v3.26.1
Severance Indemnities and Pension Plans
 12 Months Ended
Mar. 31, 2026
Retirement Benefits [Abstract]  
Severance Indemnities and Pension Plans SEVERANCE INDEMNITIES AND PENSION PLANS
Defined Benefit Pension Plans
The MUFG Group has funded non-contributory defined benefit pension plans, which cover substantially all of its employees and mainly provide for lifetime annuity payments commencing at age 65 (“pension benefits”) based on eligible compensation at the time of severance, rank, years of service and other factors.
MUFG Bank and certain domestic subsidiaries, Mitsubishi UFJ Trust and Banking, Mitsubishi UFJ Securities Holdings, Mitsubishi UFJ NICOS and some subsidiaries of MUFG have non-contributory Corporate Defined Benefit Pension plans which provide benefits to all their domestic employees.
The MUFG Group also offers qualified and nonqualified defined benefit pension plans in foreign offices and subsidiaries for their employees. The qualified plans are non-contributory defined pension plans, which provide benefits upon retirement based on years of service and average compensation and cover substantially all of the employees of such foreign offices and subsidiaries. With respect to the offices and subsidiaries in the United States of America, the qualified plans are funded on a current basis in compliance with the requirement of the Employee Retirement Income Security Act of the United States of America. The nonqualified plans are non-contributory defined benefit pension plans, under which certain employees earn pay and interest credits on compensation amounts above the maximum stipulated by applicable laws under the qualified plans.
Severance Indemnities Plans
The MUFG Group has SIPs under which their employees in Japan, other than those who are directors, are entitled, under most circumstances, upon mandatory retirement at normal retirement age or earlier termination of employment, to lump-sum severance indemnities based on eligible compensation at the time of severance, rank, years of service and other factors. Under SIPs, benefit payments in the form of a lump-sum cash payment with no option to receive annuity payments, upon mandatory retirement at normal retirement age or earlier termination of employment, are provided. When a benefit is paid in a single payment to a benefit payee under the plans, the payment represents final relief of the obligation.
Other Postretirement Plans
The MUFG Group’s foreign offices and subsidiaries, primarily in the United States of America, provide their employees with certain postretirement medical and life insurance benefits (“other benefits”).
Net periodic cost of pension benefits and other benefits for the fiscal years ended March 31, 2024, 2025 and 2026 include the following components:
 
Domestic subsidiaries
 
Foreign offices and subsidiaries
 202420252026 202420252026
 
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¥34,653 ¥31,728 ¥28,099 ¥13,231 ¥52 ¥14,759 ¥52 ¥13,354 ¥77 
Interest cost on projected benefit obligation20,547 23,954 30,210 8,461 1,216 8,850 1,266 9,303 1,144 
Expected return on plan assets(83,130)(95,929)(100,224)(10,810)(1,503)(12,443)(1,670)(12,039)(1,474)
Amortization of net actuarial loss (gain)(591)(16,821)(30,905)1,362 1,191 2,112 (89)2,243 23 
Amortization of prior service cost(1,974)(282)147 (945)(426)(1,328)(449)(420)(444)
Loss (gain) on settlements and curtailment(13,659)(13,754)(15,807)1,803 — 15 — (418)— 
Other
(194)(203)141 3,939 6 (2,513)(301)— — 
Net periodic benefit cost (income)¥(44,348)¥(71,307)¥(88,339)¥17,041 ¥536 ¥9,452 ¥(1,191)¥12,023 ¥(674)
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
 202420252026202420252026
 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 expense1.36%1.70%2.89%4.74%4.59%5.06%5.00%5.17%4.89%
Discount rates in determining benefit obligation1.70 2.89 3.33 5.06 5.06 5.22 5.26 5.39 5.45 
Rates of increase in future compensation level for determining expense3.47 3.49 3.91 5.09 — 5.50 — 5.44 — 
Rates of increase in future compensation level for determining benefit obligation3.49 3.91 2.76 5.50 — 5.44 — 5.41 — 
Expected rates of return on plan assets2.97 2.89 2.91 4.98 6.25 5.93 7.00 5.80 6.50 
Cash balance crediting rate for determining expense2.46 2.46 2.53 3.72 — 4.38 — 4.59 — 
Cash balance crediting rate for determining benefit obligation2.46 2.53 3.15 4.38 — 4.59 — 4.88 — 
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:
 
