Japan approves DC pensions to halt DB market collapse

Japanese lawmakers have finally authorised defined contribution plans for the retirement asset management marketplace but a Cerulli Associates report warns this will not create the goldmine of opportunity foreign fund managers expect. From 1 October 2001, Japanese corporations will be able to establish occupational retirement schemes that generate pensions based on an individual's contributions and investment performance, rather than a defined benefit or final salary formula. The Cerulli Associates report, entitled Japanese Asset Management, says while Japan is the second largest po...