Notes on Individual Rules under the Japan-U.S. Social Security Agreement

In case that you work as an officer or member of a crew on board a sea-going vessel flying the flag of Japan or an American vessel, if you would otherwise be compulsorily covered by the social security systems of both countries, you will be subject only to the system of the country in which you ordinarily reside. Under this rule for crews of ships, maximum exemption period is not specified.
The procedure to apply for your Certificate of Coverage is the same as it is for general employees.

In order for you to be exempt from coverage of the Japanese public health insurance system, you need to be covered by private health insurance in U.S. against the cost of health care in Japan while you are temporarily sent to work in Japan from U.S. When your spouse and children stay in Japan with you, they must also be covered under private health insurance. If some of them are not covered by private health insurance, you and your family are not exempt from coverage of the Japanese health insurance system.

In addition to other requirements for exemption from coverage under the U.S. Social Security system, if you are temporarily sent by your employer in Japan to work in U.S., you must have worked and resided in Japan for at least 6 months of coverage under the Japanese social security system immediately prior to your detachment to U.S. If you are sent by an employer in U.S. to work in Japan, the same rule is applied.
This six-month rule also applies to self-employed persons. If you temporarily work in U.S. as a self-employed person, you must have worked as a self-employed person in Japan for at least 6 months of coverage under the Japanese pension system immediately prior to your temporary work in U.S. If you temporarily work in Japan, you are required to satisfy the same rule.

In case that you work as an officer or member of a crew on an aircraft, if you would otherwise be covered by the social security systems of both Japan and U.S., you will be subject only to the system of the country in which your employer's headquarters are located.

1 ) "Extension of up to 3 year exceeding the initial 5 years" may be granted
If the reason for extension of the detachment was unforeseen and does not appear to be aimed solely for the purpose of extending the exemption in the country. For example;

1. The detached worker might be working on a project and its completion has been unexpectedly delayed.
2. The detached worker has school age children and wants to remain in the other country by the end of the school year.

2 ) "Extension of 3 to 4 years exceeding the initial 5 years" may be granted
In addition to unforeseeable matters, if the extension of the detachment period is necessary in order to avoid a significant damage to the company, the employee or his/her family. For example;

1. The detached worker's successor unexpectedly resigns or becomes disabled or dies and it will take time until a new successor can be assigned and trained.
2. The company is acquired or reorganized and the detached worker is essential for the company's transition.

Under the U.S. Social Security system, U.S. citizens (including noncitizens admitted for permanent residence in U.S.) must pay U.S. Social Security tax imposed on their income even if they are working in Japan.
While, according to the principle of Japan-U.S. Agreement, if you are sent to Japan from U.S. for a long period of time or you are locally hired in Japan, you will be covered only by the Japanese social security system and be exempt from coverage under the U.S. system.
In this case, to be exempt from U.S. Social Security system, you need to enroll in the Japanese social security system and have your Certificate of Coverage which proves you are covered by the Japanese system according to the Agreement. And you are required to present your Certificate of Coverage to your employer or Internal Revenue Service in U.S.
In order to apply for your Certificate of Coverage, your employer (or you if you are self-employed) is responsible for filing the form "Application for Certificate of Coverage" at the Branch Office of Japan Pension Service(JPS Branch Office) in Japan, just like the procedure for detached workers from Japan to the U.S.

One Social Security credit in U.S. is considered as 3 months coverage period under the Japanese pension system. In order for you to receive U.S. Social Security benefits totalizing both countries' coverage periods, you must have earned at least 6 credits under the U.S. system.

If you claim U.S. benefits after the month you are eligible for the benefits, U.S. benefits will be retroactively payable for up to 6 months for retirement and 12 months for disability. You can file your claim for your retirement benefits as early as the first day of three months before your birth month when you reach your pensionable age for the benefits.

1) How to apply for benefits from Japan
The Agreement enables you to apply for totalized U.S. Social Security benefits at the JPS Branch Office or the Pension Consultation Center in Japan. To apply for totalized U.S. Social Security benefits at the JPS Branch Office or the Pension Consultation Center, you need to file the “Temporary Claim for U.S. Social Security Benefits” which is available at these offices. You enter your personal information, such as your U.S. Social Security number, your name, date of birth and address, on the claim form. You also need to submit a certified (or an extract) copy of your Family Registry or a photocopy of your passport and a photocopy of either your Pension Handbook or your Pension Certificate together with the claim form. Your claim forms are then transmitted from the Japan Pension Service Headquarters to Federal Benefits Unit in the U.S. Embassy Tokyo. You will later be contacted to your telephone number by the Japanese-speaking U.S. Embassy staff for interviewing your federal benefits. If you are a federal benefits customer, please contact Federal Benefits Unit in the Embassy Tokyo at (+81) (0)3-3224-5000 for more information. From the recorded phone, you can leave your name and number to the recording phone. The Federal Benefits Unit will get back to you.
2) How to apply for benefits from U.S.
Your claim from U.S. is processed according to the U.S. legislation. For more detailed information about specific procedures in U.S., please visit the U.S. Social Security website at http://www.ssa.gov/（外部リンク）

The U.S. benefits are paid every month.
If you live in Japan, you can choose from following payment options :

1. Direct deposit to your bank account in Japan in Japanese yen
2. Direct deposit to your bank account in the U.S. in U.S. dollars

Under the U.S. Social Security system, coverage period is measured in "Credits," which are provided in accordance with your income earned during each calendar year. On the other hand, Japanese coverage period is measured in month. Accordingly, one Social Security Credit in U.S. is considered as 3 months of Japanese coverage period when you totalize both countries' coverage periods.
Additionally, in order for you to be eligible for the Japanese disability or survivors' benefits under the rule of the Japan-U.S. Agreement, you need to have at least one year coverage period under the U.S. system in the last two years preceding the date of the first medical examination or the date of death.

Under the U.S. Social Security system, your coverage period measured in credits will not be equal to your actual work period. Therefore, you will be considered to be covered by Japanese system if you meet the following requirements for disability or survivors' benefits.

• a．You have at least 4 quarters of coverage period under the U.S. system in the last 8 calendar quarters ending with the calendar quarter to which the date of the first medical examination (or the date of death) belongs. (so-called "4/8 coverage period requirement").

• b．You have at least 6 quarters of coverage period under the U.S. system in the last 13 calendar quarters ending with the calendar quarter to which the date of the first medical examination (or the date of death) belongs. (so-called "6/13 coverage period requirement").

According to the Income Tax Convention between Japan and U.S., your Japanese benefits received in U.S. are subject only to U.S. income tax.
To be exempt from Japanese income tax under this rule, you must submit an "Attachment form for limitation on benefits article in addition to two completed "Application form for income Tax Covention (Form 9)(PDF)".