2025(1)
2026(1)
Initial trend rate8.00 %9.25 %
Ultimate trend rate4.00 %4.00 %
Year the rate reaches the ultimate trend rate20352037
Note:
(1)Fiscal years of foreign subsidiaries end on December 31. Therefore, the above table presents the rates and amounts at December 31, 2024 and 2025, respectively.
The following table sets forth the combined funded status and amounts recognized in the accompanying consolidated balance sheets at March 31, 2025 and 2026:
 
Domestic subsidiaries
 
Foreign offices and subsidiaries
 2025202620252026
 
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¥1,448,579 ¥1,310,512 ¥198,793 ¥25,719 ¥199,316 ¥23,394 
Service cost31,728 28,099 14,759 52 13,354 77 
Interest cost23,954 30,210 8,850 1,266 9,303 1,144 
Plan participants’ contributions— — — 430 — 362 
Acquisitions/ Divestitures(354)(257)— — 1,478 — 
Amendments— — (2,075)— — — 
Actuarial loss (gain)(109,527)(1)(97,490)(1)(5,195)(1,107)2,757 (573)
Benefits paid(65,960)(66,015)(7,721)(2,555)(9,139)(2,439)
Lump-sum payment(17,908)(13,495)(5,837)— (6,568)— 
Translation adjustments and other— — (2,258)(411)9,946 1,434 
Benefit obligation at end of fiscal year1,310,512 1,191,564 199,316 23,394 220,447 23,399 
Change in plan assets:
Fair value of plan assets at beginning of fiscal year3,333,330 3,409,772 196,991 23,671 193,635 22,490 
Actual return on plan assets117,384 358,683 7,761 993 13,285 1,911 
Employer contributions25,184 25,130 2,826 228 4,653 254 
Acquisitions/ Divestitures(26)(182)— — — — 
Plan participants’ contributions— — — 430 — 362 
Benefits paid(65,960)(66,015)(7,721)(2,555)(9,139)(2,439)
Translation adjustments and other(140)— (6,222)(277)14,528 1,563 
Fair value of plan assets at end of fiscal year¥3,409,772 ¥3,727,388 ¥193,635 ¥22,490 ¥216,962 ¥24,141 
Amounts recognized in the consolidated balance sheets:
Prepaid benefit cost¥2,116,823 ¥2,553,516 ¥79,809 ¥— ¥84,712 ¥1,217 
Accrued benefit cost(17,563)(17,691)(85,490)(904)(88,197)(475)
Net amount recognized¥2,099,260 ¥2,535,825 ¥(5,681)¥(904)¥(3,485)¥742 
Note:
(1)Significant gains and losses related to changes in the benefit obligation for the fiscal years ended March 31, 2025 and 2026 primarily result from changes in the discount rate.
The aggregated accumulated benefit obligations of these plans at March 31, 2025 and 2026 were as follows:
 
Domestic
 subsidiaries
 
Foreign offices
 and subsidiaries
 2025202620252026
 (in millions)
Aggregated accumulated benefit obligations¥1,292,334 ¥1,177,021 ¥171,906 ¥194,716 
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, 2025 and 2026 were as follows:
 
Domestic
 subsidiaries
 
Foreign offices
 and subsidiaries
 2025202620252026
 (in millions)
Projected benefit obligations¥21,768 ¥21,544 ¥93,518 ¥97,923 
Accumulated benefit obligations21,768 21,336 67,399 72,918 
Fair value of plan assets5,304 5,762 8,275 10,101 
MUFG Bank, Mitsubishi UFJ Trust and Banking, Mitsubishi UFJ Securities Holdings, Mitsubishi UFJ NICOS and other subsidiaries paid special lump-sum termination benefits which are not a part of pension plans to certain early-terminated employees. The amounts charged to operations for such early termination benefits for the fiscal years ended March 31, 2024, 2025 and 2026 were ¥19,116 million, ¥14,089 million and ¥14,326 million, respectively.
The following table presents the amounts recognized in Accumulated OCI of the MUFG Group at March 31, 2025 and 2026:
 
