v3.26.1
Pension and other employee benefit plans
 12 Months Ended
Mar. 31, 2026
Defined Benefit Plan Disclosure [Line Items]  
Pension and other employee benefit plans
20. Pension and other employee benefit plans
Severance indemnities and pension plans
MHFG and certain subsidiaries sponsor and offer their employees, other than directors and corporate auditors, contributory and
non-contributory
defined benefit plans. Under these plans, employees are provided with
lump-sum
cash payments upon leaving the company. The amount of benefits under each plan is principally determined based on the positions in career, the length of service and the reason for severance. When employees meet certain conditions including the length of service, they may opt to receive annuity payments instead of
lump-sum
payments. MHFG and certain subsidiaries also offer special termination benefits to former employees whose contributions during their careers were deemed meritorious and to those with particular circumstances.
 
 
Certain foreign offices and subsidiaries have defined contribution plans and/or defined benefit plans, of which disclosures are combined with those for domestic benefit plans, as they are not significant and those plans don’t use significantly different assumptions.
MHFG and certain subsidiaries have several defined contribution plans. The costs recognized in respect of contributions to the plans for the fiscal years ended March 31, 2024, 2025 and 2026 were ¥9,004 million, ¥16,359 million and ¥23,115 million, respectively.
Pension plans are not fully integrated among subsidiaries of MHFG and plan assets are managed separately by each plan.
Net periodic benefit cost and funded status
The following table presents the components of net periodic benefit cost of the severance indemnities and pension plans for the fiscal years ended March 31, 2024, 2025 and 2026:
 
    
  2024  
    
  2025  
    
  2026  
  
    
(in millions of yen)
  
Service cost-benefits earned during the fiscal year
      28,936       21,288       18,192  
Interest costs on projected benefit obligations
      9,982       14,459       19,280  
Expected return on plan assets
      (34,565 )      (31,835 )      (32,633 )
Amortization of prior service cost (benefits)
      (4,890 )      (5,553 )      (5,682 )
Amortization of net actuarial loss (gain)
      (29,045 )      (38,339 )      (32,420
 
)
Special termination benefits
      1,244       971       835  
Loss (gain) on settlement
      2,210       —        —   
Other
      3,179       2,004       2,118  
  
 
 
    
 
 
    
 
 
  
Net periodic benefit cost
      (22,948 )      (37,005 )      (30,310 )
  
 
 
    
 
 
    
 
 
  
Other changes in plan assets and benefit obligations recognized in other comprehensive income (loss)
before-tax
for the fiscal years ended March 31, 2025 and 2026 are summarized as follows:
 
    
  2025  
    
  2026  
  
    
(in millions of yen)
  
Net actuarial gain (loss)
      (72,336 )      259,652  
Amortization of net actuarial loss (gain)
      (38,339 )      (32,420 )
 
Prior service benefits (cost)
      9,360       —   
Amortization of prior service cost (benefits)
      (5,553 )      (5,682 )
  
 
 
    
 
 
  
Total recognized in other comprehensive income (loss)
before-tax
      (106,868 )      221,550  
  
 
 
    
 
 
  
Weighted-average assumptions used to determine benefit obligations and net periodic benefit cost are as follows:
 
    
  2024  
    
  2025  
    
  2026  
  
Weighted-average assumptions used to determine benefit obligations at fiscal year end:
       
Discount rates
      1.00 %      1.67 %      2.49 % 
Rates of increase in future compensation levels
      2.00 %      2.00 %      2.00 % 
Interest credit rates
      4.52 %      4.79 %      5.20 % 

 
 
  
  2024  
 
 
  2025  
 
 
  2026  
 
Weighted-average assumptions used to determine net periodic benefit cost during the year:
  
 
 
Discount rates
      0.82 %      1.00 %      1.67 % 
Rates of increase in future compensation levels
      2.00 %      2.00 %      2.00 % 
Expected rates of return on plan assets
      1.66 %      1.61 %      1.83 % 
Interest credit rates
      4.45 %      4.52 %      4.79 % 
In estimating the discount rates, the MHFG Group looks to interest rates on a portfolio of high-quality fixed-income government and corporate bonds. The durations of these bonds closely match those of the benefit obligations. Discount rates are evaluated at each measurement date. The expected rate of return for each asset category is based primarily on various aspects of the long-term prospects for the economy that include historical performance and the market environment.

