What You Need to Know about the Japanese Lump Sum Pension Withdrawal

Jul 27, 2016


What is Japanese [Work/Taxes] Lump Sum Pension Withdrawal?

All registered residents of Japan have to contribute to the Japanese National Pension Scheme which is known as ”Kokumin Nenkin (国民年金) . This includes both Japanese and foreign nationals. If you are self-employed or unemployed you would have to go to National Pension counter at the local municipal office to get enrolled. If you are employed, its your employer’s responsibility to enroll you into the National Pension Scheme.

After a person or employee is enrolled into the scheme, a pension handbook is provided with a respective social security number. It is a blue colored booklet which contains the pension number and other personal details of the person insured. This pension handbook should be kept safe as this is required for pension reimbursement after a person leaves Japan.

A sample of a Japanese pension handbook

 

 


スクリーンショット 2016-07-27 22.25.05[Reference: www.japantimes.co.jp]

 


The pension payments have to be made every month and are based on your monthly salary (or income if self-employed). There are other benefits apart from pension after retirement under this scheme such as disability benefits and survivor’s basic pension (to the family of dead pensioner). Many countries have a bilateral agreement with Japan for social security. Hence, if one belongs to these countries, pension contributions paid in Japan can be accounted for in their home countries and vice versa. For the list of countries which have a bilateral agreement with Japan visit http://www.nenkin.go.jp/international/english/international/othercontries.html

For more information on the features of pension scheme you can also visit this website http://www.nenkin.go.jp/international/english/nationalpension/nationalpension.html

 

[Lump Sum Pension Withdrawal]

 

There are many countries which do not have bilateral agreements with Japan for social security. Luckily, the Japanese government allows for lump sum withdrawal of pension payments after a foreign national leaves the country.

 

The following are the conditions for lump sum pension withdrawal:

 


  1. If a person has availed of any of the pension benefits (such as disability allowance) during his stay in Japan he/she is automatically ineligible to apply for pension lump sum withdrawal.


  2. Pension contributions for a minimum of six months have to be made for a person to be eligible for lump sum withdrawal.


  3. Application for lump sum withdrawal has to be made within two years of leaving Japan.


  4. Pension reimbursement is allowed for a maximum period of 36 months. Pension payments in excess of 36 months will not be reimbursed.


スクリーンショット 2016-07-27 22.33.15
(Reference: http://manetatsu.com/2016/01/57418/)

 

The following is a procedure on how to apply for lump sum pension withdrawal:

– Before leaving Japan


  1. Apply for an address change at your local ward office before you leave Japan. The new address provided should be outside Japan.


  2. Cancel your Visa/Alien Registration card (ARC) at the airport while departing from Japan. Usually, they punch a hole in your ARC during cancellation. Note that that you will not be allowed to enter Japan with the same visa gain.

After leaving Japan, send the following documents:

 

  1. 1. Duly filled in Application for the Lump-sum Withdrawal Payments. Application can be downloaded from http://www.nenkin.go.jp/international/english/lumpsum/lumpsum.html
  2. 2. Photocopy of your passport (page(s) showing date of your final departure from Japan, your name, date of birth, nationality, signature and resident status, e.g., instructor, engineer or trainee).
  3. 3. Documents issued by your bank about your bank account details: name of the bank, name and address of the bank branch office, your account number and anything to show the account holder is the claimant (yourself). Instead of such documents, you may have your bank’s verification stamp on your application form.
  4. 4. Your Pension Handbook. Make sure you keep a photocopy of your pension handbook before sending in the original. This may be useful at a later stage.

 

スクリーンショット 2016-07-27 22.10.27(Reference: http://find-travel.jp/article/4740)

 

[The mailing address is]

 

Japan Pension Service

3-5-24, Takaido-nishi, Suginami-Ku,

Tokyo 168-8505 JAPAN

〒168-8505 東京都杉並区高井戸西3 丁目5 番24 号

日本年金機構(外国業務グループ)

Information provided here is intended for guidance only. For official information visit the website http://www.nenkin.go.jp/index.html

 

Mirza

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