EMPLOYEE BENEFITS Distribution of Net Income
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2012 AND 2011
Expressed in millions of Rupiah, unless otherwise stated
Appendix 5137 49. EMPLOYEE BENEFITS continued
Pension Plan continued
The projected benefit obligations and fair value of plan assets as at 31 December 2012, based on independent actuary report, are as follows:
DPBMS DPBMD
DPBMT DPBME
Projected benefit obligations
1,193,395 1,485,326
610,097 436,301
Fair value of plan assets 1,688,723
1,879,761 833,891
610,795 Funded Status
495,328 394,435
223,794 174,494
Unrecognised past service cost
- -
- -
Unrecognised actuarial gains
369,619 221,405
190,852 63,214
Surplus based on SFAS No. 24 Revised 2010
125,709 173,030
32,942 111,280
Asset ceiling -
- -
-
Pension Plan Program Assets recognised in
statements of financial position
- -
- -
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 statements of financial position because the requirements under SFAS No. 24 Revised 2010 regarding “Employee Benefits” are not fulfilled.
The projected benefit obligations and fair value of plan assets as at 31 December 2011, based on independent actuary report, are as follow:
DPBMS DPBMD
DPBMT DPBME
Projected benefit obligations
1,212,086 1,484,395
614,362 395,053
Fair value of plan assets 1,517,006
1,748,625 742,595
544,190 Funded Status
304,920 264,230
128,233 149,137
Unrecognised past service cost
- -
- -
Unrecognised actuarial gains
221,558 144,142
111,007 52,637
Surplus based on SFAS No. 24 Revised 2010
83,362 120,088
17,226 96,500
Asset ceiling -
- -
-
Pension Plan Program Assets recognised in
statements of financial position
- -
- -
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 statements of financial position because the requirements under SFAS No. 24 Revised 2010 regarding “Employee Benefits” are not fulfilled.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2012 AND 2011
Expressed in millions of Rupiah, unless otherwise stated
Appendix 5138 49. EMPLOYEE BENEFITS continued
Pension Plan continued Labor Law No. 132003
Bank Mandiri has implemented an accounting policy for employment benefits SFAS 24 Revised 2010 to recognise provision for employee service entitlements. As at 31 December 2012 and 2011
the Group recognised a provision for employee services entitlements in accordance with Labor Law No. 132003 amounting to Rp1,635,427 included compensation benefits for employees who have
resigned but have not yet been paid and excluded from actuarial calculation amounted to Rp8,240 and Rp1,404,375 included compensation benefits for employees who have resigned but have not yet
been paid and excluded from actuarial calculation amounted to Rp8,240 which is estimated post employment benefit based on the independent actuarial reports Note 33.
Provision for employee service entitlements as at 31 December 2012 and 2011 are estimated using the employees service entitlements calculation for the years ended 31 December 2012 and 2011 as
shown in the independent actuarial reports of PT Dayamandiri Dharmakonsilindo dated 21 January 2013 for the year ended 31 December 2012 and independent actuarial report of PT Dayamandiri
Dharmakonsilindo dated 18 January 2012 for the year ended 31 December 2011. The assumptions used by the actuary for the year ended 31 December 2012 are as follows:
a. Discount rate is 5.45 per annum. b. Expected rate of annual salary increase is 8.50.
c. Mortality rate table used is Indonesia Mortality Table 2011 or TMI III. d. Turnover rate is 5.00 for employees’ age of 25 and decreasing linearly by 0.167 each year up
to 0.00 at age 55. e. Actuarial method is projected unit credit method.
f. Normal retirement age is 56 years.