The following table sets forth the combined funded status and amounts recognized in the accompanying consolidated balance sheets at March 31, 2025 and 2026 for the plans of MHFG and its subsidiaries:
 
    
2025
    
2026
  
              
    
(in millions of yen)
  
Change in benefit obligations:
     
Benefit obligations at beginning of fiscal year
      1,216,964       1,125,955  
Service cost
      21,288       18,192  
Interest cost
      14,459       19,280  
Plan participants’ contributions
      335       —   
Amendments
(1)
      (9,360 )     —   
Actuarial loss (gain)
      (49,329 )      (68,762 )
Foreign exchange translation
      756       2,358  
Benefits paid
      (53,521 )      (53,859 )
Lump-sum
payments
      (15,367 )      (16,670 )
Other
      (270 )      (360 )
  
 
 
    
 
 
  
Benefit obligations at end of fiscal year
      1,125,955       1,026,135  
  
 
 
    
 
 
  
Change in plan assets:
     
Fair value of plan assets at beginning of fiscal year
      1,956,619       1,784,082  
Actual return (negative return) on plan assets
      (84,844 )      186,730  
Foreign exchange translation
      633       3,302
Partial withdrawal of assets from employee retirement benefits trusts
(2)
.
      (59,552 )      (218,991 )
Employer contributions
      24,395       19,845  
Plan participants’ contributions
      335       — 
Benefits paid
      (53,521 )      (53,859 )
Other
      17       (155 )
  
 
 
    
 
 
  
Fair value of plan assets at end of fiscal year
      1,784,082       1,720,955  
  
 
 
    
 
 
  
Funded status
      658,126       694,820
  
 
 
    
 
 
  
 
  
 
 
 
 
 
Amounts recognized in the consolidated balance sheets consist of:
  
 
Prepaid pension cost
  
 
682,222
 
 
 
717,926
 
Accrued pension liability
  
 
(24,095
) 
 
 
(23,106
) 
  
 
 
 
 
 
 
 
Net amount recognized
  
 
658,126
 
 
 
694,820
 
  
 
 
 
 
 
 
 
 
 
 
  
2025
 
  
2026
 
 
  
 
 
  
 
 
 
  
(in millions of yen)
 
Amounts recognized in Accumulated other comprehensive income (loss)
before-tax
consist of:
  
  
Prior service benefits (cost)
      57,023       51,334  
Net actuarial gain (loss)
      526,116       753,354  
  
 
 
    
 
 
  
Net amount recognized
      583,139       804,688  
  
 
 
    
 
 
  
 
Notes:
(1)
In June 2024, based on various approvals, MHFG and certain domestic subsidiaries communicated to their employees the amendment to the defined benefit plans that was effective as of July 1, 2024. In accordance with ASC 715, “Compensation—Retirement Benefits” (“ASC 715”), any change in projected benefit obligations due to a plan amendment is required to be recognized as prior service benefits (cost) as of the amendment date. Accordingly, the MHFG Group recognized 
¥9,360
million of prior service benefits for the fiscal year ended March 31, 2025.

