The National Pension System: Everyone Supports Each Other

The National Pension system is a system to help each other in preparation for living of old age, in case of disability or when breadwinner family passed away. The contributions 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 contributions 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 3 types of members:
〇 Category 1 insured person: This category includes the self-employed, students, part-time workers, the unemployed, etc. Contributions are 16,540 yen per month (FY2020) and must be paid by the member himself/herself.
〇 Category 2 insured person: This category includes company employees and public employees who are enrolled in an employee pension system or mutual benefit society. Contributions are deducted from their salaries.
〇 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 contributions, there is no need for the spouse to pay individually.

● Pension Benefits
〇 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 ten years or more, you can receive an elderly pension benefit:
(1) Period that contributions were paid (including the period that you were a category 2 insured person)
(2) Period that you were a category 3 insured person
(3) Contribution exemption period, special payment exception period for students, and contribution postponement period (grace period) for low income persons
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 contributions.

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 contributions for six months or longer, and if they file an application within two years after leaving Japan.

● 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.
〇 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.
〇 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.
〇 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 lose eligibility for the National Pension.
〇 If you move into the city from overseas (excluding category 2 and 3 insured persons): Please complete the designated procedures at the City Office.
Note: Every registered resident in Japan receive a pension handbook from the Japan Pension Service when he/she turns twenty years old.

● Please Ask for Advice
〇 If you are having difficulty paying your contributions, there are exemptions and contribution postponement 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.
〇 There is a contribution exemption program for those who receive a pension for the disabled (Level 1 or 2).
〇 Those who give birth in or after February 2019 must apply for a contribution exemption.
〇 For those whose contribution payment period or enrollment period is less than ten 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.

Inquiries:
• National Pension Subsection, National Health Insurance and Pension Section (Hon Chosha 4F
Tel: 03-5742-6682 and 6683, Fax: 03-5742-6876)
• Shinagawa Pension Office (5-1-5 Osaki 2F, Tel: 03-3494-7831, Fax: 03-3779-3449)