Pension refund [The pension systems in Japan]

 The Japanese pension system is composed of national pension (kokumin nenkin) and employees' pension (kosei nenkin). Any resident in Japan who is between 20 and 59 years of age, including non-Japanese nationals, is required to enroll in a pension system. Click on the links below for more information about the systems and how to get a partial refund when you leave the

Pension refund (dattai ichijikin, 脱退一時金)

  The Pension Reform Bill was promulgated on November 9, 1994 so that a Lump-sum Withdrawal Payment (pension refund) can be granted on request to those who have enrolled in Japanese public pension schemes but who then leave the country. If you pay into a Japanese pension, you will be able to claim a refund, provided you meet all of the eligibility criteria.

  Filing for the pension refund, officially called the "Lump-sum Withdrawal Payment", and the tax refund associated with its payout is a 7-step process that begins just before you leave Japan.

(1) Before leaving, get the necessary forms and designate a Tax Representative.
(2) After leaving Japan, mail necessary forms for refund.
(3) Receive Lump-sum Withdrawal Payment into overseas bank account.
(4) Mail notice of refund to Tax Representative in Japan.
(5) Tax representative files for refund of tax on lump-sum withdrawal.
(6) Tax representative receives tax refund.
(7) Tax representative transfers money to you.

  Upon payment of the Lump-sum Withdrawal Payment, the period of enrollment corresponding to the paid amount is nullified. Therefore, participants from countries having Social Security Agreements with Japan (as of January 2006, Germany and U.S.A. only) will need to assess the benefit of receiving the refund or combining the coverage periods in Japan and their home country.

  For more information, visit this helpful websiteOutsideLink created by the JET programme, or visit the Japan Pension Service’s official websiteOutsideLink for details.
 Here is a detailed pamphlet(PDF File351KB) in English that explains all about applying for and receiving pension refunds.

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