Nippon Telegraph & Telephone Corp. is in talks with the company's labor union to introduce a defined contribution plan as NTT's principal retirement savings vehicle, confirmed Masahiro Matsubara, an NTT spokesman.
The DC plan would replace a defined benefit plan. Assets accumulated in the DB plan until now would continue to be invested as before, Mr. Matsubara said.
Under Japanese law, two-thirds of a company's employees must give their consent for such a change.
NTT's annual report for the company's fiscal year ended March 31, 2012, reported projected benefit obligations of ¥2.037 trillion ($20.8 billion) and the fair value of the company's plan assets at ¥1.072 trillion.
That total includes NTT's DB plan as well as other retirement benefit categories, such as lump-sum retirement allowances. NTT doesn't provide details regarding the size of its DB-related assets.