PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Years Ended December 31, 2007 and 2006 Expressed in millions of Rupiah, unless otherwise stated
103
42. PENSION AND SEVERANCE continued
Pension Plan continued 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 his 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 of the Republic of Indonesia based on his decision letters No. KEP115KM.62003 for PDP DPBM I, No. KEP116KM.62003 for PDP DPBM II,
No. KEP117KM.62003 for PDP DPBM III, and No. KEP118KM.62003 for PDP DPBM IV, all dated March 31, 2003.
The members of the defined benefit pension plans originated from the 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 employment has been terminated but for whom the beneficial rights were not transferred to other pension plans, and pensioners.
Based on the decision of General Shareholders meeting dated May 28, 2007, Bank Mandiri increased the pension benefit from each Pension Plans. The decision was stated in each Pension Plan Regulation
and has been approved by the Ministry of Finance with decision letter No. KEP-144KM.102007 DPBM I; No.KEP-145KM.102007 DPBM II; No. KEP-146KM.102007 DPBM III and No. KEP-
147KM.102007 DPBM IV all dated July 20, 2007. As of December 31, 2007 and 2006, the calculation of the fair value of plan assets and projected
benefit obligation is based on the independent actuarial report of PT Dayamandiri Dharmakonsilindo dated January 31, 2008 and February 23, 2007 for the years ended December 31, 2007 and 2006,
respectively. In its calculation, the actuary used the following assumptions:
DPBM I DPBM II
DPBM III DPBM IV
Discount rate 9.5 per annum
2006: 9.5 9.5 per annum
2006: 9.5 9.5 per annum
2006: 9.5 9.5 per annum
2006: 9.5 Expected rate of return on
plan assets 9.5 per annum
2006: 9.5 9.5 per annum
2006: 9.5 9.5 per annum
2006: 9.5 9.5 per annum
2006: 9.5 Working period used
As of July 31, 1999 As of July 31, 1999
As of July 31, 1999 As of July 31, 1999
Pensionable salary used As of January 1,
2003, adjusted amount over legacy
banks’ pensionable salary
As of January 1, 2003, adjusted
amount over legacy banks’ pensionable
salary As of January 1,
2003, adjusted amount over legacy
banks’ pensionable salary
As of January 1, 2003, adjusted
amount over legacy banks’ pensionable
salary Expected rates of
pensionable salary increase
Nil Nil
Nil Nil
Mortality rate table CSO-1958
CSO-1958 CSO-1958
CSO-1958
PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Years Ended December 31, 2007 and 2006 Expressed in millions of Rupiah, unless otherwise stated
104
42. PENSION AND SEVERANCE continued
Pension Plan continued
DPBM I DPBM II
DPBM III DPBM IV
Turnover rate 5 up to
employees’ age of 25 and reducing
linearly by 0.25 for each year up to
0 at age 45 and thereafter
5 up to employees’ age of
25 and reducing linearly by 0.25
for each year up to 0 at age 45 and
thereafter 5 up to
employees’ age of 25 and reducing
linearly by 0.25 for each year up to
at age 45 and thereafter
5 up to employees’ age of
25 and reducing linearly by 0.25
for each year up to 0 at age 45 and
thereafter Disability rate
10 of mortality rate
10 of mortality rate
10 of mortality rate
10 of mortality rate
Actuarial method Projected Unit
Credit Projected Unit
Credit Projected Unit
Credit Projected Unit
Credit Normal pension age
56 years for all grades
56 years for all grades
56 years for all grades
56 years for all grades
Maximum defined benefit amount
80 of latest gross pensionable
salary PhDP 80 of latest
gross pensionable salary PhDP
62.50 of latest gross pensionable
salary PhDP 75 of latest
gross pensionable salary PhDP
Expected rate of pension benefit increase
Nil Nil
Nil 4 every 2 years
Tax rates - average 15 of pension
benefit 15 of pension
benefit 15 of pension
benefit 15 of pension
benefit
The projected benefit obligations and fair value of plan assets as of December 31, 2007 are as follows:
DPBM I DPBM II
DPBM III DPBM IV
Projected Benefit Obligations
1,033,826 1,004,599
542,654 317,468
Fair Value of Plan Assets
1,500,073 1,573,220
709,311 483,169
Funded Status 466,247
568,621 166,657
165,701 Unrecognized Past
Service Cost -
- -
- Unrecognized Actuarial
Gains 406,468
357,302 165,814
87,767 Surplus Based on
PSAK No. 24 Revised
59,779 211,319
843 77,934
Asset Ceilling -
- -
-
Pension Plan Program Assets recognized
in balance sheet
- -
- -