PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Years Ended December 31, 2005 and 2004 Expressed in millions of Rupiah, unless otherwise stated
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43. PENSION AND SEVERANCE
Under the Bank’s policy, in addition to salaries, the 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.
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, 2005 and 2004 were Rp24,000 and Rp43,000, respectively. The interest rates on these
time deposits are at arms-length.
The Bank paid pension contributions totaling Rp96,272 and Rp87,974, respectively, for the years ended December 31, 2004 and 2005, 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 legalized by the Minister of Finance of
the Republic of Indonesia in his decision letters No. KEP-394KM.0171999, No. KEP-
395KM.0171999, No. KEP-396KM.0171999 and No. KEP-397KM.0171999 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.
