PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2013 and for the Year Then Ended
Figures in tables are expressed in billions of rupiah, unless otherwise stated
89
34. RETIREMENT BENEFIT AND OTHER POST RETIREMENT BENEFIT OBLIGATIONS continued
c. Other post-retirement benefits continued
The principal actuarial assumptions used by the independent actuary as of December 31, 2013 and 2012 are as follows:
2013 2012
Discount rate 9.00
6.25 Rate of compensation
8.00 8.00
Components of the total periodic other post-retirement benefit costs for the years ended December 31, 2013 and 2012:
2013 2012
Service costs 11
10 Interest costs
30 32
Amortization of past service costs 7
7 Recognized actuarial losses
18 16
Other post-retirement benefit costs Note 27 66
65 Historical information:
2013 2012 2011 2010 2009
Present value of funded defined benefit obligation
450 508
462 409
336 Deficit in the plan
450 508
462 409
336 Experience adjustments arising on
plan liabilities 7
5 13
11 1
d. Obligation under the Labor Law
Under Law No. 13 Year 2003, the Company and subsidiaries are required to provide minimum pension benefit, if not covered yet by the sponsored pension plans, to their employees upon
retirement age. The total related obligation recognized as of December 31, 2013 and 2012 amounted to Rp189 billion and Rp146 billion, respectively. The related employee benefit costs
charged to expense amounted to Rp17 billion and Rp38 billion for the years ended December 31, 2013 and 2012, respectively.
35. LONG SERVICE AWARDS “LSA”
Telkomsel provides certain cash awards or certain number of days leave benefits to its employees based on the employees’ length of service requirements, including LSA and LSL. LSA are either paid
at the time the employees reach certain years during employment, or at the time of termination. LSL are either certain number of days leave benefit or cash, subject to approval by management, provided
to employees who meet the requisite number of years of service and with a certain minimum age.
The obligation with respect to these awards was determined based on an actuarial valuation using the Projected Unit Credit method, and amounted to Rp336 billion and Rp347 billion as of
December 31, 2013 and 2012, respectively. The related benefit costs charged to expense amounted to Rp19 billion and Rp121 billion for the years ended December 31, 2013 and 2012, respectively
Note 27.
PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2013 and for the Year Then Ended
Figures in tables are expressed in billions of rupiah, unless otherwise stated
90
36. POST-RETIREMENT HEALTH CARE BENEFITS
The Company provides a post-retirement health care plan to all of its employees hired before November 1, 1995 who have worked for the Company for 20 years or more when they retire, and to
their eligible dependents. The requirement to work for 20 years does not apply to employees who retired prior to June 3, 1995. The employees hired by the Company starting from November 1, 1995
are no longer entitled to this plan. The plan is managed by Yakes. The defined contribution post-retirement health care plan is provided to employees hired with
permanent status on or after November 1, 1995 or employees with terms of service less than 20 years at the time of retirement. The Company’s contribution amounted to Rp17 billion and Rp18 billion for
the years ended December 31, 2013 and 2012, respectively. The following table presents the change in the projected post-retirement health care benefits
obligation, change in post-retirement health care benefits plan assets, funded status of the post- retirements health care benefits plan and net amount recognized in the Company’s consolidated
statement of financial position as of December 31, 2013 and 2012:
2013 2012
Change in projected post-retirement health care benefits obligation
Projected post-retirement health care benefits obligation at beginning of year
13,162 10,547
Service costs 70
56 Interest costs
813 755
Actuarial gains losses 3,099
2,074 Expected post-retirement health care benefits paid
293 270
Projected post-retirement health care benefits obligation at end of year
10,653 13,162
Change in post-retirement health care benefits plan assets
Fair value of plan assets at beginning of year 9,913
8,986 Expected return on plan assets
744 720
Employer’s contributions 302
300 Actuarial losses gains
1,005 177
Expected post-retirement health care paid 293
270 Fair value of plan assets at end of year
9,661 9,913
Funded status 992
3,249 Unrecognized net actuarial losses
240 2,570
Post-retirement health care benefit costs provisions 752
679
