GENERAL AND ADMINISTRATIVE EXPENSES EMPLOYEE BENEFITS
PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2011 AND 2010
Expressed in millions of Rupiah, unless otherwise stated
Appendix 5136 45. EMPLOYEE BENEFITS continued
Pension Plan continued
The projected benefit obligations and fair value of plan assets as at 31 December 2011, based on independent actuary report, are as follows:
DPBM I DPBM II
DPBM III DPBM IV
Projected benefit Obligations
1,212,086 1,484,395
614,362 395,053
Fair value of plan Assets
1,517,006 1,748,625
742,595 544,190
Funded status 304,920
264,230 128,233
149,137 Unrecognised past service
cost -
- -
- Unrecognised actuarial
gains 221,559
144,142 111,007
52,637 Surplus based on SFAS
No. 24 Revised 2004 83,361
120,088 17,226
96,500 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 because the requirements under SFAS No. 24 Revised 2004 regarding “Employee Benefits” are not fulfilled.
The projected benefit obligations and fair value of plan assets as at 31 December 2010, based on independent actuary report, are as follow:
DPBM I DPBM II
DPBM III DPBM IV
Projected benefit Obligations
1,046,218 1,279,128
540,301 340,394
Fair value of plan Assets
1,534,816 1,664,164
700,682 534,501
Funded status 488,598
385,036 160,381
194,107 Unrecognised past service
cost -
- -
- Unrecognised actuarial
gains 350,059
190,703 88,451
94,632 Surplus based on SFAS
No. 24 Revised 2004 138,539
194,333 71,930
99,475 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 because the requirements under SFAS No. 24 Revised 2004 regarding “Employee Benefits” are not fulfilled.
PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2011 AND 2010
Expressed in millions of Rupiah, unless otherwise stated
Appendix 5137 45. EMPLOYEE BENEFITS continued
Pension Plan continued 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 2011 and 2010
the Bank recognised a provision for employee services entitlements in accordance with Labor Law No. 132003 amounting to Rp1,404,375 included Rp8,240 which is compensation benefits for
employees that have resigned but not yet paid and have been excluded from actuarial calculation and Rp1,178,427 included Rp9,187 which is compensation benefits for employees that have resigned but
not yet paid and have been excluded from actuarial calculation which is estimated post employment benefit based on the independent actuarial reports Note 30.
Provision for employee service entitlements as at 31 December 2011 and 2010 , are estimated using the employees service entitlements calculation for the years ended 31 December 2011 and 2010 as
shown in the independent actuarial reports of PT Dayamandiri Dharmakonsilindo dated 18 January 2012 for the year ended 31 December 2011 and independent actuarial report of PT Eldridge
Gunaprima Solution dated 28 January 2011 for the year ended 31 December 2010. The assumptions used by the actuary for the year ended 31 December 2011 and 2010 are as follows:
a. Discount rate is 6.00 per annum. b. Expected rate of annual salary increase is 8.50.
c. Mortality rate table used is Indonesia Mortality Table 1999 or TMI II. d. Turnover rate is 5.00 for employees’ age of 25 and decreasing linearly by 0.167 each year up
to 0.00 at age 55. e. Actuarial method is projected unit credit method.
f. Normal retirement age is 56 years.
g. Disability rate is 10.00 of TMI II. Reconciliation between the provision for post employment benefits presented in the balance sheets
and statements of income, based on independent actuary report, are as follows Bank Mandiri only:
2011 2010
Present value of obligations 1,547,952
1,262,717 Unrecognised past service cost
39,675 40,813
Unrecognised actuarial gainslosses 314,525
215,958
Provision for Post Employment Benefits presented in Balance Sheets
1,273,102 1,087,572
Current service cost 127,117
93,965 Interest cost
96,892 91,579
Amortisation of unrecognised past service cost 1,138
1,138 Amortisation of unrecognised actuarial gainslosses
8,682 -
Immediate recognition of past service cost 28,244
58,831
Cost of Pension benefits 203,309
125,575
Reconciliation of provision for post employment benefits are as follows Bank Mandiri only:
2011 2010
Beginning balance of provision for post employment benefits
1,087,572 983,052
Expenses during the year 203,309
125,575 Payments of benefits
17,779 21,055
Provision for Post Employee Benefits Note 30 1,273,102
1,087,572
As at 31 December 2011 and 2010 , the amount does not include unpaid severance for resigned employees amounting to Rp8,240 and Rp9,187 respectively, which was excluded from actuarial computation.
PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2011 AND 2010
Expressed in millions of Rupiah, unless otherwise stated
Appendix 5138 45. EMPLOYEE BENEFITS continued
Labor Law No. 132003 continued
As at 31 December 2011 and 2010 , the provision for post employment benefits in the Subsidiaries amounting to Rp123,033 and Rp81,668 respectively.
Service-Free Period MBT
MBT is the period prior to retirement age where the employees are released from their active routine jobs thus they do not go to work but still obtain 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 is within the MBT period, mourning benefit and
mourning facility.
The MBT benefits are aimed to provide 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
Reconciliation of Provision for Service-Free Period benefit, which recognised on balance sheets and statements of income based on independent actuary report, are as follows:
2011 2010
Current Service Cost -
1,158 Interest Cost
- 100,831
Recognition of actuarial gainlosses 15,962
155,203
Revenuecost of provision for service-free period 15,962
257,192
Beginning balance of provision for service - free period facilities
56,273 973,347
IncomeExpenses during the year 15,962
257,192 Payment of benefits
29,959 39,063
Payment to Koperasi -
1,135,203
Provision for service-free period Note 30 10,352
56,273
In accordance with Director’s Decision letter No KEP.DIR3462010, dated 22 December 2010, Management decided that the MBT benefit is terminated since 1 January 2012 and that 2011 is the MBT
transition period, where employees who enter their pension age in 2011 are still entitled with the benefit and the last payment for MBT will be at the end of May 2012. The provision for service – free period
benefit MBT as at 31 December 2011 and 2010 is amounting to Rp10,352 and Rp56,273, respectively.
PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2011 AND 2010
Expressed in millions of Rupiah, unless otherwise stated
Appendix 5139 45. EMPLOYEE BENEFITS continued
Service-Free Period MBT continued
Furthermore, in accordance with Director’s Decision letter No KEP.DIR3472010, dated 22 December 2010, Management decided that the Pensioner’s Health Program effectively applied since 1 January
2011. This Pensioner’s Health Program is intended for pensioners and permanent employees in their pension age. The management program was operated by Bank Mandiri’s Employees and Pensioners
Health Cooperation or called Mandiri Healthcare “Koperasi”, which was established on 1 November 2010, and includes pension members and Bank Mandiri employees.
During the program implementation, as at 31 December 2010, the Bank has placed initial funds to the Cooperation under the name of the program’s participants amounting to Rp1,135,203, which was
sourced from the provision of service free period MBT that has been recorded by the Bank. Subsequently, the Bank and its employees will contribute to the Cooperation every month, amounting to
3 and 2 of the employee’s basic salary, respectively.
Subsidiaries does not have Service-Free Period MBT Benefit.