Pension Scheme

The Public Pension System is a social insurance system to support senior citizens, disabled people, and the families of deceased persons in emergency circumstances by providing them with pensions and benefits.

The public pension system consists of the national pension, providing old-age, disabled and survivors basic pensions equally to all entered persons, and employees pension insurance entered into by company workers etc. providing additional pension on top of the basic pension in proportion to ones income.

National pension plan

Entry to national pension plan

  1. Entry age etc.

    All persons residing in Japan between the ages of 20 and 59 including foreigners must enter the national pension system. However, if you have entered into the employees pension insurance system at your company, you are also entered into the national pension system at the same time. The procedures for entering into the national pension system are thus automatically carried out at the time when you entered into the employees pension system, and there is therefore no need for you yourself to carry out the procedures directly.

  2. Entry procedures

    To enter the national pension system, you should take your seal and report to the pension department in your local municipal administrative office. (A seal is not required if the subscriber him/herself signs the subscription form.)

  3. Payment of pension contributions

    The contribution rate is same for all subscribers regardless of income and is 15,020 yen per month as of FY2011. Payment notifications sent from the Japan Pension Service once every April can be paid at the counter of a designated financial institution, post office or convenience store, or by automatic bank transfer.

    If you cannot afford the payment due to low income or other reasons, you can apply for payment exemption. There are cases where you will be allowed full or partial amount of exemption. Also, students may apply for student payment exemption system to postpone their payments. Please note that this does not apply to students at certain kinds of schools. As a general principle, you must apply for exemptions etc. (except for those who have obtained legal exemption) once every year. For details, please contact a pension department.

  4. Lump-sum withdrawal payments (upon leaving Japan)

    Foreign residents who have contributed to the National Pension and employees pension for a total of six months or more may claim the Lump-sum Withdrawal Payment within two years of leaving Japan according to designated procedures. For details, please contact the pension department of your local municipal administrative office.

    ●To apply for the national pension lump-sum withdrawal payment

    Conditions

    Documents to be submitted

    Additional documents to be submitted
    Foreign residents who have contributed to the National Pension for a total of six months or more, and who apply within two years of leaving Japan. Application form for the lump-sum withdrawal payment (for national pension and employee’s pension Insurance)
    1. Copy of your passport (pages where your latest date of emigration, name, date of birth, nationality, signature, and status of residence can be verified.)
    2. Bank name, branch name, branch address, account number, account name to be paid into, and a document proving that the account belongs to claimant himself/herself (a proof issued by the bank etc. or a document which has been stamped with the seal of the bank in the column for proof of account)
    3. Pension booklet

    ●The amount of the national pension lump-sum withdrawal payment

    Total contribution-paid period

    Benefit amount (FY2011)

    Between 6 and 11 months 45,060 yen
    Between 12 and 17 months 90,120 yen
    Between 18 and 23 months 135,180 yen
    Between 24 and 29 months 180,240 yen
    Between 30 and 35 months 225,300 yen
    36 months or more 270,360 yen

    *The period of exemption is calculated according to the each type of exemption Exemption of three-quarter → one-quarter of a month Exemption of one-half → one-half of a month Exemption of one-quarter → three-quarters of a month

Employee’s pension

The employees pension is a pension system into which companies employees enter, and which provides benefits proportional to remunerationon top of the basic national pension.

Entry to employee’s pension

  1. Eligibility

    Full-time employees, including foreigners, of a company with five employees or more must enter the employees pension system. Part-time employees must also enter this pension system if their working hours and days exceed three-quarters of the working time of a full-time worker in the company.

  2. Entry procedures

    The company you work for will undertake the entry procedures. Please enquire at your company or Social Insurance Office.

  3. Payment of pension contributions

    You and your company will share the contribution fifty-fifty, and the amount of the pension contributions is determined according to the workers monthly salary and the amount of bonus. The payment will be made through your company. For details, please contact your company or Social Insurance Office for inquiries.

  4. Lump-sum withdrawal payment (upon leaving Japan)

    Foreign residents who have contributed to the employees pension and national pension for a total of six months or more may claim the lump-sum withdrawal payment within two years of leaving Japan according to designated procedures. For details, please contact the pension department of the Social Pension Office nearest to you.

    ●To apply for the employee’s pension lump-sum withdrawal payment

    Conditions

    Documents to be submitted

    Additional documents to be submitted
    Foreign residents who have contributed to the employee’s pension for a total of six months or more and who apply within two years of leaving Japan. Application form for the lump-sum withdrawal payment (for national pension and employees' pension insurance)
    1. Copy of your passport (pages where your latest date of emigration, name, date of birth, nationality, signature, and status of residence can be verified.)
    2. Bank name, branch name, branch address, account number, account name to be paid into, and a document proving that the account belongs to claimant himself/herself (a proof issued by the bank etc. or a document which has been stamped with the seal of the bank in the column for proof of account)
    3. Pension booklet

    ●The amounts of the employee’s pension lump-sum withdrawal payment

    Total period insured

    Benefit amount (rounded off to one decimal place)

    Between 6 and 11 months Your average standard remuneration* × benefit multiplier {(contribution rate** × 50%) × 6}
    Between 12 and 17 months Your average standard remuneration × benefit multiplier {(contribution rate × 50%) × 12}
    Between 18 and 23 months Your average standard remuneration × benefit multiplier {(contribution rate × 50%) × 18}
    Between 24 and 29 months Your average standard remuneration × benefit multiplier {(contribution rate × 50%) × 24}
    Between 30 and 35 months Your average standard remuneration × benefit multiplier {(contribution rate × 50%) × 30}
    36 months or more Your average standard remuneration × benefit multiplier {(contribution rate × 50%) × 36}

    * Your average standard remuneration = the total amount of your remuneration and bonuses for the months which constitute the basis of your total insured period, divided by the number of your insured months.

    ** In this chart, the contribution rate of October of the year prior to the year in which the month of your final payment fell (the month of your final paymentbeing the month prior to the month in which the day of your ceasing to be qualified as an insured person fell) is for purposes of convenience referred to as the contribution