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
112
43. 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 -
- - -
The projected benefit obligations and fair value of plan assets as of December 31, 2004 are as follows:
DPBM I DPBM II
DPBM III DPBM IV
Projected Benefit Obligations
928,878 881,941
589,821 296,543
Fair Value of Plan Assets
1,254,763 1,271,452
676,450 402,902
Funded Status 325,885
389,511 86,629
106,359 Unrecognized Past
Service Cost -
- -
- Unrecognized Actuarial
Gains 237,126
201,908 63,688 31,783
Surplus Based on PSAK No. 24 Revised
88,759 187,603
22,941 74,576 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
Years Ended December 31, 2005 and 2004 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 December 31, 2005 and 2004, the Bank
recognized a provision for employee service entitlements in accordance with Labor Law No. 132003 amounting to Rp508,477 and Rp446,290, respectively, based on independent actuarial reports Note 28.
Provision for employee service entitlements as of December 31, 2005 and 2004 is based on independent actuarial reports of PT Dayamandiri Dharmakonsilindo dated March 2, 2006 and February 11, 2005,
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:
2005 2004
Present Value of Obligations 413,602
374,721 Unrecognized Past Service Cost
31,611 31,678
Unrecognized Actuarial Gains 63,264
39,891
Provision for Post Employee Benefits Presented in Balance Sheet 508,477
446,290 2005 2004
Current Service Cost 39,565
45,913 Interest
Cost 40,487
38,991 Amortization of Unrecognized Actuarial Gains
135 -
Amortization of Unrecognized Past Service Cost 67
67
Cost of Pension benefits 79,850 84,837
Reconciliation of Provision for Post Employee Benefits are as follows:
2005 2004
Beginning Balance of Provision for Post Employee Benefits 446,290
361,453 Expenses during the year
79,850 84,837
Payment of
Benefit 17,663
- Provision for Post Employee Benefits
508,477 446,290
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
114
43. PENSION AND SEVERANCE continued
