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Old-age Employees' Pension (Regular Payment)

For Old-age Employees' Pension from age 65, the eligibility to receive benefits comes into effect at age 65 if the person satisfies the Pension-benefit Qualified Period and has periods of being an insured person of the Employees' Pension Insurance (refer to Old-age Employees' Pension and Old-age Basic Pension from age 65).

Example

When a person was employed by a private school at age 22 and then retired at age 62

Image of when a person was employed by a private school at age 22 and then retired at age 62

Structure of Old-age Employees' Person

Image of Old‐age Employees‘ Pension

Earning-related portion

Amount proportional to earnings and length of Period B + Period C

Amount proportional to earning and length of Period

Average Standard Salary and Average Monthly Standard Salary

Pension amount is calculated based on average standard salary.
However portion of the insured period in or before March 2003 is calculated based on average monthly standard salary.

Image of Average Standard Salary and Average Monthly Standard Salary

Terminology

  • Average Standard Salary:
    The sum after reevaluating the standard monthly salary and standard bonus for each month of the insured period in and after April 2003, divided by the number of applicable insured period in months.
  • Average Monthly Standard Salary:
    In principle, the sum of re-evaluated Monthly Standard Salary for each month that the calculation of the insured period in and before March 2003 is based on, divided by the number of applicable insured period in months.

Note:
The average monthly standard salary of a person with a insured period before April 1, 1986 is calculated using a different formula.

Transitional additions

From age 65, the Old-age Basic Pension benefits incurred for the period between age 20 and 59 during the period of being a Category 4 Employees' Pension Insured Person are deducted from the fixed portion of the Old-age Employees' Pension paid by PMAC.

However, the period of being a Category 4 Employees' Pension Insured Person (Period C) before age 20 or, on and after age 60 is not treated as a period calculated for Old-age Basic Pension, and the difference between the fixed portion and Old-age Basic Pension benefit amount is paid as a “Transitional additions” of Old-age Employees' Pension.

Calculation formula(As of April 1,2021)

Calculation formula

Additional Pension amount

If a person who is eligible to receive Old-age Employees' Pension benefits has 20 years or more of a calculation period (total of Category 1-4 Employees' Pension) of Old-age Employees' Pension and has a spouse younger than age 65 (including Common law marriage) who is dependent on the person for full support, children who have not reached the end of the fiscal year at age 18 and are dependent on the person for full support, or children younger than age 20 with a 1st or 2nd degree disability, Additional Pension amount is added.

Note: Definition of "full support"
If an annual earnings of a spouse or child who share living costs is less than 8,500,000 yen (or an annual income of 6,555,000 yen), they are qualified to be a dependent for full support.

In addition, even when the annual earnings exceed 8,500,000 yen, if it can be objectively confirmed that consistent earnings (income) will decrease due to mandatory retirement in the near future (within approximately 5 years), etc., dependent for full support may be approved.

Additional Pension amount (As of April 1, 2021)
Spouse 224,700 yen/year
1st/2nd child 224,700 yen/year
3rd and subsequent children 74,900 yen/year

For persons eligible to receive benefits who were born on April 2, 1934 or later, one of the following amounts is also added as a special addition.

Birth date of pension-benefit certified person Special addition
April 2, 1934 - April 1, 1940 33,200 yen
April 2, 1940 - April 1, 1941 66,300 yen
April 2, 1941 - April 1, 1942 99,500 yen
April 2, 1942 - April 1, 1943 132,600 yen
April 2, 1943 - 165,800 yen

Deferred payment of Old-age Employees' Pension

By deferring the payment starting month of "Regular Payment of Old-age Employees' Pension" for 1 year or more, an increased amount of Old-age Employees' Pension based on the number of deferred months (0.7% increase per month) can be received. The maximum period that can be deferred is 5 years.

Deferred payment must include all of Old-age Employees' Pensions (excluding Old-age Basic Pension) provided by other implementing institutions(Note). Note that just one or the other of them cannot be deferred. However, Old-age Basic Pension does not need to be deferred at the same time as Old-age Employees' Pension.

Note: Japan Pension Service or Government Employees' Pension

mechanism of deferred payment

Image of Deferred payment

Calculation of an additional amount for deferred payment (Note 3)

When the payment is deferred, an additional amount is added to the amount of Old-age Employees' Pension.

This additional amount for the deferred payment is calculated according to the Old-age Employees' Pension amount(Note), which is calculated based on the period of Category 4 Employees' Pension Insured Person up to the month previous to the month when the eligibility to receive Old-age Employees' Pension comes into effect and the period during which the payment is deferred, etc.

Note:
If the person eligible to receive the pension is still employed, the additional amount for deferred payment will be based on the payment amount of which after some payment is suspended.

Note:
Additional Pension amount is not included in the calculation.

Case where the payment cannot be postponed

Persons(Note) who are eligible to receive Disability benefits other than the Disability Basic Pension or Survivor benefits (hereafter referred to as "Disability benefits, etc.") cannot defer the payment.

Note:
Even if the person acquires the eligibility to receive Disability benefits, etc. within 1 year after acquiring the eligibility to receive Old-age Employees' Pension, the payment cannot be deferred.
In addition, if the person acquires the eligibility to receive Disability benefits, etc. after one year of deferment, the payment cannot be deferred any longer.

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