EDIT December 13, 2024: I included anecdotal information about my experiences with receiving my pension withdrawal, and revised some language to clarify steps.
When you’re a JET, you’ll eventually land, both literally and figuratively. Whether you stayed on the JET Program for six months or more or are returning to Japan after up to 10 years of living there, you’ll want to consider applying for the Lump Sum Pension Withdrawal. If you lived in Japan for more than 10 years, you fully contributed to the pension and are entitled to the full pension at retirement age, regardless of where in the world you live.
There are plenty of how-to guides on the internet which explain the steps. In fact, I recommend reading TokyoJET’s guides on applying for the public and private school pension withdrawals. However, there are plenty other sources which are too technical and miss the point. This guide is intended to show you the steps, using plain English, on how to apply for the pension withdrawal after your JET appointment ends.
What is the Lump Sum Pension Withdrawal?
The Lump Sum Pension Withdrawal is a one-time payment of most of your pension contributions while living and working in Japan. During your employment as an ALT or CIR, you contributed half of a set amount to your pension insurance while your employer contributed the other half. As JETs are appointed for up to five-year terms, it is often advised one takes out their pension contributions in one lump sum.
To qualify for the lump-sum pension withdrawal, you must meet the following conditions (accurate as of August 2024)
You must no longer reside in Japan
You must not be a permanent resident
You must not have taken disability allowances while living in Japan.
How is the Lump Sum Pension Withdrawal Calculated?
The formula for calculating depends on whether you worked in the public sector, or at a private school. This guide’s focus is on properly completing the application portion, so here is an example based on my contributions.
First, take your total contributions and divide them by the number of months you contributed to the pension fund rounded down to the nearest number divisible by six. I worked a total of 35 months, so I would divide my total by 30 per Japan Pension Service instructions. Had I worked for 36 months, then I’d divide by 36.
Second, take this number and multiply it by the pension multiplier. Since I worked between 30-35 months, I multiply this number by 2.7 per Japan Pension Service instructions. This number will vary depending on how many months you worked.
Without revealing my exact contributions, I estimate I’ll receive 900,000 yen before taxes. Since 20.42% will be withheld at the source due to tax obligations, I’ll expect to receive 700,000-yen worth of dollars in my American bank account.
How To Fill Out the Lump Sum Pension Withdrawal Application (for public school ALTs)
I will break this down into three subsections: 1. Your personal information; 2. Your Bank Account Information in your Home Country; and 3. Your Pension Information.
In the meantime, you will need the following supporting documents for your application:
Copy of the photo page of your passport
Documents confirming ownership of your bank account in your home country, such as a direct deposit form or letter of verification.
Your blue pension book, or your yellow pension slip. Photocopies are okay too.
Optional
Copy of your Residence Card. I did this just in case, although it is not necessary. Some applicants include their physical residence card; again, not necessary.
Lastly, write everything IN ALL CAPITAL LETTERS.
A copy of the current (as of March 2024) Lump Sum Pension Withdrawal Application (public-sector pensions). Private school ALTs need to complete different paperwork (though identical). Please check the Japan Pension Service’s website for the latest application.
Step 1. Your Personal Information.
First, enter the date you prepared your application in box 1. The date is formatted in YYYY/MM/DD format. For example, this post was originally published on August 20, 2024, so I would write 2024/08/20 in Box 1.
Second, sign your name using your normal signature. No inkan necessary (nor is it required), just sign your John Hancock and you’re good to go. This is to certify that you have lived in Japan for less than 10 years and qualify for the pension withdrawal.
Third, confirm your permanent residency status by circling either Yes or No. If you are NOT a permanent resident of Japan, circle NO. Otherwise, circle YES.
Forth, enter your information as shown in your passport IN FULL CAPS. As for name, you can write it as either “FIRST MIDDLE LAST” or “LAST MIDDLE FIRST.” Your biographical details will be confirmed with a copy of the photo page of your passport, which you’ll submit with your application.
Next, enter your date of birth using the YYYY/MM/DD format. Then enter your Nationality. For Americans, “USA” is perfectly fine.
Finally, enter your address after leaving Japan. This can be your address, a family member’s, or a friend’s. While I recommend using an address you have access to, it’s fine to use a trusted person’s address if needed.
Once you complete these steps, boxes 1-4 should look similar to the following example.
Step 2. Your Banking Information in your Home Country
Please note that while you can use a Japanese bank account to deposit your pension withdrawal, many Japanese banks require those leaving Japan to close their accounts. Therefore, it is much easier to use your home country’s banking details for this section.
First, enter your bank name as shown on your bank statements. This is to ensure the pension office staff can easily find your bank.
