[Case] Transition to a Point-Based Retirement Allowance and the Centralized Retirement Fund

Ensure stable management!! Review of the retirement benefit system linked to wages (final base salary) → Point-based retirement benefits system - Introduction of consulting case studies -

We would like to introduce a case at Company J where they switched to a point-based retirement bonus system and transitioned their qualified retirement pension assets to the Small and Medium-sized Enterprise Retirement Allowance Mutual Aid System. At the company, there were concerns that under the retirement bonus calculation method of "basic salary at retirement × payment rate based on years of service × adjustment rate based on reason for retirement," the amount required for retirement bonuses would increase at an unexpectedly high pace as employees' years of service continued to grow. Through consulting, the transition to a ★point-based retirement bonus★ eliminated concerns that salary increases or decreases would directly affect the retirement bonus amount, thereby establishing a foundation for operating a merit-based wage system in line with its original intent and purpose. [Background and Challenges] ■ The previous retirement bonus calculation method led to a rapid increase in the amount required for retirement bonuses. ■ When a negative salary increase occurred, the vested rights to retirement bonuses corresponding to prior years of service would decrease. ■ The qualified retirement pension was abolished at the end of March 2012, making it impossible to accumulate contributions through loss processing. *For more details, please refer to the related links or feel free to contact us.*

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