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‘Meet Fujitsu’ Progress Update

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0 Copyright 2009 Fujitsu Services Limited

1 ‘Meet Fujitsu’ Progress Update
Anne introduce Fujitsu team 1 hour duration Q&A opportunity at the end, save questions for then Also opportunity to submit questions separately and we will respond by COMMERCIAL IN CONFIDENCE © Copyright Fujitsu Services Limited 2010 Copyright 2009 Fujitsu Services Limited

2 Consultation Initial meeting end of April
8 meetings to date, next scheduled 22nd 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

3 Communications 1-2-1’s Microsite Group mailbox
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

4 Premises Blackpool contractor practical completion achieved on target on the 1st July. Fujitsu specific fit-out started, the project is on target to deliver these premises for September 2010. 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 1’s 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.

5 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 Re-planning The transition of DWP’s 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 2011. The Department’s priority is to deliver the benefits of Fujitsu’s 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.

7 Fujitsu’s Benefit Offering To
Your Choices For DWP Fujitsu’s Benefit Offering To Transferees who have Modified terms and Flex Funds We are in Consultation but this is an update on what has been discussed to date. Final decisions have not been made Copyright 2009 Fujitsu Services Limited

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 Copyright 2009 Fujitsu Services Limited

9 Flex Funding and Benefit Administration
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 Copyright 2009 Fujitsu Services Limited

10 Fujitsu Provided Benefits
4 x salary life assurance (via pension arrangement) 4 x salary accidental death (lesser payments on disablement) Permanent Health Insurance (similar to LTA in HP) Employee Assistance Plan (EAP) Copyright 2009 Fujitsu Services Limited

11 Flex Fund Move to Fujitsu - Overview
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 Copyright 2009 Fujitsu Services Limited

12 Holidays in Detail 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 Copyright 2009 Fujitsu Services Limited

13 Life Assurance in Detail
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 Copyright 2009 Fujitsu Services Limited

14 PHI in Detail Permanent Health Insurance (PHI) and Long Term Absence (LTA) are the same thing, just different names 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 Copyright 2009 Fujitsu Services Limited

15 Private Medical in Detail
Fujitsu’s 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 Copyright 2009 Fujitsu Services Limited

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

17 Summary of Solution 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 Copyright 2009 Fujitsu Services Limited

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 Copyright 2009 Fujitsu Services Limited

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 Copyright 2009 Fujitsu Services Limited

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 Log in using UK personal number and password ‘fujitsu’ in lower case Includes Halfords 15%, High Street Shops, Supermarkets, Holidays etc Copyright 2009 Fujitsu Services Limited

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

22 Appendix

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) Copyright 2009 Fujitsu Services Limited

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 Copyright 2009 Fujitsu Services Limited

25 Your pension going forward with Fujitsu
July 2010 Pension Presentation Your pension going forward with Fujitsu Copyright 2010 Fujitsu Services Limited Copyright 2009 Fujitsu Services Limited

26 Agenda What scheme are we offering
Employee contributions paid by employer through “Salary Swap” Transfer terms and options AVCs What next? Questions Use the Opening Page and Agenda topics to frame the discussion - why you felt it was important to hold such an event and the key aims of the session: - recognise the potential of graduates within the D&NS business - felt important to keep graduates updated regarding current events and the strategy moving forward - refreshing to hear new viewpoints, hope that some of these are expressed during the question and answer sessions and the informal discussions over lunch Copyright 2009 Fujitsu Services Limited

27 Benefits comparable to those under the Civil Service
Option to join section C of the Fujitsu Comparable Pension Scheme Like the EDS 1994 Plan the Fujitsu scheme is certified by Government Actuary’s Department as offering “a package of benefits that is broadly comparable” to PCSPS Classic

28 Salary Swap – to save NI What is it? An efficient way for you to pay employee contributions Offers National Insurance (NI) savings for you and Fujitsu How it works Your gross salary (i.e. salary before Income Tax and NI contributions), which we call Reference Salary, is reduced by the amount of your contribution Fujitsu then pay this contribution on your behalf You pay less NI as the salary you are paid (Actual Salary) is lower Pension and other benefits, allowances, pay review & overtime all based on pre-reduction “Reference Salary”

