Even if you are a foreigner, if you live in Japan, you will be required to join a Japanese pension. However, some people may return to their home countries without receiving the pension.
In this article, we will explain the “lump-sum pension withdrawal system” that you can use when you return to your home country.
What is the Lump-sum Withdrawal Payment?
The lump-sum withdrawal payment system is a system that allows foreigners who have paid a pension to request a lump-sum payment when they leave Japan.
If a foreign national leaves Japan and lose National Pension Insurance(NPI) or Employees’ Pension Insurance(EPI) insured status, he/she can request a lump-sum withdrawal payment within two years from the date of losing a Japanese address.
The amount of the lump-sum withdrawal payment depends on the insurance premium you paid before you left Japan. When applying, you must prepare the necessary documents and submit them to the Japan Pension Service.
The payment requirements for each are as follows.
| Type of pension | Payment requirements |
|---|---|
| National Pension Insurance(NPI) | ・Having a Primary Insured Person period of 6 months or more (including voluntary participation) ・Not having Japanese nationality ・Not meeting the eligibility period for the old-age basic pension ・Not being insured by the NPI |
| Employees’ Pension Insurance(EPI) | ・The total period of enrollment of EPI and mutual aid association is 6 months or more ・Not having Japanese nationality ・Not meeting the pension eligibilities such as old-age welfare pension |
Reference: 短期在留外国人の脱退一時金｜日本年金機構 (Japanese)
However, if you meet any of the following conditions, you cannot request a lump-sum withdrawal payment.
- Being insured by the national pension
- Having a Japanese address
- Having experience receiving pensions such as disability welfare pension
- More than two years have passed since the last day of the loss of national pension status
Please note that the application period is fixed. If you stay in Japan even after you lose your pension qualification, it will be two years after you leave Japan and lose a Japanese address.
How to Apply for the Lump-sum Withdrawal Payment
When applying for a lump-sum withdrawal payment, please refer to the following for where to request.
| Subscribing pension, etc. | Where to request |
|---|---|
| NPI and EPI only | The Japan Pension Service accepts the request |
| When the period such as mutual aid association is included | One of the executing agencies will make a payment in a lump sum after adding up the participation periods of the NPI, EPI, mutual aid association, etc., so make a request to that institution (if the payment period of the NPI is 6 months or more, the Japan Pension Service accepts the request) |
In case if NPI does not pay the lump-sum withdrawal payment, you need to apply it for the pension implementing institution where you have been joining last.
Documents Required When Applying
The following documents are required to apply for a lump-sum withdrawal payment.
- Lump-sum Withdrawal application form
- Copy of passport (a page that indicates the name, date of birth, signature, the status of residence, nationality)
- Documents certifying that you do not have a Japanese address, such as a copy of a deleted residence record (not required if you have submitted a moving-out notification to the municipality)
- Documents that can confirm the bank name, branch name, branch location, account number and account holder’s name
- Documents such as national pension handbook that can confirm basic pension number
You can download the lump-sum withdrawal application form from the following website of the Japan Pension Service. Please fill in the necessary information according to the content. It supports multiple languages, such as English and Chinese.
Regarding bank accounts, if you want to receive a lump sum withdrawal at a Japanese financial institution, your account name must be registered in katakana. Please note that Yucho Bank cannot receive a lump-sum withdrawal payment.
For your information, you can ask a proxy for the procedure for requesting the lump-sum withdrawal payment. In that case, please prepare a power of attorney.
The Amount of Lump-sum Withdrawal Payment
Here, we will explain how much you can receive as lump-sum withdrawal payments for the NPI and EPI.
In Case of NPI
The amount of the lump-sum withdrawal payment in the NPI depends on how long you paid the national pension insurance premium.
The following table shows the payment amount when the last month of the payment of the national pension premium is in FY2019.
| Period of payment | Payment amount |
|---|---|
| 6 months to less than 12 months | 49,230 yen |
| 12 months to less than 18 months | 98,460 yen |
| 18 months to less than 24 months | 147,690 yen |
| 24 months to less than 30 months | 196,920 yen |
| 30 months to less than 36 months | 246,150 yen |
| More than 36 months | 295,380 yen |
Reference: 脱退一時金に関するお客様向け Q＆Ａ (Japanese)
In Case of EPI
Unlike the NPI, the amount of payment for the EPI is determined by the enrollment period of the EPI and the average monthly standard remuneration during the period.
Specifically, you can calculate it by the following formula (example of those who lose the enrollment of the EPI after October 2017.)
Payment amount = average monthly standard remuneration × payment rate according to the EPI enrollment period
The “payment rate according to the EPI enrollment period” is as shown in the table below.
| EPI enrollment period | Payment rate |
|---|---|
| 6 months to less than 12 months | 0.5 |
| 12 months to less than 18 months | 1.1 |
| 18 months to less than 24 months | 1.6 |
| 24 months to less than 30 months | 2.2 |
| 30 months to less than 36 months | 2.7 |
| More than 36 months | 3.3 |
Reference: 脱退一時金に関するお客様向け Q＆Ａ (Japanese)
When calculating, please apply the above values.
Points to Note When Applying
There are a few things to keep in mind when applying for a lump-sum withdrawal payment. If you forget these, you may not receive the lump sum payment, so be sure to check it.
About Moving Out Notification
If you do not submit a moving-out notification when you leave Japan, you cannot apply for a lump-sum withdrawal payment during the re-entry permit period. This is because you are treated as an insured person in the NPI until the re-entry permit period expires.
Even if you have a re-entry permit, you will need to submit a moving-out notice if you move your address overseas. You can submit it to the municipal office where you live.
Treatment of Pension Enrollment Period
After receiving a lump-sum withdrawal payment, the period that was the basis of calculation for payment will not be treated as a pension enrollment period.
When the Eligibility Period is 10 Years or More
Those who have paid the pension for more than 10 years, that is, those who have the right to receive the old-age pension cannot claim the lump-sum withdrawal payment.
Instead, you can get a Japanese old-age pension. It means that you can receive your money in a different way.
Timing of Submitting an Application
If you submit a lump-sum withdrawal application before you leave Japan, you must submit it after the date of the moving-out procedure at the municipal office. This is because the person who made the application mustn’t have an address in Japan when the Japan Pension Service receives the application.
Also, when submitting the application form by mail, make sure it arrives at the Japan Pension Service after the date of your moving-out.
Conclusion
This time, we explained about the lump-sum withdrawal payment as a pension refund system in Japan.
There are many foreigners who have paid their pension premiums in Japan for many years. If you decide to return to your home country, be sure to apply it within the deadline so as not to waste the amount you have paid.