Domestic subsidiaries
 
Foreign offices and subsidiaries
 2025202620252026
 
Pension
 benefits
 and SIP
 
Pension
 benefits
 and SIP
 
Pension
 benefits
 
Other
 benefits
 
Pension
 benefits
 
Other
 benefits
 
(in millions)
Net actuarial loss (gain)¥(638,775)¥(947,771)¥34,990 ¥1,685 ¥31,862 ¥704 
Prior service cost807 416 (2,467)(659)(1,903)(234)
Gross amount recognized in Accumulated OCI(637,968)(947,355)32,523 1,026 29,959 470 
Taxes152,200 249,543 (9,134)(281)(7,889)(120)
Net amount recognized in Accumulated OCI¥(485,768)¥(697,812)¥23,389 ¥745 ¥22,070 ¥350 
The following table presents OCI for the fiscal years ended March 31, 2025 and 2026:
 
Domestic subsidiaries
 
Foreign offices and subsidiaries
 2025202620252026
 
Pension
 benefits
 and SIP
 
Pension
 benefits
 and SIP
 
Pension
 benefits
 
Other
 benefits
 
Pension
 benefits
 
Other
 benefits
 
(in millions)
Net actuarial gain arising during the year¥(130,464)¥(355,708)¥(1,570)¥(490)¥(305)¥(1,011)
Prior service cost arising during the year— (244)(2,188)— — — 
Losses (gains) due to amortization:
Net actuarial loss (gain)16,821 30,905 (2,112)89 (2,243)(23)
Prior service cost282 (147)1,328 449 420 444 
Curtailment and settlement13,754 15,807 (15)— (2,875)— 
Foreign currency translation adjustments— — 757 (13)2,439 34 
Total changes in Accumulated OCI¥(99,607)¥(309,387)¥(3,800)¥35 ¥(2,564)¥(556)
Investment policies
MUFG’s investment policy for plan assets is based on an asset liability matching strategy which is intended to maintain adequate liquidity for benefit payments and to achieve a stable increase in the plan assets in the medium and long-term through proper risk control and return maximization. As a general rule, investment policies for plan assets are reviewed periodically for some plans and in the following situations for all plans: (1) large fluctuations in pension plan liabilities caused by modifications to pension plans, or (2) changes in the market environment. The plan assets allocation strategies are the principal determinant in achieving expected investment returns on the plan assets. Actual asset allocations may fluctuate within acceptable ranges due to market value variability. Plan assets are managed by a combination of internal and external asset management companies and are rebalanced when market fluctuations cause an asset category to fall outside of its strategic asset allocation range. Performance of each plan asset category is compared against established indices and similar plan asset groups to evaluate whether the risk associated with the portfolio is appropriate for the level of return.
The weighted-average target asset allocation of plan assets for the pension benefits and other benefits at March 31, 2026 was as follows:
 
