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Severance Indemnities and Pension Plans (Tables)

12 Months Ended

Mar. 31, 2024

Components of Net Periodic Benefit Cost of Pension Benefits, SIPs and Other Benefits

Net periodic cost of pension benefits and other benefits for the fiscal years ended March 31, 2022, 2023 and 2024 include the following components:


	Domestic subsidiaries						Foreign offices and subsidiaries
	2022		2023		2024		2022				2023					2024
	Pension benefits and SIP		Pension benefits and SIP		Pension benefits and SIP		Pension benefits		Other benefits		Pension benefits			Other benefits		Pension benefits		Other benefits
	(in millions)
Service cost—benefits earned during the fiscal year	¥	44,160	¥	41,026	¥	34,653	¥	16,853	¥	140	¥	16,808		¥	97	¥	13,055	¥	52
Interest cost on projected benefit obligation	11,995		14,356		20,547		11,233		494		20,573			1,002		8,414		1,216
Expected return on plan assets	(81,902)		(84,084)		(83,130)		(33,269)		(2,415)		(44,590)			(3,200)		(10,810)		(1,503)
Amortization of net actuarial loss (gain)	770		1,446		(591)		16,573		(64)		7,534			155		1,362		1,191
Amortization of prior service cost	(1,280)		(1,396)		(1,974)		(2,802)		(385)		(3,124)			(432)		(952)		(426)
Loss (gain) on settlements and curtailment	(5,820)		(4,860)		(13,659)		44		—		84,345		(1)	—		1,803		—
Other	—		—		(194)		—		—		—			—		3,939		6
Net periodic benefit cost (income)	¥	(32,077)	¥	(33,512)	¥	(44,348)	¥	8,632	¥	(2,230)	¥	81,546		¥	(2,378)	¥	16,811	¥	536

Note:

(1)One-time write off of unrecognized retirement benefit obligations of ¥84,345 million was recorded in connection with a pension buyout transaction to transfer portions of the defined benefit pension plans of MUFG Bank’s overseas branches.

Summary of Assumptions Used in Computation

The following table summarizes the assumptions used in computing the present value of the projected benefit obligations and the net periodic benefit cost:


	Domestic subsidiaries						Foreign offices and subsidiaries
	2022		2023		2024		2022				2023				2024
	Pension benefits and SIP		Pension benefits and SIP		Pension benefits and SIP		Pension benefits		Other benefits		Pension benefits		Other benefits		Pension benefits		Other benefits
Weighted-average assumptions used:
Discount rates in determining expense	0.71	%	0.86	%	1.36	%	2.19	%	1.82	%	2.51	%	2.21	%	4.74	%	4.59	%
Discount rates in determining benefit obligation	0.86		1.36		1.70		2.78		2.63		4.76		4.68		5.06		5.06
Rates of increase in future compensation level for determining expense	3.46		3.46		3.47		5.09		—		5.04		—		5.09		—
Rates of increase in future compensation level for determining benefit obligation	3.46		3.47		3.49		5.04		—		5.09		—		5.50		—
Expected rates of return on plan assets	2.89		2.93		2.97		5.91		7.00		4.86		5.50		4.98		6.25
Cash balance crediting rate for determining expense	2.46		2.46		2.46		1.62		—		1.94		—		3.72		—
Cash balance crediting rate for determining benefit obligation	2.46		2.46		2.46		1.94		—		3.72		—		4.38		—

Assumed Health Care Cost Trend Rates and Effect of a One-percentage-point Change for Foreign Offices and Subsidiaries

The following table presents the assumed health care cost trend rates for foreign offices and subsidiaries, which are used to measure the expected cost of benefits for the next year:


	2023(1)		2024(1)
Initial trend rate	7.00	%	7.50	%
Ultimate trend rate	4.50	%	4.00	%
Year the rate reaches the ultimate trend rate	2031		2033

Note:

(1)Fiscal years of foreign subsidiaries end on December 31. Therefore, the above table presents the rates and amounts at December 31, 2022 and 2023, respectively.