g. Disability rate is 10.00 of TMI III. Reconciliation between the provision for post employment benefits presented in the statements of
financial position and statements of income, based on independent actuary report, are as follows Bank Mandiri only:
2012 2011
Present value of obligations 1,757,767
1,547,952 Unrecognised past service cost
38,537 39,675
Unrecognised actuarial gainslosses 348,134
314,525
Provision for post employment benefits presented in statements of financial position
1,448,170 1,273,102
Current service cost 144,609
127,117 Interest cost
90,499 96,892
Amortisation of unrecognised past service cost 1,138
1,138 Amortisation of unrecognised actuarial gainslosses
15,285 8,682
Immediate recognition of past service cost -
28,244
Cost of Pension benefits 249,255
203,309
Reconciliation of provision for post employment benefits are as follows:
2012 2011
Bank Mandiri Beginning balance of provision for post employment benefits
1,273,102 1,087,573
Expenses during the year 249,255
203,309 Payments of benefits
74,187 17,780
Provision for post employee benefits Bank Mandiri 1,448,170
1,273,102 Subsidiaries
Provision for post employee benefits
179,017 123,033
Total provision for post employee benefits 1,627,187
1,396,135
As at 31 December 2012 and 2011, the amount does not include unpaid severance for resigned employees amounting to Rp8,240 and Rp8,240 respectively, which was excluded from actuarial computation.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2012 AND 2011
Expressed in millions of Rupiah, unless otherwise stated
Appendix 5139 49. EMPLOYEE BENEFITS continued
Labor Law No. 132003 continued
The project benefit of funded liabilities, fair value of plan assets and the surplus on the program for the last five years, which are Bank Mandiri:
2012 2011
2010 2009
2008
Present value of defined benefit obligations 1,757,767
1,547,952 1,262,717
947,923 776,962
Fair value of plan assets -
- -
- -
Deficit program 1,757,767
1,547,952 1,262,717
947,923 776,962
Experience adjustments on liabilities program 93,991
127,820 58,912
94,130 139,095
Experience adjustments on plan assets -
- -
- -
Service-Free Period MBT
MBT is a period prior to the retirement age where employees are released from their active routine jobs and 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 an 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 themselves 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
Reconciliation of Provision for Service-Free Period benefit, which recognised on consolidated statements of financial position and consolidated statements of income based on independent actuary
report, are as follows:
2012 2011
Recognition of actuarial gainlosses 16,276
15,962
Expenseincome of provision for service-free period 16,276
15,962
Beginning balance of provision for service - free period facilities
10,352 56,273
Expensesincome during the year 16,276
15,962 Payment of benefits
26,628 29,959
Provision for service-free period -
10,352
In accordance with Director’s Decision letter No KEP.DIR3462010, dated 22 December 2010, Management decided that the MBT benefit was terminated starting from 1 January 2012 and that 2011
is the MBT transition period, where employees who enter their pension age in 2011 are still entitled to receive the benefit and the last payment for MBT will be at the end of May 2012. The provision for
service - free period benefit MBT as at 31 December 2012 and 2011 RpNil and Rp10,352, respectively.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2012 AND 2011
Expressed in millions of Rupiah, unless otherwise stated
Appendix 5140 49. EMPLOYEE BENEFITS continued
Service-Free Period MBT continued
All MBT liabilities have been settled by the Bank in 2012 and therefore the Bank has no outstanding provision for MBT benefit as at 31 December 2012 and onwards.
Furthermore, in accordance with Director’s Decision letter No KEP.DIR3472010, dated 22 December 2010, Management approved the Pensioner’s Health Program effectively applied starting from
1 January 2011. This Pensioner’s Health Program covers pensioners and Bank Mandiri employees and is intended to provide health benefits for pensioners and permanent employees during their pension
age. This 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’s permanent employees.
At the establishment of the program on 31 December 2010, the Bank has placed initial funds to the Cooperation on behalf of the program’s participants amounting to Rp1,135,203, which was sourced
from the provision of service free period MBT that was previously booked by the Bank. Subsequently, the Bank and its employees will contribute to the Cooperative every month, amounting to 3 and 2 of
the employee’s basic salary, respectively.
Subsidiaries do not have Service-Free Period MBT Benefit.