Better Place Partners with Fukuoka Financial Group Banks to Boost SME Employee Retention

Better Place Co., Ltd. (HQ: Shinjuku, Tokyo; CEO: Shinji Morimoto), a provider of corporate pension and retirement benefit consulting, has announced a business alliance with The Bank of Fukuoka, The Kumamoto Bank, and The Juhachi-Shinwa Bank, all subsidiaries of Fukuoka Financial Group. This partnership is designed to support regional companies facing challenges in retaining talent. By collaborating with these three major banks in the Kyushu region, Better Place aims to strengthen its support system for SMEs.

### Background and Objectives While SMEs account for 99.7% of all companies in Japan and employ 69.7% of the workforce, only 16% of firms with 30-99 employees have retirement pension systems. Through this alliance, the FFG banks will introduce the 'Hagukumi Corporate Pension' to their corporate clients seeking solutions for talent retention. By implementing this 'wealth welfare' system, companies can support their employees' future asset formation, leading to higher engagement and lower turnover rates.

### Features of 'Hagukumi Corporate Pension' The system is a Defined Benefit (DB) plan available to all employees (including non-regular workers) and executives covered by welfare pension insurance. Employers can build a retirement system with controlled costs. A 2025 study statistically demonstrated that implementing this system effectively increases employee engagement and prevents turnover.

For employees, the plan offers peace of mind with guaranteed principal and no requirement for investment knowledge. Unlike corporate-type DC or iDeCo plans, which generally restrict withdrawals until age 60, the Hagukumi system allows withdrawals not only upon retirement but also during leave for childcare or caregiving. Currently, approximately 95% of participating firms are SMEs with fewer than 300 employees, with significant adoption in the welfare, medical, and education sectors where labor shortages are acute.