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Early Retirement Scheme Introduced
NTN Corporation has decided to implement an early retirement scheme. The details are described below.
1. Background to the Decision
Since April 2002, NTN Corporation has been implementing NEW Plan 21 with the objectives of transforming our business structure and increasing corporate strength. As part of our personnel cost reforms, we have decided to offer an early retirement option to employees who would like to select employment outside NTN. Meanwhile, we are currently reviewing and analyzing the work content of all regular employees to encourage a shift toward high added value in their work.
2. Details of the Scheme
| Desired Number of *Applicants: | 700 (100 management positions, 600 ordinary positions) |
| * Applicants must be regular NTN employees between the ages of 40 and 58 who have worked continuously for NTN for ten or more years as of May 15, 2003 (including employees of NTN Mikumo Company Ltd., NTN Kongo Corporation, and NTN Engineering Plastics Corporation). |
| Application Period: | March 7 to March 14, 2003 |
| Date of Retirement: | May 15, 2003 |
| Retirement Benefit: | An extra allowance of up to 43 months salary will be paid in addition to the ordinary retirement benefits. |
| Re-employment Support: | In order to support their efforts to find new jobs, applicants will be introduced upon request to outplacement firms. |
3.Impact on Business Results
The payment of pension premiums that will accompany implementation of this plan will be recorded as an extraordinary loss in the FY2002 ending March 31, 2003. The earning forecast will be revised once the exact number of applicants is known.
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