The amount of Kosei Nenkin’s lump-sum pension refund varies much compared with that of Kokumin Nenkin
You can claim a lump-sum pension refund (Lump-sum Withdrawal Payments) if you clear the following conditions:
- You don’t have Japanese citizenship
- You contribute Japanese pensions for more than 6 months
- You are covered by Japanese pensions for less than 10 years (*)(**)
- You have already left Japan with deleting your Japanese address (***)
(*)The total period for that you contribute pensions, that you are exempted to contribute due to such as a student or earning low income, and that you are a “Category III” insured person. For “Category III” insured person, see this article of our blog. (**) If you are a permanent resident (永住者), you will have a narrower condition to claim it. See this article of our blog. (***) You need to submit a Moving-out Notification at city office if your visa is valid. Seethis article of our blog.
If you contribute either of Kosei Nenkin (厚生年金), Kokumin Nenkin (国民年金) or Kyosai Kumiai (共済組合), then you can claim a lump-sum pension refund.
On the assumption of contributing (paying) for the same number of months, the lump-sum pension refund of each of three types will be as follows:
| Type of pension | Amount of lump-sum pension refund | Taxation |
| Kokumin Nenkin | Small | No |
| Kosei Nenkin / Kyosai Kuminai | Small to big according to monthly average of “Standard Remuneration” | 20％(*) |
(*) But you can get its refund by your tax agent. For tax agent, see this article of our blog.
A lump-sum pension refund of Kosei Nenkin and Kyosai Kumiai varies much according to the average of “Standard Remuneration”. “Standard Remuneration” means almost nearly the amount of your monthly salary (but salaries over 650,000yen are regarded as 650,000yen). For details see this article of our blog. So a small amount of salary for Kosei Nenkin / Kyosai Kumiai leads to a small amount of lump-sum pension refund, and vice versa.
The amount of your lump-sum pension refund is set according to the amount of your contributions
The reason why amounts of lump-sum pension refunds of Kosei Nenkin / Kyosai Kumiai tend to be bigger than those of Kokumin Nenkin is that the former two vary considerably according to “Standard Remuneration”.
In other words an employee taking much monthly salary contributes considerably more than the case if he/she is covered by Kokumin Nenkin. Japanese companies withhold social security payments such as Kosei Nenkin from their monthly salary, and their employees receive the rest. Unlike Kokumin Nenkin, whose contribution is set at a relatively low and constant level, contributions of Koisei Nenkin / Kyosai Kumiai are set in proportion to the amount of monthly salary. That leads to a relatively big amount of lump-sum pension refunds for Kosei Nenkin / Kyosai Kumiai, and relatively small amount of refunds for Kokumin Nenkin.
Please note that some small-size companies don’t provide their employees with Kosei Nenkin but let them contribute Kokumin Nenkin by themselves. In such a case their employees will receive their lump-sum pension refunds under the condition of Kokumin Nenkin, that is, relatively small amount of contributions and relatively small amount of pension refunds.
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