PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of March 31, 2014 and for three months period then ended unaudited
Figures in tables are expressed in billions of rupiah, unless otherwise stated
80
34. RETIREMENT BENEFIT AND OTHER POST RETIREMENT BENEFIT OBLIGATIONS continued
a. Prepaid pension benefit costs continued March 31,
December 31, 2014
2013 Change in projected pension benefits obligation
Projected pension benefits obligation at beginning of period 14,883
19,249 Service costs
48 450
Interest costs 327
1,183 Pension plan participants contributions
11 44
Actuarial gains losses 796
5,387 Expected pension benefits paid
176 656
Projected pension benefits obligation at end of period 15,889
14,883
Change in pension plan assets
Fair value of pension plan assets at beginning of period 16,803
18,222 Expected return on pension plan assets
402 1,485
Employer’s contributions -
182 Pension plan participants contributions
11 44
Actuarial gains losses 796
2,474 Expected pension benefits paid
176 656
Fair value of pension plan assets at end of period 17,836
16,803 Funded status
1,948 1,920
Unrecognized prior service costs 58
78 Unrecognized net actuarial gains losses
1,071 1,071
Prepaid pension benefit costs 935
927
The expected return is determined based on market expectation for returns over the entire life of the obligation by considering the portfolio mix of the plan assets. The actual return on plan assets
was Rp1,198 billion and Rp989 billion for three months period ended March 31, 2014 and for the year ended December 31, 2013, respectively. Based on the Company’s regulation issued on
January 14, 2014 regarding Dapen’s Funding Policy, the Company will not give contribution to Dapen when Dapen’s Funding Sufficiency Ratio FSR is above 105. Therefore, the Company
expects no contribution to defined benefit pension plan in 2014.
The movements of the prepaid pension benefit costs during three months period ended March 31, 2014 and for the year ended December 31, 2013 are as follows:
March31, December 31,
2014 2013
Prepaid pension benefit costs at beginning of period 927
1,031 Net periodic pension costs less amounts
charged to subsidiaries 7
265 Amounts charged to subsidiaries
under contractual agreement -
21 Employer’s contributions
- 182
Prepaid pension benefit costs at end of period 934
927
PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of March 31, 2014 and for three months period then ended unaudited
Figures in tables are expressed in billions of rupiah, unless otherwise stated
81
34. RETIREMENT BENEFIT AND OTHER POST RETIREMENT BENEFIT OBLIGATIONS continued
a. Prepaid pension benefit costs continued
As of March 31, 2014 and December 31, 2013, pension plan assets mainly consisted of :
March 31, December 31,
2014 2013
Government bonds 38.72
40.30 Indonesian equity securities
23.42 21.97
Corporate bonds 19.65
21.19 Others
18.21 16.54
Total 100.00
100.00
Pension plan assets also include Series B shares issued by the Company with fair values totaling Rp339 billion and Rp336 billion, representing 1.90 and 2.00 of total plan assets as of March
31, 2014 and December 31, 2013, respectively, and bonds issued by the Company with fair values totaling Rp151 billion and Rp151 billion representing 0.85 and 0.90 of total plan assets
as of March 31, 2014 and December 31, 2013, respectively.
The actuarial valuation for the defined benefit pension plan and the other post-retirement benefits Notes 34b and 34c was performed based on the measurement date as of December 31, 2013
and 2012, with reports dated February 28, 2014 and February 28, 2013, respectively, by PT Towers Watson Purbajaga “TWP”, an independent actuary in association with Towers
Watson “TW” formerly Watson Wyatt Worldwide. The principal actuarial assumptions used by the independent actuary as of December 31, 2013 and 2012 are as follows:
December 31, December 31, 2013
2012
Discount rate 9.00
6.25 Expected long-term return on pension plan assets
9.75 8.25
Rate of compensation increases 8.00
8.00 The components of net periodic pension costs are as follows:
March 31, December 31,
2014 2013
Service costs 48
450 Interest costs
327 1,183
Expected return on pension plan assets 402
1,485 Amortization of prior service costs
20 139
Net periodic pension costs 7
287 Amount charged to subsidiaries
under contractual agreements -
21
Net periodic pension costs less amounts charged to subsidiaries Note 27
7 266