Domestic
 subsidiaries
Foreign offices
 and subsidiaries
Asset category
Pension
 benefits
 and SIP
Pension
 benefits
Other
 benefits
Japanese equity securities26.3%—%—%
Japanese debt securities22.5 — — 
Non-Japanese equity securities14.2 30.2 30.0 
Non-Japanese debt securities22.1 57.4 64.0 
Real estate1.3 7.6 6.0 
Short-term assets and other13.6 4.8 — 
Total100.0%100.0%100.0%
Basis and procedure for estimating long-term return of each asset category
MUFG’s expected long-term rate of return on plan assets for domestic defined benefit pension plans and SIPs is based on a building-block methodology, which calculates the total long-term rate of return of the plan assets by aggregating the weighted rate of return derived from both long-term historical performance and forward-looking return expectations from each asset category.
MUFG has determined the expected long-term rate of return for each asset category as follows:
•Japanese equity securities: the rate for Japanese debt securities plus a premium for the risk associated with Japanese equity securities
•Japanese debt securities: economic growth rate of Japan
•Non-Japanese equity securities: the rate for non-Japanese debt securities plus a premium for the risk associated with non-Japanese equity securities
•Non-Japanese debt securities: global economic growth rate
Foreign offices and subsidiaries periodically reconsider the expected long-term rate of return for their plan assets. They evaluate the investment return volatility of different asset categories and compare the liability structure of their pension and other benefits to those of other companies, while considering their funding policy to maintain a funded status sufficient to meet participants’ benefit obligations, and reduce long-term funding requirements and pension costs. Based on this information, foreign offices and subsidiaries update the expected long-term rate of return.
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:     
2027¥82,173 ¥14,553 ¥2,586 
202880,601 14,485 2,406 
202979,652 15,036 2,234 
203078,433 15,785 2,045 
203177,755 16,271 1,900 
Thereafter (2032-2036)370,307 91,838 8,415 
Fair value measurement of the plan assets
The following is a description of the valuation methodologies used for plan assets measured at fair value as well as the classification of the plan assets pursuant to the fair value hierarchy described in Note 31.
Government bonds and other debt securities
When quoted prices are available in an active market, the MUFG Group adopts the quoted prices to measure the fair value of securities and such securities are classified in Level 1 of the fair value hierarchy. Level 1 securities include Japanese government bonds, most non-Japanese government bonds and certain corporate bonds. When quoted prices are available but not traded actively, such securities are classified in Level 2 of the fair value hierarchy. When quoted prices are not available, the MUFG Group generally estimates fair values by using non-binding prices obtained from independent pricing vendors. Such securities are generally classified in Level 2 of the fair value hierarchy. Level 2 securities include certain non-Japanese government bonds, official institution bonds and corporate bonds. When there is lack of liquidity for securities or significant inputs adopted to the fair value measurements are unobservable, such securities are classified in Level 3 of the fair value hierarchy. Such Level 3 securities mainly consist of non-Japanese corporate bonds.
Marketable equity securities
When quoted prices are available in an active market, the MUFG Group adopts the quoted prices to measure the fair value of marketable equity securities and such securities are classified in Level 1 of the fair value hierarchy. When quoted prices are available but not traded actively, such securities are classified in Level 2 of the fair value hierarchy.
Japanese pooled funds
Japanese pooled funds are investment fund vehicles designed for Japanese pension plan investments under Japanese pension trust fund regulations. Based upon the nature of the funds’ investments, Japanese pooled funds are categorized into four major fund types: Japanese marketable equity securities type, Japanese debt securities type, Non-Japanese marketable equity securities type and Non-Japanese debt securities type. The other types of funds invest in short-term financial instruments or loans receivable. Japanese pooled funds are generally readily redeemable at their net asset values. The fair values of Japanese pooled funds are measured at their net asset values per share (or its equivalent) as a practical expedient.
Other investment funds
Other investment funds include mutual funds, private investments funds, common collective funds, private equity funds and real estate funds. The listed investment funds or mutual funds are valued at quoted prices and classified in Level 1 or Level 2 of the fair value hierarchy. When there is no available market quotation, the fair values are generally determined at net asset values per share (or
its equivalent) as a practical expedient. Other investment funds classified in Level 3 of the fair value hierarchy consist of certain real estate funds whose fair values are not measured at their net asset values but by using significant unobservable inputs and there is inherent lack of the funds’ liquidity.
Japanese general accounts of life insurance companies
These instruments are contracts with life insurance companies that guarantee return of a certain level of fixed income, which are mainly invested in assets with low market risk such as Japanese debt securities. They are measured at conversion value and classified in Level 2 of the fair value hierarchy.
Other investments
Other investments mainly consist of call loans with the remainder consisting of miscellaneous accounts such as deposits with banks and short-term investments. These instruments are generally classified in Level 1 or Level 2 of the fair value hierarchy.
The following tables present the fair value of each major category of plan assets as of March 31, 2025 and 2026:
Pension benefits and SIP Investments:
At March 31, 2025Domestic subsidiaries Foreign offices and subsidiaries
Assets categoryLevel 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total
 (in millions)
Japanese government bonds¥51,627 ¥— ¥— ¥51,627 ¥— ¥— ¥— ¥— 
Non-Japanese government bonds571 — — 571 14,948 2,449 — 17,397 
Other debt securities3,691 113,713 2,567 119,971 — 47,657 — 47,657 
Japanese marketable equity securities1,055,319 — — 1,055,319 — — — — 
Non-Japanese marketable equity securities75,941 83 — 76,024 — — — — 
Other investment funds— — — — 4,529 46,132 — 50,661 

