Mitsubishi 2014 Annual Report Download - page 59

Information of multi-employer pension plans which the required
contribution has been accounted for as retirement benefit expenses
was as follows at March 31, 2013:
(In millions of
yen)
March 31,
2013
Pension Plan assets ¥26,943
Benefit obligations under pension plan rules 26,319
Difference ¥ 624
The Difference of ¥624 million above was mainly due to
unrecognized prior service costs of ¥1,128 million. Unrecognized
prior service costs are amortized by the straight line method over
periods of 20 years. The approximate ratio of the Group’s share of
accumulated contributions in the multi-employee plan obligation is
57.2% as of March 31, 2013. This ratio does not necessarily match
the amount of the Group’s share of the actuarially estimated pen-
sion benefit obligation.
For the fiscal year ended March 31, 2013 under the previous ac-
counting standard:
MMC and its consolidated subsidiaries have defined benefit pension
plans including contributory plans in accordance with the Welfare
Pension Institute Law of Japan, defined benefit corporate pension
plans and lump-sum payment plans, and defined contribution pen-
sion plans. Additional retirement benefits are paid in certain cases
upon an employee’s retirement and similar.
Information of multi-employer pension plans included in the
above plans for which the required contribution has been ac-
counted for as retirement benefit expenses was as follows at March
31, 2012:
(In millions of
yen)
March 31,
2012
Pension Plan assets ¥24,581
Benefit obligations under pension plan rules 26,078
Difference ¥ (1,497)
The Difference of ¥1,497 million above was mainly due to
unrecognized prior service costs of ¥1,273 million. Unrecognized
prior service costs are amortized by the straight line method over
periods of 20 years. The approximate ratio of the Group’s share of
accumulated contributions in the multi-employee plan obligation is
59.2% as of March 31, 2012. This ratio does not necessarily match
the amount of the Group’s share of the actuarially estimated pen-
sion benefit obligation.
Defined Benefit Plans
The discount rates used to determine the retirement benefit obliga-
tion were 0.9% ~ 2.0% for MMC and its domestic consolidated
subsidiaries, 3.4% ~ 5.7% for its foreign consolidated subsidiaries
at March 31, 2013. The rates of return on plan assets assumed
were 0.7% ~ 4.0% for MMC and its domestic consolidated sub-
sidiaries, 5.0% ~ 8.0% for its foreign consolidated subsidiaries at
March 31, 2013.
Prior service costs are amortized by the straight line method over
periods of 1 to 14 years and for the year ended March 31, 2013.
This period is within the estimated average remaining service years
of the employees.
The amortization period for actuarial gains and losses starts from
the subsequent year and actuarial gains and losses are amortized by
the straight line method over periods of 5 to 14 years for the year
ended March 31, 2013. This period is within the estimated average
remaining service years of the employees.
Unrecognized net obligations and assets at the date of initial
application are amortized within one year.
The retirement benefit obligation for MMC and its consolidated
subsidiaries’ employees’ defined benefit plans at March 31, 2013 is
summarized as follows:
(In millions of
yen)
March 31,
2013
Retirement benefits obligation
¥(185,113)
Pension plan assets at fair value 75,217
Unfunded status (109,896)
Unrecognized actuarial losses 18,858
Unrecognized prior service costs (9,867)
Net recognized retirement benefits obligation (100,905)
Prepaid pension premiums 10,755
Provision for retirement benefits ¥(111,660)
MITSUBISHI MOTORS CORPORATION
Annual Report 2014 57