Toyoda Gosei Co., Ltd. has introduced a defined-contribution (D.C.) pension system as of April 1, 2014, in order to reduce corporate risks associated with the investment of its employees’ pension reserve fund. In the new system, employees will bear a certain portion of the risk of investing their own pension reserve fund.
So far the company has taken all responsibility in ensuring employees 55 percent of their retirement payment as a defined-benefit (D.B.) pension with a pre-agreed interest rate. From now on, the company will cover 30 percent of employees’ retirement payment as a D.B. pension while employees invest another 30 percent themselves. The company will offer courses to help employees learn how to invest well.
The introduction of the D.C. pension system can also be beneficial to employees. They can enjoy the individual saving plan based on D.C. pension sets by their own choice, which is similar to a 401(k) plan.
About Toyoda Gosei
Established in 1949 and headquartered in Kiyosu, Aichi Prefecture, Japan, Toyoda Gosei is a leading manufacturer of rubber and plastics polymers and optical semiconductors. Today, the company provides a variety of automotive components and LEDs internationally with a network of 92 plants and offices in 18 countries and regions. Through its flexible, integrated global supply system and outstanding technologies for automobile safety, comfort, and environmental protection, Toyoda Gosei aims to be a global supplier of choice that delivers the highest level of satisfaction to customers around the world.