Japanese general account of life insurance companies(1)
— 194,758 — 194,758 — — — — 
Other investments20,508 27,395 — 47,903 152 1,664 333 2,149 
Total¥1,207,657 ¥335,949 ¥2,567 ¥1,546,173 ¥19,629 ¥97,902 ¥333 ¥117,864 
At March 31, 2026Domestic subsidiaries Foreign offices and subsidiaries
Assets categoryLevel 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total
 (in millions)
Japanese government bonds¥44,412 ¥— ¥— ¥44,412 ¥— ¥— ¥— ¥— 
Non-Japanese government bonds1,805 — — 1,805 13,405 3,303 — 16,708 
Other debt securities3,179 80,445 2,674 86,298 16 63,571 — 63,587 
Japanese marketable equity securities793,921 — — 793,921 — — — — 
Non-Japanese marketable equity securities66,011 39 — 66,050 — — — — 
Other investment funds— — — — 3,952 63,518 — 67,470 
Japanese general account of life insurance companies(1)
— 190,059 — 190,059 — — — — 
Other investments9,713 356,590 — 366,303 521 1,975 269 2,765 
Total¥919,041 ¥627,133 ¥2,674 ¥1,548,848 ¥17,894 ¥132,367 ¥269 ¥150,530 
Note:
(1)“Japanese general accounts of life insurance companies” is a contract with life insurance companies that guarantees a return of approximately 0.94% from April 1, 2024 to March 31, 2025 and 0.96% from April 1, 2025 to March 31, 2026.
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, 2025 and 2026:
 
Domestic
 subsidiaries
 
Foreign offices and
 subsidiaries
 
Assets category2025202620252026 
 (in millions) 
Japanese pooled funds:        
Japanese marketable equity securities¥63,276 ¥58,187 ¥— ¥—  
Japanese debt securities191,765 291,581 — —  
Non-Japanese marketable equity securities166,045 202,174 — —  
Non-Japanese debt securities288,808 238,730 — —  
Other134,293 145,986 — —  
Total pooled funds844,187 936,658 — —  
Other investment funds1,019,412 (1)1,241,882 (1)75,771 (2)66,432 (2)
Total¥1,863,599 ¥2,178,540 ¥75,771 ¥66,432  
Notes:
(1)Other investment funds of the domestic subsidiaries include mutual funds and real estate funds of ¥977,917 million and ¥11,205 million, respectively, at March 31, 2025 and ¥1,197,658 million and ¥12,177 million, respectively, at March 31, 2026.
(2)Other investment funds of the foreign offices and subsidiaries include mutual funds, real estate funds and common collective funds of ¥5,787 million, ¥39,712 million and ¥30,093 million, respectively, at March 31, 2025 and ¥6,226 million, ¥28,207 million and ¥31,840 million, respectively, at March 31, 2026.
Other debt securities and Japanese debt securities in the above Pension benefits and SIP tables include ¥2,615 million (0.07% of plan assets) of debt securities issued by the MUFG Group at March 31, 2025 and ¥1,589 million (0.04% of plan assets) at March 31, 2026, respectively. Japanese marketable equity securities in the above Pension benefits and SIP tables include ¥7,076 million (0.20% of plan assets) of common stock issued by the MUFG Group at March 31, 2025 and ¥7,353 million (0.19% of plan assets) at March 31, 2026, respectively.