Question 1

Who is eligible for the lump-sum withdrawal payment?

Accepted Answer

Foreign nationals who were enrolled in the Japanese pension system (kosei nenkin or kokumin nenkin) for at least 6 months and leave Japan without a re-entry permit. You must apply within 2 years of leaving Japan. Japanese nationals and those who have lived in Japan for 10+ years are NOT eligible.

Question 2

Why is 20.42% withheld, and can I get it back?

Accepted Answer

Japan withholds 20.42% income tax (20% + 2.1% reconstruction surtax) from your refund. Most of this is recoverable by filing a tax return through a Japanese tax representative after you leave. The actual tax owed is usually much lower, so you can reclaim most of the withholding. This process takes 4-6 months.

Question 3

What is the India-Japan Social Security Agreement (SSA)?

Accepted Answer

The SSA prevents double contribution and allows totalization. If you're posted to Japan for ≤5 years, you can get a Certificate of Coverage to avoid paying into Japan's pension while continuing to pay in India. Totalization lets your Japan months count toward India's 10-year minimum for EPS eligibility (and vice versa).

Question 4

Should I take the refund or keep my months for totalization?

Accepted Answer

If you claim the lump-sum refund, those months are FORFEITED and cannot be used for totalization. Take the refund if you don't plan to return to Japan and won't need the months for Indian pension eligibility. Keep the months if you might return to Japan, or if combining them with Indian contributions would help you qualify for EPS.

Question 5

What's changing with the 96-month reform?

Accepted Answer

A June 2025 law raises the refund cap from 60 months (5 years) to 96 months (8 years). The effective date is TBD. Once in effect, those with 61-96 months enrolled can receive a proportionally larger refund with a coefficient up to ~8.8 (vs 5.5 for 60 months today).

Question 6

How do I apply for the lump-sum withdrawal?

Accepted Answer

After leaving Japan: (1) Obtain the application form from nenkin.go.jp or the Japan Pension Service. (2) Fill in your details, attach your pension book (nenkin techo) and residence certificate. (3) Submit by mail to Japan Pension Service. (4) Receive payment in 3-6 months. (5) Appoint a tax representative to reclaim the withheld tax.

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