Japan Lumpsum Pension Refund, Tax Return - YouAT LLC

Pension Reform Laws were approved

On June 13 of 2025, pension reform laws were approved at Japanese Diets. Japanese pension systems are basically revised every 5 years.

Japanese government is now being in the process of their official proclamation. Within 4 years after official proclamation, the following reform is to be implemented.

Reform for lump-sum pension refund

According to the new laws, the qualification to claim lump-sum pension refund (Lump-sum Withdrawal Payments) is to change as follows.

• Non-Japanese are permitted to receive Lump-sum Withdrawal Payments (LSWP) after their re-entry permits expire.

Table: Before reform vs After reform

This table shows how lump-sum pension refund will change after the reform.

	NOW	AFTER REFORM
Re-entry permit	You can claim lump-sum pension refund with keeping re-entry permit if you submit Notification to Move Out of Japan (Tenshutsu Todoke, 転出届) at city office where you reside.	You need to surrender your re-entry permit (including 1 year’s re-entry permit). You will get a punch hole on your residence card at airport when you leave Japan. If you leave Japan with your re-entry permit, then you can claim your lump-sum pension refund after the expiration of re-entry permit.
Period to claim	Within 2 years after losing Japanese address. To so do you need to submit Notification to Move Out of Japan / or get your re-entry permit expired.	Within 2 years after re-entry permit expires.
Permanent Residency (PR)	PR holders are permitted to claim lump-sum pension refund if some conditions are cleared.	PR holders get one of conditions to claim lump-sum pension refund if they surrender PR (or they need to wait until PR visa’s expiration comes). Even after that some other conditions need to be cleared.
Maximum year of payoff	5 years. If applicant over 5 year’s contribution claims lump-sum pension refund, then the payoff is done as 5 year’s contribution.	It is planned to extend it to 8 years.