Retirement benefit risk arising from pension assets and actuarial assumptions
First written in FY2016. 4 of 10 entries say "Restated". Latest entry: FY2026.
The whole theme swung hardest in 2020: 7 of 55 companies on the "Worse" side.
23 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「Net liabilities and assets recognized on the consolidated balance sheet −¥1,644.712 million −¥1,845.117 million」
Assets relating to retirement benefits increased from ¥1,644.712 million to ¥1,845.117 million, and assets continued to be recognized rather than a funding shortfall during the current year as well. - FY2025MitigatedAnnual report
「Net liabilities and assets recognized on the consolidated balance sheet −¥1,057.603 million −¥1,644.712 million」
Assets relating to retirement benefits increased, and assets continued to be recognized rather than a funding shortfall even after retirement benefit obligations arose due to the extension of the retirement age. The discount rate changed from 1.04% to 2.20%. - FY2024Increase in retirement benefit obligations due to extension of the retirement age, with no funding shortfallAnnual report
「The company has extended the retirement age and aims to create an employment environment in which all employees can work with peace of mind over the long term and find fulfillment in their work. … Retirement benefit obligations increased and past service costs arose, but … there was no funding shortfall, and assets relating to retirement benefits were recognized.」
The extension of the retirement age resulted in retirement benefit obligations and past service costs of ¥248.684 million, but risk-response premiums and other measures prevented a funding shortfall, and assets relating to retirement benefits were recognized. - FY2021MitigatedAnnual report
「To address this risk, the Group's policy is to focus its portfolio on low-risk bonds and general accounts and pursue stable asset management, thereby seeking to reduce the risk arising from declines in market value. It also makes risk-response contributions to prepare for the risk of future deterioration in financial conditions.」
As measures to address retirement benefit risks, the company states that it pursues an investment policy centered on low-risk assets and contributes risk-response premiums. - FY2020RestatedAnnual report
「The retirement benefit expenses and obligations of the group are calculated based on actuarial assumptions, including the discount rate, and the expected rate of return on pension assets. If retirement benefit expenses increase due to a decline in the market value of pension assets or a decrease in the investment return on pension assets, the group's financial results may be affected.」
The company continues to disclose retirement benefit risks relating to actuarial assumptions and the management of pension assets. - FY2019RestatedAnnual report
「The retirement benefit expenses and obligations of the group are calculated based on actuarial assumptions, including the discount rate, and the expected rate of return on pension assets. If retirement benefit expenses increase due to a decline in the market value of pension assets or a decrease in the investment return on pension assets, the group's financial results may be affected.」
The company continues to disclose retirement benefit risks relating to actuarial assumptions and the management of pension assets. - FY2018RestatedAnnual report
「The Group's employee retirement benefit costs and obligations are calculated based on actuarial assumptions, such as the discount rate, and the expected rate of return on pension assets. If retirement benefit costs increase due to declines in the market value of pension assets, lower investment returns on pension assets or other factors, the Group's performance may be affected.」
The company continues to disclose risks relating to actuarial assumptions for retirement benefits and the management of pension assets. - FY2017RestatedAnnual report
「¥354.2 million was recognized as an extraordinary loss under loss on transfer between retirement benefit plans.」
The ¥354.2 million loss on transfer between retirement benefit plans associated with the transition from the welfare pension fund plan was disclosed as an actual result for the current year as well. - FY2017-Q3MaterialisedAnnual report
「The Higashi-Nihon Refrigeration and Air-Conditioning Welfare Pension Fund, a multi-employer plan in which the company and certain consolidated subsidiaries participated, was dissolved on 25 September 2016. On the same date, the company and certain consolidated subsidiaries introduced a new defined benefit retirement plan in its place. A difference arose between the retirement benefit obligation relating to the fund-specific supplementary benefit attributable to the deterioration in the fund's financial condition and the expected distribution from the fund. Accordingly, the company applied the accounting treatment for transfers between multi-employer plans under the Practical Solution on Accounting Treatments for Transfers Between Retirement Benefit Plans and Other Related Matters (Practical Response Report No. 2), Q&A 9, and recognized ¥354.2 million as an extraordinary loss under loss on transfer between retirement benefit plans.」
The difference between the retirement benefit obligation arising from the deterioration in the fund's financial condition and the expected distribution materialized, and a transfer loss of ¥354.2 million was recognized. - FY2016First statedAnnual report
「If retirement benefit expenses increase because of a decline in the fair value of pension assets or lower investment returns on pension assets, the Group's performance may be affected.」
Actuarial assumptions, including the discount rate, and the management of pension assets are treated as risk factors.