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Payment suspension during employment (Employees’ Pension Insurance Insured Persons, etc.)

For persons who are receiving old-age pension and are currently employed (being an Employees’ Pension Insurance Insured Persons, etc.), when the amount of their “pension + wages” exceeds a specified amount, a part of or all of the pension payment is suspended.

If a person receives old-age pensions from two or more different implementing institutions, total amount of these pensions are used for calculation about payment suspension, and the suspended amount of each pension is calculated proportionally.

Employees’ Pension Insurance Insured Persons, etc. are:

  1. General Employees’ Pension Insured Persons (Category 1 Employees’ Pension Insured Persons) or persons age 70 or older who are engaged in work covered by Category 1 Employees’ Pension Insurance
  2. National Government Employees’ Pension Insured Persons (Category 2 Employees’ Pension Insured Persons) or persons age 70 or older who are engaged in work covered by Category 2 Employees’ Pension Insurance
  3. Local Government Employees’ Pension Insured Persons (Category 3 Employees’ Pension Insured Persons)or persons age 70 or older who are engaged in work covered by Category 3 Employees’ Pension Insurance
  4. PMAC Employees’ Pension Insured Persons (Category 4 Employees’ Pension Insured Persons) or private school personnel age 70 or older
  5. Diet members or local government council members

Details of calculation for payment suspension

If an Employees’ Pension Insured Person is currently employed, when the total of his/her pension (Basic Monthly Amount) and wages (Total Monthly Earnings) exceeds the specified amount, the payment is suspended. Basic Monthly Amount and Total Monthly Earnings calculation methods and specified amounts are as follows:

Basic Monthly Amount(pension)

The amount (monthly amount) resulting from deducting the Additional Pension amount, Occupation-related Portion and Transitional additions for occupational pension from the annual pension benefits and then dividing it by 12.
If a person is eligible to receive old-age pension from 2 or more implementing institutions, the Basic Monthly Amount of each pension plans are totaled.

Total Monthly Earnings(wages)

The amount (monthly amount) resulting from summing the standard monthly earnings of the month where Old-age Employees’ Pension, etc. during employment is calculated and the standard bonus amount of that month plus the preceding 11 months, and then dividing it by 12.

specified amounts (as of fiscal 2021; they vary according to the revision of the future pension benefit amounts)

  1. Younger than age 65 ··· 280,000 yen
  2. Age 65 or older ··· 470,000 yen

The amount of suspended payment is calculated by the following calculation methond using this base amount.

Method to calculate the amount of suspended payment

1. Younger than age 65

There are no suspension due to employment when the sum of wages and pension are within 280,000 yen.

（1）When Total Monthly Earnings are 470,000 yen
or less and the Basic Monthly Amount is 280,000 yen or less
Amount of suspended payment (monthly amount) = { (Basic Monthly Amount +Total Monthly Earnings) - 280,000 yen} × 1/2

（2）When the Total Monthly Earnings 470,000 yen
or less and the Basic Monthly Amount exceeds 280,000 yen
Amount of suspended payment (monthly amount) = wages × 1/2

（3）When the Total Monthly Earnings exceed 470,000 yen
and the Basic Monthly Amount is 280,000 yen or less
Amount of suspended payment (monthly amount) = { (470,000 yen + pension) - 280,000} × 1/2 + (Total Monthly Earnings - 470,000 yen)

（4）When the Total Monthly Earnings exceed 470,000 yen
and the Basic Monthly Amount exceeds 280,000 yen
Amount of suspended payment (monthly amount) = 470,000 yen × 1/2 + Total Monthly Earnings - 470,000 yen

Upon enactment of the amendment of pension legislation in April 2022, the pension calculation system used for people age 65 and older will be equally applied for those below 65.

2. Age 65 or older

There are no suspension due to employment when the sum of wages and pension are within 470,000 yen.
a. Amount of suspended payment (monthly amount) = { (Basic Monthly Amount + Total Monthly Earnings) - 470,000 yen} × 1/2

  • Occupation-related portion in Retirement Mutual Aid Pension, and Transitional additions for occupational pension (Retirement Mutual Aid Pension) are suspended only when employed by a private school.
  • Additional Pension amount are given only to those who are receiving basic monthly amount.
  • Suspension due to employment are not applied to Transitional Addition and additional amount for deferred pension payment.
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