Mizuho FG Considering a reduction in corporate pension The effect of low interest rates also affects the pension on November 20, 6:48
A major financial group, Mizuho Financial Group, has reexamined the corporate pension system that 35,000 members of the group have joined, and has started to consider reducing benefits substantially. Due to the difficult management environment such as low yields on government bonds, the impact of low interest rates is spreading to future pensions.
At Mizuho Financial Group, approximately 35,000 employees working at holding companies and group banks participate in corporate pension plans.
However, because the operating environment is severe, such as low yields on government bonds, and the overall payment amount is expected to increase due to aging, we have begun to review the system.
Specifically, the pension interest rate has been fixed between 3% and 5.5% depending on the age so far, but the period until redemption will fluctuate by adding 1.5% to the average yield of 20-year government bonds. The
Since the yield of 20-year JGBs is currently in the 0.2% range, the pension benefit is expected to be substantially reduced. The company will discuss changes with the labor union and aim for a change from next October.
In the financial industry, a major bank, Sumitomo Mitsui Banking Corporation, is considering changing the pension interest rate, which has been fixed until now, to a variable type linked to the yield of government bonds.
While the BOJ's massive monetary easing has protracted, government bond yields remain low and interest rates continue to be low, but the impact has spread to pensions received in the future.