UNREALISED LOSSESGAINS FS Bank Mandiri Tbk 311210 Eng Final opini
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 5128 44. EMPLOYEE BENEFITS
Under the Bank’s policy, in addition to salaries, employees are entitled to allowances and benefits, such as yearly allowance THR, pre-retirement MBT allowance, medical reimbursements, death allowance,
leave allowance, functional allowance for certain levels, pension plan for permanent employees, incentives based on employee’s and the Bank’s performance, and post-employment benefits in
accordance with prevailing Labor Law.
Pension Plan
Bank Mandiri has five pension plans in the form of Employer Pension Plans DPPK as follows: a.
One defined contribution pension plan, Dana Pensiun Pemberi Kerja Program Pensiun Iuran Pasti DPPK-PPIP or Bank Mandiri Pension Plan Dana Pensiun Bank Mandiri DPBM was established
on 1 August 1999. The DPBM’s regulations were approved by Minister of Finance of the Republic of Indonesia through its Decision Letter No. KEP300KM.0171999 dated 14 July 1999 and was
published in supplement of the State Gazette of the Republic of Indonesia No. 62 dated 3 August 1999 and Bank Mandiri’s Directors’ Resolution No. 004KEP.DIR1999 dated 26 April 1999 and
were amended based on the Minister of Finance of the Republic of Indonesia’s Decision Letter No. KEP-213KM.52005 dated 22 July 2005 and was published in the supplement of the State
Gazette of the Republic of Indonesia No. 77 dated 27 September 2005 and Bank Mandiri’s Directors’ Resolution No. 068KEP.DIR2005 dated 28 June 2005.
Bank Mandiri and the employees contribute 10.00 and 5.00 of the Base Pension Plan Employee Income, respectively.
The Board of Directors and the members of the Supervisory Board of the DPBM are active employees of Bank Mandiri; therefore, in substance, Bank Mandiri has control over the DPBM. As a
consequence, transactions between the DPBM and Bank Mandiri are considered as related party transactions. DPBM invests a part of its financial resources in Bank Mandiri time deposits, of which
total balance as at 31 December 2010, 2009 and 2008 were Rp52,100, Rp25,500 and Rp36,500 respectively. The interest rates on these time deposits are given on arms-length basis.
The Bank paid pension contributions totaling Rp176,282, Rp162,587 and Rp154,830 respectively, for the years ended 31 December 2010, 2009 and 2008, respectively.
b. Four employer defined benefit pension plans, Dana Pensiun Pemberi Kerja Program Pensiun
Manfaat Pasti DPPK-PPMP are derived from the respective pension plans of the Merged Banks, namely Dana Pensiun Bank Mandiri Satu or DPBM I BBD, DPBM II BDN, DPBM III Bank Exim
and DPBM IV Bapindo. The regulations of the respective pension plans were approved by the Minister of Finance of the Republic of Indonesia’s through its decision letters No. KEP-
394KM.0171999,
No. KEP-395KM.0171999, No. KEP-396KM.0171999
and No. KEP-
397KM.0171999 all dated 15 November 1999. Based on the approval of shareholders No. S- 923M-MBU2003 dated 6 March 2003. Bank Mandiri has adjusted pension benefits for each
Pension Fund. Such approval has been incorporated in each of the Pension Fund’s Regulations Peraturan Dana Pensiun PDP which have been approved by the Minister of Finance of the
Republic of Indonesia based on its decision letters No. KEP115KM.62003 for PDP DPBM I, No. KEP116KM.62003 for PDP DPBM II, No. KEP117KM.62003 for PDP DPBM III, and
No. KEP118KM.62003 for DPBM IV, all dated 31 March 2003.
The members of the defined benefit pension plans are the employees from the legacy banks who have rendered three or more services years at the time of merger and are comprise of active
employees of the Bank, former employee those who have resigned and did not transfer their beneficial right to other pension plan and pensioners.
