[New Release] Mitsubishi UFJ Trust and Banking Publishes 'Total Reward Report April Issue' on HR and Pension Trends
Mitsubishi UFJ Trust and Banking has released its April monthly report, covering critical topics such as inflation resistance for corporate pensions, next-generation leadership pipelines, and the evolution of sustainable investment.
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- 📰 Published: April 1, 2026 at 23:04
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Mitsubishi UFJ Trust and Banking Corporation (President: Hiroshi Kubota) has published the 'Mitsubishi UFJ Total Reward Report April Issue' on its official website. Here are some excerpts from this month's issue:
### MHLW 2nd Meeting on Visibility of Asset Management for Corporate Pension Participants
- On January 28, 2026, the second meeting was held, highlighting efforts to promote appropriate product selection in Corporate DC and organizing case studies for ensuring inflation resistance in DB plans.
- In an inflationary environment, principal-guaranteed products in Corporate DC may fail to secure real purchasing power. Employers are required to explain this carefully to participants and consider reviewing the investment lineup, including designated default investment methods.
- For DB plans, employers are urged to consider benefit improvements to ensure inflation resistance, preventing a relative decline in future benefit levels for retirees.
### Developing Next-Gen Business Leaders: Pipeline Construction for Continuous Appointment
- Developing next-gen leaders involves identifying management candidates early, planning their placement and development over the mid-to-long term, and creating a system for continuous promotion.
- In a rapidly changing environment, the role of management has expanded from simple operations to value creation and transformation, increasing the difficulty of development.
- The keys to functional development are: clarifying candidate criteria, avoiding stagnant candidate pools, designing growth around core experiences, and implementing continuous improvement through visualization.
### 20 Years of Sustainable Investment (Part 2): Boom, Anti-ESG, and the Future
- This section reflects on 20 years of sustainable investment since the publication of the Principles for Responsible Investment (PRI). Part 2 focuses on the boom post-2015 and the recent anti-ESG movement.
- 2015 was a pivotal year with the adoption of the Paris Agreement and SDGs. The momentum for decarbonization peaked at the 2021 Glasgow Climate Pact.
- However, sustainable investment now faces headwinds from revised energy policies due to security concerns and the anti-ESG movement.
- Sustainable investment approaches must adapt to these changing global realities.
### Retirement Benefit Accounting (Japanese Standards) Part 1
- This accounting standard was introduced to accurately convey retirement benefit statuses to investors, covering lump-sum payments and internal pensions beyond just corporate pensions.
- Companies must recognize retirement benefit obligations (PBO) and costs in their accounting.
- On the balance sheet, the amount recorded is the PBO minus pension assets. On the income statement, retirement benefit costs reflect the difference between expected PBO increases and expected returns on pension assets.
- Under Japanese standards, actuarial gains/losses and past service costs are not recognized immediately but amortized over a certain period starting from the following year (delayed recognition).
### Column: Securities Analyst
The full report is available at the following URL:
https://www.tr.mufg.jp/houjin/jutaku/nenkinjoho/pdf/mutb_202604.pdf
### MHLW 2nd Meeting on Visibility of Asset Management for Corporate Pension Participants
- On January 28, 2026, the second meeting was held, highlighting efforts to promote appropriate product selection in Corporate DC and organizing case studies for ensuring inflation resistance in DB plans.
- In an inflationary environment, principal-guaranteed products in Corporate DC may fail to secure real purchasing power. Employers are required to explain this carefully to participants and consider reviewing the investment lineup, including designated default investment methods.
- For DB plans, employers are urged to consider benefit improvements to ensure inflation resistance, preventing a relative decline in future benefit levels for retirees.
### Developing Next-Gen Business Leaders: Pipeline Construction for Continuous Appointment
- Developing next-gen leaders involves identifying management candidates early, planning their placement and development over the mid-to-long term, and creating a system for continuous promotion.
- In a rapidly changing environment, the role of management has expanded from simple operations to value creation and transformation, increasing the difficulty of development.
- The keys to functional development are: clarifying candidate criteria, avoiding stagnant candidate pools, designing growth around core experiences, and implementing continuous improvement through visualization.
### 20 Years of Sustainable Investment (Part 2): Boom, Anti-ESG, and the Future
- This section reflects on 20 years of sustainable investment since the publication of the Principles for Responsible Investment (PRI). Part 2 focuses on the boom post-2015 and the recent anti-ESG movement.
- 2015 was a pivotal year with the adoption of the Paris Agreement and SDGs. The momentum for decarbonization peaked at the 2021 Glasgow Climate Pact.
- However, sustainable investment now faces headwinds from revised energy policies due to security concerns and the anti-ESG movement.
- Sustainable investment approaches must adapt to these changing global realities.
### Retirement Benefit Accounting (Japanese Standards) Part 1
- This accounting standard was introduced to accurately convey retirement benefit statuses to investors, covering lump-sum payments and internal pensions beyond just corporate pensions.
- Companies must recognize retirement benefit obligations (PBO) and costs in their accounting.
- On the balance sheet, the amount recorded is the PBO minus pension assets. On the income statement, retirement benefit costs reflect the difference between expected PBO increases and expected returns on pension assets.
- Under Japanese standards, actuarial gains/losses and past service costs are not recognized immediately but amortized over a certain period starting from the following year (delayed recognition).
### Column: Securities Analyst
The full report is available at the following URL:
https://www.tr.mufg.jp/houjin/jutaku/nenkinjoho/pdf/mutb_202604.pdf
FAQ
Why is inflation protection necessary in Corporate DC plans?
Since the value of cash decreases during inflation, principal-guaranteed products alone risk failing to maintain future purchasing power. Employers must explain this and review the investment lineup.
What are the keys to building a leadership development pipeline?
Keys include clarifying candidate selection, avoiding stagnant pools through flexible management, focusing on experience-based growth, and ensuring continuous improvement through visualization.
What is the current state of sustainable investment?
Decarbonization efforts peaked around 2021 but now face headwinds due to security concerns and anti-ESG sentiments. New approaches adapted to current global shifts are being sought.