Japan's Two Structures for DB Corporate Pensions: Rule-Type vs Fund-Type

Defined Benefit (DB) corporate pension plans are one of the main types of corporate retirement plan available in Japan. They provide predetermined retirement benefits supported by long-term funding and governance requirements. Under Japanese law, DB pensions can be established using two different structures: Rule-Type DB and Fund-Type DB.

This guide provides an overview of the key differences between Rule-Type and Fund-Type DB pensions, including governance, administration, and typical use cases for each structure.