About pension reform laws and change for lump-sum pension refund

By | 19/05/2025

Ministry of HL&W published the pension reform bills

Ministry of Health, Labor and Welfare published the pension reform bills on their website.

Briefing paper (Japanese only)https://www.mhlw.go.jp/content/001488402.pdf

How lump-sum pension refunds will be reformed

  1. Non-Japanese are permitted to receive Lump-sum Withdrawal Payments (LSWP) after their re-entry permits expire.
  2. This reform will be enforced within 4 years after the new laws are promulgated (officially published).

After this reform bills are approved by Japanese Diets, the following change will be enforced within 4 years.

  • Non-Japanese need to surrender their re-entry permits when they leave Japan if they claim their LSWP. If they leave Japan without surrendering re-entry permits, then they need to wait the expiration.
  • Holders of Japanese Permanent Residency need to surrender them if they want to receive LSWP.

To avoid a drastic change, some non-enforcement period is expected to be given (within 4 years).

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