Japanese Version

This service is to support a world talent, who has returned or is going to return back to his or her home country, to withdraw so-called lump sum payment of premium contributed to Japan’s public pension systems (National and Employees Pensions) during residency in Japan. This article covers the following contents:

Lump-sum Withdrawal: Benefits

Partial refund of pension premium for non Japanese who returns back to home country

World talents in Japan as a long term resident are mandated to participate in Japan’s public pension systems. In case a world talent leaves Japan without becoming eligible for receiving pension, lump-sum withdrawal of premium can be applied to refund partially what you have paid as premium.

More precisely, a world talent can apply for lump-sum withdrawal, within two years after returning back home or other countries, when the talent has paid pension premium for six months or longer or for shorter than ten years.

30% to 50% of Total Amount of Premium to be Refunded, when Participated for Three years or less

Unfortunately not all of what the talent has paid as premium will be refunded. Refund amount varies, depending on individual premium history and amount. Please find further details at Amount of Lump-sum Withdrawal from National Pension and Amount of Lump-sum Withdrawal from Employees Pension.

30% to 50% of total amount of premium paid is refunded when a world talent has participated in National Pension System for 3 years or less. (The refund percentage is actually double, 60% to 100%, for Employees Pension System, because an employer subsides a half of premium of an employee.)

As in Amount of Lump-sum Withdrawal from National Pension and Amount of Lump-sum Withdrawal from Employees Pension, an upper limit is set at 3 years or 36 months as duration of participation in the amount calculation tables, and amount does not increase beyond the upper limit no matter how longer a world talent participate beyond the 3 year limit. This means that the refund ratio against the total premium paid, i.e. 30% to 50% above, declines as the participation duration gets longer.

Case Studies

  • National Pension: Withdrawal amount is JPY 295,380 for those who have participated for 3 years
    • (In case where the last month of premium payment is within the fiscal year 2019)
  • Employees Pension: Withdrawal amount is JPY 1,262,700 for those who have participated for 3 years
    • (In case where “average standard monthly salary” is JPY 300,000, “average standard bonus” is JPY 500,000 and “premium ratio” is 18.3%)

Taxation on Withdrawal and its Refund

Taxation on withdrawal is as follows.

  • National Pension: No tax is imposed. 100% of withdrawal amount is paid to a bank account designated by an applicant.
  • Employees Pension: Income tax of 20.42% is imposed, which is withheld by Japan Pension Service, and the reminder, approximately 80% is paid to a bank account designated by an applicant.
    • This withholding tax can be partially or fully refunded later through separate application.

Lump-sum Withdrawal: Disadvantages

Lump-sum Withdrawal is provided in return for giving up premium payment history, i.e. the payment historical records will be erased altogether as if no payment were made in the past. This side effect leads towards a shorter (or zero) premium payment period, which has the following as disadvantages of the withdrawal.

  1. Becoming less likely to be eligible for receiving pension
  2. Amount of pension becoming less

Lump-sum Withdrawal and Social Security Agreements

The disadvantages, especially #1 above, are not limited to pensions in Japan but also to the ones in home country, especially for those who come from countries that have social security agreement with Japan where the agreement includes “totalization of pension period” (which means that premium payment periods in Japan and home countries can be summed up when pension eligibility is judged).

It also has to be noted that entire history of premium payments is erased (not just for 3 years) when lump-sum withdrawal is made for an applicant with the history longer than 3 years. This may be felt as unreasonable because the withdrawal amount does not increase beyond the 3 year’s upper limit, but it is how it is implemented in law. Those, who have premium payment period longer than 4 or 5 years, should carefully review this disadvantage before raising a request for lump-sum withdrawal.

Details of the social security agreement can be found in this article.

Lump-sum Withdrawal: Eligibility

An insured person becomes eligible to apply lump-sum withdrawal when the person meets all of the following criteria:

  • Not having Japanese nationality (i.e. a Japanese national cannot apply)
  • Premium payment period is 6 months or longer and the person is not yet eligible for any kinds of pension (which typically means that premium payment period is less than 10 years)
  • Not having residential address in Japan (i.e. already returned back to home or other countries)
  • Still within 2 years after having left Japan

An insured person falling into one of the following criteria is NOT eligible to apply lump-sum withdrawal:

  • Premium payment period is less than 6 months or is (typically) 10 years or longer:
    • Less than 6 months: No withdrawal amount hence cannot apply
    • 10 years or longer: Becoming eligible for old-age pension, so that becoming not eligible for lump-sum withdrawal
  • Not participating Japan’s pension because of the social security agreement

For details of the social security agreement, please refer to this article.

In case an Insured person dies, prior to or after application of Lump-sum Withdrawal

In case an eligible insured person dies without receiving lump-sum withdrawal, a spouse, a child, a parent, a grandchild, a grandparent, a brother, a sister or other relative with the three degree of relationship, who shared the same livelihood at the time of death, can receive the withdrawal payment on behalf.

