Public Pension Insurance

In Japan, people are supposed to join the Public Pension Insurance system. It is mandatory to join it given he/she is at 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.
A. National Pension Insurance plan ( KOKUMIN NENKIN )
B. Employees' Pension Insurance plan ( KOUSEI NENKIN )

These 2 pans 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〕


A. 国民年金保険
B. 厚生年金保険


Classification of the Insured

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

A. TYPE 1 Insured
Those who are covered by the National Pension Insurance plan.
Self-employed people, unemployed people and others who don't fall into the categories below, at the age from 20 through 60, are classified into this.

B. TYPE 2 Insured
Those who are covered by the Employees' Pension Insurance plan.
Regular workers at applicable companies, at the age of 70 and under, are classified into this.

C. TYPE 3 Insured
Those who are covered by the Employees' Pension Insurance plan, conbined with their husband/wife.
Qualified spouses of the TYPE 2 Insureds , at the age from 20 through 60, are classified into this.
They shall meet all of the following conditions.
・ She/He is supported financially by an TYPE 2 Insured.
・ She/He earns less than a certain amount per year.
・ Her/His incomes amount is less than a half of the of her/his spouses.

〔In Japanese〕


A. 第1号被保険者

B. 第2号被保険者


Insurance Benefits

The Insurance Benefits of this system is , needless to say, the payment of pensions. The eligible people receive a certain amount of pensions every 2 months since they get 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 ruined financially. From this viewpoint, the premium 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 in a smilar system in the countriy you leave for. For examply, 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 to you to claim the Lump Sum Withdrawal payment.

〔In Japanese〕