SALARIES AND EMPLOYEE BENEFITS continued

PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2016 and for the year then ended Expressed in millions of Rupiah, unless otherwise stated 186

50. EMPLOYEE BENEFITS continued Pension Plan

continued The calculation of actuarial retirement benefit liabilities for the Bank only on December 31, 2016 is based on the reports from PT Bestama Actuary as at January 5, 2017 with the Projected Unit Credit method. The calculation of actuarial retirement benefit liabilities for the Bank only on December 31, 2015 is based on the reports from PT Dayamandiri Dharmakonsilindo as at January 5, 2016 with the Projected Unit Credit method The assumptions used for the years ended December 31, 2016 and 2015 are as follows: DPBMS DPBMD DPBMT DPBME Discount rate 8.50 per annum 2015: 9.50 per annum 8.50 per annum 2015: 9.50 per annum 8.50 per annum 2015: 9.50 per annum 8.50 per annum 2015: 9.50 per annum Expected rate of return on pension plan assets 9.50 per annum 9.50 per annum 9.50 per annum 9.50 per annum 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 PhDP used Last month salary of July 31, 1999, which adjusted on January 1, 2003 Last month salary of July 31, 1999, which adjusted on January 1, 2003 Last month salary of July 31, 1999, which adjusted on January 1, 2003 Last month salary of July 31, 1999, which adjusted on January 1, 2003 Expected rates of PhDP increase Nil Nil Nil Nil Mortality Rate Table Indonesian Mortality Table 2011 TMI III for employee and former employee and Group Annuity Mortality 1983 GAM ’83 for pensioners Indonesian Mortality Table 2011 TMI III for employee and former employee and Group Annuity Mortality 1983 GAM ’83 for pensioners Indonesian Mortality Table 2011 TMI III for employee and former employee and Group Annuity Mortality 1983 GAM ’83 for pensioners Indonesian Mortality Table 2011 TMI III for employee and former employee and Group Annuity Mortality 1983 GAM ’83 for pensioners Turnover rate 5.00 for employees’ age of 25 and decreasing linearly 0.167 every year up to 0 at age 55 5.00 for employees’ age of 25 and decreasing linearly 0.167 every year up to 0 at age 55 5.00 for employees’ age of 25 and decreasing linearly 0.167 every year up to 0 at age 55 5.00 for employees’ age of 25 and decreasing linearly 0.167 every year up to 0 at age 55 Disability rate 10.00 of TMI III 10.00 of TMI III 10.00 of TMI III 10.00 of TMI III Actuarial method Projected Unit Credit Projected Unit Credit Projected Unit Credit Projected Unit Credit Normal retirement age 48 years to 56 years depending on the grades 56 years for all grades 56 years for all grades 56 years for all grades Maximum defined benefit amount 80.00 of PhDP 80.00 of PhDP 62.50 of PhDP 75.00 of PhDP Expected rate of pension benefit increase Nil Nil Nil 2.00 per year Tax rates - average 3.00 of pension benefit 3.00 of pension benefit 3.00 of pension benefit 3.00 of pension benefit