Employees’ Pension Insurance

The Employees' Pension Insurance system provides the “earning-related pension" on top of the Basic Pension provided by the National Pension system.

	Coverage
		Compulsory Coverage
							You must be covered by the Employees’ Pension Insurance system if you work for a company or a factory which employs 5 workers or more, or if you work for a HOJIN corporation. A company or a factory here means one in business specified by law, such as manufacture. You must be covered if you are younger than age 70, irrespective of your free will or nationality.
			How to Enroll in the System
							Your employer is responsible for enrolling you in the system by submitting the “Application to Enroll in the Employees’ Health Insurance / Employees’ Pension Insurance” (SHIKAKU SHUTOKU TODOKE - KENKO HOKEN / KOSEI NENKIN) to the Social Insurance Office (including one in a Social Insurance Bureau) within 5 days of your employment.
		Voluntary Coverage
			You can enroll in the system on a voluntary basis under certain conditions with employers’ cooperation or on your own even if you do not fall under the compulsory coverage. For example, you can apply for the Employees’ Pension Insurance if you are an employee aged 70 or older and have not been covered long enough to be eligible for the old-age benefits such as the Old-age Basic Pension. Please contact the Social Insurance Office (including one in a Social Insurance Bureau) for details.
			How to Enroll in the System
			If you wish to enroll in the system on a voluntary basis, you need to submit to the Social Insurance Office (including the one in the Social Insurance Bureau) either “Application of the Senior Insured Persons for Voluntary Enrollment in the Employees’ Pension Insurance” (KOSEI NENKIN HOKEN - KOREI NIN-I KANYU HIHOKENSHA SHIKAKU SHUTOKU TODOKEDE / MOSHIDESHO) or “Application of the Voluntarily Insured Persons for Enrollment in the Employees’ Pension Insurance on an Individual Basis” (KOSEI NENKIN HOKEN - NIN-I TANDOKU HIHOKENSHA SHIKAKU SHUTOKU SHINSEISHO) according to your conditions. You need to attach your Pension Handbook and other necessary documents. Please ask at the Social Insurance Office about specific documents, which may vary depending on your conditions.

	Benefits
	The pension amount formula was revised under the pension reform in 2004. However, as a transitional measure, if your Pension amount calculated by the latest formula is lower than that by a previous formula, the pension will be payable based on the previous formula. Please note that your pension amount for the fiscal year 2007 is calculated based on the previous formula as set out below.
	Old-age Employees’ Pension for age 60-64
		If you have one year or more of coverage under the Employees’ Pension Insurance system and if you satisfy contribution requirements to qualify for the Old-age Basic Pension under the National Pension system, you can receive the specially-provided Old-age Employees’ Pension from your pensionable age to 65. Currently, the pensionable age for this pension is 60 but this age is being raised in stages. Your pensionable age is determined according to your date of birth.
		Benefit Amount
		Annual amount of your specially- provided Old-age Employees’ Pension    =    (A) + (B) + (C) for age 60-64
		(A) Fixed Amount Portion*
		\1,676 ** × Number of your covered months × 0.985           (up to 480 months)
			* The pensionable age for the fixed amount portion is being raised in stages. Your pensionable age is determined according to your date of birth. ** This amount varies depending on your date of birth.
		(B) Remuneration-related Portion
		((a) + (b)) x 1.031 x 0.985
			(a) = Your Average Monthly Standard Remuneration * × 7.5/1,000 ** × Number of your Covered months before March 2003 (b) = Your Average Monthly Standard Remuneration *** × 5.769/1,000 ** × Number of your Covered months after April 2003
			* Your Average Monthly Standard Remunerations before March 2003, reassessed to the current value ** This amount varies depending on your date of birth. *** Total of your Average Monthly Standard Remunerations and Standard Bonuses after April 2003, reassessed to the current value and divided by the number of your covered months after April 2003.
		(C) Additional annual benefits
			You can receive additional annual benefits at your pensionable age for the fixed amount portion when you satisfy the following conditions: you have 20 years of coverage or 15** years after age 40 (age 35 for women) under the Employees’ Pension Insurance system; your dependent spouse is younger than 65 or your dependent child(ren) is younger than 18 and has yet to reach first March 31 after his/her 18th birthday (20th if with certain grade of disability specified by law).
			\227,900 for your spouse*
			\227,900 each for your first and second child
			\75,900 each for your third and subsequent children
			* Depending on your date of birth, special supplement may be added to additional annual benefits if you have dependent spouses. ** This amount varies depending on your date of birth.
