Returning Retirement Lump-Sum

If a person who received a Retirement Lump-sum in the past acquires the eligibility to receive Old-age Employees' Pension or Disability Employees' Pension payment, or if a person who received a Retirement Lump-sum in the past dies and his/her survivors acquire the eligibility to receive Survivors' Employees' Pension payment, the Retirement Lump-sum received in the past plus an interest must be returned with the following procedures:

Note:
Definition of Retirement Lump-sum
Retirement Lump-sum was applied when a person with participation periods of 1 to 19 years retired on or before December 31, 1979. It was paid after deducting the funds necessary to receive an aggregate amount of Retirement Pension (frozen amount).

There was an option for such a person eligible to receive the Lump-sum to receive it in entirety without deducting the frozen amount.

Handling of the period during which a Retirement Lump-sum after deducting the frozen amount was received

The period on which the received Retirement Lump-sum was based will be treated as the period for calculating Old-age/Disability/Survivors' Employees' Pension benefits, and the Lump-sum must be returned.

Handling of the period during which an entire Retirement Lump-sum was received

1. When the total of all participation periods is 20 years or longer:
   The basic calculation period for the Retirement Lump-sum is treated as the calculation period for Old-age Employees' Pension, etc., and the Lump-sum must be returned.
2. When the total of all participation periods is less than 20 years:
   The basic calculation period for the Retirement Lump-sum is not treated as the calculation period for Old-age Employees' Pension, etc., and the Lump-sum shall not be returned.

How to Repay a Retirement Lump Sum

There are two options to repay a retirement lump sum. You must choose either 1. or 2. below when you claim your pension.

1. Allocate half the amount per pension payment for the repayment.
2. Complete the repayment in cash within a year either by one-off payment or in installments.

Repayment Amount

If you are asked to return a retirement lump sum, you must repay it together with the interest accrued over the period from your receipt of it until your acquisition of a pension right.
Note:
The interest during the period from the month following the month of the date of payment of a retirement lump sum until the month of the acquisition of entitlement to pension is calculated on a compounding basis.

Table of Interest Rates

Period	Interest
Until March 2001	5.5%
April 2001 to March 2005	4.0%
April 2005 to March 2006	1.6%
April 2006 to March 2007	2.3%
April 2007 to March 2008	2.6%
April 2008 to March 2009	3.0%
April 2009 to March 2010	3.2%
April 2010 to March 2011	1.8%
April 2011 to March 2012	1.9%
April 2012 to March 2013	2.0%
April 2013 to March 2014	2.2%
April 2014 to March 2015	2.6%
April 2015 to March 2016	1.7%
April 2016 to March 2017	2.0%
April 2017 to March 2018	2.4%
April 2018 to March 2019	2.8%
April 2019 to March 2020	3.1%
April 2020 to March 2021	1.7%
April 2021 to March 2022	1.7%
April 2022 to March 2023	1.7%
April 2023 to March 2024	1.6%
April 2024 to March 2025	1.6%
After April 2025	1.7%

The interest rates on retirement lump sums are determined by government regulations.