Another Lump Sum Withdrawal Question

[E-Honda]

Hi,

First post here. Sorry for the somewhat dry subject matter.

Recently arrived from the UK to work for a Japanese employer. After making some enquiries before leaving I decided it would be easiest to pay into the J pension system. Now I'm wondering if I can continue making payments for 6 months and then switch to making voluntary payments to the UK system which will exempt me from J payments(?) and then when I leave in 18months later make the lump sum withdrawal?

Also is the lump sum withdrawal everything 100% of what you pay in (-20% tax which you can claim back later via an agent)?

Many thanks. And yes I posted something similar on F**kedGaijin.

[KansaiBen]

You cant normally quit the Japanese pension scheme once you are enrolled (nor will the powers that be here let you). You will be required to pay in as long as you are in Japan.

Refunds are paid on a pre-rata basis, not sure exact figures but for 18 months you should get the equivalent of 12 months premiums back.

Check this site here for more details

http://www.jetprogramme.org/e/former...on/amount.html

Recently arrived from the UK to work for a Japanese employer. After making some enquiries before leaving I decided it would be easiest to pay into the J pension system. Now I'm wondering if I can continue making payments for 6 months and then switch to making voluntary payments to the UK system which will exempt me from J payments(?) and then when I leave in 18months later make the lump sum withdrawal?

Also is the lump sum withdrawal everything 100% of what you pay in (-20% tax which you can claim back later via an agent)?

Many thanks. And yes I posted something similar on F**kedGaijin.

[E-Honda]

Thanks for the information.

My reading of this is that you get a maximum of 50% (or 60% depending on whether the definition of lump sum withdrawal applies to the amount you get after it has been taxed).

Based on my brief experience of living in J I'm going to go out on a limb a guess that it's 50%!

I guess that'll buy someone a lot of ramen (or maybe not if J goes bust in the meantime)

[E-Honda]

Okay, so it's actually slightly more complicated for the Employees pension scheme.

The amount you get is 0.5 x (Another Multiplier that depends on how long you have been here)

Details of the other multiplier are here: http://www.sia.go.jp/e/epi.html#ben

You need to work here for 30 months to get to the coveted 2.0, and if you work here for 11 months you are getting screwed

[KansaiBen]

Okay, so it's actually slightly more complicated for the Employees pension scheme.

The amount you get is 0.5 x (Another Multiplier that depends on how long you have been here)

Details of the other multiplier are here: http://www.sia.go.jp/e/epi.html#ben

You need to work here for 30 months to get to the coveted 2.0, and if you work here for 11 months you are getting screwed

Its one of the prices you pay for being a short-term resident here. The pension scheme is not designed for people who hop out of it after a year or two. The only reason the withdrawal was put in place because of complaints by the US government as JETs paid into national pension and couldnt get anything back after they came home after a year or two.


Maybe you should count yourself lucky you were able to be employed for all that time and earn a salary, considering what the alternative would probably be.

[E-Honda]

KansaiBen,

Thanks once again for the info, but afraid I'll have to disagree.

Evidently the system is not designed for such people, but that's not to say that it couldn't be better. Having made the provision for a lump sum withdrawal it doesn't require a tremendous leap of imagination to not draw up a load of arbitrary numbers.

I know that the UK doesn't do any better but given the state pension payments are considerably lower, it may not be quite so bad.

Also, given the Japanese system only gives visas to people who are going to contribute positively to the economy I think most people coming here to work would have plenty of alternatives, I did.

[Taffy]

Hi,

Now I'm wondering if I can continue making payments for 6 months and then switch to making voluntary payments to the UK system which will exempt me from J payments(?)

Voluntary payment in the UK does not exempt you from Japanese pension payments. That ruling is for expats working here, contracted and paying pension in the UK.

[E-Honda]

Voluntary payment in the UK does not exempt you from Japanese pension payments. That ruling is for expats working here, contracted and paying pension in the UK.

Thanks, looks like that's a firm end to my musing