PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2013 UNAUDITED AND FOR NINE MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 AUDITED AND FOR NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2012 UNAUDITED
Figures in tables are presented in billions of Rupiah, unless otherwise stated
84
34. RETIREMENT BENEFITS OBLIGATION continued a. Prepaid pension benefit costs continued
December 31, December 31, 2012
2011
Discount rate 6.25
7.25 Expected long-term return on pension plan assets
8.25 9.25
Rate of compensation increases 8
8 The components of net periodic pension costs are as follows:
September 30, December 31, 2013
2012
Service costs 338
372 Interest costs
887 1,151
Expected return on pension plan assets 1,114
1,517 Amortization of prior service costs
104 139
Net periodic pension costs 215
145 Amount charged to subsidiaries
under contractual agreements 15
12
Total net periodic pension cost benefits less amounts charged to subsidiaries Note 27
200 133
b. Pension benefit costs provisions i The Company
The Company sponsors unfunded defined benefit pension plans and a defined contribution pension plan.
The defined contribution pension plan is provided to employees hired with permanent status on or after July 1, 2002. The plan is managed by Financial Institutions Pension Fund “Dana
Pensiun Lembaga Keuangan” or “DPLK”. The Company’s contribution to DPLK is determined based on a certain percentage of the participants’ salaries and amounted to
Rp4 billion Rp5 billion for each of nine months period ended September 30, 2013 and the years ended December 31, 2012, respectively.
Since 2007, the Company provides pension benefit based on uniformulation for both participants prior to and from April 20, 1992 effective for employees retiring beginning
February 1, 2009. The change in benefit had increased the Company’s liabilities by Rp699 billion, which is amortized over 9.9 years until 2016. In 2010, the Company replaced
the uniformulation with Manfaat Pensiun Sekaligus “MPS”. MPS is given to those employees reaching retirement age, upon death or upon being disabled starting from
February 1, 2009. The change in benefit had increased the Company’s liabilities by Rp435 billion, which is amortized over 8.63 years until 2018.
PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2013 UNAUDITED AND FOR NINE MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 AUDITED AND FOR NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2012 UNAUDITED
Figures in tables are presented in billions of Rupiah, unless otherwise stated
85
34. RETIREMENT BENEFITS OBLIGATION continued
b. Pension benefit costs provisions continued i The Company continued
The Company also provides benefits to employees during a pre-retirement period in which they are inactive for 6 months prior to their normal retirement age of 56 years, known as pre-
retirement benefits “Masa Persiapan Pensiun” or “MPP”. During the pre-retirement period, the employees still receive benefits provided to active employees, which include, but are not
limited to, regular salary, health care, annual leave, bonus and other benefits. Since 2012, the Company has issued a new requirement for MPP effective for employees retiring
beginning April 1, 2012, whereby the employee is required to file a request for MPP and if the employee does not file the request, he or she is required to work until the retirement date.
The following table presents the change in projected benefits obligation of MPS and MPP for nine months period ended September 30, 2013 and the years ended December 31, 2012:
September 30, December 31, 2013
2012 Change in projected benefits obligation
Unfunded projected benefits obligation at beginning of year
2,436 2,440
Service costs 73
104 Interest costs
112 173
Actuarial gains 39
128 Benefits paid by employer
62 153
Unfunded projected benefits obligation at end of year
2,520 2,436
Unrecognized prior service costs 539
639 Unrecognized net actuarial losses
400 424
Pension benefit costs provisions at end of period 1,581
1,373
The movements of the pension benefit costs provisions during nine months period ended September 30, 2013 and the years ended December 31, 2012:
September 30, December 31, 2013
2012
Pension benefits costs provisions at beginning of year 1,373
1,067 Net periodic pension costs
310 459
Employer’s contribution 102
153
Pension benefits costs provisions at end of period 1,581
1,373