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  7. Announcement Regarding Pension System Revisions and the Return of the Past Substitutional Portion of the Pension Plan

Announcement Regarding Pension System Revisions and the Return of the Past Substitutional Portion of the Pension Plan

Fujitsu Limited

Tokyo, September 05, 2005

Fujitsu Limited today announced that, as of September 1, 2005, the Fujitsu Welfare Pension Fund (the "Plan"), in which Fujitsu and its consolidated domestic subsidiaries participate, received approval from the Minister of Health, Labour and Welfare for the past substitutional portion of the Plan it has returned to the government and for revisions to its pension system, which are designed to improve the financial soundness of the Plan and promote the long-term stability of its pension system. Accordingly, the Fujitsu Welfare Pension Fund has been changed to the "Fujitsu Corporate Pension Fund."

1. Outline of pension system revisions:

  • (1) Revision of the annuity rate after retirement
    With corporate and employee contribution pensions, the annuity rate after retirement has been revised from 5.5% to 2.5% in accordance with prevailing economic and social conditions.
  • (2) Revision of the guaranteed pension benefit period
    Taking into consideration the impact of longer life expectancies on the retirement security of beneficiaries as well as their spouses and dependents, the guaranteed benefit period has been expanded from 13 years to 20 years with regard to corporate and employee contribution pension plans.
  • (3) Revision of lifetime pension benefit
    To allow beneficiaries flexibility in planning for their retirement, for the corporate contribution pension benefit, they can choose either a fixed term annuity or, based on the same actuarial value, a lifetime annuity. With regard to the employee contribution pension plan, in which benefits are based on employee contributions, only a fixed term annuity is offered, since, with a lifetime annuity, differences in life spans would result in discrepancies in the total value of benefits.

2. Impact on projected benefit obligation (PBO) and expenses:

Under these pension system revisions, the consolidated PBO is expected to decrease by approximately 180.0 billion yen, and the unrecognized obligation to decrease by the same amount. Accordingly, amortization of unrecognized obligation for retirement benefits, recorded in the category of "other expenses," is expected to decrease by approximately 10.0 billion yen on a consolidated basis and 6.0 billion yen on an unconsolidated basis for the year ending March 31, 2006.

(Reference)

As of March 31, 2005 (Consolidated domestic accounts)
PBO 1,247.1 billion yen
Plan assets 876.7 billion yen
Accrued retirement benefits & prepaid pension cost (25.0) billion yen
Unrecognized obligation 395.4 billion yen

About Fujitsu

Fujitsu is a leading provider of customer-focused IT and communications solutions for the global marketplace. Pace-setting device technologies, highly reliable computing and communications products, and a worldwide corps of systems and services experts uniquely position Fujitsu to deliver comprehensive solutions that open up infinite possibilities for its customers' success. Headquartered in Tokyo, Fujitsu Limited (TSE: 6702) reported consolidated revenues of 4.7 trillion yen (US$44.5 billion) for the fiscal year ended March 31, 2005. For more information, please see www.fujitsu.com

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Company:Fujitsu Limited

Date: 05 September, 2005
City: Tokyo
Company: Fujitsu Limited, , , , ,