PT INDOCEMENT TUNGGAL PRAKARSA Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Nine months ended September 30, 2006 and 2005 Expressed in rupiah, unless otherwise stated
41
21. ESTIMATED LIABILITY FOR EMPLOYEE BENEFITS continued
a. Retirement Benefit continued Company
Subsidiaries Discount rate 11 in 2006 and 10 in 2005
11 in 2006 and 10 in 2005 Wage and salary increase
9 in 2006 and 2005 9 in 2006 and 2005
Retirement age 55 years
55 years Average employee turnover
1 for employees with ages from 2 - 5 for employees with
20 years old up to 54 years old ages from 20 years old,
decreasing linearly to 0 at age 45
Table of mortality Commissioners Standard
Commissioners Standard Ordinary 1980 CSO ’80
Ordinary 1980 CSO ’80 Disability
10 of the mortality rate 10 at the mortality rate
The provisions for employee benefits recognized in the consolidated statements of income consisted of the following:
2006 2005
Current service costs 5,361,922,608
7,342,987,450 Interest costs
12,395,744,250 10,817,004,000
Actuarial loss recognized 76,337,250
- Amortization of past service costs and actuarial gains
5,958,368,250 5,898,121,500
Net employee benefits expense 23,792,372,358
24,058,112,950
A reconciliation of estimated liability for employee benefits is as follows:
2006 2005
Present value of defined benefit obligation 154,342,470,675
158,426,145,530 Unamortized balance of the non-vested past service
costs 88,812,268,750
96,844,223,250 Actuarial loss
13,661,465,938 15,973,391,527
Liability recognized in the consolidated balance sheets
51,868,735,987 45,608,530,753
Movements in the estimated liability for employee benefits are as follows:
2006 2005
Balance at beginning of period 47,867,513,812
33,647,515,723 Provision during the period
23,792,372,358 24,058,112,950
Payments during the period 19,791,150,183
12,097,097,920
Balance at end of period recorded as part of
“Long-term Liabilities - Others” account in the
consolidated balance sheets 51,868,735,987
45,608,530,753
Non-vested past service costs are amortized over the average remaining years of service of active employees, which range from 12.19 - 16.02 years in 2006 and from 13.19 - 16.49 years in 2005.
PT INDOCEMENT TUNGGAL PRAKARSA Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Nine months ended September 30, 2006 and 2005 Expressed in rupiah, unless otherwise stated
42
21. ESTIMATED LIABILITY FOR EMPLOYEE BENEFITS continued