Combined Funded Status and Amounts Recognized in Consolidated Balance Sheets

The following table sets forth the combined funded status and amounts recognized in the accompanying consolidated balance sheets at March 31, 2023 and 2024:


	Domestic subsidiaries					Foreign offices and subsidiaries
	2023		2024			2023					2024
	Non-contributory pension benefits and SIP		Non-contributory pension benefits and SIP			Pension benefits			Other benefits		Pension benefits		Other benefits
	(in millions)
Change in benefit obligation:
Benefit obligation at beginning of fiscal year	¥	1,692,105	¥	1,547,273		¥	619,739		¥	30,791	¥	194,843	¥	24,195
Service cost	41,026		34,653			16,808			97		13,055		52
Interest cost	14,356		20,547			20,573			1,002		8,414		1,216
Plan participants’ contributions	—		—			—			689		—		477
Acquisitions/ Divestitures	(584)		(216)			(77,231)			(3,818)		2,173		—
Amendments	—		—			(1,250)			—		(608)		—
Actuarial loss (gain)	(113,554)		(69,696)		(1)	(98,693)		(1)	(5,329)		(1,190)		(643)
Benefits paid	(65,897)		(65,641)			(33,456)			(3,785)		(30,940)		(2,676)
Lump-sum payment	(20,179)		(18,341)			(4,476)			—		(4,087)		—
Translation adjustments and other	—		—			(247,171)		(2)	4,548		16,341		3,098
Benefit obligation at end of fiscal year	1,547,273		1,448,579			194,843			24,195		198,001		25,719
Change in plan assets:
Fair value of plan assets at beginning of fiscal year	2,890,503		2,774,572			705,864			39,528		215,819		22,197
Actual return on plan assets	(76,526)		598,836			(126,085)			(6,722)		(6,764)		620
Employer contributions	26,734		25,521			1,277			(8,104)		2,045		148
Acquisitions/ Divestitures	(242)		42			(100,438)			(5,649)		—		—
Plan participants’ contributions	—		—			—			689		—		477
Benefits paid	(65,897)		(65,641)			(33,456)			(3,785)		(30,940)		(2,676)
Translation adjustments and other	—		—			(231,343)		(2)	6,240		16,831		2,905
Fair value of plan assets at end of fiscal year	2,774,572		3,333,330			215,819			22,197		196,991		23,671
Amounts recognized in the consolidated balance sheets:
Prepaid benefit cost	¥	1,245,150	¥	1,902,768		¥	89,109		¥	1,110	¥	82,633	¥	1,359
Accrued benefit cost	(17,851)		(18,017)			(68,133)			(3,108)		(83,643)		(3,407)
Net amount recognized	¥	1,227,299	¥	1,884,751		¥	20,976		¥	(1,998)	¥	(1,010)	¥	(2,048)

Notes:

(1)Significant gains and losses related to changes in the benefit obligation for the fiscal years ended March 31, 2023 and 2024 primarily result from changes in the discount rate.

(2)In connection with a pension buyout transaction, portions of the defined benefit pension plans of MUFG Bank’s overseas branches were transferred. The related obligations and assets were ¥327,203 million and ¥327,203 million, respectively.

Aggregated Accumulated Benefit Obligations

The aggregated accumulated benefit obligations of these plans at March 31, 2023 and 2024 were as follows:


	Domestic subsidiaries				Foreign offices and subsidiaries
	2023		2024		2023		2024
	(in millions)
Aggregated accumulated benefit obligations	¥	1,521,419	¥	1,425,853	¥	170,917	¥	170,240

Summary for Plans with Accumulated Benefit Obligations in Excess of Plan Assets

The projected benefit obligations, accumulated benefit obligations and fair value of plan assets for the plans with accumulated benefit obligations in excess of plan assets at March 31, 2023 and 2024 were as follows:


