If you were enrolled in a corporate-type DC and fail to complete the necessary rollover procedures within six months following the month which the loss of participant eligibility date (the date following the date of retirement) belongs to, your assets in the corporate-type DC will be automatically transferred to the National Pension Fund Association (NPFA)"国民年金基金連合会". This is called automatic rollover.

 

At the time of rollover, all your investment holdings will be sold, converted into cash, and transferred to the NPFA. (If stipulated in the plan document, the amount returned to the company will be deducted.)

 

＜Notes for automatic rollover＞

・Assets are kept in cash and no investment is allowed.

・Extra fees are incurred. (4,348 yen for automatic rollover, 98 yen per month from the fourth month following the month in which assets are automatically rolled over, 550 yen for transferring to another defined contribution pension plan, and 4,180 yen for filing a claim for early lump-sum payment or lump-sum death benefit)

・The automatic rollover period is not included in the total participation period for the defined contribution pension plan. Ten or more years of the total participation period is necessary to receive retirement benefits at the age of 60.

・Benefits can be claimed only after the asset transfer to another defined contribution pension plan is completed, so it may take more time to start receiving benefits.