GAINSLOSSES FROM SALE OF MARKETABLE SECURITIES AND GOVERNMENT BONDS
PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2009, 2008 AND 2007
Expressed in millions of Rupiah, unless otherwise stated
Appendix 5110 43. PENSION AND SEVERANCE continued
Pension Plan continued
a. Bank Mandiri and the employees contribute 10.00 and 5.00 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 at 31 December 2009, 2008 and 2007 were Rp25,500, Rp35,500 and Rp10,000,
respectively. The interest rates on these time deposits are at arms-length.
The Bank paid pension contributions totaling Rp162,587, Rp154,830 and Rp129,470, respectively, for the years ended 31 December 2009, 2008 and 2007, 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 approved by the Ministry of Finance of the Republic of Indonesia’s through its decision letters No. KEP-
394KM.0171999,
No. KEP-395KM.0171999, No. KEP-396KM.0171999
and No. KEP-
397KM.0171999 all dated 15 November 1999. Based on the approval of shareholders No. S- 923M-MBU2003 dated 6 March 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 Ministry of Finance of the
Republic of Indonesia based on its 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 31 March 2003.
The members of the defined benefit pension plans are the employees from the legacy banks who have rendered three or more services years at the time of merger and are comprise of active
employees of the Bank, former employee those who have resigned and did not transfer their beneficial right to other pension plan and pensioners.
Based on the decision of the Annual General Shareholders’ Meeting dated 28 May 2007, Bank Mandiri increased the pension benefit from each of the Pension Plans. The decision was stated in
each Pension Plan Regulation and has been approved by the Ministry 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 20 July 2007.
As at 31 December 2009, 2008 and 2007, a pension benefit obligation have been provided based on the calculation obligation and pension benefit cost for the years ended 31 December 2009,
2008, 2007 is based on the independent actuarial report of PT Eldridge Gunaprima Solution dated 25 January 2010 and 30 January 2009 for the years ended 31 December 2009 and 2008 and
PT Dayamandiri Dharmakonsilindo dated 31 January 2008 for the years ended 31 December 2007, respectively, in its calculation the actuary used the following assumptions:
PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2009, 2008 AND 2007
Expressed in millions of Rupiah, unless otherwise stated
Appendix 5111 43. PENSION AND SEVERANCE continued
Pension Plan continued
DPBM I DPBM II
DPBM III DPBM IV
Discount rate 11.00 per annum
2008: 12 .00 and 2007: 9.50
11.00 per annum 2008: 12.00 and
2007: 9.50 11.00 per annum
2008: 12.00 and 2007: 9.50
11.00 per annum 2008: 12.00 and
2007: 9.50 Expected rate of
return on plan assets
10.00 per annum 2008: 10 .00 and
2007: 9.50 1.000 per annum
2008: 10.00 and 2007: 9.50
10.00 per annum 2008: 10.00 and
2007: 9.50 10.00 per annum
2008: 10.00 and 2007: 9.50
Working period used As at 31 July 1999
As at 31 July 1999 As at 31 July 1999
As at 31 July 1999 Pensionable salary
PhDP used As at 1 January 2003,
adjusted PhDP of legacy banks’
As at 1 January 2003, adjusted PhDP of
legacy banks’ As at 1 January 2003,
adjusted PhDP of legacy banks’
As at 1 January 2003, adjusted PhDP
of legacy banks’ Expected rates of
PhDP increase Nil
Nil Nil
Nil Mortality Rate Table
2009 and 2008: Indonesia Mortality
Table 1999 TMI II for active members and
Group Annuity Mortality 1983 GAM
’83 for pensioners 2007: CSO -1958
2009 and 2008: Indonesia Mortality
Table 1999 TMI II for active members and