Be precise with this section. To give you an example, many credit unions abbreviate the term “Credit Union” with “CU.” When in doubt, it’s better to write the full name of the financial institution.
Next, write the name of the branch you opened your account in, followed by the address. If you are unsure, write “MAIN OFFICE,” “HEAD OFFICE,” or “CORPORATE OFFICE” in the Branch field, and use the main address for the address field. You can also use a tool such as bank-code.net to find your financial institution’s routing number, and the address tied to that number.
Next, write your Account Number (not your Routing Number) and your name listed on the account IN CAPITAL LETTERS.
Regardless, you’ll need a document confirming ownership of the account from your bank, or alternatively, get an official stamp from your bank stamped on your application. Official stamps are uncommon in America, so I recommend obtaining a letter confirming your account details and asking the bank to stamp it with a return address stamp for confirmation.
I have heard others had success with simply attaching bank statements confirming their account details or using direct deposit setup forms from their banks. These have worked for people, I’m just pedantic.
Once you enter your banking information, box 5 should look similar to the following example.
Bonus Information Not Relevant to the Application
While this isn’t common in the US, bank routing numbers (or bank codes) can be specific to a particular branch. In Canada, for example, they have nine-digit routing numbers. The first four digits denote the financial institution, while the remaining five digits denote the branch location.
In America, routing numbers usually do not denote specific branches, only banks.
Step 3. Enter your Basic Pension Number (Blue Book or Yellow Slip)
In Box 6, all you need to do is enter your Basic Pension Number. At some point on your JET Journey, usually at the end of your contract, you should receive a blue pension handbook from your office. You’ll need to submit this as part of your pension withdrawal application.
The application also asks for a Symbol Number to denote your pension scheme. This section is irrelevant for our purposes, your basic pension number will suffice. Just leave the symbol number box blank.
Assuming you have your basic pension number, box 6 should be similar to the following example.
What if I don’t know or have my Pension Number?
Unfortunately, this happened to a friend of mine who also left JET. Don’t worry! On Page 16. Of the most recent application, you can enter the name of your employer, their address, the months you were enrolled in the pension scheme, and the type of pension you received.
Refer to your contract to find the name of your employer and address. Heck, consider submitting a copy of this page as it should have this info in both English and Japanese.
For enrollment periods, I’m not certain what dates are best to enter. If I were in this position, I would start with my first day of employment according to my contract, followed by my final day of employment (usually July 31st for JETs who complete their full term).
For type of pension, most public school JETs are enrolled in either Employee’s Pension, or, as of October 1, 2022, mutual aid association pension. Please confirm with your contracting organization for pension details if possible.
The pension office staff can find your information if you do your best to report what you know as accurately as possible. If they have further questions, they will correspond via post and request additional documents.
While most JETs shouldn’t need to complete the pension information page on Page 16, some may need to. If you need to, your page should look similar to the following example.
Sign, Seal, Deliver (I’m yours!)
Once you completed your pension withdrawal application, and attached the supporting documents, you can sign it, seal it in an envelope, apply appropriate postage, and send it off.
Page 17 of the current pension application features a cutout listing the mailing address in both English and Japanese. Cut it out and stick it to your envelope.
If you want to write it out yourself, the address is as follows (this is for public school ALTs and CIRs)
Japan Pension Service (Foreign Business Group) 3-5-24 Takaido-nishi Suginami-ku, Tokyo 168-8538 JAPAN
I chose to pay for Priority Mail to get a tracking number and confirmation of receipt. You can also affix about $5 USD worth of stamps and send it that way too. I recommend getting a tracking number if you can.
What next?
Wait 3-6 months for correspondence from the pension service. If they need additional documents, they will tell you what to send.
They will send back your original documents and, if successful, a copy of your lump sum pension withdrawal entitlement statement. Make a photocopy of this and hold for your records.
If you have a tax representative in Japan, you can send the original copy of the entitlement statement to them. I’ll make a new post on what to do next.
From here on out, confirm receipt of your funds in your home country’s bank account and you’re good to go! Enjoy your new riches!
Anecdotal Notes (Your Mileage Will Vary)
The Japan Pension Service and TokyoJET state that it takes about 3-6 months for your pension withdrawal to arrive.
I mailed my application to the Japan Pension Service on August 15, 2024, just one week after returning from Japan. My application was received one week later and took four months to process. In my case, they did not ask me for further documentation. Funds were received December 2024.
Also note my financial institution does not use SWIFT. Despite this, there were zero issues with receiving my pension withdrawal in my bank account.
I provided a letter from my financial institution in lieu of an “official bank stamp.” This worked for me.
Another former JET friend of mine who also served three years applied for his withdrawal at the same time and received his on the same day. We had slight variations in our deposit amounts, though I suspect this is due to fees along the way.
