The National Pension System: Everyone Supports Each Other

Japan’s National Pension system is a mutual support program in which the financial contributions of members are pooled in preparation for the elderly and in cases of disability or when the breadwinner of the family dies. The premiums you pay support the elderly and those in difficult situations.

The Pension System
Everyone between the ages of 20 and 59 living in Japan must enroll in the National Pension system.
Registered foreign residents are also required to enroll. The premiums you pay can be deducted from your taxable income. If you are employed in a company in Japan that has an employee pension system, you are required to enroll in it. The company will complete the enrollment procedures.

There are three types of members:
○ Category 1 insured person: This category includes the self-employed, students, part-time workers, the unemployed, etc. Pension premiums are 16,260 yen per month (FY2016) and must be paid by the member himself/herself.

○ Category 2 insured person: This category includes company employees and public employees who are enrolled in an employee pension system or mutual benefit society. Pension premiums are deducted from their salaries.

○ Category 3 insured person: This category refers to dependent spouses of category 2 insured persons. Since the pension plan of the category 2 insured person covers the pension premiums, there is no need for the spouse to pay individually.

Pension Benefits

○ Old-Age Basic Pension
As a rule, under the current system, when you turn 65 years of age and if the sum of the following periods listed in (1) through (3) below is 25 years or more, you can receive an elderly pension benefit:
(1) Period that pension premiums were paid (including the period that you were a category 2 insured person)
(2) Period that you were a category 3 insured person
(3) Pension premium exemption period, special payment exception period for students, and contribution postponement period (grace period) for low income youth

Note: There are also other pension programs, such as the Disability Basic Pension, Survivors’ Basic Pension, widow’s pension, and lump-sum death benefit, each with their own eligibility requirements, such as the payment period of pension premiums.

Lump-Sum Withdrawal Payment System
Foreign residents who leave Japan without fulfilling the requirements for receiving a pension can still receive a lump-sum benefit if they have paid pension premiums for six months or longer, and if they file an application within two years.

Complete the Designated Procedures in the Following Cases
You need to file an application to enroll in the system, receive pension benefits, and complete other procedures. Please do not forget to file these applications and other notifications.

○When you turn 20 years of age (excluding category 2 and 3 insured persons): File an enrollment application for National Pension system with the City Office.
Note: If you have a permanent resident permit and are about to reach 20 years of age, you will receive a letter of notification with information on enrollment procedures from the Pension Office.

○If you leave a company that has an employee pension system (or is a mutual benefit society member) before you reach 60 years of age: Please complete the designated procedures at the City Office.

○If you are no longer a category 3 insured person (dependent spouse): If you do not enroll in an employee pension, please complete the designated procedures at the City Office.

○ If you move overseas (excluding category 2 and 3 insured persons): If you file a notification that you are moving out of the country into your resident record, you will automatically lose eligibility for the National Pension.

○If you move into the city from overseas (excluding category 2 and 3 insured persons): Please complete the designated procedures at the City Office.

Please Ask for Advice
• If you are having difficulty paying your pension premiums, there are exemptions and grace period systems you can use, depending on your income status. You can apply for the portion up to two years and one month before the time of application.
• For those whose pension premium payment period or enrollment period is less than 25 years or who cannot fulfill other pension benefit requirements, it may be possible to extend enrollment in the National Pension even after reaching 60 years of age.

Late Payment System Debuts
A system allowing retroactive payment of pension premiums dating back over the last five years is in effect until September 2018. By taking advantage of this late payment system, you may be able to increase your future pension benefit amount, or secure the right to receive a pension.
Note: Those who receive the Old-Age Basic Pension are not able to use this late payment program.

Inquiries:
• National Pension Subsection, National Health Insurance and Pension Section (Shinagawa City Office Hon Chosha 4F, Tel: 5742-6682 and 6683, Fax: 5742-6876)
• Shinagawa Pension Office, Japan Pension Service (Kotoku Bldg. 2F, 5-1-5 Osaki; Tel: 3494-7831)
• Japan Pension Service’s National Pension Premiums Hotline, Tel: 0570-05-1165