PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Year Ended December 31, 2006 With Comparative Figures For 2005
Expressed in millions of Rupiah, unless otherwise stated
106
42. PENSION AND SEVERANCE continued
Pension Plan continued
DPBM I
DPBM II DPBM III
DPBM IV
Actuarial method Projected Unit
Credit Projected Unit
Credit Projected Unit
Credit Projected Unit
Credit Normal pension 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 of latest gross pensionable
salary PhDP 80 of latest
gross pensionable salary PhDP
62.50 of latest 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
The projected benefit obligations and fair value of plan assets as of December 31, 2006 are as follows:
DPBM I DPBM
II DPBM
III DPBM
IV
Projected Benefit Obligations
900,027 849,484
519,172 294,111
Fair Value of Plan Assets
1,342,620 1,456,766
707,511 450,450
Funded Status
442,593 607,282
188,339 156,339
Unrecognized Past Service Cost
- -
- -
Unrecognized Actuarial Gains
258,648 305,567 174,902 55,305 Surplus Based on
PSAK No. 24 Revised
183,945 301,715
13,437 101,034
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
Year Ended December 31, 2006 With Comparative Figures For 2005
Expressed in millions of Rupiah, unless otherwise stated
107
42. PENSION AND SEVERANCE continued
Pension Plan continued The projected benefit obligations and fair value of plan assets as of December 31, 2005 are as follows:
DPBM I DPBM
II DPBM
III DPBM
IV
Projected Benefit Obligations
875,883 828,720
503,472 292,743
Fair Value of Plan Assets
1,283,339 1,300,799
720,997 406,869
Funded Status
407,456 472,079
217,525 114,126
Unrecognized Past Service Cost
- -
- -
Unrecognized Actuarial Gains
270,826 236,254 184,188 26,787 Surplus Based on
PSAK No. 24 Revised 136,630
235,825 33,337
87,339 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.
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 December 31, 2006 and 2005, the Bank
recognized a provision for employee service entitlements in accordance with Labor Law No. 132003 amounting to Rp689,654 and Rp517,426 respectively, based on independent actuarial reports Note 28.
Provision for employee service entitlements as of December 31, 2006 and 2005 is based on independent actuarial reports of PT Dayamandiri Dharmakonsilindo dated February 14, 2007 and March 2, 2006 for the
year ended December 31, 2005 and 2004, respectively. The assumptions used by the actuary were as follows:
a. Discount rate is 10 per annum December 31, 2005: 13 per annum. b. Expected rate of annual salary increase is 10 December 31, 2005: 12 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.
PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Year Ended December 31, 2006 With Comparative Figures For 2005
Expressed in millions of Rupiah, unless otherwise stated
108
42. PENSION AND SEVERANCE continued
