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Thread: Pension refund info;

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    Senior Member tedcase's Avatar
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    Default Pension refund info;

    Found this, Thought id share it because its pretty much the most straightforward explination i have seen.






    Pension


    JET participants are entitled to get a portion of the money back that they have paid into the pension plan while in Japan. To claim this money it is essential that you keep your orange pension booklets. The following step-by-step instructions to do so were taken from here.
    Getting your pension refund

    Once a JET participant completes the program and leaves Japan, the JET will be eligible to receive a portion of the amount paid into the pension system. The amount you will receive depends on how long you paid into the pension fund.
    For example, if a JET completes a one year contract and paid 12 month's worth of Pension payment, the JET will receive an equivalent of one month's remuneration or ¥300,000. If a JET renews and completes two years on the Programme and makes 24 month's payment, the JET will be eligible to receive two month's worth of remuneration or ¥600,000. Please note an automatic 20% income tax will be withheld (see the next section on how to get that back.)
    JETs who are leaving the programme this year should visit their local Social Insurance Office (Shakai Hoken Jimusho) or the National Pension Section of the municipal office near you, and request the claim forms and multi-lingual brochure for the Request of Arbitration for Lump-Sum Withdrawal Benefit. Ask for the Dattai Ichijikin Saitei Seikyusho for the Kokumin Nenkin/Kosei Nenkin.
    Although the forms can be obtained while in Japan, they must be filed from overseas after you have left. To be eligible to apply for the refund, you must meet the following conditions:
    - You do not possess Japanese citizenship
    - You have paid Employees' Pension Insurance premiums for six months or more
    - You do not have a place of residence in Japan
    - You never have qualified for pension benefits (including Disability Allowance)
    In order to claim the benefit, you must attach the following documents with your application:
    -Your Pension Book. The orange one you received a few weeks after arriving in Japan (or your Employees' Pension Insurance Registration Number as noted in your Pension Book)
    - Passport Photocopies—A photocopy of your passport pages(s) showing your name, date of birth, nationality, signature, and the date of departure from Japan
    - Bank Information—A document verifying the name of your bank (must be outside of Japan), name of the branch office, address of the branch and your bank account number in your name. A voided personal check or copy of a bank statement is OK.
    You must mail the application from outside Japan, once you have left the JET Program and Japan. The average time to receive payment is anywhere from three to six months, assuming the application was in order.
    Method of Payment
    The amount of the lump sum withdrawal payement remitted to your account will be calculated at the currency exchange rate on the date of the transaction.
    Notes
    When the lump-sum withdrawal payment has been accepted, the term corresponding to that amount shall cease to be considered as the pension enlistment period.
    If the applicant should die before receiving the lump sum withdrawal payment, a spouse, child, parent, grandchild, grandparent, or sibling living off the same income source, or considered a member of the same fiscal household as the applicant at the time of the applicant's death can receive payment in place of the applicant.
    Twenty percent (20%) income tax is withheld from the lump sum withdrawal payment for Employees' Welfare Pension Insurance at the time of payment.
    Regardless of whether or not you receive the lump sum withdrawal payment for the Employees' Welfare Pension Insurance (Kosei nenkin hoken), you can also receive a specific amount for the period of time insurance payments are paid for the National Pension (kokumin nenkin) IF you have paid into the system.
    [NOTE]:This refund is not connected to the JET Program but rather administered by the Social Insurance Agency and is applicable to any non-Japanese citizen who has paid into the pension for six months or more. Thus, no organization affiliated with the JET Program (e.g., your host institution, CLAIR, Mombusho) is responsible for the decisions made by said agency, nor can they check on individual claims.
    If you have any questions about your claim, please send them (in English or Japanese) to the following address:
    Social Insurance Office Center
    3-5-24 Takaido-nishi
    Suginami-ku, Tokyo 168-0071
    JAPAN
    The Additional 20% Tax Refund

    What is it?
    A flat-rate tax of 20% is levied on the Lump-Sum Withdrawal Payment. A person working for 3 years on the program who has made 36 months payments into the fund:
    Amount of payment of Employees' Pension Insurance (¥300,000 x 3) = ¥900,000
    Income Tax (¥900,000 x 20%) = ¥180,000
    Who is eligible?
    Once you have received the Lump-Sum Withdrawal Payment you can apply to reclaim the tax. Applications must be made within 5 years of leaving Japan.
    How?
    You need to choose a tax representative, a person who is a resident in Japan. This person needs to get the 'Nozeikanrinin no todokedesho' (gaikokujin-yo) [Declaration Naming a Person to Administer the Taxpayer's Tax Affairs (for use by aliens)] form. This can be obtained from the local tax office where you were located in Japan. Once you have filled in the form, send it back to your tax representative with the 'Shikyu Kettei Tsuchicho' [Notice of the Lump-sum Withdrawal Payment]. Your tax representative should take these two papers and go to the same tax office as before and file the 'Kakutei Shinkokusho' on your behalf. A bank account in Japan needs to be designated at the time of filing. The refund will be deposited into that account.
    To summarize, your tax representative takes the:
    - Declaration Naming a Person to Administer the Taxpayer's Tax
    - Notice of Lump-Sum Withdrawal Payment
    to your local tax office and files the Kakutei Shinkokusho. Explanation of how to claim the pension refund and tax deducted from this refund is also available in the General Information Handbook published by CLAIR. However, please note that CLAIR does not handle the paperwork for this tax refund. They will answer questions about the refund in general, but you must pursue your specific case with your host institution and local tax authorities.
    Frequently Asked Questions

