PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Six Months Ended June 30, 2006 Unaudited and 2005 Audited Expressed in millions of Rupiah, unless otherwise stated
112
43. PENSION AND SEVERANCE continued
Pension Plan continued The projected benefit obligations and fair value of plan assets as of June 30, 2006 are as follows:
DPBM I DPBM
II DPBM
III DPBM
IV
Projected Benefit Obligations
883,457 840,349
511,355 299,246
Fair Value of Plan Assets
1,315,360 1,340,753
741,931 420,219
Funded Status
431,903 500,404
230,576 120,973
Unrecognized Past Service Cost
- -
- -
Unrecognized Actuarial Gains
264,737 231,827
179,545 26,787
Surplus Based on PSAK No. 24
Revised 167,166
268,577 51,031
94,186 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.
The projected benefit obligations and fair value of plan assets as of June 30, 2005 are as follows:
DPBM I DPBM
II DPBM
III DPBM
IV
Projected Benefit Obligations
926,335 882,375
594,353 298,469
Fair Value of Plan Assets
1,272,946 1,295,583
688,158 411,575
Funded Status
346,611 413,208
93,805 113,106
Unrecognized Past Service Cost
- -
- -
Unrecognized Actuarial Gains
232,852 199,087 63,688 31,783
Surplus Based on PSAK No. 24
Revised 113,759 214,121
30,117 81,323
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
Six Months Ended June 30, 2006 Unaudited and 2005 Audited Expressed in millions of Rupiah, unless otherwise stated
113
43. 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 June 30, 2006 and 2005, the Bank
recognized a provision for employee service entitlements in accordance with Labor Law No. 132003 amounting to Rp535,517 and Rp460,482 respectively, based on independent actuarial reports Note 28.
Provision for employee service entitlements as of June 30, 2006 and 2005 is based on independent actuarial reports of PT Dayamandiri Dharmakonsilindo dated March 2, 2006 and February 11, 2005 for the
year ended December 31, 2005 and 2004, respectively. The assumptions used by the actuary were as follows:
a. Discount rate is 13 per annum December 31, 2004: 10 per annum. b. Expected rate of annual salary increase is 12 December 31, 2004: 9 per annum.
c. Mortality rate table is US 1980 Commissioners’ Standard Ordinary Table of Mortality. d. Early retirement rate is 5 from age 25 decreasing linearly at 0.25 per 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 mortality rate.
Reconciliation between the provision for post employee benefits presented in the balance sheet and its expenses are as follows Bank Mandiri only:
2006 2005
Present Value of Obligations 453,648
389,014 Unrecognized Past Service Cost
31,578 31,645
Unrecognized Actuarial Gains 50,291
39,823
Provision for Post Employee Benefits Presented in Balance Sheet 535,517
460,482 2006 2005
Current Service Cost 6,194
14,061 Interest
Cost 26,251
18,600 Amortization of Unrecognized Actuarial Gains
322 -
Amortization of Unrecognized Past Service Cost 34
101
Cost of Pension benefits 32,089
32,560
Reconciliation of Provision for Post Employee Benefits are as follows:
2006 2005
Beginning Balance of Provision for Post Employee Benefits 508,477
446,290 Expenses during the six month period
32,089 32,560
Payment of
Benefit 5,049
18,368
Provision for Post Employee Benefits Note 28 535,517
460,482
PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Six Months Ended June 30, 2006 Unaudited and 2005 Audited Expressed in millions of Rupiah, unless otherwise stated
114
43. PENSION AND SEVERANCE continued