(2)
During the fiscal years ended March 31, 2025 and 2026, certain subsidiaries of MHFG partially withdrew assets from employee retirement benefit trusts, which were established for the payment of employees’ severance pay and retirement pensions. Overall, the trusts remain in overfunded status as of March 31, 2026. No gains or losses have been recognized as a result of these transactions.    
The aggregated accumulated benefit obligations of these plans were ¥1,125,955 million and ¥1,026,135 million, as of March 31, 2025 and 2026, respectively. The defined benefit plans generally employ a multi-variable and
non-linear
formula based upon rank and years of service. Employees with service in excess of one year are qualified to receive
lump-sum
severance indemnities.
The following table shows the projected benefit obligations and the fair value of plan assets for the plans of MHFG and its subsidiaries with projected benefit obligations in excess of plan assets, and the accumulated benefit obligations and the fair value of plan assets for the plans with accumulated benefit obligations in excess of plan assets at March 31, 2025 and 2026:
 
    
2025
     
2026
  
               
    
(in millions of yen)
  
Plans with projected benefit obligations in excess of plan assets:
      
Projected benefit obligations
      28,770        34,583  
Fair value of plan assets
      4,675        11,477  
Plans with accumulated benefit obligations in excess of plan assets:
      
Accumulated benefit obligations
      28,770        34,583  
Fair value of plan assets
      4,675        11,477  
 
Note:
The plans with projected benefit obligations in excess of plan assets include those with accumulated benefit obligations in excess of plan assets.    
Investment policies and asset allocation
In managing plan assets, the MHFG Group determines the appropriate levels of risk that the Group can assume under the given circumstances to gain total returns from a long-term perspective while ensuring that sufficient funds will be available to plan participants and beneficiaries. The long-term asset allocation to each asset category such as Japanese equity securities, Japanese debt securities, foreign equity securities and foreign debt
 
 
securities is determined based upon the optimal portfolio, which aims to gain total returns within the range of an acceptable level of risk from a long-term perspective. Additionally, the asset allocation is reviewed every five years, unless there are any significant changes in the circumstances such as market fluctuations. When selecting an investment in each asset category, the MHFG Group takes into consideration credit standing of an investee, concentration of credit risk to a certain investee and liquidity of a financial instrument among other things. The investments in each asset category are further diversified across funds, strategies and sectors along with other things. There is no significant investment in a single investee except Japanese government bonds.
Certain subsidiaries of MHFG established employee retirement benefit trusts and transferred their assets to the trusts as plan assets. These assets are separated from the employer’s proprietary assets for the payment to the plan beneficiaries. The assets held in these trusts are primarily Japanese equity securities and have been entrusted directly to qualified trustees including trust banks.
MHFG and certain subsidiaries’ target allocation for the plan assets, excluding those of the employee retirement benefit trusts, at March 31, 2026 is as follows:
 
Asset category
   
Asset ratio
  
Japanese equity securities
      3.00 % 
Japanese debt securities
      32.00 % 
Foreign equity securities
        26.00 % 
Foreign debt securities
      24.00 % 
General account of life insurance companies
      10.00 % 
Other
      5.00 % 
  
 
 
  
Total
      100.00 % 
  
 
 
  
 
Note:
General account of life insurance companies is a contract with life insurance companies which guarantees payments of principal and predetermined interest payments.    
Fair value of plan assets
The following table presents the fair value of plan assets of MHFG and its subsidiaries at March 31, 2025 and 2026, by asset class. For the detailed information on fair value measurements, including descriptions of Level 1, 2 and 3 of the fair value hierarchy and the valuation methodologies, see Note 26 “Fair value.”
 

