SALARIES AND EMPLOYEE BENEFITS continued

PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS December 31, 2003, April 30, 2003 and December 31, 2002 Expressed in millions of Rupiah, unless otherwise stated 132

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Pension Plan continued As of December 31, 2003, the calculation of fair value of plan assets and projected benefit obligation is based on the actuarial report of PT Dayamandiri Dharmakonsolindo dated March 8, 2004. In its calculation, the actuary used the following assumptions: DPBM I DPBM II DPBM III DPBM IV Actuarial date December 31, 2003 December 31, 2003 December 31, 2003 December 31, 2003 Frequency of actuarial valuation Annually Annually Annually Annually 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 December 31, 2003, adjusted amount over legacy banks’ pensionable salary As of December 31, 2003, adjusted amount over legacy banks’ pensionable salary As of December 31, 2003, adjusted amount over legacy banks’ pensionable salary As of December 31, 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 Ill-health retirement rate NA NA NA NA Actuarial method Projected Unit Credit Projected Unit Credit Projected Unit Credit Projected Unit Credit Normal pension age 56 years for all grade 56 years for all grade 56 years for all grade 56 years for all grade Maximum defined benefit amount 80 of latest gross pensionable salary PhDP 80 of latest gross pensionable salary PhDP 62.50 of lates 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, 2003, April 30, 2003 and December 31, 2002 Expressed in millions of Rupiah, unless otherwise stated 133

42. EMPLOYEE ALLOWANCES AND BENEFITS continued