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COMMERCIAL IN CONFIDENCE 0. Meet Fujitsu Progress Update © Copyright Fujitsu Services Limited 2010.

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Presentation on theme: "COMMERCIAL IN CONFIDENCE 0. Meet Fujitsu Progress Update © Copyright Fujitsu Services Limited 2010."— Presentation transcript:


2 Meet Fujitsu Progress Update © Copyright Fujitsu Services Limited 2010

3 COMMERCIAL IN CONFIDENCE 2 Consultation Initial meeting end of April 8 meetings to date, next scheduled 20th July Extensive work undertaken by the Consultation Forum to develop Matrix 9 different sets of Terms & Conditions Now complete with Measures and Representatives plan to share this with you from this week Topics covered include:- Terms, Conditions & benefits New locations – Blackpool & Sheffield Pensions & Flexible benefits Processes, Policies & Guidelines

4 COMMERCIAL IN CONFIDENCE 3 Communications 1-2-1s Complete for everyone who asked for a (206 in total) Received positive feedback on the two-way dialogue Gathered massive amounts of useful information (individuals, roles, teams) Questions captured: working through these General questions – replies being added to Microsite Individual questions/personal – s will be sent direct to individuals Microsite Continues to be updated with material and Q&A information Group mailbox Responding to queries regularly

5 COMMERCIAL IN CONFIDENCE 4 Training Skills Profiles/Checklists Thank you for completing these Being used to help us create bespoke training plans to meet your needs in line with the requirements of the service we are providing

6 COMMERCIAL IN CONFIDENCE 5 Premises Blackpool contractor practical completion achieved on target on the 1 st July. Fujitsu specific fit-out started, the project is on target to deliver these premises for September Blackpool move planning will commence in the near future, Fujitsu will be involving the consultation forum in the detail. Fujitsu are currently in the advanced stages of finalising arrangements for premises in Sheffield. Feedback from the 1 to 1s has been considered as an integral part of this process in terms of requirements for this location. As soon as commercials are complete the exact location will be communicated. Norcross – knowledge transfer process has now been agreed with both HPES and the DWP. This process will confirm our technical requirements going forward which will inform the decision on whether testing remains at Norcross at Day 1 or moves to Blackpool. London - Fujitsu are in dialogue with the DWP around use of the current space on site for the Adelphi and Caxton House. These are progressing well.

7 COMMERCIAL IN CONFIDENCE 6 Re-planning The transition of DWPs Desktop Services from Hewlett Packard Enterprise Services (HPES) to Fujitsu will complete later than the originally planned date of September We have made good progress to date and expect to complete Transition either late 2010 or early The Departments priority is to deliver the benefits of Fujitsus transformed Desktop Services solution (i.e. a predominantly Thin Client solution) with no disruption to service to its customers and staff. This requires some flexibility in the handover of the Desktop Service between the two suppliers (HPES and Fujitsu). The additional time is required to ensure the smooth and seamless transition from HPES to Fujitsu. All the organisations involved continue to work closely together to achieve this.

8 COMMERCIAL IN CONFIDENCE 7 Your Choices For DWP Copyright 2009 Fujitsu Services Limited Fujitsus Benefit Offering To Transferees who currently have Flex Funds Fujitsus Benefit Offering To Transferees who currently have Flex Funds We are in Consultation but this is an update on what has been discussed to date. Final decisions have not been made

9 COMMERCIAL IN CONFIDENCE 8 Your Choices Company Provided Benefits Flexible Benefits which is similar to My Choices Employee Discounts Other Schemes There are a few employees who have special arrangements, this is a general update which cannot cover every situation. If you have a specific individual issue you may wish to stay after the session has ended so that you can ask it on a basis

10 COMMERCIAL IN CONFIDENCE 9 We understand that you have a contractual right to some benefits and buy others Recently some rights have been delivered by way of a reduced benefit and cash or flex fund Our policy is to offer the contractual benefit in full where possible Annual election are in June/July for the year commencing 1 August Benefit elections for joiners are completed electronically within a 3 week window from join date; benefits start from first of the month Flex Funding and Benefit Administration

