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Panel reviewing pension work outsourcing

Jiji Press TOKYO (Jiji Press) — An investigative panel of the Japan Pension Service held its first meeting Tuesday to review the organization’s outsourcing of its work in the wake of the revelations of errors and contract violations by data input subcontractors.

After discussing problems associated with the work consignment to outside firms and solutions for the problems, the panel of experts will compile a report in early June suggesting how to fix the outsourcing operation.

“I’d like to extend my heartfelt apology for causing worries and trouble to customers,” JPS President Toichiro Mizushima said at the meeting. Mizushima asked the group to reexamine the subcontracting practice and consider ways to optimize the pension management body’s operations.

Taking over the pension business from the now-defunct Social Insurance Agency in 2010, the JPS has since streamlined its operations through outsourcing. But in February this year, about 104,000 people received less pension benefits than they were due because of data input errors by a consigned information-processing company.

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