Key quote in the State Department report:
A Pension Agency enforcement directive continues to make it explicitly easier for employers to avoid paying pension and insurance contributions on behalf of their foreign employees who teach languages as compared with Japanese employees in similar positions. It also does not establish penalties for employers who illegally fail to enroll foreign teachers in the system. Employers may use different contracts for foreigners than for nationals, and courts have generally upheld this distinction as nondiscriminatory.
The report continues:
During the year Zenkoku Ippan Tokyo General Union continued a campaign to encourage public schools to directly hire foreign-national assistant English language teachers rather than employ outsourcing firms to staff these positions. The union maintained that these firms refused to enroll foreign teachers in required health and pension schemes and violated labor laws by employing foreign national teachers in schools at which they are legally prohibited from taking guidance from other teachers or staff.
When you consider that the US-Japan totalization agreement makes even one month participation in Japanese pension programs eligible to be counted toward either the 25 year (current) Japanese rule, or the American 40 credits (approx. 10 year) one, it’s very clear that it is the foreign worker in Japan who is being severely cheated out of old age security. That this is mostly being done to people who are relatively young, and who may not “care”, is no excuse.
How else do pensions get funded? You must make contributions while you are decades away from collecting! You don’t fund these things entirely at age 64.
See more about the State Department human rights reports at: http://www.state.gov/j/drl/rls/hrrpt/humanrightsreport/index.htm#wrapper You need to select Japan to read the one about Japan.