	Domestic subsidiaries				Foreign offices and subsidiaries
	2023		2024		2023		2024
	(in millions)
Projected benefit obligations	¥	24,918	¥	24,655	¥	81,128	¥	93,353
Accumulated benefit obligations	24,918		24,655		62,308		66,804
Fair value of plan assets	7,315		7,771		12,995		9,708

Amounts Recognized in Accumulated OCI

The following table presents the amounts recognized in Accumulated OCI of the MUFG Group at March 31, 2023 and 2024:


	Domestic subsidiaries				Foreign offices and subsidiaries
	2023		2024		2023				2024
	Pension benefits and SIP		Pension benefits and SIP		Pension benefits		Other benefits		Pension benefits		Other benefits
	(in millions)
Net actuarial loss (gain)	¥	32,257	¥	(538,886)	¥	21,347	¥	2,729	¥	38,090	¥	2,105
Prior service cost	(1,449)		525		(1,747)		(1,375)		(1,652)		(1,114)
Gross amount recognized in Accumulated OCI	30,808		(538,361)		19,600		1,354		36,438		991
Taxes	(52,367)		121,569		(6,135)		(736)		(10,946)		(306)
Net amount recognized in Accumulated OCI	¥	(21,559)	¥	(416,792)	¥	13,465	¥	618	¥	25,492	¥	685

Amounts Recognized in OCI

The following table presents OCI for the fiscal years ended March 31, 2023 and 2024:


	Domestic subsidiaries				Foreign offices and subsidiaries
	2023		2024		2023					2024
	Pension benefits and SIP		Pension benefits and SIP		Pension benefits			Other benefits		Pension benefits		Other benefits
	(in millions)
Net actuarial loss (gain) arising during the year	¥	47,026	¥	(585,393)	¥	59,505		¥	4,129	¥	16,352	¥	240
Prior service cost arising during the year	—		—		(597)			—		(608)		—
Losses (gains) due to amortization:
Net actuarial loss (gain)	(1,446)		591		(7,534)			(155)		(1,362)		(1,191)
Prior service cost	1,396		1,974		3,124			432		952		426
Curtailment and settlement	4,860		13,659		(84,345)		(1)	—		(1,803)		—
Foreign currency translation adjustments	—		—		6,096			(332)		3,307		162
Total changes in Accumulated OCI	¥	51,836	¥	(569,169)	¥	(23,751)		¥	4,074	¥	16,838	¥	(363)

Note:

(1)A one-time write off of unrecognized retirement benefit obligations of ¥84,345 million was recorded in connection with a pension buyout transaction to transfer portions of the defined benefit pension plans of MUFG Bank’s overseas branches.

Weighted-average Target Asset Allocation of Plan Assets for Pension Benefits and Other Benefits

The weighted-average target asset allocation of plan assets for the pension benefits and other benefits at March 31, 2024 was as follows:


	Domestic subsidiaries		Foreign offices and subsidiaries
Asset category	Pension benefits and SIP		Pension benefits		Other benefits
Japanese equity securities	35.6	%	—	%	—	%
Japanese debt securities	23.2		—		—
Non-Japanese equity securities	13.7		28.6		30.0
Non-Japanese debt securities	21.5		59.8		64.0
Real estate	1.2		6.6		6.0
Short-term assets and other	4.8		5.0		—
Total	100.0	%	100.0	%	100.0	%

Estimated Future Benefit Payments

The following table presents benefit payments expected to be paid, which include the effect of expected future service for the fiscal years indicated:


	Domestic subsidiaries		Foreign offices and subsidiaries
	Pension benefits and SIP		Pension benefits		Other benefits
	(in millions)
Fiscal year ending March 31:
2025	¥	80,546	¥	11,604	¥	2,581
2026	78,019		11,835		2,462
2027	77,061		14,068		2,338
2028	77,552		14,628		2,187
2029	77,086		15,086		2,051
Thereafter (2030-2034)	364,282		112,240		8,844