		How to Claim Your Benefit
		To claim your benefit, you need to file the “Claim for the Old-age Benefits under the National Pension / Employees’ Pension Insurance” (KOKUMIN NENKIN / KOSEI NENKIN HOKEN - ROREI KYUFU SAITEI SEIKYUSHO) at the Social Insurance Office (including one in a Social Insurance Bureau) or the Pension Consultation Center. You need to attach your Pension Handbook, a certified extract copy of your Family Registry and other necessary documents. Please ask at the Social Insurance Office about specific documents, which may vary depending on your conditions.
	Old-age Employees’ Pension for age 60-64 and Early Payment of Old-age Basic Pension
		If you were born between April 2, 1941 and April 1, 1949 (for women, between April 2, 1946 and April 1, 1954), and if you are eligible for the specially-provided Old-age Employees’ Pension for age 60-64, you may opt for the early payment of the Old-age Basic Pension (either partial or whole amount).
		Old-age Employees’ Pension for age 60-64 while you work
		While you work, your specially-provided Old-age Employees' Pension for age 60-64 will be either reduced or suspended if the total of your monthly Pension payable and your monthly remuneration from your work is more than \280,000.
		Old-age Employees’ Pension for age 60-64 and Employment Insurance benefits
		While you receive the basic allowance of the unemployment benefit provided by the Employment Insurance Law, your specially-provided Old-age Employee’s Pension for age 60-64 will be suspended. Not only will your remuneration from your work, but also your employment continuation benefits for older workers provided by the Employment Insurance Law affect your Pension.
		In this case, you need to submit the “Form to report the reason for suspending the Old-age Employees’ Pension” (ROREI KOSEI NENKIN JUKYU KENSHA SHIKYU TEISHI JIYU GAITO TODOKE) at the Social Insurance Office (including one in a Social Insurance Bureau) or the Pension Consultation Center. You need to attach the “Entitlement Notice of Benefits for the Employment Continuation Benefits for Older Workers (KONENREI KOYO KEIZOKU KYUFU SHIKYU KETTEI TSUCHISHO)” issued by the Public Employment Security Office.
	Old-age Employees' Pension after age 65
		You can receive the Old-age Employees’ Pension on top of your Old-age Basic Pension, if you have a coverage period under the Employees’ Pension Insurance system and you satisfy contribution requirements to qualify for the Old-age Basic Pension at the age of 65.
		Benefit Amount
		Your annual Old-age Employees' Pension　 after age 65 = Remuneration- related portion * + Transitional additional benefits ** + Additional annual benefits*
		*	Same formula as the specially-provided Old-age Employees' Pension for age 60-64
		**	Equivalent to the difference, if any, between your “Fixed Amount Portion of the specially-provided Old-age Employees’ Pension for age 60-64” and your “Old-age Basic Pension amount”
		How to Claim Your Benefit
		To claim your benefit, you need to file the “Claim for the Old-age Benefits under the National Pension / Employees’ Pension Insurance” (KOKUMIN NENKIN / KOSEI NENKIN HOKEN - ROREI KYUFU SAITEI SEIKYUSHO) at the Social Insurance Office (including one in a Social Insurance Bureau) or the Pension Consultation Center. You need to attach your Pension Handbook, a certified extract copy of your Family Registry and other necessary documents. Please ask at the Social Insurance Office about specific documents, which may vary depending on your conditions. If you are already receiving the specially-provided Old-age Employees’ Pension for age 60-64, you only need to fill in a postcard version of the same claim form and send it to the Social Insurance Operation Center when you attain age 65.
		Old-age Employees’ Pension after age 65 while you work
		While you work for a company covered under the Employees’ Pension Insurance system, your Old-age Employees' Pension after age 65 will be either reduced or suspended if the total of your monthly Pension payable and your monthly remuneration from your work is more than \480,000.
	Disability Employees' Pension and Disability Allowance
		You can receive the Disability Employees’ Pension or Disability Allowance (lump-sum payment) when you have a certain level of disability specified by law. To be eligible, you must be covered by the Employees’ Pension Insurance system on the date of your first medical examination on the sickness or injury which caused above - mentioned your disability. In addition, you need to satisfy contribution requirements to qualify for the Disability Basic Pension. The eligible disability level ranges from Grade 1 to Grade 3 in the order of seriousness. In principle, if your disability level is equivalent to Grade 1 or 2, you can receive both Disability Basic Pension or Disability Employees’ Pension. If your disability level is equivalent to Grade 3, you can receive only the Disability Employees’ Pension. If your disability level is lighter than Grade 3, you still may be eligible for the Disability Allowance (lump-sum payments).