Based on the decision of the General Shareholders’ Meeting dated 28 May 2007, Bank Mandiri increased the pension benefit from each of the Pension Plans. The decision was stated in each
Pension Plan Regulation and has been approved by the Minister of Finance of the Republic of Indonesia with decision letter No. KEP-144KM.102007 DPBM I; No. KEP-145KM.102007 DPBM
II; No. KEP-146KM.102007 DPBM III and No. KEP-147KM.102007 DPBM IV, all dated 20 July 2007.
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 5129 44. EMPLOYEE BENEFITS continued
Pension Plan continued
As at 31 December 2010, 2009 and 2008, the provision for pension benefit obligation are determined based on the obligation and pension benef it cost calculation for the years ended
31 December 2010, 2009 and 2008 outlined in the independent actuarial report of PT Eldridge Gunaprima Solution dated 28 January 2011, 25 January 2010, 30 January 2009, respectively, using
the following assumptions:
DPBM I DPBM II
DPBM III DPBM IV
Discount rate 9.50 per annum
December 2009: 11.00; December 2008:
12.00 9.50 per annum
December 2009: 11.00; December 2008:
12.00 9.50 per annum
December 2009: 11.00; December 2008:
12.00 9.50 per annum
December 2009: 11.00; December 2008:
12.00 Expected rate of return
on pension plan assets
9.00 per annum December 2009 and
2008: 10.00 9.00 per annum
December 2009 and 2008: 10.00
8.00 per annum December 2009 and
2008: 10.00 8.00 per annum
December 2009 and 2008: 10.00
Working period used As at 31 July 1999
As at 31 July 1999 As at 31 July 1999
As at 31 July 1999 Pensionable salary
PhDP used As at 1 January 2003,
adjusted PhDP of legacy banks’
As at 1 January 2003, adjusted PhDP of legacy
banks’ As at 1 January 2003,
adjusted PhDP of legacy banks’
As at 1 January 2003, adjusted PhDP of
legacy banks’ Expected rates of PhDP
increase Nil
Nil Nil
Nil Mortality Rate Table
December 2010, 2009 and 2008: Indonesia
Mortality Table 1999 TMI II for active members and
Group Annuity Mortality 1983 GAM ’83 for
pensioners December 2010, 2009
and 2008: Indonesia Mortality Table 1999
TMI II for active members and Group
Annuity Mortality 1983 GAM ’83 for
pensioners December 2010, 2009
and 2008: Indonesia Mortality Table 1999
TMI II for active members and Group
Annuity Mortality 1983 GAM ’83 for
pensioners December 2010, 2009
and 2008: Indonesia Mortality Table 1999
TMI II for active members and Group
Annuity Mortality 1983 GAM ’83 for
pensioners Turnover rate
2010, 2009 and 2008: 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 2010, 2009 and
2008: 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
2010, 2009 and 2008: 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 2010, 2009 and
2008: 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
Disability rate 10.00 of TMI II
December 2009 and 2008: 10.00 of TMI II
10.00 of TMI II December 2009 and
2008: 10.00 of TMI II 10.00 of TMI II
December 2009 and 2008: 10.00 of TMI II
10.00 of TMI II December 2009 and
2008: 10.00 of TMI II Actuarial method
Projected Unit Credit Projected Unit Credit
Projected Unit Credit Projected Unit Credit
Normal retirement 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 80.00 of PhDP
80.00 of PhDP 62.50 PhDP
75.00 PhDP Expected rate of
pension benefit increase
Nil Nil
Nil 4.00 every 2 years
Tax rates - average 3.00 of pension benefit
December 2009: 3.00 of pension benefit;
December 2008: 5.00 of pension benefit
3.00 of pension benefit December 2009: 3.00
of pension benefit; December 2008: 5.00
of pension benefit 3.00 of pension benefit
December 2009: 3.00 of pension benefit;
December 2008: 5.00 of pension benefit
3.00 of pension benefit December 2009: 3.00
of pension benefit; December 2008: 5.00
of pension benefit