Employees' Pension Division On Divorce
This system (Division on Divorce) allows Employees’ pension to be divided when divorced.
This system allows the Monthly Standard Salary, etc. for the Employees’ Pension during their marriage period to be divided between the divorcing parities upon their divorce.While the system only applies to divorces that took place on or after April 1, 2007, Monthly Standard Salary, etc. of the Employees’ Pension before this date is subject to the division.The upper limit of the division ratio is 50 percent.
Pension Benefits after the Division
Persons who received a distribution of the divided Monthly Standard Salary can receive pension benefits according to the person’s own eligibility requirements (Old age, Disability, etc.) for the Employees' Pension.Note that Old-age Employees' Pension will not be payed until the person’s pensionable age.Also note that the death of an ex-spouse does not affect the person's right to receive Employees’ pension.
The division only applies to the earning-related portion of the Employees’ Pension, and will not affect the amount of Basic Pension.There is not division system for the Retirement Pension Benefits.
The divided record is used as the basis for calculating the amount of Employees’ pension benefits, but will not add to the Pension-benefit Qualified Period, etc.
Payment of Transitional Additions for Occupational Pension (PMAC Pension), if there is any, are also subject to the division.
"Agreed Division System" and "Category 3 Division System"
In the case of divorce,this system Monthly Standard Salary etc. can divied up to 50% of Monthly Standard Salary etc during the marriage period based on an agreement between the divorcing parties. This is called the “Agreed Division System.”
For periods during a National Pension Category 3 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 3 Division System."
Considerations for Pension Division on Divorce
- When divorce is finalized, 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 3 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 3 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)
Special Provisions for Division of Employees’ Pension on Divorce Regarding Consolidation
Upon division of Employees’ pension on divorce, the request for Division on Divorce of the standard salary for one of the insured periods of the Employees’ pension (either one of the Category 1 through 4 Employees’ pension insured period), and the request for Division on Divorce of standard salary for the insured period for the other Employees’ pensions must be made at the same time.
Upon division of Employees’ pension according to the National Pension Category 3 Division, the request for Category 3 Division of the standard salary for one of the insured periods of the Employees’ pension (either one of the Category 1 through 4 Employees’ pension insured period), and the request for Category 3 Division of standard salary for the insured period for the other Employees’ pensions must be made at the same time.
Illustration of pension division systems for dependent spouse periods (Category 3 Division System)
Comparison between "Agreed Division System" and "Category 3 Division System"
|Agreed Division System||Category 3 Division System|
|System effective in||April 1, 2007||April 1, 2008|
|Applicable periods||"Marriage period"
Periods before April 2007 are also applicable.
Limited to National Pension Category 3 Insured Persons periods in April 2008 and later.
|Division percentage||Based on the "proportional percentage" agreed between both parties or determined by court procedures.||Defined as 50%.|
|Request procedures||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.|
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.)]
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.
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.
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.