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
185
50. EMPLOYEE BENEFITS continued Pension Plan continued
Based on the approval of the General Meeting of Shareholders AGM on May 17, 2010, Bank Mandiri increased the retirement benefits of each pension fund. Decision to increase pension
benefits was set forth in the Regulation of Pension Fund respectively and has been approved by the Minister of Finance Decree No. KEP-441KM.102010 dated August 10, 2010 DPBMS; No. KEP-
442KM.102010 dated August 10, 2010 DPBMD; No. KEP-443KM.102010 dated August 10, 2010 DPBMT and No. KEP-444KM.102010 dated August 10, 2010 DPBME.
Based on the approval of the General Meeting of Shareholders AGM on May 23, 2011, Bank Mandiri increased the retirement benefits of each pension fund. Decision to increase pension
benefits was set forth in the Regulation of Pension Fund respectively and has been approved by the Minister of Finance Decree No. KEP-588KM.102011 dated July 20, 2011 DPBMS;
No. KEP-589KM.102011 dated July 20, 2011 DPBMD; No. KEP-590KM.102011 dated July 20, 2011 DPBMT and No. KEP-591KM.102011 dated July 20, 2011 DPBME.
Based on the approval of the General Meeting of Shareholders AGM on April 2, 2013, Bank Mandiri increased the retirement benefits of each pension fund. Decision to increase pension
benefits was set forth in the Regulation of Pension Fund respectively and has been approved by the Board of Commissioners of FSA through Decree No. KEP-349NB.12013 dated June 14, 2013
DPBMS; No. KEP-350NB.12013 dated June 14, 2013 DPBMD; No. KEP-351NB.12013 dated June 14, 2013 DPBMT and No. KEP-352NB.12013 dated June 14, 2013 DPBME.
The AGM also decided granting of another benefits as well as the delegation of authority to the Board to decide on the increase in pension benefits and other benefits to the extent consistent with
applicable regulations, i.e. after the increase in pension benefits or the provision of other benefits, Adequacy Ratio Fund, DPBMS, DPBMD, DPBMT and DPBME minimum of 115.
Based on the approval of the Board of Commissioner Meeting on July 2, 2014, Bank Mandiri gave other benefits to each pension fund. Decision to give this other benefits was set forth in the
respective Regulation of Pension Fund and has been approved by the
Board of Commissioners of FSA through
Decree No. KEP-1773NB.12014 dated July 17, 2014 DPBMS; No. KEP- 1774NB.12014 dated July 17, 2014 DPBMD; No. KEP-1775NB.12014 dated July 17, 2014
DPBMT and No. KEP-1776NB.12014 dated July 17, 2014 DPBME. Based on the approval of the Board of Commissioner of Bank Mandiri dated June 3, 2015, Bank
Mandiri provides other benefits to each pension fund. The decision to provide other benefits was set forth in the respective Regulation of Pension Fund and has been approved by the Board of
Commissioners of FSA through Decree No. KEP-525NB.12015 dated June 29, 2015 DPBMS, No. KEP-526NB12015 dated June 29, 2015 DPBMD, No. KEP-527NB.12015 DPBMT and
No. KEP-528NB.12015 dated June 29, 2015 DPBME.
Based on the approval of the Annual General Meeting of Shareholders AGM on March 21, 2016 approved for the amendment the provisions for the minimum requirements Adequacy Ratio Fund
ARF, DPBMS, DPBMD, DPBMT and DPBME which the original minimum is 115 and change to the minimum of 105, so that the delegation of authority to the Board of Commissioners related with
the decision for the increment of pension benefits and other benefits to the extent where consistent with the applicable regulations, namely after the increment of pension benefits or other benefits
provision, it was changed to meet the requirements at least: 1. Adequacy Ratio Fund ARF after ther increment of Pension Benefits minimum is 105 which
based on mortality tables defined by the Legal Entity as the Founder. 2. There is still surplus which does not create an additional contribution obligations and liabilities of
accounting in accordance with SFAS No. 24.
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
