(Purpose) Article 1. The purpose of this Law is to promote the welfare of the personnel of towns and villages by providing for the organization to deal with the affairs concerning the retirement annuities and retirement grants for the personnel of towns and villages and the method of management thereof in line with the spirit of the Local Public Service Law (Law No.261 of 1950).

(Establishment of the Pension Association for the Personnel of Towns and Villages) Article 2. Towns and villages must establish, in each area of To, Do, Fu or prefecture, the partial-affairs-association (hereinafter referred to as the "pension association for the personnel of towns and villages" ) mentioned in Article 284 of the Local Autonomy Law (Law No.67 of 1947) to deal jointly with the affairs concerning the retirement annuities and retirement grants of the personnel.

(Articles of the Pension Association for the Personnel of Towns and Villages) Article 3. In the articles of the pension association for the personnel of towns and villages, the provisions relating to the coverage and qualification of those who receive the benefit from the association and the kind and the amount of the benefit, besides such one as enumerated in each item of Article 287 paragraph 1 of the Local Autonomy Law, shall be made. 2 The Local Autonomy Agency may provide for the model articles concerning the affairs mentioned in the preceding paragraph and represent those to the pension associations for the personnel of towns and villages.

Article 4. When it intends to amend its articles, the pension association for the personnel of towns and villages must, through the resolution of the assembly of association, obtain the permission of the governor of To, Do, Fu or prefecture.

(Share of the Expenditure) Article 5. The expenditure necessary for the benefit of the pension association for the personnel of towns and villages shall be shared by towns and villages and the personnel thereof.

(Principle concerning the Calculation of Funds for Benefit and the Administration of Estate) Article 6. The calculation of funds necessary for the benefit of the pension association for the personnel of towns and villages and the administration of estate thereof must be on the basis of the sound actuarial computation.

(Federation of Pension Associations for the Personnel of Towns and Villages) Article 7. The pension associations for the personnel of towns and villages may, for the purpose of making an improvement and a progress of their affairs, set up the Federation of Pension Associations for the Personnel of Towns and Villages (hereinafter referred to as "the Federation" ). 2 The Federation may have the following works to accomplish the purpose mentioned in the preceding paragraph: (1) To submit the technical and professional knowledge, data, etc. concerning the affairs of the pension association for the personnel of towns and villages to the association; (2) To investigate and study on actuarial computation concerning the calculation of funds necessary for the benefit of the pension association for the personnel of towns and villages and, the administration of estate thereof; (3) To direct the affairs of the association so that the calculation of funds necessary for the benefit of the pension association for the personnel of towns and villages and the administration of estate thereof may be operated in accordance with the principle provided for in the preceding Article; (4) Any other work that is necessary to accomplish its purpose. 3 The Federation shall be a juridical person. 4 The Federation must, in the Articles of Association, provide for the following matters and obtain the approval of the Prime Minister: (1) Name; (2) Business; (3) Location of the office; (4) Matters concerning the joining and secession; (5) Matters concerning officers; (6) Matters concerning the sharing of expenditure and the accounting; (7) Any other necessary matters. 5 The Articles of Association shall not be changed without the approval of the Prime Minister. 6 The Federation shall be formed on the day when the approval mentioned in paragraph 4 is obtained. 7 There shall be directors and superintendents in the Federation. 8 The provisions of Article 52 paragraph 2, Articles 53 to 55 inclusive, Article 59 and Article 67 of the Civil Code (Law No.89 of 1896) shall apply mutatis mutandis to the Federation.

(Treatment of the Whole-affairs-association, Office-affairs-association and Partial-aftairs-association of Towns and Villages) Article 8. In the case of the application of this Law, the whole-affairs-association office affairs-association and partial-affairs-association shall be deemed to be a town or village.

(Relation between this Law and the Local Autonomy Law) Article 9. As to the pension association for the personnel of towns and villages, the provisions of the Local Autonomy Law shall apply, except for cases specially provided for by this Law.