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
184
50. EMPLOYEE BENEFITScontinued Pension Plan
Bank Mandiri has five pension plans in the form of Employer Pension Plans DPPK as follows: a. One defined contribution pension fund, Dana Pensiun Pemberi Kerja Program Pensiun Iuran Pasti
DPPK-PPIP or Bank Mandiri Pension Plan Dana Pensiun Bank Mandiri DPBM which was established on August 1, 1999. The DPBM’s regulations were approved by the Minister of Finance
of the Republic of Indonesia through its Decision Letter No. KEP300KM.0171999 dated July 14, 1999 and was published in supplement of 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 and were amended based on the Minister of Finance of the Republic of Indonesia’s
Decision Letter No. KEP-213KM.52005 dated July 22, 2005 and was published in the supplement of the State Gazette of the Republic of Indonesia No. 77 dated September 27, 2005 and Bank
Mandiri’s Directors’ Resolution No. 068KEP.DIR2005 dated June 28, 2005.
Bank Mandiri and the employees contribute 10.00 and 5.00 of the Base Pension Plan Employee Income, respectively.
The Board of Directors and the members of the Supervisory Board of the DPBM are active employees of Bank Mandiri; therefore, in substance, Bank Mandiri has control over the DPBM.
DPBM invests a part of its investment fund in Bank Mandiri time deposits and deposit on-call, of which total balance as of December 31, 2016 and 2015 were Rp8,455 and Rp198,800, respectively.
The interest rates on these time deposits are given on arms-length basis. For the years ended December 31, 2016 and 2015, the Bank has paid pension contributions
amounting to Rp370,956 and Rp331,278, respectively.
b. Four defined benefit pension funds, Dana Pensiun Pemberi Kerja Program Pensiun Manfaat Pasti DPPK-PPMP which were derived from the respective pension plans of the ex-legacy Merged
Banks, namely Dana Pensiun Bank Mandiri Satu or DPBMS BBD, DPBMD BDN, DPBMT Bank Exim and DPBME Bapindo. Participants of defined benefit pension plans are come from the
legacy banks with three years working periods or more at the time of the merger consisting of active employees of the bank, former employees employees who stopped working and did not transfer his
rights to another pension fund and retirees.
The regulations of the respective pension plans were approved by the Minister of Finance of the Republic of Indonesia’s through its decision letters No. KEP-394KM.0171999, No. KEP-
395KM.0171999, No. KEP-396KM.0171999 and No. KEP-397KM.0171999 all dated November 15, 1999. Based on the approval from shareholders No. S-923M-MBU2003 dated March 6, 2003,
Bank Mandiri has adjusted pension benefits for each Pension Fund. Such approval has been incorporated in each of the Pension Fund’s Regulations Peraturan Dana Pensiun PDP which
have been approved by the Minister of Finance of the Republic of Indonesia based on its decision letters No. KEP115KM.62003 for PDP DPBMS, No. KEP116KM.62003 for PDP DPBMD,
No. KEP117KM.62003 for PDP DPBMT, and No. KEP118KM.62003 for DPBME, all dated March 31, 2003.
Based on the decision of the General Meeting of Shareholders dated on May 28, 2007, Bank Mandiri increased the pension benefit from each of the Pension Plans. The decision was stated in each
Pension Plan Regulation and has been approved by the Minister of Finance of the Republic of Indonesia with decision letter No. KEP-144KM.102007 DPBMS; No. KEP-145KM.102007
DPBMD; No. KEP-146KM.102007 DPBMT and No. KEP-147KM.102007 DPBME, all dated July 20, 2007.
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.
