Fujitsu 2009 Annual Report Download - page 102

9. 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 base 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 payments
for life commencing at age 60, or a combination of both based on their length of service, base salary 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, in which the Company and certain consolidated subsidiaries in Japan participated, received approval of an
elimination of the future benefit obligations of the substitutional 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. Accordingly, Fujitsu Welfare Pen-
sion 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 sub-
stantially all their employees. The major defined benefit pension plan provided outside Japan is the plan that Fujitsu Services Holdings PLC
(including its consolidated subsidiaries, “FS”) provides. The plan entitles to employees payments based on their length of service and salary. The
defined benefit section of the plan was closed to new entrants on August 31, 2000. New employees are, however, eligible for membership of
the defined contribution section of the plan.
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
(millions)
U.S. Dollars
(thousands)
At March 31 2008 2009 2009
Projected benefit obligation ¥(1,145,897) ¥(1,198,318) $(12,227,734)
Plan assets 954,508 791,122 8,072,673
Projected benefit obligation in excess of plan assets (191,389) (407,196) (4,155,061)
Unrecognized net obligation at transition 32,574 16,467 168,031
Unrecognized actuarial loss 306,276 492,968 5,030,285
Unrecognized prior service cost (reduced obligation) (139,139) (120,785) (1,232,500)
Prepaid pension cost (83,011) (72,505) (739,847)
Accrued retirement benefits ¥ (74,689) ¥ (91,051) $ (929,092)
As a result of pension system revisions, Fujitsu Corporate Pension Fund in which the Company and certain consolidated subsidiaries in Japan
participate, reported unrecognized prior service cost (reduced obligation) at September 1, 2005.
100 ANNUAL REPORT 2009
FUJITSU LIMITED
Notes to Consolidated Financial Statements