Fujitsu 2013 Annual Report Download - page 134

14. 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 labor codes. The employees are entitled to the ben-
efits 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 Wel-
fare. Accordingly, 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 plans provided outside Japan are the plans that Fujitsu Services
Holdings PLC (including its consolidated subsidiaries, “FS”) and Fujitsu Technology Solutions (Holding) B.V. (including its consolidated
subsidiaries) provide. The plan provided by FS entitles employees to payments based on their length of service and salary. The defined
benefit section of the plan was closed to new entrants effective the year ended March 31, 2001. New employees are, however, eligible
for membership of the defined contribution section of the plan. For the year ended March 31, 2011, FS started to switch future accrual of
benefits relevant to the employees participating in the defined benefit section of the plan to the defined contribution section of the
plan, and completed for the year ended March 31, 2012. For the year ended March 31, 2013, a special payment of ¥114,360 million
(800 million Pound Sterling) was made into pension schemes of FS so as to make up the deficit —projected benefit obligation in excess
of plan assets—. Also, the investment portfolio of plan assets is shifted toward bonds for the purpose of asset-liability matching.
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 2012 2013 2013
Projected benefit obligation*1¥(1,296,621) ¥(1,432,021) $(15,234,266)
Plan assets 943,936 1,068,535 11,367,394
Projected benefit obligation in excess of plan assets*1(352,685) (363,486) (3,866,872)
Unrecognized actuarial loss 357,527 354,049 3,766,479
Unrecognized prior service cost (reduced obligation)*2(65,518) (45,309) (482,011)
Prepaid pension cost (52,308) (50,022) (532,149)
Accrued retirement benefits*1¥ (112,984) ¥ (104,768) $ (1,114,553)
*1 The provision for extra retirement benefits stemming from restructuring in Japan, which in the year ended March 31, 2012 had been included in “Accrued retire-
ment benefits” of ¥2,892 million ($30,766 thousand) for the year ended March 31, 2012, is included in “Provision for restructuring charges” for the year ended
March 31, 2013. In conjunction with this change, the amounts as of March 31, 2012 were restated.
*2 As a result of pension revisions, unrecognized prior service cost (reduced obligation) occurred for the year ended March 31, 2006 in Fujitsu Corporate Pension Fund
in which the Company and certain consolidated subsidiaries in Japan participate.
132 FUJITSU LIMITED ANNUAL REPORT 2013