Public Pension Insurance

In Japan, people are supposed to join a Public Pension Insurance system. It is mandatory to join it given he/she grows up to the applicable age. It applies to foreign nationals living in Japan, too.
Japanese Public Pension Insurance system consists of following 2 major plans. Most of us are enrolled in either of them.

These 2 plans are not parallel. Instead, you can regard the Employees' Pension Insurance plan is a special one for regular workers, which includes and surpasses the functions of the Natinal Pension Insurance plan.

〔In Japanese〕



Classification of the Insured

Regarding the Public Pension Insurance system, the eligible people are classified into following 3 categories.

(1) TYPE 1 Insured

Those who are covered by the National Pension Insurance plan.

(2) TYPE 2 Insured

Those who are covered by the Employees' Psneion Insurance plan.

(3) TYPE 3 Insured

Those who are covered by the Employees' Pension Insurance plan.
Qualified spouses of the TYPE 2 Insureds , at the age from 20 through 60, are treated as combined with their husbands/wives.
They shall meet all of the following conditions.

〔In Japanese〕


(1) 第1号被保険者


(2) 第2号被保険者


(3) 第3号被保険者


Insurance Benefits

The Insurance Benefits of these system is , needless to say, the payment of pensions. The eligible people receive a certain amount of pensions every 2 months since they get at the provided age. THe pension amount shall vary according to the amount he/she contributed.

However, many people, particularly under 40', assume the pension benefits shall not be proportionate to the premiums burden. Based on common sense, the public pension plan looks almost financially ruined. From this viewpoint, the premiums of the Public Pension plan is just a kind of taxes and dues without corresoinding return. But, I want to note that it shall be better than most of private financial products to secure your revenues after you retire your occupation, at least.

You have to contribute the premiums for at least 10 years , to be qualified as an eligible recipient. The required period has been shortened in 2017, from 25 years.
If you leave Japan before eligible to receive the pension, you are able to receive a Lump Sum Withdrawal payment, provided you have contributed for more than 6 months.
In these cases, you may make the enrollment period in Japanese Public Pension Insurance system added to that of a smilar system in the countriy you leave for. For example, Germany, UK, Korea, USA, France, Australia and etc,. conclude appropriate agreements with Japan. If you are leaving for these countries, maybe it is not advantageous for you to claim the Lump Sum Withdrawal payment.

〔In Japanese〕