PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2003, April 30, 2003 and December 31, 2002 Expressed in millions of Rupiah, unless otherwise stated
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42. EMPLOYEE ALLOWANCES AND BENEFITS
Under the Bank’s policy, in addition to salaries, the employees are entitled to allowances and benefits, such as: holiday allowance THR, pre-retirement MBT allowance, medical reimbursements, death
allowance, leave allowance, functional allowance for certain levels, pension plan for permanent employees, incentives based on employee’s and the Bank’s performance, and post-employment
benefits based on prevailing Labor Law.
Pension Plan Bank Mandiri has five pension plans in the form of Employer Pension Plans as follows:
a. One defined contribution pension plan, Dana Pensiun Pemberi Kerja-Program Pensiun Iuran Pasti DPPK-PPIP or the Bank Mandiri Pension Plan Dana Pensiun Bank Mandiri DPBM
established on August 1, 1999. The DPBM’s regulation was legalized based on the decision letter of the Minister of Finance of the Republic of Indonesia No. KEP300KM.0171999 dated July 14,
1999 and was included in the Addendum to the State Gazette of the Republic of Indonesia No. 62 dated August 3, 1999 and Bank Mandiri’s Directors’ Resolution No. 004KEP.DIR1999 dated April
26, 1999.
Bank Mandiri and the employees contribute 10 and 5 of the Base Pension Plan Employee Income, respectively.
The President Director and the members of the Supervisory Board of DPBM are active employees of Bank Mandiri; therefore, in substance Bank Mandiri has control over DPBM. As a consequence,
transactions between DPBM and Bank Mandiri are considered related party transactions. DPBM invests some of its financial resources in Bank Mandiri time deposits, which balances as of
December 31, 2003, April 30, 2003 and December 31, 2002 are Rp2,900, Rp101,100 and Rp150,000, respectively. The interest rates on these time deposits are similar to those of arms-
length transactions.
The Bank paid pension contributions totaling Rp79,329, Rp26,586 and Rp63,294 for the eight- month period ended December 31, 2003, the four-month period ended April 30, 2003 and the year
ended December 31, 2002, respectively.
b. Four employer defined benefit pension plans, Dana Pensiun Pemberi Kerja-Program Pensiun Manfaat Pasti DPPK-PPMP are derived from the respective pension plans of the Merged Banks,
namely Dana Pensiun Bank Mandiri Satu or DPBM I BBD, DPBM II BDN, DPBM III Bank Exim and DPBM IV Bapindo. The regulations of the respective pension plans were legalized by the
Minister of Finance of the Republic of Indonesia in decision letters No. KEP-394KM.0171999, No. KEP-395KM.0171999, No. KEP-396KM.0171999 and No. KEP-397KM.0171999 dated
November 15, 1999. Based on the approval of shareholders No. S-923M-MBU2003 dated March 6, 2003, Bank Mandiri has adjusted pension benefits for each Pension Fund. Such approval has
been incorporated in each of the Pension Fund’s Regulations Peraturan Dana Pensiun PDP which have been approved by the Minister of Finance based on its decision letters No.
KEP115KM.62003 of PDP DPBM I, No. KEP116KM.62003 of PDP DPBM II, No. KEP117KM.62003 of PDP DPBM III, and No. KEP118KM.62003 of PDP DPBM IV, all dated
March 31, 2003. The actuarial calculations as of December 31, 2003 reflect the adjusted pension benefits.
The members of the defined benefit pension plans originated from legacy banks who have rendered three or more service years at the time of merger and are comprised of active employees
of the Bank, deferred members those whose employement have been terminated but did not transfer the beneficial rights to other pension plans, and pensioners.