11 COMMERCIAL IN CONFIDENCE 10 Fujitsu Provided Benefits 4 x salary life assurance (via pension arrangement) 4 x salary accidental death (lesser payments on disablement) Subject to you joining the FJUK pension plan Additional lump sum on death of 4 x salary if you leave a spouse/dependant Permanent Health Insurance (similar to LTA in HP) Employee Assistance Plan (EAP)

12 COMMERCIAL IN CONFIDENCE 11 It has proven difficult to get 100% clarity on the composition of the flex fund and the mechanism for its review The three items that Fujitsu generally provide free should be removed from the current flex fund Full contractual holiday entitlement Life Assurance PHI (Long Term Disability) For private medical we give you an option continue current allowance or take entitlement at contractual level of cover and lose allowance The remainder of the flex fund continues Paid as a fixed cash allowance Remaining funding includes, where relevant, Dental, LTA/PHI change allowance Flex Fund Move to Fujitsu - Overview

13 COMMERCIAL IN CONFIDENCE 12 You will be given your contractual entitlement, which, from 2010, is a fixed number of days, and the funding in your Flex fund removed Example: Currently an employees has entitlement to 25 days holiday (plus public holidays) plus Flex funding for three additional days. Going forward: The employee will be given full 28 days contractual entitlement The Flex fund will be reduced by the cost of three days i.e. 3 x 1/260 x salary If you are eligible for Your Choices you will be able to buy or sell up to 5 days each year. Currently you elect to buy/sell before the start of the calendar year With Fujitsu you make that decision in July of that holiday year, when you should have a better idea of what you want to select. You then pay/receive cash for 12 month from August. So in July 2011 you will decide what holiday you wish to buy/sell for 2011 Holidays in Detail

14 COMMERCIAL IN CONFIDENCE 13 You will be given life assurance at the level of 4 times your Reference Salary The Flex fund will be reduced by the current My Choices cost to purchase this level of life assurance There will be no opportunity to flex down the life assurance and take additional cash In future years cover will continue to be paid by Fujitsu – so no dependence on a review of the allowance Everyone eligible for Your Choices will be able to select additional life assurance Life Assurance in Detail

15 COMMERCIAL IN CONFIDENCE 14 Permanent Health Insurance (PHI) and Long Term Absence (LTA) are the same thing, just different names Assuming that you join the FJUK Plan you will be given PHI cover at the level equal to 50% of Reference Salary after 52 weeks absence: Payable to age 65, or return to work (not just 5 years) Indexed to inflation, max 5% Additional 5% of salary paid to pension to cover employee contribution Fujitsu pays employer pension, based on full salary, not cash received There is no reduction to allow for state benefits (ESA) Company sick pay will be used to cover the period from 26 to 52 weeks where you would previously have had LTA The Flex Fund will be reduced by the current My Choices cost to purchase contractual LTA There will be no opportunity to flex down the cover and take additional cash In future years cover will continue to be paid by Fujitsu – so no dependence on a review of the allowance PHI in Detail

16 COMMERCIAL IN CONFIDENCE 15 Fujitsus arrangement has one level of cover which is similar to Scheme 3 (the top scheme) and has no excess You will have a one time choice, two options: 1. Keep the allowance in Flex Fund: Continue to have the right to select cover through Your Choices Purchase costs are age related 2. Have your Flex Fund reduced by the current My Choices cost of your contractual entitlement and Fujitsu will give you that level of membership as a Company paid benefit: Able to modify cover through Your Choices If you flex down no cash will be given, but reduced tax cost In future years cover will continue to be paid by Fujitsu – so no dependence on a review of the allowance Private Medical in Detail

17 COMMERCIAL IN CONFIDENCE 16 Dental Benefit Your funding remains in the flex fund You decide whether to purchase cover through Your Choices

