Public pensions are a cornerstone of retirement security, and reforms to enhance their role must not be postponed.

Japan's Ministry of Health, Labor and Welfare has released an outline for pension reform legislation. While addressing the issue of low pensions was a primary focus, the plan is a retreat from the ministry's proposal from late last year.

The ministry aimed to expand employees' pension coverage to include part-time and short-hour workers while raising the amount of basic pension benefits. A key proposal was to eliminate the "more than 50 employees" requirement for company size, allowing workers at small businesses to join the system.

However, this would impose new insurance premium costs on businesses. In response, the ruling Liberal Democratic Party (LDP) pushed business concerns, resulting in the reform's implementation being delayed from 2029 to 2035. This delay risks neglecting measures to secure workers' futures.

Shoring up the basic pension's financial foundation is another pressing issue. With wages and prices stagnating, the current system will continue to erode benefits for self-employed workers and others. To address this, the ministry proposed reallocating part of the employees' pension reserve funds to the basic pension.

This proposal has sparked concerns that salaried workers' insurance premiums would be used to support self-employed individuals. However, nearly all households would ultimately benefit. The ministry must continue to provide clear explanations.

At the same time, the growing burden on national finances cannot be ignored. Half of the basic pension is funded by taxes, and an estimated 2.5 trillion yen (approx. $16.5 billion) will be required. The funding issue cannot be sidestepped.

Fearing a debate on tax increases, the LDP postponed the decision on whether to implement the reform until after the next review in five years.

Avoiding discussions about financial burdens will not resolve the low pension problem. In about a decade, the generation that entered the workforce during Japan's "employment ice age" just after the economic bubble burst in the early 1990s will begin receiving pensions. Many of them are likely to face low pension levels, making it urgent to address their livelihood security.

With the House of Councillors elections approaching this summer, the LDP is likely trying to avoid painful reforms. However, ensuring retirement security requires a comprehensive overhaul of this country's social security system.

Both ruling and opposition parties must engage in thorough discussions from a long-term perspective, rather than focusing on immediate political gains.