Procedures and Documents Required to Receive Nenkin Lump-Sum Payment
"I need to prepare for the nenkin lump-sum payment procedure because I'm returning home soon. But it seems complicated…"
When you're about to return home and look up how to receive the nenkin lump-sum payment, you may feel confused and think the procedure is troublesome. However, it's not as difficult as it seems if you prepare in advance.
In this article, we will explain in simple terms the required documents and procedures to receive the nenkin lump-sum payment.
1. Conditions for Receiving Nenkin Lump-Sum Payment
Let's learn about the conditions to receive the nenkin lump-sum payment!
Please check if you meet all the following conditions:
- You were enrolled in National Pension or Employees' Pension.
- You paid National Pension or Employees' Pension premiums for more than 6 months.
- You do not have Japanese nationality.
- Your nenkin payment period is less than 10 years.
- You are not receiving benefits such as disability pension.
- You do not have an address in Japan
- You left Japan less than two years ago
If you meet all the above conditions, you can proceed with the nenkin lump-sum payment procedure.
Important Note: Even if you were enrolled in both National Pension and Employees' Pension, you cannot combine the enrollment periods of National Pension and Employees' Pension when applying for the lump-sum payment.
2. Documents Required for Nenkin Lump-Sum Payment Procedure
The following 5 types of documents are required to apply for the nenkin lump-sum payment:
(1) Application Form for Nenkin Lump-Sum Payment
This form can be downloaded from the following website:
Japan Pension Service: "When applying for nenkin lump-sum payment"
https://www.nenkin.go.jp/service/jukyu/todokesho/sonota-kyufu/20150406.html 🔗
You can also obtain this form at pension offices or International Exchange Associations of cities, wards, cities, towns, and local governments.
(2) Copy of Passport
Please copy the passport page containing: name, date of birth, nationality, signature, and residence status.
(3) Document Proving No Address in Japan
Prepare a copy of the "Certificate of Moving Out" or copy the passport page confirming the departure date.
Note: If you have already submitted a "Moving Out Notification" to the local government where you lived before returning home, you do not need to prepare this document.
(4) Document Related to Bank Account Information for Receiving Nenkin Lump-Sum Payment
Prepare a document that confirms the following information: bank name, branch name, branch address, account number, and account holder (who must be the same person receiving the nenkin lump-sum payment).
Important: When receiving the nenkin lump-sum payment through a Japanese bank, the account holder's name must be written in katakana.
(5) Document Confirming Basic Pension Number
This can be a pension handbook or basic pension number notification.
If you cannot complete the procedure yourself, you can ask an agent to do it for you.
In this case, in addition to documents (1) through (5), you will need a "Power of Attorney".
You can refer to the power of attorney form on the following website:
Japan Pension Service: "When authorizing the application for nenkin lump-sum payment"
https://www.nenkin.go.jp/service/jukyu/tetsuduki/kyotsu/sonota/20140306.html 🔗
3. Procedure for Receiving Nenkin Lump-Sum Payment
After preparing all documents, you can apply for the nenkin lump-sum payment by mail or electronically. The application should be submitted to the Japan Pension Service or mutual aid association. However, the submission location varies depending on the type of pension and enrollment period.
(1) Submit to Japan Pension Service
- Those who were only enrolled in National Pension or Employees' Pension
- Those who paid National Pension for less than six months, and the last payment was for Employees' Pension.
- Those who paid National Pension for more than six months. Therefore, they will receive the National Pension lump-sum payment.
(2) Submit to Mutual Aid Association
Those who paid National Pension for less than six months, and the last payment was to a mutual aid association.
After submitting the application, if there are no issues, you can receive the nenkin lump-sum payment within four months.
When the nenkin lump-sum payment is made, you will receive a "Nenkin Lump-Sum Payment Decision Notice". Please check this notice!
This notice is essential for the procedure to receive the tax amount deducted from the nenkin lump-sum payment.
Don't throw it away!
4. Procedure to Claim Tax Refund Deducted from Nenkin Lump-Sum Payment
This procedure is for those who were enrolled in Employees' Pension.
For Employees' Pension, 20.42% tax will be deducted from the nenkin lump-sum payment. In other words, the amount you receive will be less due to tax deduction.
However, you can still receive the deducted tax amount by filing a tax refund. Submit the "Application for Tax Refund Due to Selective Taxation of Retirement Income (退職所得の選択課税)" to the competent tax office (where you lived before returning home) and complete the procedure.
However, there is an important point to note:
To receive the refund, you need a Japanese bank account. Therefore, if you do not have a bank account in Japan, before returning home, you must submit the "Notification of Income Tax and Consumption Tax Refund Receipt" to the tax office. The refund will be received by the tax office's account and then transferred to your personal account. If you return home without submitting this notification, submit it together with the tax refund application.
5. Conclusion
In this article, we have introduced the procedure for receiving nenkin lump-sum payment and tax refund.
Any administrative procedure requires preparing documents and filling in information.
To complete the nenkin lump-sum payment procedure, you need: application form for nenkin lump-sum payment, copy of passport, document proving no address in Japan, bank account information, and basic pension number.
Additionally, for Employees' Pension, 20.42% tax will be deducted from the lump-sum payment. You need to complete the tax refund procedure to receive the deducted amount.
To complete the tax refund procedure, you need the "Application for Tax Refund Due to Selective Taxation of Retirement Income" and the "Notification of Income Tax and Consumption Tax Refund Receipt".