18 COMMERCIAL IN CONFIDENCE 17 A modified Flex Fund amount will be paid as a fixed Cash Allowance For life assurance, PHI and holiday: Fund reduced Similar package of benefits given Fujitsu takes risk of increased cost Medical One off choice, two options Keep the allowance or take company eligibility Continue to decide the level of benefit you want, via Your Choices Fujitsu takes risk of increased costs if company eligibility selected Remainder of Flex Fund including dental etc will be paid monthly as a fixed Cash Allowance, along with salary Summary of Solution

19 COMMERCIAL IN CONFIDENCE 18 Health Screening A majority of employees have a right to a health screen once every few years Fujitsu cannot easily replicate this benefit Employees can purchase a screening in three ways Your Choices - Healthcare Cash Plan Your Choices - Health Screening BUPA Health Assessment One time settlement of £30 pa for those eligible

20 COMMERCIAL IN CONFIDENCE 19 Flexible Benefit Enrolment Enrolment Period Three weeks from joining the Company, selection takes effect from 1st of the month after you complete your selection Annual enrolment period is in June/July to take effect in August Holidays and Health Screening may only be selected during the annual enrolment period in June/July for the benefit year which starts 1st August each year Managed via Salary Sacrifice which we call Salary Swap

21 COMMERCIAL IN CONFIDENCE 20 Employee Discounts Available via Your Choices on Café VIK for a wide range of discounts and offers High Street Shops Supermarkets Holidays VIP events And many more Additional offers available on Café VIK

22 COMMERCIAL IN CONFIDENCE 21 Other Schemes Available via links on Café VIK Cycle to work Scheme Payroll Giving Introduce a Friend Family & Friends PC Offers at


24 COMMERCIAL IN CONFIDENCE 23 Flexible Benefits Benefits on which you can save NI Private Medical Cover for employee, spouse/partner and/or children, if not Company provided Healthcare Cash Plan (employee and children, employee & family) Dental Cover (employee, spouse/partner and/or children) Critical Illness (employee spouse/partner and/or partner) Personal Accident Cover (employee, spouse/partner and/or children) Spouse/Partner Life Assurance Spouse/Partner Health Screening Travel Insurance (employee, spouse/partner and/or children)

25 COMMERCIAL IN CONFIDENCE 24 Flexible Benefits Benefits on which you can save income Tax and NI Childcare Vouchers Holiday - Buying up to 5 days Employee Health Screening Additional Life Assurance Benefits on which there is no saving in tax or NI Retail vouchers – up to 9% savings on the face value of vouchers from a wide range of retail stores Holiday – Selling up to 5 days

26 COMMERCIAL IN CONFIDENCE 25 Your Choices Copyright 2010 Fujitsu Services Limited Fujitsus Pension Offering

27 COMMERCIAL IN CONFIDENCE 26 Fujitsu UK Pension Plan Joining Contributions Benefits Investment Transfer (from HP, or elsewhere) Timing

28 COMMERCIAL IN CONFIDENCE 27 Why join? Free money - Fujitsu will contribute to your pension account, helping you save for your retirement. If you join the Plan you have added security for your family because, if you die as a contributing member, in addition to the lump sum of 4 x your salary, if you have an eligible dependant they will receive the benefit of an additional lump sum of 4 x salary.

29 COMMERCIAL IN CONFIDENCE 28 How does it work? Defined Contribution : Money Purchase Works like a bank account. Fujitsus contributions and your contributions are paid into an individual account in your name and used to purchase investments. At retirement the investments are sold so you have a pot of money to use for providing benefits Fujitsu pays for the costs of running the Plan and the insured benefits Tax relief is given at source, no need to recover anything via a tax return.

