SALARIES AND EMPLOYEE BENEFITS continued

PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS December 31, 2004 and 2003, and April 30, 2003 Expressed in millions of Rupiah, unless otherwise stated 132

43. PENSION AND SEVERANCE continued

Pension Plan continued As of December 31, 2004, the calculation of the fair value of plan assets and projected benefit obligation is based on the actuarial report of PT Dayamandiri Dharmakonsilindo dated February 11, 2005. In its calculation, the actuary used the following assumptions: DPBM I DPBM II DPBM III DPBM IV Interest rate 9 per annum 9 per annum 9 per annum 9 per annum Expected rate of return on plan assets 10 per annum 10 per annum 10 per annum 10 per annum Working period used As of July 31, 1999 As of July 31, 1999 As of July 31, 1999 As of July 31, 1999 Pensionable salary used As of January 1, 2003, adjusted amount over legacy banks’ pensionable salary As of January 1, 2003, adjusted amount over legacy banks’ pensionable salary As of January 1, 2003, adjusted amount over legacy banks’ pensionable salary As of January 1, 2003, adjusted amount over legacy banks’ pensionable salary Expected rates of pensionable salary increase Nil Nil Nil Nil Mortality rate table CSO-1958 CSO-1958 CSO-1958 CSO-1958 Turnover rate 5 up to employees’ age 25 and reducing linearly by 0.25 for each year up to 0 at age 45 and thereafter 5 up to employees’ age 25 and reducing linearly by 0.25 for each year up to 0 at age 45 and thereafter 5 up to employees’ age 25 and reducing linearly by 0.25 for each year up to 0 at age 45 and thereafter 5 up to employees’ age 25 and reducing linearly by 0.25 for each year up to 0 at age 45 and thereafter Disability rate 10 of mortality rate 10 of mortality rate 10 of mortality rate 10 of mortality rate Actuarial method Projected Unit Credit Projected Unit Credit Projected Unit Credit Projected Unit Credit Normal pension age 56 years for all grades 56 years for all grades 56 years for all grades 56 years for all grades Maximum defined benefit amount 80 of latest gross pensionable salary PhDP 80 of latest gross pensionable salary PhDP 62.5 of latest gross pensionable salary PhDP 75 of latest gross pensionable salary PhDP Expected rate of pension benefit increase Nil Nil Nil 4 every 2 years Tax rates - average 15 of pension benefit 15 of pension benefit 15 of pension benefit 15 of pension benefit PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS December 31, 2004 and 2003, and April 30, 2003 Expressed in millions of Rupiah, unless otherwise stated 133

43. PENSION AND SEVERANCE continued