubo, Chief Researcher, Pension Research Institute, The Sumitomo
Trust & Banking Co., Ltd.
Harald Conrad, Senior Research Fellow, German Institute for Japanese Studies

materials:
 Program
 Profiles of Speakers
 Conference Notes
 "FIGHTING OFF THE BEARS" Funding Pensions in the Second Millennium William Dale Crist
 Corporate Governance and Pension Funds Tomoyuki Kubo
 Institutional Investors and Corporate Governance Reform Franck Wiebe
 Outlook and problems of Pension Funds Tomomi Yano (Japanese)