29 Salary Swap Example – 2010/11 Tax Year
On a salary of £30,000 and paying the standard 1.5% employee contribution 1.5% salary reduction Salary paid to employee Employee NI contribution Employee 1.5% contribution Taxable salary Employee NI saving Salary deduction N/A £30,000 £2,272 £450 £29,550 Salary Swap £2,229 £43

30 Salary Swap – employee NI saving for 2010/11
For members of the Fujitsu Comparable Pension Scheme on pensionable pay of up to £43,888 the NI saving will be at least 9.4% of the employee pension contribution NI saving starts to reduce towards minimum of 1% where pensionable pay exceeds £43,888 Applies for 2010/11 Tax Year. Figures may differ for subsequent years.

31 Fujitsu Comparable Pension Scheme Section C
You may join and start accruing pension from date of transfer You can also transfer the pension accrued within your HP pension to Fujitsu Comparable Pension Scheme for an equivalent service credit If you do not join when you move you will not be able to join this Scheme at a later date

32 Future Pension Entitlement
Comparable to Classic section of PCSPS Basic retirement benefits include: 1/80th of your Final Pensionable Pay (FPP) for each year 3/80ths of your FPP as Tax-Free Cash for each year Normal Pension Age 60 (but you continue to earn benefits if you work up to contractual retirement age of 65) Pension Increases – RPI up to a maximum of 7.5% p.a.compound calculated on a cumulative basis (but may be modified in line with Government changes). Employee Contributions – 1.5% of Pensionable Pay Contracted-out of State Second Pension (SERPS)

33 Future Pension Entitlement
Drawing your retirement benefits early Option to take benefits from age 55* if no longer in Company service Company consent needed if taking benefits while still remaining in service Accrued pension reduced for early payment (*Some members may retain right to retire from age 50) Ill-Health Benefits Subject to Trustee’s discretion Pension based on actual service to date plus potential future service to age 65 Tax free cash sum based on actual service to date plus ½ of potential future service to age 65

34 Future Pension Entitlement
Death-In-Service Benefits Lump Sum of 4 x Final Pensionable Pay (FPP) Spouse’s Pension of 50% of pension member would have received at 65 based on current FPP Children’s pensions of ¼ of spouse’s pension per child (up to a maximum of 4 children) Payable on death while a contributing member of Scheme

35 Fujitsu Comparable Scheme
Occupational Pension Scheme Set up under Trust with assets separate from employer Administered by Xafinity (Section C) Trustee is Fujitsu Comparable Pension Trust Ltd which includes member nominated directors

36 Transfer terms and options
Transfer basis secures “year for year” equivalent service credits If you decide to transfer from HP, all pension rights must be transferred

37 AVCs If you have AVC’s, they will transfer with your main pension rights and will be invested with: Friends Provident funds, five fund options including: Lifestyle investment strategy Index-Tracker fund

38 The small print The foregoing is a brief summary of the benefits under the Fujitsu Comparable Pension Scheme. It is subject to its own formal governing document, a Trust Deed and Rules, which details all the benefits payable together with the relevant terms and conditions. The provisions of the Trust Deed and Rules are overriding and will prevail in the event of any ambiguity or uncertainty. In line with any Government changes to PCSPS, the Fujitsu Comparable Pension Scheme may be subject to modification from time to time BUT will always meet the requirements for GAD approval.

39 What Next? You will receive a new joiner pack about 3 weeks before start date which will include pension scheme documentation to be returned if you wish to join the scheme 3-6 months after joining, you will get information regarding the option to transfer your accrued benefits to the Fujitsu scheme On receipt of the above information you will have 3 months to decide whether to transfer your accrued benefits Any questions in the meantime should be addressed to

40 Copyright 2009 Fujitsu Services Limited

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