Introducing Nihon IT Software Pension Fund(ITS No. 2 Pension Fund)This nationwide employee pension fund was established in October 2015
In October 2015, the Kanto IT Software Pension Fund (ITS Pension Fund) established a new pension fund entitled the "No. 2Pension Fund" separately from the current Employees' Pension Fund (EPF) to provide a better response to the diversifying needsof member companies.
We strongly recommend that establishments, both those that are already participating and those that have yet to join, makeuse of this scheme to support the daily lives of employees following retirement and supplement the state pension.

[Japan's Pension System]

Fund(supplementary)(October 2015)(July 2016)

Newly-established DB (No. 2Pension Fund)

Return the subrogated portion (dissolution).
Transfer and consolidate DB

Establish new DB

DB

DC(Subrogatedportion)

Employees Pension
National pensions

DB (No. 2Pension Fund)(No. 2 Pension Fund)

EPF (Supplementaryportion)

DB (No. 1 Pension Fund)Transfer

EPF (Subrogatedportion)

EPF (subrogated portion )Return to the government

Advantages of the ITS No. 2 Pension Fund
1. This corporate pension plan allows participation from one unit costing ¥1,000, and all contributions can be included indeductible expenses
2. The plan can be used as part of your own company's retirement scheme, and helps smooth out the funding burden.
3. Participation by multiple companies delivers economies of scale. (Reduces running costs, disperses operational risk)

Features of the ITS No. 2 Pension Fund
1. Each member company can set its own contributions and scope of membership・Flat rate course: Each member company can establish the number of contribution units separately
・Variable rate course: Each member company can establish the number of contribution units for eachmanager and other employees
・Eligibility: Can also be limited to people eligible for retirement allowances
2. Can be designed for stable fiscal management using the "Cash Balance" scheme
・Pension plan grants contributions and interest (0.0-5.0%) to each individual, and pays out the accumulated
amount on retirement
・In addition to setting the expected rate of interest at 2.5%, shortfalls in reserves for retirement allowances areunlikely because benefits are linked with investment performance, allowing stable fiscal management
3. Variety of plans to match different lifestyles
・ Pensions are paid to employees who have participated for 10 years or more (lump-sum payments possible)
Participants can elect to receive their pensions at 5, 10, 15 or 20 years, or lifetime
People who retire at 50 or older can receive their pensions immediately (people under 50 receive theirpensions from age 60)
・Lump-sum payments are made for periods of between three years or more and less than 10 years

Ensure present and future peace of mind with the ITS Pension Fund!

Nihon IT Software Pension Fund (ITS Pension Fund)
Enrolment Promotion Section

3F Akasaka MS Building, Akasaka 6-4-2, Minato-ku, Tokyo 107-0052, Japan
Tel: 0120-910-791 (toll-free)

03-5114-5517 (switchboard) Website http://www.softkikin.or.jp/More overleaf

Scheme Overview○The new Fund is adaptable to a wide range of needs because each member company can set its own
contributions, allowing employers to select the best options according to their funding capabilities and desired
benefit levels.
・Flat rate course ・・・ ・・ Set for all subscribers equally at ¥1,000 × No. of units (1-30 units)
・Variable-rate course ・・・ Set separately by position, etc., at ¥1,000 × No. of units (1-15 units)<Examples>○Position

Staffer

SectionHeadSenior
ManagerManager/
Executive

Monthly Contribution

12

3

5

The Fund has adopted a “cash balance” system whereby benefits are linked with investment performancebased on predetermined economic indicators.
・For the period from joining to retirement, pension payments are funded by a fixed amount granted to each
subscriber (contribution) plus an amount calculated for each fixed period based on economic indicators(interest).
・Interest is guaranteed at 0-5% throughout the course of the subscription, and each individual is notified of the
cumulative amount each year.
Cumulative pay credit(cumulative contribution)

Cumulative interest
credit (fluctuating)＋＝Total benefits (Pensionfunding)<Conceptual diagram>Interest credit
Pay credit

Pay credit

Pay credit

Pay credit

FY1 (Join company)

FY2FY3・・・・・・

PensionamountPay credit

PensionamountPay credit・・・・・・Pension
amountInterest
creditFixed at 2.5% during receipt ofpension

PensionamountGrant
contribution foreach individual(Pension fund resources)
Hypothetical individual accountbalance

Interest credit based on economicindicators(Fluctuates according to the economicenvironment )<Lower limit 0.0% - Upper limit 5.0%>

Fluctuates according tointerest credit

RetireParticipating in the ITS No. 2 Pension Fund
<Eligible Establishments>
Member companies engaged primarily in the information and communications business throughout Japan (noregional restrictions)<Scope of Participants>
All or part of Employees' Pension Fund members aged below 65(All employees eligible except those to whom Retirement Regulations do not apply) <Examples> Employees(excluding temporary employees, part-timers, etc.), executives<Fund Subscription Period>
The subscription period is four months after the month following the month in which the application is made. TheITS Pension Fund enrolls participants each month.
<Contributions for Office Expenses>
Necessary expenses for business operations are invoiced separately. ¥100 per unit (monthly) Upper limit ¥300
※Subject to change in the future