Point-Based Retirement Benefit Plans in Japan

Point-based retirement benefit plans have become the most widely adopted retirement benefit design among large companies in Japan, replacing many traditional final-salary-based arrangements. Under this approach, employees accumulate points throughout their careers, and retirement benefits are calculated based on the total points earned and a predetermined point value.

This guide provides an overview of Japan's point-based retirement benefit system, including key design features, administrative considerations, and pension liability calculation implications for employers.