This article is written by a Japanese local.
About a year after a foreign employee starts working in Japan, a sealed postcard (or envelope) from the Japan Pension Service will arrive in their mailbox. This is the “Nenkin Teikibin (Pension Coverage Statement).” However, composed of complex Japanese and arrays of numbers, this notice is frequently treated by foreigners as “unreadable direct mail” and sent straight to the trash bin.
HR managers must ensure employees recognize that this scrap of paper is actually a “critical auditing tool for reclaiming millions of yen in cash when returning to their home country.” This article explains how to objectively read the Nenkin Teikibin and provides practical procedures to prevent missing pension records, ensuring the successful recovery of the “Lump-sum Withdrawal Payment.”
1. The Purpose of “Nenkin Teikibin” and Announcements to Prevent Disposal
[Summary] Delivered annually during the employee’s birth month, this notice is a “statement of pension assets” guaranteed by the Japanese government. Prior instruction to open and keep it is mandatory.
The “Nenkin Teikibin” is an official statement sent annually by the Japan Pension Service during the individual’s “birth month.” It details the payment record of pension premiums for the past year and the total cumulative months of enrollment.
It is the only physical means to prove that the tens of thousands of yen deducted from their monthly salary for Employees’ Pension Insurance have been correctly submitted to the state and recorded as their personal assets. HR managers must implement a clear internal announcement (front-loading) as the employee’s birth month approaches: “A postcard with blue text saying ‘Nenkin Teikibin’ will arrive. Do not throw it away; you must open and securely store it.”
2. The “60-Month Cap” on the Lump-sum Withdrawal Payment and Confirming Enrollment Periods
[Summary] The payout for the Lump-sum Withdrawal Payment maxes out at “60 months (5 years).” Use the Teikibin to accurately track the current “number of months enrolled.”
The amount of the “Lump-sum Withdrawal Payment (Dattai Ichijikin)” that a foreign employee can claim upon leaving Japan is calculated based on the “number of months” they have paid pension premiums. There is an extremely important legal rule here: following a legal revision, from April 2021 onwards, the maximum calculation limit for the withdrawal payment is capped at “60 months (5 years).”
In other words, whether someone works in Japan for “5 years” or “8 years,” the refunded amount upon returning home hits a ceiling at “60 months’ worth” (currently amounting to hundreds of thousands to over a million yen). On the other hand, if they continue to pay into the pension for “10 years (120 months)” or more, they earn the lifelong right (eligibility) to receive a Japanese “Old-age Pension” upon retirement.
The Nenkin Teikibin lists the “Total Pension Enrollment Period.” By checking this number, employees can make crucial decisions affecting their careers and assets: “How many months have I paid for now?”, “How many more years will I stay in Japan?”, and “Should I claim the lump sum, or aim for the 10-year mark?”
3. Early Detection of “Omissions and Integration Errors” in Pension Records
[Summary] Early detection of record disconnections—often caused by the issuance of multiple Basic Pension Numbers during job changes or visa updates—is possible using the numbers on the Teikibin.
The most terrifying administrative issue for foreign employees is discovering that “the pension records I supposedly paid for have vanished (were not integrated).” This frequently occurs in the following cases:
- Separate numbers were issued for the “National Pension” joined at the ward office as a student, and the “Employees’ Pension” joined after finding employment.
- The employee failed to submit their previous company’s Basic Pension Number when changing jobs, leading to the creation of a new number.
- Differences in handling spaces in alphabetical names or middle names caused them to be registered as a completely different person.
When the Nenkin Teikibin arrives, always ensure the employee verifies that the “Cumulative Number of Months Paid” matches the actual period they have lived and worked in Japan. If there is a discrepancy—such as “I’ve worked here for 3 years, but only 12 months are recorded”—it is clear evidence of a severed record. If this mismatch is discovered right before returning home when claiming the lump sum, correcting it will take an enormous amount of time and will be too late. Verifying this once a year with the Teikibin is the only defense to prevent asset loss.
4. Practical Q&A (Troubleshooting HR Should Guide)
[Summary] Answers questions on how to check records online without waiting for the postcard, and the procedures to follow when missing records are found.
Q. If an omission (shortage of months) is discovered, how can it be corrected?
A. The employee must immediately perform a “Basic Pension Number Integration Procedure” at the local “Pension Office.” Have the employee bring their past National Pension payment slips, payslips from their previous company, Residence Card, and their current Basic Pension Number Notice to the Pension Office counter. Once it is proven they are “the exact same person,” the scattered records will be merged into one, reflecting the correct number of months.
Q. Is there a way to check pension records online without waiting for the paper postcard?
A. By using “Nenkin Net,” a web service provided by the Japan Pension Service, or “MynaPortal,” operated by the government, users can check their latest pension records 24/7 from a PC or smartphone. However, the initial registration for “Nenkin Net” requires an “Access Key” (valid for 3 months) that is printed on the Nenkin Teikibin. Ultimately, ensuring the employee receives and opens the postcard serves as the starting point for all digital procedures.
Conclusion: Conveying the Asset Value Hidden in an “Unreadable Postcard”
The Employees’ Pension premiums deducted from salaries every month are often misunderstood by foreign employees as “something like a tax,” but the reality is that they are “personal assets deposited with the Japanese state.” HR managers must not let employees discard the Nenkin Teikibin as “just another administrative notice.” Thoroughly instruct them to use it as an “annual asset audit” to secure their future Lump-sum Withdrawal Payments.