		Benefit Amount
			Disability Pension
			Grade 1 Disability Pension =
			( (a) + (b) ) × 1.031 × 0.985 × 1.25 + (c) + Disability Basic Pension
			Grade 2 Disability Pension =
			( (a) + (b) ) × 1.031 × 0.985 + (c) + Disability Basic Pension
			Grade 3 Disability Pension =( (a) + (b) ) × 1.031 × 0.985 (Guaranteed minimum benefit is \594,200)
			(a) = Your Average Monthly Standard Remuneration × 7.5/1,000 × Number of your covered months before March 2003
			(b) = Your Average Monthly Standard Remuneration × 5.769 /1,000 × Number of your covered months after April 2003
			(c) Additional annual benefits: \227,900 Payable when you are eligible for the Disability Employees’ Pension and your dependent spouse is younger than 65
			Disability Allowance (lump-sum payment)
			Disability Allowance = ( (a) + (b) ) × 2 (Guaranteed minimum benefit is \1,168,000)
			(a) = Your Average Monthly Standard Remuneration × 7.125/1,000 × Number of your covered months before March 2003
			(b) = Your Average Monthly Standard Remuneration × 5.481/1,000 × Number of your covered months after April 2003
			(Note) Different formula is used when the total number of your covered months ( (a) + (b) ) is actually less than 300 (25 years).
		How to Claim Your Disability Employees’ Pension
		To claim your benefit, you need to file the “Claim for the Disability Benefits under the National Pension / Employees’ Pension Insurance / Seamen’s Insurance (KOKUMIN NENKIN / KOSEI NENKIN HOKEN / SEN-IN HOKEN - SHOGAI KYUFU SAITEI SEIKYUSHO) at the Social Insurance Office (including one in a Social Insurance Bureau) or the Pension Consultation Center. You need to attach your Pension Handbook, a certified extract copy of your Family Registry, the certificate of diagnoses issued by your doctor, your report on your medical history and on how your disability affect your livelihood/work as well as other necessary documents. Please contact the Social Insurance Office about specific documents, which may vary depending on your conditions.
	Survivors' Employees' Pension
		The deceased person’s survivors can receive the Survivors’ Employees’ Pension if they are financially dependent on a deceased person before his/her death and if one of the following applies at the time of his/her death:
		The deceased person is an insured person or is a previously insured person who dies within 5 years of his/her first medical examination of the sickness or injury. When he/she started suffering from the above-mentioned sickness or injury causing his/her death, he/she must be covered under the Employees’ Pension Insurance system; The deceased person needs to satisfy contribution requirements to qualify for the Survivors’ Basic Pension.   The deceased person is eligible for the Old-age Employees’ Pension.   The deceased person is eligible for the Disability Employees’ Pension (Grade1 or 2).
		The deceased person’s wife who takes care of his dependent child(ren) or his child(ren) can receive the Survivors’ Employees’ Pension in addition to the Survivors’ Basic Pension.
		The benefit is awarded to the following survivors and the priority for payment is the same order:
		(1) The deceased person’s wife (2) The deceased person’s child(ren) under age 18* (20 if with certain grade of disability specified by law) (3) The deceased person’s husband aged 55 or older (4) The deceased person’s father or mother aged 55 or older (5) The deceased person’s grandchild(ren) under age 18* (20 if with certain grade of disability specified by law) (6) The deceased person’s grandfather or grandmother aged 55 or older * The benefit is paid until the first March 31 after his/her 18th birthday.
		Benefit Amount
			The deceased person’s wife taking care of his child(ren) * or his child(ren) :
			( (a) + (b) ) × 3/4 x 1.031 x 0.985 + Survivors’ Basic Pension
			*    She needs to live with his child(ren) who is eligible for the Survivors’ Basic Pension.
			The deceased person’s wife without his child(ren), or other eligible family members:
			( (a) + (b) ) × 3/4 x 1.031 x 0.985
			(a) = The deceased person’s Average Monthly Standard Remuneration × 7.5/1,000 ** × Number of his/her covered months before March 2003***
			(b) = The deceased person’s Average Monthly Standard Remuneration × 5.769/1,000 ** × Number of his/her covered months after April 2003***
			**   The ratio varies according to the deceased person’s date of birth if the deceased person is eligible for the Old-age Employees’ Pension before his/her death. ***  Different formula is used when the total number of the deceased person's covered months ( (a) + (b) ) is actually less than 300 (25 years).
