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
105
41. SALARIES AND EMPLOYEE BENEFITS continued 2007
Number of Members
Officers Salaries
Allowances Bonuses
Total
Board of Commissioners 7
5,257 3,605
4,515 13,377 Board of Directors
11 21,343
10,429 - 31,772 Audit committee
2 755
145 185 1,085
Executive Vice Presidents and Senior Vice President
47 18,668
10,668 8,670 38,006
67 46,023
24,847 13,370 84,240
42. PENSION AND SEVERANCE
Under the Bank’s policy, in addition to salaries, employees are entitled to allowances and benefits, such as holiday 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 based on the prevailing Labor
Law.
Pension Plan Bank Mandiri has five pension plans in the form of Employer Pension Plans as follows:
a. One defined contribution pension plan, Dana Pensiun Pemberi Kerja Program Pensiun Iuran Pasti DPPK-PPIP or the Bank Mandiri Pension Plan Dana Pensiun Bank Mandiri DPBM established on
August 1, 1999. The DPBM’s regulations were legalized based on the decision letter of the Minister of Finance of the Republic of Indonesia No. KEP300KM.0171999 dated July 14, 1999 and was included
in the Addendum to the State Gazette of the Republic of Indonesia No. 62 dated August 3, 1999 and Bank Mandiri’s Directors’ Resolution No. 004KEP.DIR1999 dated April 26, 1999 and were
amended based on the Minister of Finance of the Republic of Indonesia’s decision letter No. KEP-213KM.52005 dated July 22, 2005 and was included in the Addendum to the State Gazette of
the Republic of Indonesia No. 77 dated September 27, 2005 and Bank Mandiri’s Directors’ Resolution No. 068KEP.DIR2005 dated June 28, 2005.
Bank Mandiri and the employees contribute 10 and 5 of the Base Pension Plan Employee Income, respectively.
The President Director 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 related party transactions. The DPBM invests a part of its financial resources in Bank Mandiri time deposits, which balances as of
December 31, 2008 and 2007 were Rp36,500 and Rp10,000, respectively. The interest rates on these time deposits are at arms-length.
The Bank paid pension contributions totaling Rp154,830 and Rp129,470, respectively, for the years ended December 31, 2008 and 2007, respectively.
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
106
42. PENSION AND SEVERANCE continued
Pension Plan continued 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 legalized by the Minister of Finance of the Republic of Indonesia’s in his decision letters No. KEP-394KM.0171999, No. KEP-
395KM.0171999, No.KEP-396KM.0171999 and No. KEP-397KM.0171999 all dated November 15, 1999. Based on the approval of shareholders No. S-923M-MBU2003 dated March 6, 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 his 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 PDP DPBM IV, all dated March 31, 2003.
The members of the defined benefit pension plans originated from the legacy banks who have rendered three or more service years at the time of merger and are comprised of active employees of
the Bank, deferred members those whose employment has been terminated but for whom the beneficial rights were not transferred to other pension plans, and pensioners.
Based on the decision of General Shareholders’ Meeting dated May 28, 2007, Bank Mandiri increased the pension benefit from each 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 July 20, 2007. As of December 31, 2008 and 2007, the calculation of the fair value of plan assets and projected
benefit obligation is based on the independent actuarial report 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. In its calculation, the actuary used the following assumptions:
DPBM I DPBM II
DPBM III DPBM IV
Discount rate 12 per annum
2007: 9.5 12 per annum
2007: 9.5 12 per annum
2007: 9.5 12 per annum
2007: 9.5 Expected rate of return on
plan assets 10 per annum
2007: 9.5 10 per annum
2007: 9.5 10 per annum
2007: 9.5 10 per annum
2007: 9.5 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 PhDP 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 PhDP
increase Nil
Nil Nil
Nil
