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    Social Insurance Administration to remain under government control

    What with all the attention the reform of Japan Post has gotten, the woes of Japan’s Social Insurance program–which is even more screwed than its US counterpart–can sometimes go virtually unnoticed. The government’s been thinking about it, though (Japanese, English). The recommendation involves those three little words we all love to hear: “new government entity.”

    As part of the Social Insurance Agency reform, a new government entity will be established to manage public pension programs, but the government will retain complete control over the system.

    The plan was based on similar recommendations made in a final report by an advisory panel on the agency’s reform to Chief Cabinet Secretary Hiroyuki Hosoda and Liberal Democratic Party proposals.

    The government has finally completed a reform plan, prompted by the revelation of a series of scandals involving the agency. But its plan may attract criticism as only creating a different facade rather than implementing an overhaul.

    Unlike the heated discussions of the past, the LDP panel meeting held at the party’s headquarters Tuesday proceeded quietly.

    I’ll bet! Of course, it’s easy to argue airily that having the government in charge will keep things going as smoothly as possible, but when you look at the specifics, there’s plenty to be doubtful about. Non-payment of premiums is already a pervasive problem. Last year right around this time, it was starting to sound as if no bureaucrat in the history of the Japanese government had ever made a single payment into the kitty. Speak of setting a good example, huh? In the meantime, the restructuring of the SIA is supposed to take place in 2008, so there’s plenty of time for things to become even more Byzantine as more and more people with something to lose have their say. Should be fun.

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