Release: September 6 , 2000

NGK Introduces Reemployment System After Retirement Age

NGK INSULATORS, LTD. (President: Masaharu Shibata, Head Office: Nagoya, Japan) will implement a reemployment system in April 2001 for its rank-and-file employees who wish to work after the retirement age limit of 60 years old.

The 1994 pension reform raised the fixed portion granting age from 60 to 65 years old between 2001 and 2013. Furthermore, the 1999 pension reform raised the remuneration-based portion granting age from 60 to 65 between 2013 and 2025. The reemployment system is NGK's first step toward addressing progressive aging of Japanese society in which everybody works until 65. Eligible for this new system are the rank-and-file employees who will become 60 years old after April 2, 2001 and wish to continue working after the age limit. NGK will rehire its retirees until they become eligible to receive the fixed portion. In principle, their job contents and conditions will remain the same as before retirement in order for them to make maximum use of their skill and experience. We plan to expand and improve this system for the future.

Outlines of Reemployment System

1. Eligible Employees:

• Rank-and-file employees who will be 60 years old after April 2, 2001 and wish to continue working after the retirement (Employee decides when he/she becomes 59 years old).

2. Reemployment:

• Reemployment period is for 1 year and must be renewed each year up to the maximum age.
• The maximum ages for reemployment are determined according to the fixed portion granting ages as follows.

Date of Birth	Pension Granting Age	Maximum Age for Reemployment
4/2/1941 - 4/1/1943	61	61
4/2/1943 - 4/1/1945	62	62
4/2/1945 - 4/1/1947	63	63
4/2/1947 - 4/1/1949	64	64
After 4/2/1949	65	65

3. Primary Conditions of Reemployment:

1. Full-time employment with the same job contents in principle as before retirement.
2. Monthly salary and bonus are paid but retirement allowance is not paid. (Yearly income including public pension will be approximately 60% of the income before the retirement)
3. Dependent and rental allowances are not be paid. Allowances related to his/her job (overtime, late-night, holiday, etc.) are paid.
4. Enrollment in social insurance remains the same as before the retirement.
5. Joining a labor union remains the same as before the retirement.

• News 2000