PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Years Ended December 31, 2008 and 2007 Expressed in millions of Rupiah, unless otherwise stated
108
42. PENSION AND SEVERANCE continued
Pension Plan continued The projected benefit obligations and fair value of plan assets as of December 31, 2008 are as follows:
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 Unrecognized Past
Service Cost -
- -
- Unrecognized Actuarial
Gains 378,683
335,032 249,143
131,152 Surplus Based on
PSAK No. 24 Revised
58,207 134,706
26,632 97,495
Asset Ceilling -
- -
-
Pension Plan Program Assets recognized
in balance sheet
- -
- -
The projected benefit obligations and fair value of plan assets as of December 31, 2007 are as follows:
DPBM I DPBM II
DPBM III DPBM IV
Projected Benefit Obligations
1,033,826 1,004,599
542,654 317,468
Fair Value of Plan Assets
1,500,073 1,573,220
709,311 483,169
Funded Status 466,247
568,621 166,657
165,701 Unrecognized Past
Service Cost -
- -
- Unrecognized Actuarial
Gains 406,468
357,302 165,814
87,767 Surplus Based on
PSAK No. 24 Revised
59,779 211,319
843 77,934
Asset Ceilling -
- -
-
Pension Plan Program Assets recognized
in balance sheet
- -
- -
There are no unrecognized accumulated actuarial loss-net nor unrecognized past service cost and there are no present value of available future refunds or reductions of future contributions.
There are no plan assets recognized in the Balance Sheets since the requirements under PSAK No. 24 Revised are not fulfilled.
PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Years Ended December 31, 2008 and 2007 Expressed in millions of Rupiah, unless otherwise stated
109
42. PENSION AND SEVERANCE continued
Labor Law No. 132003 On March 25, 2003, the House of Representatives of the Republic of Indonesia and the Government of the
Republic of Indonesia approved Labor Law No. 13 Year 2003 UU No. 132003, which regulates, among others, the calculation of post-employment benefits, compensation upon termination and gratuity.
Bank Mandiri has implemented an accounting policy for employment benefits PSAK 24 - Revised 2004 to recognize provision for employee service entitlements. As of December 31, 2008 and 2007, the Bank
recognized a provision for employee service entitlements in accordance with Labor Law No. 132003 amounting to Rp925,002 included Rp27,253 which is compensation benefits for employees that have
resigned but not yet paid and have been excluded from actuarial calculation and Rp784,938 which is estimated post employment benefit based on the independent actuarial reports Note 28.
Provision for employee service entitlements as of December 31, 2008 and 2007 have been provided based on liability and expense for employees service period for year 2008 and 2007 as described in the
independent actuarial reports of PT Eldridge Gunaprima Solution dated January 30, 2009 and PT Dayamandiri Dharmakonsilindo dated January 31, 2008 for the years ended December 31, 2008 and
2007, respectively. The assumptions used by the actuary were as follows: a. Discount rate is 12 per annum 2007: 10.
b. Expected rate of annual salary increase is 11 2007: 10. c. Mortality rate table used is Indonesia Mortality Table 1999 TMI II 2007: US 1980 Commissioners’
Standard Ordinary Table of Mortality. d. Turnover rate is 5 up to employees’ age of 25 and reducing linearly by 0.167 for each year up to
0 up to at age 55 and there after 2007: 5 up to employees’ age of 25 and reducing linearly by 0.25 for each year up to 0 at age 45 and thereafter.
e. Actuarial method is projected unit credit method. f. Normal pension age is 56 years.
g. Disability rate is 10 of TMI II 2007: 10 of mortality rate. Reconciliation between the provision for post employment benefits presented in the balance sheets and its
expenses are as follows Bank Mandiri only:
2008 2007
Present value of obligations 776,962
700,946 Unrecognized past service cost
43,089 44,227
Unrecognized actuarial gains 45,492
25,484
Provision for Post Employment Benefits presented in Balance Sheets 865,543
770,657
PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Years Ended December 31, 2008 and 2007 Expressed in millions of Rupiah, unless otherwise stated
110
42. PENSION AND SEVERANCE continued
