Kokumin nenkin / kosei nenkin: basic question!

[kuma]

I understand that for the Japanese pension 10 years of contributions are required in order to vest...

Does this mean
(a) 10 years combined for kokumin nenkin and kosei nenkin contributions,
or
(b) separate; ie to vest from kokumin nenkin one must have 10+ years of kokumin nenkin contributions and to vest from kosei nenkin you must have 10+ years of kosei nenkin contributions?

[RetireJapan]

Kosei nenkin includes kokumin nenkin, so ten years total from either or both.

The way it works is kokumin nenkin + kosei nenkin on top.

[captainspoke]

But--due to a job change--wouldn't it be possible/easy to have contributed over 10 yrs to kokumin nenkin, but not have met that threshold yet for kosei nenkin?

Just speculating, but I can imagine a case where someone would start with the one, and then switch to a job where they also had the other.

Also, someone might retire (early) and switch to part time--they'd still be paying kokumin nenkin, but may have stopped contributing to kosei nenkin.

Probably a question for the pension office.

[RetireJapan]

You need to pay 120 months into nenkin to get a pension.

If you pay kokumin nenkin, you only get credit towards kokumin nenkin.
If you pay kosei nenkin, you get credit towards kokumin nenkin and kosei nenkin.

When you reach pensionable age and decide to take your pension, they will add up your kokumin nenkin and kosei nenkin credits and figure out what your pension is worth.

You can also see the projections on your annual statement (年金定期便) or by making an account at Nenkin Net.

You can see my latest annual statement here: https://www.retirejapan.com/blog/japan- ... date-2018/

At that point I had paid 12 months of kokumin nenkin, 93 months of kosei nenkin, and 109 months of kyosai nenkin (which is now the same as kosei nenkin). The kosei nenkin and kyosai nenkin months include contributing to kokumin nenkin, but you just get one pension at the end, not separate ones for kokumin and kosei.

[kuma]

Thanks very much for the responses. Clear, useful and swift!

[captainspoke]

...The kosei nenkin and kyosai nenkin months include contributing to kokumin nenkin, but you just get one pension at the end, not separate ones for kokumin and kosei.

Sorry to be a thorn, but I've only ever had two lines listed as bi-monthly deposits in my bankbook (for two years now). So one pension, but for some reason separated onto two lines?

The payer on the first line (the lesser of the two) reads: 国民厚生年金

The other line (always immediately after the above) reads: ニホンシリツガッコウシンコ. (Cut off due to available space.)

My employment history is such that I've only ever paid these simultaneously (single long term employment), never any of the kokumin contributions without the other. The only reason for this I can think of offhand is that my contributions to the 私立学校 system started long before it was absorbed by the more widespread 厚生年金 system (which happened maybe 5-7 years ago).

What do you think? Special case, or what?

[RetireJapan]

I believe the kyosai system was always different, and even now still is (I pay some weird extra premium that appears to be invested on my behalf). So it could be that

[kuma]

A follow-up question: what happens to pension contributions if you are an employee on kosei nenkin but also do a freelance gig on the side?

[RetireJapan]

Good

A follow-up question: what happens to pension contributions if you are an employee on kosei nenkin but also do a freelance gig on the side?

Good question. I guess if your income is large enough on the side gig that you have to declare it it might increase your pension contribution? Which would then have to be matched by your employer?

Seems complicated. Anyone else?

[kuma]

Good

A follow-up question: what happens to pension contributions if you are an employee on kosei nenkin but also do a freelance gig on the side?

Good question. I guess if your income is large enough on the side gig that you have to declare it it might increase your pension contribution? Which would then have to be matched by your employer?

Seems complicated. Anyone else?

If a side gig impacts upon the amount of contributions from your employer, that could create tricky / unfair situations. Imagine a former rock star who decides to work full time in Family Mart for 2m yen a year. He does one tribute gig in his free time for 10m yen. It would seem unfair for Family Mart to suddenly be liable for huge pension contributions.

Could it be that the employment portion would be under kosei nenkin but the self-employment portion would be under kokumin nenkin... which has already been covered under kosei nenkin, so there would be no additional contributions required from employee or employer?