Konica Minolta 2005 Annual Report Download - page 50

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12. RETIREMENT BENEFIT PLANS
The Companies have defined benefit retirement plans that
include corporate defined benefit pensions plans (CDBPs),
which are governed by the Japanese Welfare Pension
Insurance Law, tax-qualified pension plans and lump-sum
payment plans. In addition, the Company may pay
additional retirement benefits to employees at its discretion.
The Company and certain of its consolidated
subsidiaries recently changed their retirement plans, which
are summarized as follows.
On April 1, 2003, Konica’s tax-qualified benefit plan
was transferred to a CDBP.
On April 30, 2003, a portion of the Konica lump-sum
payment plan was transferred to a defined contribution
pension plan.
On February 1, 2004, the Ministry of Health, Labour and
Welfare permitted the substitutional portion of the Konica
Welfare Pension Fund to be returned to the government,
and the remaining portion of the Fund was integrated into
a CDBP.
On March 1, 2004, the Ministry of Health, Labour and
Welfare permitted that the substitutional portion of the
Minolta Welfare Pension Fund to be returned to the
government, and the remaining portion of the Fund was
integrated into a CDBP. A portion of the Minolta lump-sum
payment plan was transferred to a CDBP on the same date.
On April 1, 2004, a portion of the Minolta lump-sum
payment plan was transferred to a defined contribution
pension plan.
The reserve for retirement benefits as of March 31, 2005
and 2004 are analyzed follws:
Thousands of
Millions of yen U.S. dollars
2005 2004 2005
a. Retirement benefit
obligations ¥(142,123) ¥(138,418) $(1,323,429)
b. Plan assets 76,808 72,427 715,225
c. Unfunded retirement
benefit obligations
(a+b) (65,315) (65,991) (608,204)
d. Unrecognized
transition amounts —521 —
e. Unrecognized
actuarial differences 14,638 14,425 136,307
f. Unrecognized
prior service costs (10,345) (11,808) (96,331)
g. Net amount on
consolidated
balance sheets
(c+d+e+f) (61,022) (62,853) (568,228)
h. Prepaid pension
costs 2,021 2,061 18,819
i. Accrued retirement
benefits (g-h) ¥(63,044) ¥(64,915) $(587,057)
Notes: 1. The Company and certain consolidated subsidiaries made
amendments to their welfare pension fund plans and tax-
qualified pension plans in order to reduce their benefit
payments. In addition, as described above, they changed
some of the pension plans and transferred certain funds
between the plans. As a result of these transactions, prior
service costs were generated.
2. Certain subsidiaries use a simplified method for the
calculation of benefit obligation.
3. The transition from a portion of the Minolta lump-sum
payment plan to a defined contribution pension plan
resulted in the following changes for the year ended
March 31, 2005:
Thousands of
Millons of yen U.S. dallars
Decrease of the retirement
benefit obligations ¥1,667 $15,523
Unrecognized actuarial
differences 243 2,263
Unrecognized prior service
costs (250) (2,328)
Decrease of accrued
retirement benefits ¥1,660 $15,458
The assets to be transferred to the defined contribution
pension plan equal ¥1,500 million and will be transferred
over 4 years. The amount of ¥1,161 million is recorded as
other long-term liabilities at March 31, 2005.
4. The transition from a portion of the Konica lump-sum
payment plan to a defined contribution pension plan
resulted in the following changes for the year ended
March 31, 2004:
Millons of yen
Decrease of the retirement
benefit obligations ¥4,721
Unrecognized actuarial
differences (769)
Unrecognized prior service
costs 658
Decrease of accrued
retirement benefits ¥4,610
The assets to be transferred to the defined contribution
pension plan equal ¥4,790 million and will be transferred
over 4 years. The amount of ¥4,790 million is recorded as
accrued expenses and other long-term liabilities at March
31, 2004.