What is a DC Plan?
A DC plan is a retirement scheme both you and Adobe make contributions into that you can invest in different financial products to build your own retirement wealth.
All regular Japan employees and paid-time (full-time) employees are eligible to participate in Adobe’s DC plan until age 65. However, employees cannot join the DC plan if they are 60 or older.
After joining Adobe, you are automatically enrolled in the DC plan.
If you participated in a DC plan before joining Adobe, you may transfer your assets to the Adobe DC plan. Contact Sompo AnswerCenter at 0120-401-593, Monday through Friday from 4:00 pm to 8:00 pm.
The plan is administered by Sompo Japan Nihon Koa DC Securities (Sompo) and they will manage the assets of the DC plan and process the investment instructions. However, you make all investment decisions, not Sompo. You can manage your DC fund via Sompo AnswerNet.
Adobe will contribute an extra 2% of your monthly base salary, up to the legal limit of JPY55,000, to your DC account. You can allocate this contribution to the various investment products available from Sompo.
You can contribute your own money to your DC account. Your contributions come out of your monthly salary, and must fall within these rules:
- Your contribution must be less than the company contribution amount but more than JPY1,000.
- Your contribution plus the company contribution cannot exceed the statutory cap of JPY55,000 per month.
You can change your contribution amount once a year, each May, and the change will be reflected in June.
You will save on taxes when you contribute a portion of your salary to your DC account:
- The voluntary contribution will be deducted from your pre-tax salary.
- Investment returns earned in the DC account is tax exempted.
- When cashing out your retirement benefits in retirement, a preferential tax that is less than the income tax will be applied.
Sompo offers various stocks and bonds, both local and international, for you to invest in. To learn more about the available products, visit Sompo AnswerNet.
If you fail to instruct Sompo about your allocation decision, your total contribution will be invested in a default product.
Adobe covers your DC management fees. However, investment fees that are charged with certain products will be deducted directly from your own balance.
The DC benefits will be paid out:
- When you retire at 60 years of age or older. You will receive the accumulated balance in your DC account (“Old Age Benefits”) if this happens. However, if you want to retire before 65, you must meet the service-year requirement, detailed in this table:
Age DC Membership Requirement 60–61 10 years 61–62 8 years 62–63 6 years 63–64 4 years 64–65 2 years
- If you are severely disabled. You will receive the accumulated balance in your DC account (“Disability Benefits”).
- Upon your death. Your beneficiary will receive the accumulated balance in your DC account (“Lump-Sum Death Benefits”).
If you leave Adobe before age 60, your pension assets will be rolled over to another DC pension plan. The procedures for the roll-over of assets vary, depending on your status (e.g. transfer to another job, becoming self-employed or becoming the spouse of salaried employee) when you leave Adobe. For more information, contact Sompo AnswerCenter at 0120-401-593, Monday to Friday from 4:00 pm to 8:00 pm.