Small and Medium-sized Enterprise Retirement Allowance Mutual Aid System

About the SME Retirement Allowance Mutual Aid System

　The Small and Medium-sized Enterprise Retirement Allowance Mutual Aid System (hereinafter referred to as SME Retirement Allowance Mutual Aid) is a system established based on the "Small and Medium-sized Enterprise Retirement Allowance Mutual Aid Act," enacted in 1959 as part of the national measures for small and medium-sized enterprises. Considering the reality that it is difficult for small and medium-sized enterprises to have their own retirement allowance systems independently, this system establishes a retirement allowance system through the spirit of mutual assistance among small and medium-sized enterprises and national support. Its purpose is to promote the welfare of employees of small and medium-sized enterprises and stabilize employment, thereby contributing to the promotion and development of small and medium-sized enterprises. The operation of this system is managed by the Small and Medium-sized Enterprise Retirement Allowance Mutual Aid Headquarters (hereinafter referred to as SME Retirement Allowance Mutual Aid Headquarters) of the Independent Administrative Institution Workers’ Retirement Allowance Mutual Aid Organization (hereinafter referred to as the Organization).

Companies that can join

　You can join if either the number of regularly employed workers or the amount of capital/investment funds falls within the following ranges.
However, in the case of sole proprietorships or public interest corporations, it depends on the number of regularly employed workers.

	Number of Regular Employees		Capital and Investment Funds
General Industries (Manufacturing, Construction, etc.)	Less than 300 people	or	300 million yen or less
Wholesale Industry	Less than 100 people	or	Under 100 million yen
Service Industry	Less than 100 people	or	Under 50 million yen
Retail Industry	50 or fewer people	or	Under 50 million yen

Benefits of the System

(1) Contribution Subsidy from the Government (some exclusions apply)
　A portion of the contributions will be subsidized for employers joining the Chutaikyo system for the first time and for employers increasing their monthly contribution amount.　

• New Membership Subsidy
  Half of the monthly contribution amount (up to 5,000 yen per employee) for one year starting from the fourth month after joining.
• Monthly Change Subsidy
  If the monthly contribution amount is increased to below 18,000 yen, one-third of the increased amount will be provided for one year from the month of increase.

(2) Easy management with an external accumulation type

　Contributions are made by direct debit, so there is no hassle.
　Additionally, payment status and retirement benefit asset amounts for each employee are notified to the employer, making retirement benefit management simple.

(3) Contributions Are Tax-Exempt

　Contributions are fully tax-exempt, treated as deductible expenses for corporations and as necessary expenses for individuals.

(4) Selection of Monthly Contribution Amount

　The monthly contribution amount selected for each employee can be increased at any time after enrollment. Also, reduction of the monthly contribution amount is possible under certain
　It is possible under certain requirements.

(5) Consolidated Retirement Benefits through the Portability System
　If certain requirements are met, the following portability is possible.

• Past Employment Period
  When an employer joins the Chutaikyo system for the first time, the employment period before joining can be totaled for employees who have already worked for more than one year.
• When changing jobs between companies enrolled in the Chutaikyo system
  You can total the monthly contribution amount paid at the previous company.
• When changing jobs between a company enrolled in the Chutaikyo system and a company enrolled in the Specific Retirement Allowance Mutual Aid system
  You can total the retirement allowance from the previous company into each respective system.

(6) Retirement Allowance Paid Directly to Employees

　The retirement allowance is transferred directly from the Chutaikyo Headquarters to the bank account of the retired employee. In addition to a lump-sum payment,
　if certain conditions are met, the employee can choose to receive the entire amount or a portion of it in installments.

• For more details, please visit the website.(External link)
• We hold online system briefings.(External link)
• Brochures are also available.(External link)

Contact Information

Small and Medium-sized Enterprises Retirement Allowance Mutual Aid Business Headquarters
Phone 03-6907-1234