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 Limited40