Group Annuity Mortality 1983 GAM
’83 for pensioners 2007: CSO -1958
2009 and 2008: Indonesia Mortality
Table 1999 TMI II for active members and
Group Annuity Mortality 1983 GAM
’83 for pensioners 2007: CSO -1958
2009 and 2008: Indonesia Mortality
Table 1999 TMI II for active members and
Group Annuity Mortality 1983 GAM
’83 for pensioners 2007: CSO -1958
Turnover rate 2009 and 2008:5.00
up to employees’ age of 25 and reducing
linearly by 0.167 for each year up to 0.00
up to at age 55 and there after 2007:
5.00 up to employees’ age of 25
and reducing linearly by 0.25 for each
year up to 0.00 at age 45 and thereafter
2009 and 2008:5.00 up to employees’ age
of 25 and reducing linearly by 0.167 for
each year up to 0.00 up to at age 55 and
there after 2007: 5.00 up to
employees’ age of 25 and reducing linearly
by 0.25 for each year up to 0.00 at
age 45 and thereafter 2009 and 2008:5.00
up to employees’ age of 25 and reducing
linearly by 0.167 for each year up to 0.00
up to at age 55 and there after 2007:
5.00 up to employees’ age of 25
and reducing linearly by 0.25 for each
year up to 0.00 at age 45 and thereafter
2009 and 2008:5.00 up to employees’ age
of 25 and reducing linearly by 0.167 for
each year up to 0.00 up to at age 55 and
there after 2007: 5.00 up to
employees’ age of 25 and reducing linearly
by 0.25 for each year up to 0.00 at
age 45 and thereafter Disability rate
10.00 of TMI II 2008: 10.00 of TMI
II; 2007: 10.00 of mortality rate
10.00 of TMI II 2008: 10.00 of TMI
II; 2007: 10.00 of mortality rate
10.00 of TMI II 2008: 10.00 of TMI
II; 2007: 10.00 of mortality rate
10.00 of TMI II 2008: 10.00 of TMI
II; 2007: 10.00 of mortality rate
Actuarial method Projected Unit Credit
Projected Unit Credit Projected Unit Credit
Projected Unit Credit Normal retirement 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
80.00 of PhDP 80.00 of PhDP
62.50 PhDP 75.00 PhDP
Expected rate of pension benefit
increase Nil
Nil Nil
4.00 every 2 years Tax rates - average
3.00 of pension benefit
2008: 5.00 of pension benefit; 2007:
15.00 of pension benefit
3.00 of pension benefit
2008: 5.00 of pension benefit; 2007:
15.00 of pension benefit
3.00 of pension benefit
2008: 5.00 of pension benefit; 2007:
15.00 of pension benefit
3.00 of pension benefit
2008: 5.00 of pension benefit; 2007:
15.00 of pension benefit
PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2009, 2008 AND 2007
Expressed in millions of Rupiah, unless otherwise stated
Appendix 5112 43. PENSION AND SEVERANCE continued
Pension Plan continued
The projected benefit obligations and fair value of plan assets as at 31 December 2009 are as follows:
DPBM I DPBM II
DPBM III DPBM IV
Projected Benefit Obligations
890,700 932,393
448,578 264,022
Fair Value of Plan Assets
1,480,532 1,608,831
701,528 513,671
Funded Status 589,832
676,438 252,950
249,649 Unrecognised Past
Service Cost -
- -
- Unrecognised Actuarial
Gains 475,036
488,194 186,897
125,713 Surplus Based on SFAS
No. 24 revised 2004 114,796
188,244 66,053
123,936 Asset Ceilling
- -
- -
Pension Plan Program Assets recognised in
balance sheet
- -
- -
The projected benefit obligations and fair value of plan assets as at 31 December 2008 were as follows:
DPBM I DPBM II
DPBM III DPBM IV
Projected Benefit Obligations
845,275 894,127
429,552 258,659
Fair Value of Plan Assets
1,282,165 1,363,865
705,327 487,306
Funded Status 436,890
469,738 275,775
228,647 Unrecognised Past
Service Cost -
- -
- Unrecognised Actuarial
Gains 378,683
335,032 249,143
131,152 Surplus Based on SFAS
No. 24 revised 2004 58,207
134,706 26,632
97,495 Asset Ceilling
- -
- -
Pension Plan Program Assets recognised in
balance sheet
- -
- -