GENERAL AND ADMINISTRATIVE EXPENSES PENSION AND SEVERANCE
PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2009, 2008 AND 2007
Expressed in millions of Rupiah, unless otherwise stated
Appendix 5112 43. PENSION AND SEVERANCE continued
Pension Plan continued
The projected benefit obligations and fair value of plan assets as at 31 December 2009 are as follows:
DPBM I DPBM II
DPBM III DPBM IV
Projected Benefit Obligations
890,700 932,393
448,578 264,022
Fair Value of Plan Assets
1,480,532 1,608,831
701,528 513,671
Funded Status 589,832
676,438 252,950
249,649 Unrecognised Past
Service Cost -
- -
- Unrecognised Actuarial
Gains 475,036
488,194 186,897
125,713 Surplus Based on SFAS
No. 24 revised 2004 114,796
188,244 66,053
123,936 Asset Ceilling
- -
- -
Pension Plan Program Assets recognised in
balance sheet
- -
- -
The projected benefit obligations and fair value of plan assets as at 31 December 2008 were as follows:
DPBM I DPBM II
DPBM III DPBM IV
Projected Benefit Obligations
845,275 894,127
429,552 258,659
Fair Value of Plan Assets
1,282,165 1,363,865
705,327 487,306
Funded Status 436,890
469,738 275,775
228,647 Unrecognised Past
Service Cost -
- -
- Unrecognised Actuarial
Gains 378,683
335,032 249,143
131,152 Surplus Based on SFAS
No. 24 revised 2004 58,207
134,706 26,632
97,495 Asset Ceilling
- -
- -
Pension Plan Program Assets recognised in
balance sheet
- -
- -
PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2009, 2008 AND 2007
Expressed in millions of Rupiah, unless otherwise stated
Appendix 5113 43. PENSION AND SEVERANCE continued
Pension Plan continued
The projected benefit obligations and fair value of plan assets as at 31 December 2007 were 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 Unrecognised Past
Service Cost -
- -
- Unrecognised Actuarial
Gains 406,468
357,302 165,814
87,767 Surplus Based on SFAS
No. 24 revised 2004 59,779
211,319 843
77,934 Asset Ceilling
- -
- -
Pension Plan Program Assets recognised in
balance sheet
- -
- -
There are no unrecognised accumulated actuarial loss-net nor unrecognised past service cost and there are no present value of available future refunds or reductions of future contributions.
There are no plan assets recognised in the Balance Sheets since the requirements under SFAS No. 24 revised 2004 are not fulfilled.
Labor Law No. 132003
Bank Mandiri has implemented an accounting policy for employment benefits SFAS 24 - revised 2004 to recognise provision for employee service entitlements. As at 31 December 2009, 2008 and 2007, the
Bank recognised a provision for employee service entitlements in accordance with Labor Law No. 132003 amounting to Rp1,044,505 included Rp10,915 which is compensation benefits for
employees that have resigned but not yet paid and have been excluded from actuarial calculation, Rp925,002 included Rp27,253 which is compensation benefits for employees that have resigned but
not yet paid and have been excluded from actuarial calculation and Rp784,938 which is estimated post employment benefit based on the independent actuarial reports Note 29.
Provision for employee service entitlements as at 31 December 2009, 2008 and 2007 have been provided based on liability and expense for employees service for the years ended 31 December 2009,
2008 and 2007 as described in the independent actuarial reports of PT Eldridge Gunaprima Solution dated 25 January 2010 and 30 January 2009 for the years ended 31 December 2009 and 2008 and
PT Dayamandiri Dharmakonsilindo dated 31 January 2008 for the years ended 31 December 2007, respectively. The assumptions used by the actuary were as follows:
a. Discount rate is 10.50 per annum 2008; 12.00 and 2007: 10.00. b. Expected rate of annual salary increase is 11.00 2008: 11.00 and 2007: 10.00.
c. Mortality rate table used is Indonesia Mortality Table 1999 or TMI II 2008: TMI II and 2007: US 1980 Commissioners’ Standard Ordinary Table of Mortality.
d. Turnover rate is 5.00 up to employees’ age of 25 and reducing linearly by 0.167 for each year up to 0 up to at age 55 and there after 2008: Turnover rate is 5.00 up to employees’ age of 25
and reducing linearly by 0.167 for each year up to 0.00 up to at age 55 and there after and 2007: 5.00 up to employees’ age of 25 and reducing linearly by 0.25 for each year up to 0.00
at age 45 and thereafter.
PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2009, 2008 AND 2007
Expressed in millions of Rupiah, unless otherwise stated
Appendix 5114 43. PENSION AND SEVERANCE continued
Labor Law No. 132003 continued
e. Actuarial method is projected unit credit method. f.
Normal retirement age is 56 years. g. Disability rate is 10.00 of TMI II 2008: 10.00 of TMI II and 2007: 10.00 of mortality rate.
Reconciliation between the provision for post employment benefits presented in the balance sheets and its expenses are as follows Bank Mandiri only:
2009 2008
2007
Present value of obligations 947,923
776,962 700,946
Unrecognised past service cost 41,951
43,089 44,227
Unrecognised actuarial gainslosses 6,822
45,492 25,484
Provision for Post Employment Benefits presented in Balance Sheets
983,052 865,543
770,657 2009
2008 2007
Current service cost 63,377
52,165 45,033
Interest cost 91,340
68,594 62,432
Amortisation of unrecognised past service cost 1,138
1,138 870
Cost of Pension benefits 153,579
119,621 106,595
Reconciliation of provision for post employment benefits are as follows Bank Mandiri only:
2009 2008
2007
Beginning Balance of Provision for Post Employment Benefits 865,543
770,657 678,128
Expenses during the year 153,579
119,621 106,595
Payments of benefits 36,070
24,735 14,066
Provision for Post Employee Benefits Note 29 983,052
865,543 770,657
As at 31 December 2009 and 2008, the amount does not include pension of employees who have resigned and pension expense has not been paid amounting to Rp10,915 and Rp27,253 which was excluded from actuarial computation
.
As at 31 December 2009, 2008 and 2007, the provision for post employment benefits in the Subsidiaries amounted to Rp50,538, Rp32,206 and Rp14,281, respectively.
Free of Service Period MBT
MBT is a period prior to retirement age which release the employee from their active routine job where the related employee does not come to work but still obtains employee benefits such as: salary, medical
facility, religion vacation benefit, annual leave if in the current period the employee still has active working period, long service leave if the long service leave within the MBT period, mourning benefit
and mourning facility.
In addition to the above benefits, the MBT facilities are to provide the employee with an opportunity to prepare prior entering the pension age.
The Pension Age, Minimal Working Period and MBT period are as follows:
No Pension Age
Minimal Working Period MBT Period
1. 56 years
12 years 12 months
2. 46 years
9 years 9 months
PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2009, 2008 AND 2007
Expressed in millions of Rupiah, unless otherwise stated
Appendix 5115 43. PENSION AND SEVERANCE continued
Free of Service Period MBT continued
Assumptions used in the actuarial report for MBT calculation are as follows: a.
Discount rate is 10.50 per annum 2008: 12.00 and 2007: 10.00. b.
Expected rate of annual salary increase is 11.00 2008: 11 and 2007: 10.00. c.
Normal retirement age is 56 years. d.
Turnover rate is 5.00 up to employees’ age of 25 and reducing linearly by 0.167 for each year up to 0.00 up to at age 55 and there after 2008: Turnover rate is 5.00 up to employees’ age of
25 and reducing linearly by 0.167 for each year up to 0.00 up to at age 55 and there after and 2007: 5.00 up to employees’ age of 25 and reducing linearly by 0.25 for each year up to 0.00
at age 45 and thereafter.
e. Mortality rate table is Indonesia mortality table 1999 or TMI II 2008: TMI II and 2007: US 1980
Commissioners’ Standard Ordinary Table of Mortality. f.
Disability rate is 10.00 of TMI II 2008: 10.00 of TMI II and 2007: 10.00 of mortality rate. Based on those assumptions, provision for MBT facilities for years ended 31 December 2009, 2008 and
2007 amounted to Rp973,347, Rp794,159 and Rp655,489, respectively Note 29. Reconciliation of Provision for Free of Service Period facilities are as follows:
2009 2008
2007
Current Service Cost 96,324
83,014 80,551
Interest Cost 92,466
63,972 48,045
Recognition of actuarial losses 34,110
31,216 60,113
Cost of provision for free of service period 222,900
178,202 188,709
Beginning balance of provision for free for service period facilities 794,159
655,489 489,650
Expenses during the year 222,900
178,202 188,709
Payment of benefits 43,712
39,532 22,870
Provision for free of service period Note 29 973,347
794,159 655,489
Subsidiaries does not have Free of Service Period MBT Benefit.