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Employees' Pension Division On Divorce
"Agreed Division System" and "Category III Division System"
A system that divides standard salary, etc. up to 50% during the marriage based on an agreement between the divorcing parties applies to divorces finalized on April 1, 2007 or later. This system is called "Agreed Division System."
For periods during a National Pension Category III Insured Persons after April 2008, 50% of the standard salary, etc. can be divided and then distributed to a dependent spouse without an agreement between the two parties. This system is called "Category III Division System."
Considerations for Pension Division on Divorce
- When divorce is finalized on April 1, 2007 or later, a request for Division on Divorce can be made only when it is approved that the marriage was annulled or the common law relationship was dissolved.
- The pension division system is not for dividing pension benefits but rather for dividing the monthly standard salary, etc. during a marriage using a proportional division percentage (50% for "Category III Division System").
- A proportional division percentage is agreed on between the divorcing parties. However, when an agreement cannot be reached, one of the parties may file an appeal to a domestic court to settle on the percentage according to a court decision. PMAC shall provide the information required for determining a proportional division percentage when such a request is made by one of the divorcing parties.
- When dividing monthly standard salary, etc., the total of the entire monthly standard salary and standard bonus amount during participation periods, which are to be divided, is calculated for each party. The total amount is converted to the current value (re-assessed) to recalculate the total (of monthly standard salary during the target periods). Then the total with the larger amount of monthly standard salary, etc. is divided to distribute part of the total to the lesser amount.
- When requesting a division based on "Agreed Division System", even if a division request based on "Category III Division System" has not been made, it is assumed that a division of the pension for the dependent spouse period is also requested.
- The period during which a pension division can be requested is limited. In principle, if 2 years elapses from the day immediately following the divorce date, no request can be made.
- A division request will be made not only for the participation periods of PMAC but also for the participation periods of Government Employees' Mutual Aid and Employees' Pension (the pension plan for private companies). By making a division request to one of the implementing, namely PMAC, Japan Pension Service (head or branch office) or Public Service Personnel Mutual Aid Associations, the request is forwarded to the other institutions. (However, division requests for which an appeal was filed to a court to determine the proportional division percentage on or before September 30, 2015, the request must be made separately to each institutions.)
Illustration of the pension division on divorce system (dividing a husband's monthly standard salary to distribute to his wife)(Agreed Division System)
Illustration of pension division systems for dependent spouse periods (Category III Division System)
Comparison between "Agreed Division System" and "Category III Division System"
||"Agreed Division System"
||"Category III Division System"
|System effective in
||April 1, 2007
||April 1, 2008
Periods before April 2007 are also applicable.
Limited to National Pension Category III Insured Persons periods in April 2008 and later.
||Based on the "proportional percentage" agreed between both parties or determined by court procedures.
||Defined as 50%.
||A request can be made by either party. A document that shows an agreement between both parties or court decision is required.
||A request must be made by a dependent spouse. An agreement between both parties is not required.
[Note 1] Even when a person for whom a division (reduction) is implemented is already receiving pension benefits, the other party to which the division is distributed cannot immediately receive pension benefits. In order for the person who receives the division to receive pension benefits, he/she must fulfill the Pension-benefit Qualified Requirements [such as payment starting age and Pension-benefit Qualified Period (Periods for which a division is distributed are not included in the calculation.)]
[Note 2] When a person for whom a division is made is already receiving pension benefits, the amount of the pension benefits is revised (reduced) from the month following the month when the division was requested.
[Note 3] Even when a person for which a division is made dies, the pension benefits of the other person to whom the division is distributed is not affected.
[Note 4] The monthly standard salary, etc. as a result of a division are only reflected in the earning-related portion and Transitional addition for occupational pension portion. The fixed portion is not affected.