Claiming Your Lump Sum Pension

Claiming Your Lump Sum Pension

Paying into a pension scheme is a requirement for everyone living and working in Japan over the age of 20. However, if you are planning on leaving Japan permanently, you have two options regarding your pension.

Totalization

With this option, citizens from certain countries can add the time they've contributed to the Japanese pension scheme to that of their own country. The agreements between Japan and each country (listed here) differ from place to place. Therefore, if you are interested in this option, it is best to speak with your consulate.

Lump Sum Withdrawal Payments:

If you wish to apply for lump sum withdrawal payments, you can recover up to 3 years of pension payments in one lump sum after leaving Japan. If you use this option, you will forfeit your right to claim pension coverage in the future. If you are interested in receiving a lump sum payment, the processes is detailed below.

Please note that you will receive 80% of the whole amount of lump sum payment, since it is subject to taxation method called withholding income tax (20%).   

 

Qualifying for Lump Sum Withdrawal Payments

 
The following conditions must be met in order to qualify for Lump Sum Withdrawal Payments:
 
•Applying within two years of leaving Japan
•Not possessing Japanese citizenship
•Having paid premiums for six months or more
•Not having a place of residence in Japan (canceled Alien Registration/ Residence Card)
•Never been qualified for pension benefits including Disability Allowance
 

Necessary Documents

1) Photocopy of your passport (pages showing date of your final departure from Japan, your name, date of birth, nationality, signature and resident status, eg., instructor, engineer or professor).
 
2) Documents issued by your bank about your bank account or a copy of your passbook, or void check etc.: to confirm 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).
Include documents that shows IBAN or SWIFT/BIC code (all areas) of the financial institution.
 
3) Your Basic Pension Number (基礎年金番号)
 

4) A copy of a deleted residence record (revision history of a residence record:除票) or a document that shows your Resident Register Code : Please go to the Village/City Office in your area and ask for the document with 住民票コード(Resident Register Code) before leaving Japan

 

Before Leaving Japan

1) Visit Private School Mutual Aid website and download the application form.
 TEL 03-3813-5321(English speaking staff available)
To check your eligibility, call PSMA and provide them your date of birth, the departure date from Japan and your personal number/code written on your health insurance card.
 
2)Submit a moving-out notification (転出届, tenshutsu-todoke) to your municipal office within two weeks of the day you plan to move out. Ask for the document with 住民票コード(Resident Register Code) ** Please see Necessary Document section
 
*Return your residence card at the airport. You will have a lot of trouble redeeming your pension if you don’t.
 

After Leaving Japan

1) Fill out the form(s) and mail them to PSMA (and the Japanese Social Insurance Agency for employees if you were working in Japan before 2011). Include all the necessary documents.
 
2) Wait for the 80% of your refund. “Notification of Lump Sum Withdrawal Payment Confirmation” ( 脱退一時金支給決定通知書 - dattaiichijikin shikyu ketteitsuuchisho ) will arrive at your address in your home country as a receipt for the payment. Keep this form for your record.
 
 

OPTIONAL: Claiming the tax refund

BEFORE Leaving Japan

1) Find someone to be your Tax Representative.
  • Please note that OIST will NOT act as your tax representative.
  • The representative must be a Japanese national or a non-Japanese with a valid residence card with high-level of Japanese language skill.
*Your Tax Representative may have to take leave to visit the Tax Office to file your tax on your behalf, so please choose wisely and be appreciative and also consider hiring PROFFESIONAL HELP (bilingual solicitors/administrative scriveners). Also, there is no guarantee that the 20% is definitely returning despite the efforts your Tax Representative makes. Therefore we shall emphasize the importance of professional knowledge and mutual trust with your Tax Representative. 
 

2) Go to your local tax office and get the Nozei Kanrinin no Todokesho納税管理人の届け書 (Tax Representative Declaration Form) or download a copy here.  
 
Your local tax office
Okinawa Tax Office: Okinawa-city, Uruma-city, Kadena-Cho, Chatan-Cho and Yomitan-son
Nago Tax Office: Nago-city, Onna-son and Kin-Cho 
 

3) Fill out 2 copies of the form with your Tax Representative and submit to your local tax office: one to turn in, the other for your Tax Representative to keep.
 
Click below image to see the example of the form.
 

AFTER Leaving Japan

1) Send the original "Lump Sum Withdrawal Payment Confirmation Notice”to whomever you designated as your Tax Representative.
 
2) Your Tax Representative will have to go to your local Tax Office and file for the tax return (確定申告書-kakuteishinkokusho).
 
3) Instruct your tax representative to have your remaining 20% deposited into his/her account (it must be deposited into a Japanese bank account). Then your Tax Representative will transfer the amount to you either through whichever remittance method you choose.