PT BANK MANDIRI PERSERO AND SUBSIDIARIES
Notes to the Consolidated Financial Statements Continued December 31, 2002 and 2001
Expressed in millions of Rupiah, unless otherwise stated
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41. SALARIES AND EMPLOYEE BENEFITS Continued
Total gross salaries, allowances and bonus of the Boards of Directors and Commissioners, and Executive Officers amounted to Rp57,372 and Rp39,727 for the years ended December 31, 2002
and 2001, respectively. Details for 2002 are as follows:
Number of Members
Officers Salary
Allowances Bonus
Total Board of Commissioners
4 1,988
728 1,867
4,583 Board of Directors
3 4,491
1,639 4,047
10,177 Audit
Committee 3
459 92
185 736
EVP Coordinators
5 6,686
1,478 3,991 12,155
Group Heads and Assistants to the President Director
31 18,928
2,922 7,871
29,721 46
32,552 6,859
17,961 57,372
42. PENSION PLAN AND EMPLOYEE SERVICE ENTITLEMENTS
Bank Mandiri has five pension plans in the form of Employer Pension Plans as follows: a. One defined contribution pension plan or the Bank Mandiri Pension Plan, Dana Pensiun
Pemberi Kerja-Program Pensiun Iuran Pasti “DPPK-PPIP” established on August 1, 1999. The members are active employees of Bank Mandiri. The Bank Mandiri Pension Plan Regulation
was legalized based on the decision letter of the Minister of Finance of the Republic of Indonesia No. KEP300KM.0171999 dated July 14, 1999 and was included in the Addendum to
the State Gazette of the Republic of Indonesia No. 62 dated August 3, 1999 and Bank Mandiri’s Directors’ Resolution No. 004KEP.DIR1999 dated April 26, 1999.
Bank Mandiri and the employees contribute 10 and 5 of the Base Pension Plan Employee Income, respectively.
The President Director and the members of the Supervisory Board of Dana Pensiun Bank Mandiri “DPBM” are active employees of Bank Mandiri; therefore, in substance Bank Mandiri
has control over DPBM. As a consequence, transactions between DPBM and Bank Mandiri are considered related party transactions. DPBM invests some of its financial resources in Bank
Mandiri time deposits, whose balancess as of December 31, 2002 and 2001 are Rp150,000 and Rp139,650, respectively. The interest rates on these time deposits are similar to those of arm’s-
length transactions.
The Bank paid pension contributions totaling Rp63,294 and Rp55,127 for the years ended December 31, 2002 and 2001, respectively.
b. Four employer defined benefit pension plans, Dana Pensiun Pemberi Kerja-Program Pensiun Manfaat Pasti “DPPK-PPMP” are derived from the respective pension plans of the Merged
Banks, namely Dana Pensiun Bank Mandiri Satu or DPBM I BBD, DPBM II BDN, DPBM III Bank Exim and DPBM IV Bapindo. The regulations of the respective pension plans were
legalized by the Minister of Finance of the Republic of Indonesia in decision letters No. KEP- 394KM.0171999, No. KEP-395KM.0171999, No. KEP-396KM.0171999 and No. KEP-
397KM.0171999 dated July 14, 1999. The assets of the respective pension plans were derived from the pension plan assets of the Merged Banks. The working period and the basic salary
used as the basis for the computation of pension benefits represents the working period of employees in the pension plans until July 31, 1999.
PT BANK MANDIRI PERSERO AND SUBSIDIARIES
Notes to the Consolidated Financial Statements Continued December 31, 2002 and 2001
Expressed in millions of Rupiah, unless otherwise stated
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110
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42. PENSION PLAN AND EMPLOYEE SERVICE ENTITLEMENTS Continued
As of December 31, 2002, the calculation of net asset value and pension liabilities is based on the actuarial report of PT Jasa Aktuaria Pensiun dan Asuransi. In its calculation, the actuary used the
following assumptions:
DPBM I DPBM II
DPBM III DPBM IV
Actuarial date December 31, 2002
December 31, 2002 December 31, 2002
December 31, 2002 Frequency of actuarial
valuation Annually
Annually Annually
Annually Interest rate
9 per annum 9 per annum
9 per annum 9 per annum
Expected rate of return on plan assets
9 9
9 9
Expected rates of salary increase
Nil Nil
Nil Nil
Salary and working period used
As of July 31, 1999 As of July 31, 1999
As of July 31, 1999 As of July 31, 1999
Mortality rate table CSO-1958 Modified
CSO-1958 Modified CSO-1958 Modified
CSO-1958 Modified Ill-health retirement rate
0.3 of mortality rate 0.3 of mortality rate
0.3 of mortality rate 0.3 of mortality rate
Actuarial method Accrued benefit
method Accrued benefit
method Accrued benefit
method Accrued benefit
method Normal pension age
565248 years depending on the
strata 56 years for all strata
56 years for all strata 56 years for all strata
Maximum Defined Benefit amount
80 of latest gross pension salary
PhDP 80 of latest gross
pension salary PhDP
60 of latest gross pension salary
PhDP 60 of gross
pension salary PhDP
Based on the audited financial statements of the respective pension plans DPBM, the pension liabilities and net assets value as of December 31, 2002 are as follows:
DPBM I DPBM II
DPBM III DPBM IV
Pension liabilities 832,226
848,414 517,684
152,742 Net assets value
1,135,773 1,131,489
597,472 366,840
Surplus 303,547
283,075 79,788
214,098