Lump-sum Withdrawal: Processing Time and Application Documents

As lump-sum withdrawal of Employees Pension requires two separate steps, processing time and application documents are described below for each of the steps.

  1. Lump-sum Withdrawal: Application and Refund
  2. Refund of Withholding Tax
    • Applicable only to Employees Pension

Lump-sum Withdrawal: Processing Time

It typically takes 3 – 6 months after application documents are submitted, and before the following starts off:

  • Notice of Lump-sum Withdrawal is sent to an applicant.
  • Lump-sum withdrawal is transferred to a bank account
    • National Pension: 100% of the withdrawal amount
    • Employees Pension: approximately 80% of the withdrawal amount
      • The rest, approximately 20%, is withheld at source as income tax

Lump-sum Withdrawal: Application Documents

  • Application form
    • For the Lump-sum Withdrawal Payments (National Pension / Employees’ Pension Insurance)
  • Passport (photocopy)
    • Pages showing name, date of birth, nationality, signature, status of residence (i.e. type of visa) and date of the latest departure from Japan
  • Residential Card (photocopy)
  • Resident Record (including persons who have moved out or are deceased)
    • If you have reported your move-out to a municipal office, this record is not required
  • Bank Account Certificate
    • Account Certificate issued by your bank, showing bank, branch, location address, account number and account holder that should be identical to your name, or
    • Bank stamp verification in the application form
  • Pension Handbook (or other document showing your basic pension number)

Refund of Withholding Tax: Processing Time

Around 20% of lump-sum withdrawal from Employees Pension is withheld as income tax. This withholding tax can be refunded in a separate process after the reminder 80% is paid to your bank account.

It typically takes one month or two for Japan tax office to transfer refund to a bank account in Japan owned by an applicant or a tax agent. Amount of the refund can be in full or a part of the withholding tax, depending on amount of monthly salary.

Refund of Withholding Tax: Application Documents

  • Notice of Lump-sum Withdrawal Payments (original document)
  • Tax Agent Designation letter (“Shotokuzei Shohizei no Nozei Kanrinin no Todokedesho”)

Lump Sum Withdrawal: Engagement Process

Client Service Areas

Support service offering for lump sum withdrawal is limited to a client who has his or her last residence in Japan in one of the following prefectures.

  • Tokyo, Kanagawa, Saitama, Chiba

Three Phase Processes

Engagement process consists of three phases as follows.  Details of the engagement process can be found here.

  1. Case Evaluation
  2. Quote and Engagement
  3. Fulfillment

Case Evaluation and Quotation for lump-sum withdrawal is free of charge. The following cost will be incurred after contractual Engagement for Fulfillment of services.

Full amount of support fee is charged as an initial fee at time of sign up for lump-sum withdrawal service, unlike for other services where 50% of the fee is charged as an initial fee and the rest is charged at completion of the service.

Lump Sum Withdrawal: Cost of Application (Expenses and Attorney Fee)

Cost of application is as follows when you ask Anshin Immigration Services to support your application for lump-sum withdrawal.

The cost is a sum of expenses and attorney fee.

Cost of Application = ExpensesAttorney Fee


  • Postal: Actual expenses
  • Transportation: Actual expenses
  • Fee payable to Japan Pension Service: JPY 5,000
    • For re-issuing “Notice of Lump-sum Withdrawal Payments” in case it is lost.

Attorney Fee

Attorney fee for lump-sum withdrawal is calculated as follows.

(Base Fee + Additional Fee) x (100% – Discount)

  • Base Fee:
    • Employees Pension: Lump-sum Withdrawal JPY 40,000
    • National Pension: Lump-sum Withdrawal JPY 20,000
  • Additional Fee: in case of the following:
    • Reporting of move-out to a municipal office on behalf JPY 10,000
  • Discount: in case of the following:
    • National Pension: 50% (JPY 10,000) of the fee for National Pension withdrawal is discounted when lump-sum withdrawal of both National and Employees Pensions are ordered at the same time.

Services in scope of Basic Fee

Either of the following services is offered for Basic Fee:

  • Employees Pension: Lump-sum Withdrawal
  • National Pension: Lump-sum Withdrawal

Examples of Attorney Fee

Case: Employees Pension – Lump-sum Withdrawal and National Pension – Lump-sum Withdrawal ordered at the same time

Fee=JPY 40,000 + JPY 20,000 x 50% x 50%=JPY 50,000

Defined Contribution Pension (Corporate Type, iDeCo) – Difficult to Withdraw before Age 60

 Up to here, lump-sum withdrawal from public pension (National and Employee Pensions) are discussed. Some world talents subscribe also Defined Contribution (“DC”) pension (Corporate Type, iDeCo). At time of writing in Feb 2020, withdrawal criteria of DC pension are too stringent to be satisfied for most of cases. This situation is however seen as a problem and Social Security Council proposes improvement. So that in the near future, withdrawal from DC pension becomes more feasible through laws revisions. Please find more details in this page.

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