$              $              $              $              $              $              $              $             
   
2025
    
2026
  
   
Level 1
    
Level 2
    
Level 3
    
Total
    
Level 1
    
Level 2
    
Level 3
    
Total
  
                                                 
   
(in billions of yen)
  
Japanese equity securities:
                
Common stocks
(1)
  
 
758
 
  
 
— 
 
  
 
— 
 
  
 
758
 
  
 
672
 
  
 
— 
 
  
 
— 
 
  
 
672
 
Pooled funds
(2)
  
 
5
 
  
 
8
 
  
 
— 
 
  
 
12
 
  
 
4
 
  
 
9
 
  
 
— 
 
  
 
13
 
Japanese debt securities:
                
Government bonds
  
 
83
 
  
 
— 
 
  
 
— 
 
  
 
83
 
  
 
84
 
  
 
— 
 
  
 
— 
 
  
 
84
 
Pooled funds
(2)
  
 
— 
 
  
 
9
 
  
 
— 
 
  
 
9
 
  
 
— 
 
  
 
10
 
  
 
— 
 
  
 
10
 
Other
  
 
— 
 
  
 
18
 
  
 
— 
 
  
 
18
 
  
 
— 
 
  
 
15
 
  
 
— 
 
  
 
15
 
Foreign equity securities:
                
Common stocks
  
 
121
 
  
 
— 
 
  
 
— 
 
  
 
121
 
  
 
117
 
  
 
— 
 
  
 
— 
 
  
 
117
 
Pooled funds
(2)
  
 
1
 
  
 
10
 
  
 
— 
 
  
 
11
 
  
 
2
 
  
 
12
 
  
 
— 
 
  
 
14
 
 
 
$              $              $              $              $              $              $              $             
   
2025
    
2026
  
   
Level 1
    
Level 2
    
Level 3
    
Total
    
Level 1
    
Level 2
    
Level 3
    
Total
  
                                                 
   
(in billions of yen)
  
Foreign debt securities:
                
Government bonds
  
 
144
 
  
 
24
 
  
 
— 
 
  
 
168
 
  
 
142
 
  
 
24
 
  
 
— 
 
  
 
167
 
Pooled funds
(2)
  
 
— 
 
  
 
4
 
  
 
— 
 
  
 
4
 
  
 
— 
 
  
 
3
 
  
 
— 
 
  
 
3
 
Other
  
 
— 
 
  
 
30
 
  
 
— 
 
  
 
31
 
  
 
— 
 
  
 
32
 
  
 
— 
 
  
 
32
 
General account of life insurance companies
(3)
  
 
— 
 
  
 
118
 
  
 
— 
 
  
 
118
 
  
 
— 
 
  
 
108
 
  
 
— 
 
  
 
108
 
Other
  
 
46
(4)
 
  
 
(2
) 
  
 
— 
 
  
 
44
 
  
 
64
(4)
 
  
 
(5
) 
  
 
— 
 
  
 
59
 
Plan assets measured at net asset value
(5)
        
 
408
 
        
 
428
 
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Total assets at fair value
  
 
1,158
 
  
 
218
 
  
 
— 
 
  
 
1,784
 
  
 
1,085
 
  
 
208
 
  
 
— 
 
  
 
1,721
 
 
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
 
Notes:    
(1)
This class represents equity securities held in the employee retirement benefit trusts of ¥758 billion and ¥672 billion carried at fair value at March 31, 2025 and 2026, respectively, which are well-diversified across industries.
(2)
These classes primarily include pension investment fund trusts. Investments in these classes are generally measured at fair value and can be redeemed within a short-term period upon request.
(3)
Investments in this class are measured at conversion value, which is equivalent to fair value.
(4)
Amounts primarily include cash and short-term assets carried at fair value.
(5)
In accordance with ASC 820, certain plan assets that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy.
There were no returns on and purchases and sales of Level 3 assets during the fiscal years ended March 31, 2025 and 2026.
Contributions
The total contribution of approximately ¥20 billion is expected to be paid to the pension plans during the fiscal year ending March 31, 2027, based on the current funded status and expected asset return assumptions.
Estimated future benefit payments
The following table presents forecasted benefit payments including the effect of expected future service for the fiscal years indicated:
 
    
(in millions of yen)
  
Fiscal year ending March 31:
   
2027
      77,600  
2028
      79,313  
2029
      79,739  
2030
      80,254  
2031
      75,406  
2032-2036
      326,146