【What Is Lump-sum Withdrawal】Twincities Labour & Social Security Consulting

In Japanese pension sysytem, the minimum coverage period to receive elderly pension is 120 months (i.e. 10 years).

If you are non-Japanese who came to Japan, and leave Japan without meeting 120-month coverage period, you cannot receive the benefit of pension unless you obtain disability pension or disability allowance.

 

In this case, non-Japanese people can claim lump-sum withdrawal.

You can receive a refund to some extent. (Note that not all the amount of insurance premium they have paid is returned.)

The conditions of receiving the lump-sum withdrawal is as follow:

 

1. You do not have Japanese nationality.

2. You have at least 6 months of the National Pension contribution pension period, or at least 6monts of the Employees' Pension enrollment period.

* With regards to the National Pension contribution pension period, partial exemption periods are evaluated as follows;

- One-fourth contribution exemption period...Thtee-fourth month

- Half contribution exemption period...Half month

- Three-fourth contribution exemption period...One-fourth month

2. You do not have an address in Japan, i.e. they have submitted a moving out notification to the municipal office.

3. You have not obtained the right to receive any pension, including disability allowance.

 

In principle, you need to claim your lump-sum withdrawal within 2 years after you leave Japan, but if you still enroll in the Employees' Pension Insurance after departing Japan, you need to claim it within 2 years after you withdraw from the Employees' Pension Insurance.

 

In some cases, however, it may be better that you do not claim your lump-sum withdrawal.

Japan has concluded the Social Security Agreement to the following countries to prevent dual enrollment in social insurance for both countries and totalize the coverage period of both countries' pension system;

Germany, United States of America, Belgium, France, Canada, Australia, Netherlands, Czech Republic, Spain, Ireland, Brazil, Switzerland, Hungary, India, Luxembourg, Philippines, Slovakia, Finland and Sweden (as of April, 2024)

(With regards to UK, Korea, China and Italy, only prevention of dual enrollment is applied.)

If you receive your lump-sum withdrawal, the period for calculationg it will no longer be valid.

 

If you think of receiving your lump-sum withdrawal, feel free to contact us.

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