    Q: I will be returning home after a long stay in Japan. I was a JET participant from 1990-1993 and I paid into the National Pension Scheme. Am I eligible to claim back the original payment?
    A: The Pension Reform Bill was passed in the Diet on November 2, 1994, and became effective on November 9, 1994. In order to qualify to be considered for the lump-sum withdrawal payment (the pension refund), you need to have been in Japan on or after 11/9/94, had a Japanese address on or after 11/9/94, have ALL of the following four conditions listed below and file an application within two years of leaving Japan.
    - You do not possess Japanese citizenship
    - You have paid National Pension Insurance or Employee' Pension Insurance premiums for six months or more
    - You do not have a place of residence in Japan (in order to file)
    - You have never had the right to receive pension payments (including allowances for the handicapped)
    If you were living in Japan after 11/9/94 you would therefore still qualify for the lump-sum withdrawal payment. However, if you left Japan before then, you would not be able to claim the payment unless you worked in Japan again and made more payments into (aka "reactivated") the pension account.
    Q: I was on the JET programme for one year. After leaving Japan, I put in my claim for the special pension refunds. I was expecting to receive one month's salary minus the 20% tax, however I only received half a month's salary. Why is this?
    A: The pension refunds is calculated based on the number of payments made into the pension scheme, not how long you have been in Japan. The period of coverage on which the refund is based is defined as follows:
    Beginning of coverage = month you begin your contract
    Closing of coverage = the day after the close of your contract minus one month
    Payments are taken out of the first paycheck following each month of enrollment. If your contact ran from July 26, 1994 to July 25, 1995 for example, the starting month is July. July's payment comes out of the August paycheck. If the contracts ends on July 25, the period of coverage is until June.
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    Senior Member tedcase's Avatar
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    Quote Originally Posted by tedcase View Post
    For example, if a JET completes a one year contract and paid 12 month's worth of Pension payment, the JET will receive an equivalent of one month's remuneration or ¥300,000. If a JET renews and completes two years on the Programme and makes 24 month's payment, the JET will be eligible to receive two month's worth of remuneration or ¥600,000. Please note an automatic 20% income tax will be withheld (see the next section on how to get that back.)

    Can anybody confirm these numbers? im drawing up a budget for next year...
    The locals possess a peculiar aversion to the bayonet.

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    Senior Member kalliea's Avatar
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    Default Re: Pension refund info;

    Those are the same numbers I hear as well, but it caps off a certain point. I want to say 1,000,000 but I can be sure. I just remember thinking that it was silly to stay for 4 years, because you lost the return...

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    Default Re: Pension refund info;

    Why is it silly?

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    Senior Member kalliea's Avatar
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    Default Re: Pension refund info;

    Because you would be better off working JET for three years, taking a year or two off, and coming back and working another two or three years. Working year 4 and 5 means you lose about 390,000 yen in pension. List:

    The following chart is an estimate of the amount refunded.

    Period of Coverage (VSL)Estimated amount refunded*
    6-11 months130,000 yen
    12-17 months260,000 yen
    18-23 months390,000 yen
    24-29 months510,000 yen
    30-35 months640,000 yen
    over 36 months770,000 yen
    *Calculated on a monthly remuneration of 300,000 yen (before tax) for contracts that end in 2007.

    The following chart is an estimate of the amount refunded.

    So you keep paying into the pension after 3 years, but you stop getting a refund.

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    Default Re: Pension refund info;

    You assume everyone wants a pension refund

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    Senior Member kalliea's Avatar
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    Default Re: Pension refund info;

    Indeed I am.

    I know that some people have no intention of ever leaving the country again, but I'm not one of them.

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    Resident ewok wicket's Avatar
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    Default Re: Pension refund info;

    My pension booklet is blue. I think. Is that bad?
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    WINNING Fyrey's Avatar
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    No, it's fine.

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    Senior Member psychohistoric's Avatar
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    Default Re: Pension refund info;

    Mine's blue, too. I think they're all blue now.

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    Senior Member Tegan's Avatar
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    Quote Originally Posted by tedcase View Post
    Q: I was on the JET programme for one year. After leaving Japan, I put in my claim for the special pension refunds. I was expecting to receive one month's salary minus the 20% tax, however I only received half a month's salary. Why is this?
    A: The pension refunds is calculated based on the number of payments made into the pension scheme, not how long you have been in Japan. The period of coverage on which the refund is based is defined as follows:
    Beginning of coverage = month you begin your contract
    Closing of coverage = the day after the close of your contract minus one month
    Payments are taken out of the first paycheck following each month of enrollment. If your contact ran from July 26, 1994 to July 25, 1995 for example, the starting month is July. July's payment comes out of the August paycheck. If the contracts ends on July 25, the period of coverage is until June.
    Sooo convenient that it works this way eh? so they only have to pay JETs half a months pay...but if they stayed just another month is would have been twice as much. LAME

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    Default Re: Pension refund info;

    HAHA so that guy who came to my school and claimed he saved 10 grand 'easily' on JET over 3 years was just talking about the pension refund.

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    OPPORTUNITYISNOWHERE mteacher80's Avatar
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    Default Re: Pension refund info;

    yeah i have saved 5 grand a year since i got here and i will be going into my 5th and final year, add the pension to that and i will have a good chunk of change to start off with when i go back home, i too hope the 89y to the $ stays for a while...
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    $5,153.22 was wired into my account yesterday. My bank took out an additional $10 for its "incoming domestic wire" fee, but overall, not bad! And we still get the 20% back that was withheld after we get our people in Japan to file for it, right?

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    ^ Sometime between mid- to late August, I think. I was on it real quick 'cause I wanted my money back - I just lucked out that the exchange rate worked in my favor.

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    Um, Im not sure if this was said up above, but what if you are changing companies and staying in Japan another year or 2?

    Are you then eligible for a refund when you eventually leave Japan? Or do you lose it all together?
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