Many foreign workers leaving Japan wish to reclaim as far as possible the costs of their accrued pension plan contributions. Foreign nationals leaving Japan who have contributed to the government pension plan for less than 10 years may be able to claim a Lump-sum Withdrawal Payment for up to 3 years of their enrollment period in the National Pension Insurance system – Employees’ Pension Insurance and Mutual Aid Association Pension Insurance, etc., after their insurance is terminated, they depart from Japan and have met the necessary requirements listed below.
Note that at time of writing this article, even for a foreigner who has worked in Japan for more than 36 months, the refund payment will still only be calculated up to a maximum of 36 months, and the rest of the contributions will be lost. It cannot, for example, be credited in the case they return to employment in Japan in future – the benefits would then restart from zero. For this reason, foreigners intending to return and live long term in Japan sometimes decide to keep the pension credit with the authorities rather than making such claim. Those who do not expect to do so may choose to apply for the refund despite the limited period of contributions which can be claimed.
The claim must be made within 2 years from the date that Japan residence ended to be valid.
You may be eligible to apply if:
- You are not a Japanese national.
- You were enrolled and paid into the National Pension for six months or more.
- You have broken residence from Japan and do not have a residential address in Japan.
- Note that if you first submit a Moving-out Notification to the city office, you can claim for the Lump-sum Withdrawal Payment after exiting Japan even if you have a re-entry permit. If you fail to first break residence in this way, you will not be eligible until your reentry permit expires.
4.You were not already eligible to receive the pension payments as a recipient (including disability allowance)
The amount you receive will depend on the number of months paid, and the month and year that the last payment was made. For reference, the figures for a last payment made between April 2020 and March 2021 are as follow :
| Months | Amount |
| 6 – 11 | ¥45,750 |
| 12 – 17 | ¥91,500 |
| 18 – 23 | ¥137,250 |
| 24 – 29 | ¥183,000 |
| 30 – 35 | ¥228,750 |
| 36 or more | ¥274,500 |
These amounts are in ranges so that the recipients get, for example, the same amount for six months paid as for eleven months, even though there may be a difference of up to ¥82,700 in what was actually paid.
How to proceed:
- Complete the Lump-sum Withdrawal Payment Claim Form. You can download the English forms here: https://www.nenkin.go.jp/international/japanese-system/withdrawalpayment/payment.html
- Attach the following documents :
- Copy of your passport ( including the page verifying your name, date of birth, nationality, signature, and status of residence and the pages that show the date you exited Japan after breaking residence.)
- Copy of your Japan residence card showing your name and residence status.
- Documents verifying that you no longer reside in Japan ( Record of residence termination, etc).
- Documents verifying your bank account name, branch, address, account number, and your name as account holder ( a certificate issued by the bank, etc.).
Your bank can verify your account information by sealing the form in the “Bank stamp for verification” column. - National Pension Book and other documents verifying your Basic Pension Number.
If you submitted the Moving-out Notification to your local city office before leaving Japan, the deleted information in your residence card will be proof of such. In this case, the items listed in 2, above, may not be needed.
Important Notes:
-Authorise a tax representative. You will need a resident in Japan to manage this process. This may be your ex-employer or a resident friend. They must complete the form entitled “Declaration Naming a Person to Administer Taxpayer’s Tax Affairs” which is available on the website of the social insurance office or the National Tax Agency.
The Japanese government will withhold 20 percent of the final refund payment as income tax. The Tax Representative can file an annual tax return by March 15 the following year on your behalf to claim back the 20% tax deducted and remit this to your overseas bank account.
-To submit a claim for Lump-sum Withdrawal Payment in Japan before departing Japan, note that you must submit your Claim to the Japan Pension Service after submitting the Moving-out Notification and the (planned) deletion date of your residence record. (To receive the Lump-sum Withdrawal Payment, you must not have an address in Japan on the day the Japan Pension Service receives your Claim.)
-To submit a Claim by post, send your Claim so that the Japan Pension Service will receive it after the submission date of the Moving-out Notification and the (planned) deletion date of your residence record. The address can be found on the Japan Pension Service website. Note that you must post this within two years or the money will be forfeited.
-If your application is approved, the lump sum will be paid into your stipulated bank account by the Japan Pension Service. The process timeline is not fixed, but it is usually a few months.