		How to Claim Your Survivors’ Employees’ Pension
		To claim your benefit, you need to file the “Claim for the Survivors’ Benefits under the National Pension / Employees’ Pension Insurance / Seamen’s Insurance” (KOKUMIN NENKIN / KOSEI NENKIN HOKEN / SEN-IN HOKEN - IZOKU KYUFU SAITEI SEIKYUSHO) at the Social Insurance Office (including one in a Social Insurance Bureau) or the Pension Consultation Center. You need to attach the deceased person’s Pension Handbook, a certified copy of his/her Family Registry, the medical certificate on death issued by the doctor and other necessary documents. Please ask at the Social Insurance Office about specific documents, which may vary depending on your conditions.
	Lump-sum Withdrawal Payments (Exclusively for Non-Japanese Citizens)
		If you are not a Japanese citizen, you can claim the Payments after you leave Japan. You can claim the Payments if you have at least 6 months of coverage under the Employees’ Pension Insurance and you have not satisfied qualifying conditions for the Old-age Employees’ Pension. You need to apply for it within 2 years after you leave Japan.
		PLEASE NOTE that if you receive the Payments based on your coverage period, you can not use the same periods again to apply for the totalization benefits under the Social Security Agreement between other countries. If you are from the country with which Japan has the Agreement, you are advised to consider well, before applying for the Payments, whether you would like to use your coverage periods under Japanese system either to claim for the Payments now or to claim later for the totalization benefits.
		Benefit Amount
		Your benefit amount formula is depending on the number of your coverage month. Your Payments are subject to tax. The formula for those with coverage period after April 2005 is set out below. Different formula is used for those with coverage period only before March 2005.
			Your benefit amount = Your Average Standard Remuneration * × Benefit multiplier **
			*     Your Average Standard Remuneration
			If you have the coverage only for and after April 2003
			Your Average Standard Remuneration = Total amount of your remunerations and bonuses Number of your covered months
			If you have the coverage before March 2003
			Your Average Standard Remuneration = Total amount of your remunerations for/before March 2003 ×1.3  +  Total amount of your remunerations and bonuses for/after April 2003 Number of your total covered months
			**    Your benefit multipliers
			You can find the benefit multipliers according to the number of your covered month and last covered month in the chart below.
			Number of your covered month under the Employees’ Pension Insurance (month) Your last covered month under the Employees’ Pension Insurance Before August 2005 Between September 2005 and August 2006 Between September 2006 and August 2007 Between September 2007 and August 2008  6 − 11 0.4 0.4 0.4 0.4 12 − 17 0.8 0.8 0.9 0.9 18 − 23 1.2 1.3 1.3 1.3 24 − 29 1.6 1.7 1.7 1.8 30 − 35 2.0 2.1 2.1 2.2 36 −　　 2.4 2.5 2.6 2.6
			The benefit multiplier formula is as follows:
			Benefit multiplier = Contribution rate*** × 1/2 × Specified multiplier according to number of your covered month****
			***   The contribution rate is changed and determined in every October. If your covered month is between January and August, your contribution rate was determined in October of the second preceding year. If your covered month is between September and December, your contribution rate was determined in October of the previous year.
			****  The specified multipliers according to your number of months covered are as follows:
			Number of month of your coverage under the Employees’ Pension Insurance (month) Specified multipliers  6 - 11 6 12 - 17 12 18 - 23 18 24 - 29 24 30 - 35 30 36 -     36
	Application Form - The form includes information on the Payments in the language of English, Chinese, Korean, Portuguese, Spanish and Indonesian.

		Contributions
			Your contribution is collected based on each month of your covered period and is shared by you and your employer equally. Your employer is responsible for paying your share of contribution and the employer’s share of contribution to the Social Insurance Office (including one in a Social Insurance Bureau).
					Contribution for regular months (without bonus payment)
					Contribution amount = Your Standard Monthly Remuneration × Contribution rate *
					Contribution for bonus months (regular salary + bonus)
					Contribution amount = Your Standard Monthly Remuneration × Contribution rate *
					+ Your Standard Bonus Amount (up to \1.5 million) × Contribution rate*
					* Contribution rate for each type of coverage status
					Type of coverage status Contribution rate Compulsorily insured persons General insured persons 149.96/1000 Miners and seamen 159.52/1000 Voluntarily insured persons 149.96/1000
					The rate is as of September 2007. The rate will be raised by 0.354% (for miners and seamen 0.248 %) in every September.
					Exemption during your childcare leave While you take childcare leave, both you and your employer may be exempt from contribution payments upon application.

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