Fair Value of Each Major Category of Plan Assets

The following tables present the fair value of each major category of plan assets as of March 31, 2023 and 2024:

Pension benefits and SIP Investments:


At March 31, 2023	Domestic subsidiaries								Foreign offices and subsidiaries
Assets category	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
	(in millions)
Japanese government bonds	¥	133,664	¥	—	¥	—	¥	133,664	¥	—	¥	—	¥	—	¥	—
Non-Japanese government bonds	—		—		—		—		2,632		2,339		—		4,971
Other debt securities	2,793		6,251		40		9,084		—		15,749		—		15,749
Japanese marketable equity securities	809,371		—		—		809,371		—		—		—		—
Non-Japanese marketable equity securities	78,840		165		—		79,005		3		—		—		3
Other investment funds	—		—		—		—		38		59,023		—		59,061
Japanese general account of life insurance companies(1)	—		205,117		—		205,117		—		—		—		—
Other investments	19,644		4,677		—		24,321		2,937		1,869		25,362		30,168
Total	¥	1,044,312	¥	216,210	¥	40	¥	1,260,562	¥	5,610	¥	78,980	¥	25,362	¥	109,952

At March 31, 2024	Domestic subsidiaries								Foreign offices and subsidiaries
Assets category	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
	(in millions)
Japanese government bonds	¥	57,220	¥	—	¥	—	¥	57,220	¥	—	¥	—	¥	—	¥	—
Non-Japanese government bonds	5,880		—		—		5,880		10,226		2,744		—		12,970
Other debt securities	4,404		112,628		2,548		119,580		—		44,397		—		44,397
Japanese marketable equity securities	1,030,420		—		—		1,030,420		—		—		—		—
Non-Japanese marketable equity securities	96,727		453		—		97,180		—		—		—		—
Other investment funds	—		—		—		—		600		45,098		—		45,698
Japanese general account of life insurance companies(1)	—		199,432		—		199,432		—		—		—		—
Other investments	16,823		11,393		—		28,216		3,363		1,414		432		5,209
Total	¥	1,211,474	¥	323,906	¥	2,548	¥	1,537,928	¥	14,189	¥	93,653	¥	432	¥	108,274

Note:

(1)“Japanese general accounts of life insurance companies” is a contract with life insurance companies that guarantees a return of approximately 1.25% from April 1, 2022 to March 31, 2023 and 0.95% from April 1, 2023 to March 31, 2024.

Fair Values of Certain Investments Valued at Net Asset per Share (or Its Equivalent)

The following table presents fair values of certain investments valued at net asset value per share (or its equivalent) as a practical expedient that were excluded from the above table as of March 31, 2023 and 2024:


	Domestic subsidiaries						Foreign offices and subsidiaries
Assets category	2023			2024			2023			2024
	(in millions)
Japanese pooled funds:
Japanese marketable equity securities	¥	71,753		¥	74,802		¥	—		¥	—
Japanese debt securities	120,108			203,075			—			—
Non-Japanese marketable equity securities	186,555			195,320			—			—
Non-Japanese debt securities	332,691			290,985			—			—
Other	76,892			89,894			—			—
Total pooled funds	787,999			854,076			—			—
Other investment funds	726,011		(1)	941,326		(1)	105,867		(2)	88,717		(2)
Total	¥	1,514,010		¥	1,795,402		¥	105,867		¥	88,717

Notes:

(1)Other investment funds of the domestic subsidiaries include mutual funds and real estate funds of ¥690,781 million and ¥12,351 million, respectively, at March 31, 2023 and ¥899,855 million and ¥11,876 million, respectively, at March 31, 2024.

(2)Other investment funds of the foreign offices and subsidiaries include mutual funds, real estate funds and common collective funds of ¥12,136 million, ¥63,759 million and ¥29,756 million, respectively, at March 31, 2023 and ¥5,983 million, ¥50,248 million and ¥32,294 million, respectively, at March 31, 2024.