30 COMMERCIAL IN CONFIDENCE 29 Joining Prior to TUPE, you will be asked if you want to join. Provided you complete the form before TUPE, you will enjoy full membership from day one. Failing this, you will have an annual opportunity to join later with effect from August each year but contributions will not be backdated Fidelity are the Plan administrators and will send you a PIN to access your online account

31 COMMERCIAL IN CONFIDENCE 30 Contributions Contributions, based on Reference Salary You must contribute at least 3%, through salary swap. Fujitsu will pay 6% If you pay 4%, Fujitsu will pay 8% If you pay 5% or more, Fujitsu will pay 10% Contributions are paid through Salary Swap They are fixed until the next benefits enrolment period Full tax relief plus NI saving

32 COMMERCIAL IN CONFIDENCE 31 Salary Swap (also called Salary Sacrifice) What is it? An efficient way for you to pay your contribution Gives NI savings for you and Fujitsu How it works Your full basic salary is called your Reference Salary Your gross salary (before Income Tax and NI contributions) is reduced by the cost of the contribution Fujitsu then pay this cost on your behalf You pay less tax & NI contributions as they are based on this reduced salary Benefits, pay review & overtime are based on pre-reduction Reference Salary

33 COMMERCIAL IN CONFIDENCE 32 Total invested v cost to you Assumes basic rate taxpayer contributing 5% via salary swap during 2010/11 tax year. Total invested is £3000 and £4,500 respectively – over 4 times the net reduction in employee's pay.

34 COMMERCIAL IN CONFIDENCE 33 If you want to save more … There are two ways: Fixed contributions: Can be changed each August Called Additional Swap Contributions (ASC) Not subject to tax or NI Can also be changed at a relevant Life Event Variable contributions: Can be changed each month Called Additional Voluntary Contributions (AVC) Not subject to tax Are subject to NI

35 COMMERCIAL IN CONFIDENCE 34 Retirement benefits Value of your fund at retirement depends on level of contributions paid and investment performance of the investment options you choose Currently up to 25% of fund can be taken as tax free cash sum Remainder used to buy a pension, for the rest of your life, with an insurance company You decide whether to buy a pension which; Increases in payment or stays level Includes a dependants pension on your death Amount of pension depends on value of your fund, type of pension and rates in the insurance market

36 COMMERCIAL IN CONFIDENCE 35 Death Benefits Death In Service Benefits for a contributing member Current value of contributions made to your account Lump Sum of 4 x basic salary If you leave a spouse or financial dependant, a second lump sum of 4 x salary is payable Bereavement grant £1,000 To avoid these benefits becoming part of your estate and potentially being subject to inheritance tax, the Trustee decides who receives the benefits. Please complete the form on the Your Choices selection site to let them know who you would like to receive the benefits. This can be updated at any time.

37 COMMERCIAL IN CONFIDENCE 36 Investment Central Range Funds Adventurous Fund (default) Balanced Fund Cautious Fund Select a target retirement age (default 65) Over 10 years, as you approach target retirement age, switches from Central Range Fund to Bonds (Over 15 year) and Cash Alternatively you can Self-Select 3 Central Range Funds, plus; 16 other funds

38 COMMERCIAL IN CONFIDENCE 37 Transferring Accrued Pension Rights We are happy for you to transfer pension rights that you have accrued in other pension schemes Transfers are managed by Fidelity (who administer the Plan) We believe that it would be appropriate for you to take individual advice as to whether to transfer any previous pension rights.

39 COMMERCIAL IN CONFIDENCE 38 Tools to help you FJUK pensions portal on Café VIK*; Plan Booklet Full details of investment options Links to PlanViewer (administrators website) where you can; View and manage your account online Use tools to project your expected pension and model the effect of different contributions Find out more about investments and your attitude to risk * Available once you have joined Fujitsu Services



42 COMMERCIAL IN CONFIDENCE 41 Salary Swap illustration Member on salary of £30,000 contributing 5% 5% salary reduction Salary paid to employee Employee NI contribution Employee 5% contribution Taxable salary Employee NI saving Salary deduction N/A£30,000£2,671£1,500£28,500N/A Salary Swap £1,500£28,500£2,506N/A£28,500£165

43 COMMERCIAL IN CONFIDENCE 42 Risk and reward in saving for retirement Risk Reward/Return Deposits BondsEquities The value of your investment can fall as well as rise

44 COMMERCIAL IN CONFIDENCE 43 Fujitsu UK Pension Plan – Default Investment

45 COMMERCIAL IN CONFIDENCE 44 Investment options

46 COMMERCIAL IN CONFIDENCE 45 Investment options continued


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