Investment and Interest Rate Risks under Defined Benefit Plans
First written in FY2018. 2 of 4 entries say "Mitigated", first in FY2022. Latest entry: FY2026.
11 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「Except for certain subsidiaries, the company and its domestic consolidated subsidiaries transferred part of the contributions made on or before 30 September 2020 from defined benefit pension plans to defined contribution pension plans effective 1 October 2024.」
The company advanced its response to investment and interest rate risks relating to defined benefit plans by transferring contributions to defined contribution pension plans and partially returning the retirement benefit trust. - FY2022MitigatedAnnual report
「Except for certain subsidiaries, the company and its domestic consolidated subsidiaries have been transitioning from defined benefit pension plans to defined contribution pension plans for contributions made from 1 October 2020 onward.」
As a response to investment and interest rate risks relating to defined benefit plans, contributions made from October 2020 onward were transferred to defined contribution pension plans. Liabilities relating to defined benefits also declined from the end of the previous fiscal year. - FY2019MaterialisedAnnual report
「Income relating to plan assets △41,925」
Investment income on plan assets was negative ¥41,925 million, while other comprehensive income from the remeasurement of defined benefit plans was also negative ¥40,348 million. Investment risk has materialized in the results. - FY2018First statedAnnual report
「If the return on plan assets falls below the discount rate, funding conditions may deteriorate, resulting in a reduction in equity. … If the discount rate is lowered as a result of declining market yields on high-quality corporate bonds, the present value of defined benefit obligations will increase, potentially worsening funding conditions and reducing equity.」
For defined benefit plans, the company explicitly identified investment risk relating to plan assets and interest rate risk arising from a decline in the discount rate, and disclosed the impact on obligations of a 0.1% change in the discount rate.