GENERAL AND ADMINISTRATIVE EXPENSES
PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31 DECEMBER 2010, 2009 AND 2008
Expressed in millions of Rupiah, unless otherwise stated
Appendix 5130 44. EMPLOYEE BENEFITS continued
Pension Plan continued
The projected benefit obligations and fair value of plan assets as at 31 December 2010, based on independent actuary report, are as follow:
DPBM I DPBM II
DPBM III DPBM IV
Projected benefit Obligations
1,046,218 1,279,128
540,301 340,394
Fair value of plan Assets
1,534,816 1,664,164
700,682 534,501
Funded status 488,598
385,036 160,381
194,107 Unrecognised past service
cost -
- -
- Unrecognised actuarial
gains 350,059
190,703 88,451
94,632 Surplus based on SFAS
No. 24 Revised 2004 138,539
194,333 71,930
99,475 Asset ceilling
- -
- -
Pension Plan Program Assets recognised in
balance sheet
- -
- -
There are no unrecognised accumulated actuarial loss-net nor unrecognised past service cost and there are no present value of available future refunds or reductions of future contributions.
There are no plan assets recognised in the Balance Sheets since the requirements under SFAS No. 24 Revised 2004 regarding “Employee Benefits” are not fulfilled.
The projected benefit obligations and fair value of plan assets as at 31 December 2009, based on independent actuary report, are as follow:
DPBM I DPBM II
DPBM III DPBM IV
Projected benefit Obligations
890,700 932,393
448,578 264,022
Fair value of plan Assets
1,480,532 1,608,831
701,528 513,671
Funded status 589,832
676,438 252,950
249,649 Unrecognised past service
cost -
- -
- Unrecognised actuarial
gains 475,036
488,194 186,897
125,713 Surplus based on SFAS
No.24 Revised 2004 114,796
188,244 66,053
123,936 Asset ceilling
- -
- -
Pension Plan Program Assets recognised in
balance sheet
- -
- -
There are no unrecognised accumulated actuarial loss-net nor unrecognised past service cost and there are no present value of available future refunds or reductions of future contributions.
There are no plan assets recognised in the Balance Sheets since the requirements under SFAS No. 24 Revised 2004 regarding “Employee Benefits” are not fulfilled.
PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31 DECEMBER 2010, 2009 AND 2008
Expressed in millions of Rupiah, unless otherwise stated
Appendix 5131 44. EMPLOYEE BENEFITS continued
Pension Plan continued
The projected benefit obligations and fair value of plan assets as at 31 December 2008 are as follow:
DPBM I DPBM II
DPBM III DPBM IV
Projected benefit obligations
845,275 894,127
429,552 258,659
Fair value of plan assets
1,282,165 1,363,865
705,327 487,306
Funded status 436,890
469,738 275,775
228,647 Unrecognised past service
cost -
- -
- Unrecognised actuarial
gains 378,683
335,032 249,143
131,152 Surplus based on SFAS
No. 24 Revised 2004 58,207
134,706 26,632
97,495 Asset ceilling
- -
- -
Pension Plan Program Assets recognised in
balance sheet
- -
- -
There are no unrecognised accumulated actuarial loss-net nor unrecognised past service cost and there are no present value of available future refunds or reductions of future contributions.
There are no plan assets recognised in the Balance Sheets since the requirements under SFAS No. 24 Revised 2004 regarding “Employee Benefits” are not fulfilled.
Labor Law No. 132003
Bank Mandiri has implemented an accounting policy for employment benefits SFAS 24 Revised 2004 to recognise provision for employee service entitlements. As at 31 December 2010, 2009 and 2008 the
Bank recognised a provision for employee services entitlements in accordance with Labor Law No. 132003 amounting to Rp1,178,427 included Rp9,187 which is compensation benefits for
employees that have resigned but not yet paid and have been excluded from actuarial calculation, Rp1,044,505 included Rp10,915 which is compensation benefits for employees that have resigned but
not yet paid and have been excluded from actuarial calculation, and Rp925,002 include Rp27,253 which is compensation benefits for employees that have resigned but not yet paid and have been
excluded from actuarial calculation which is estimated post employment benefit based on the independent actuarial reports Note 30.
Provision for employee service entitlements as at 31 December 2010, 2009 and 2008, are estimated using the employees service entitlements calculation for the years ended 31 December 2010, 2009 and
2008 as outlined in the independent actuarial reports of PT Eldridge Gunaprima Solution dated 28 January 2011, 25 January 2010, 30 January 2009 and years ended 31 December 2010, 2009 and
2008, respectively. The assumptions used by the actuary were as follows:
a. Discount rate is 8.00 per annum 2009: 10.50 and 2008: 12.00, b. Expected rate of annual salary increase is 9.50 2009 and 2008: 11,
c. Mortality rate table used is Indonesia Mortality Table 1999 or TMI II 2009 and 2008: TMI II, d. Turnover rate is 5.00 up to employees’ age of 25 and reducing linearly by 0.167 for each year
up to 0.00 up to at age 55 and thereafter 2009: Turnover rate is 5.00 up to employees’ age of 25 and reducing linearly by 0.167 for each year up to 0.00 up to at age 55 thereafter,
e. Actuarial method is projected unit credit method, f.
Normal retirement age is 56 years, g. Disability rate is 10.00 of TMI II 2009 and 2008: 10.00 of TMI II.
PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31 DECEMBER 2010, 2009 AND 2008
Expressed in millions of Rupiah, unless otherwise stated
Appendix 5132 44. EMPLOYEE BENEFITS continued
Labor Law No. 132003 continued
Reconciliation between the provision for post employment benefits presented in the balance sheets and statements of income, based on independent actuary report, are as follows Bank Mandiri only:
2010 2009
2008
Present value of obligations 1,262,717
947,923 776,962
Unrecognised past service cost 40,813
41,951 43,089
Unrecognised actuarial gainslosses 215,958
6,822 45,492
Provision for Post Employment Benefits presented in Balance Sheets
1,087,572 983,052
865,543
Current service cost 93,965
63,377 52,165
Interest cost 91,579
91,340 68,594
Amortisation of unrecognised past service cost 1,138
1,138 1,138
Immediate recognition of past service cost 58,831
- -
Cost of Pension benefits 125,575
153,579 119,621
Reconciliation of provision for post employment benefits are as follows Bank Mandiri only:
2010 2009
2008
Beginning balance of provision for post employment benefits
983,052 865,543
770,657 Expenses during the year
125,575 153,579
119,621 Payments of benefits
21,055 36,070
24,735
Provision for Post Employee Benefits Note 30 1,087,572
983,052 865,543
As at 31 December 2010, 2009 and 2008, the amount does not include unpaid severance for resigned employees amounting to Rp9,187 , Rp10,915 and Rp 27,253, respectively, which was excluded from actuarial computation
As at 31 December 2010, 2009 and 2008, the provision for post employment benefits in the Subsidiaries amounting to Rp81,668, Rp50,538 and Rp32,206, respectively.
Service-Free Period MBT
MBT is the period prior to retirement age where the employees are released from their active routine jobs thus they do not go to work but still obtain employee benefits such as: salary, medical facility,
religion vacation benefit, annual leave if in the current period the employee still has active working period, long service leave if the long service leave is within the MBT period, mourning benefit and
mourning facility.
The MBT benefits are aimed to provide employee with an opportunity to prepare prior entering the pension age.
The Pension Age, Minimal Working Period and MBT period are as follows:
No Pension Age
Minimal Working Period MBT Period
1. 56 years
12 years 12 months
2. 46 years
9 years 9 months
PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31 DECEMBER 2010, 2009 AND 2008
Expressed in millions of Rupiah, unless otherwise stated
Appendix 5133 44. EMPLOYEE BENEFITS continued
Assumptions used in the actuarial report for MBT calculation are as follows: a.
Discount rate is 8.50 per annum 2009: 10.50 and 2008: 12.00. b.
Expected rate of annual salary increase is 9.50 2009 and 2008: 11.00. c.
Normal retirement age is 56 years. d.
Turnover rate is 5.00 up to employees’ age of 25 and reducing linearly by 0.167 for each year up to 0.00 up to at age 55 and there after 2009 and 2008: Turnover rate is 5.00 up to
employees’ age of 25 and reducing linearly by 0.167 for each year up to 0.00 up to at age 55 and thereafter.
e. Mortality rate table is Indonesia Mortality Table 1999 or TMI II 2009 and 2008: TMI II.
f. Disability rate is 10.00 of TMI II 2009 and 2008: 10.00 of TMI II.
Based on those assumptions, provision for MBT facilities for years ended 31 December 2010, 2009 and 2008 amounting to Rp56,273, Rp973,347 and Rp794,159, respectively Note 30.
Reconciliation of Provision for Service-Free Period benefit, which recognised on balance sheets and statements of income, based on independent actuary report, are as follows:
2010 2009
2008
Current Service Cost 1,158
96,324 83,014
Interest Cost 100,831
92,466 63,972
Recognition of actuarial losses 155,203
34,110 31,216
Cost of provision for service-free period 257,192
222,900 178,202
Beginning balance of provision for free for service period facilities
973,347 794,159
655,489 Expenses during the year
257,192 222,900
178,202 Payment of benefits
39,063 43,712
39,532 Payment to Koperasi
1,135,203 -
-
Provision for service-free period Note 30 56,273
973,347 794,159
In accordance with Director’s Decision letter No KEP.DIR3462010, dated 22 December 2010, Management has decided that the MBT facility was completely terminated since 1 January 2012 and
decided that 2011 is the MBT transition period, where employees who reach the pension age in 2011 will still receive payment of MBT.
Subsequently, in accordance with Director’s Decision letter No KEP.DIR3472010, dated 22 December 2010, Management decided that the Pensioner’s Health Program effectively applied since 1 January
2011. This Pensioner’s Health Program is intended for pensioners and permanent employees in their pension age. The management program was operated by Bank Mandiri’s Employees and Pensioners
Health Cooperation or called Mandiri Healthcare “Koperasi”, which was established on 1 November 2010, and includes pension members and Bank Mandiri employees.
During the program implementation, as at 31 December 2010, the Bank has placed initial funds to the Cooperation under the name of the program’s participants amounting to Rp1,135,203, which was
sourced from the provision of service free period MBT that has been recorded by the Bank. Subsequently, the Bank and its employees will contribute to the Cooperation every month, amounting to
3 and 2 of the employee’s basic salary, respectively. The remaining balance of provision for service free period MBT per 31 December 2010 amounting to Rp56,273 represents a provision for service
free period MBT facility which will be paid in 2011 transition period.
Subsidiaries does not have Service-Free Period MBT Benefit.
PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS AT 31 DECEMBER 2010, 2009 AND 2008
Expressed in millions of Rupiah, unless otherwise stated
Appendix 5134 45. OTHER OPERATING EXPENSES - OTHERS - NET
2010 2009
2008
Fees and commissions expenses 479,306
321,911 184,519
Employee restructuring cost 104,538
220,569 -
Others 220,984
288,893 284,810
804,828 831,373
469,329