NTT looking at pension cuts to bridge shortfall

11 Dec 2003

Japan’s dominant telco NTT has said that it is currently negotiating with unions over the possibility of reducing the level of its pension benefits. The operator wants to cut its benefit commitments from 7% of assets to a minimum of 3% over the next 6 years in a bid to reduce its JPY600 billion (USD5.5 billion) pension shortfall. NTT is one of a number of major Japanese companies whose corporate pension schemes have suffered from plunging stock prices in recent years. In March 2003 Matsushita reported a pension shortfall of more than JPY1 trillion.