Fujitsu 2007 Annual Report Download - page 76

10. Retirement Benefits
The Company and the majority of the consolidated subsidiaries in Japan have unfunded lump-sum
retirement plans which, in general, cover all employees who retire before a retirement age prescribed in
their internal codes. The employees are entitled to the benefits primarily based on their length of service
and basic salary as of the retirement date.
In addition, the Company and the majority of the consolidated subsidiaries in Japan participate in
contributory defined benefit plans which cover substantially all employees. The major contributory defined
benefit plan (the “Plan”), which is referred to as the Fujitsu Corporate Pension Fund, entitles employees
upon retirement at the normal retirement age to either a lump-sum payment or pension annuity pay-
ments for life commencing at age 60, or a combination of both based on their length of service, basic
salary as of the retirement date and the number of years of participation in the Plan. The contributions of
the Company and the subsidiaries covered by the Plan and their employees are made to the Fujitsu
Corporate Pension Fund which is an external organization.
The Fujitsu Welfare Pension Fund, which the Company and certain consolidated subsidiaries in
Japan participated in, received approval of an elimination of the future benefit obligations of the substitu-
tional portion on March 23, 2004, and then received approval of transfer of past benefit obligation of the
substitutional portion on September 1, 2005, from the Minister of Health, Labour and Welfare. Accord-
ingly, Fujitsu Welfare Pension Fund changed to the Defined Benefit Corporate Plan based on the Japanese
Defined Benefit Corporate Pension Law from the Japanese Welfare Pension Plan based on the Japanese
Welfare Pension Insurance Law, and concurrently a part of the pension system was revised.
The majority of the consolidated subsidiaries outside Japan have defined benefit plans and/or defined
contribution plans covering substantially all their employees. The major defined benefit pension plan
provided outside Japan is the plan that Fujitsu Services Holdings PLC (including its consolidated sub-
sidiaries, “FS”) provides. The plan entitles employees payments based on their length of service and sal-
ary. The defined benefit section of the plan was closed to new entrants on August 31, 2000. New employ-
ees are, however, eligible for membership of the defined contribution section.
The balances of the “projected benefit obligation and plan assets” and the “components of net periodic
benefit cost” in the plans in both Japan and outside Japan are summarized as follows:
<In Japan>
Projected benefit obligation and plan assets
Yen U.S. Dollars
(millions) (thousands)
At March 31 2006 2007 2007
Projected benefit obligation ¥(1,054,075) ¥(1,104,391) $(9,359,246)
Plan assets 1,122,751 1,126,277 9,544,720
Projected benefit obligation in excess of plan assets 68,676 21,886 185,474
Unrecognized net obligation at transition 65,264 48,798 413,542
Unrecognized actuarial loss 47,585 100,729 853,636
Unrecognized prior service cost (reduced obligation) (176,712) (157,891) (1,338,059)
Prepaid pension cost (89,847) (89,697) (760,144)
Accrued retirement benefits ¥ (85,034) ¥ (76,175) $ (645,551)
74 Fujitsu Limited