GENERAL AND ADMINISTRATIVE EXPENSES Year ended December 31, EMPLOYEE BENEFITS

PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2016 and for the year then ended Expressed in millions of Rupiah, unless otherwise stated 186

50. EMPLOYEE BENEFITS continued Pension Plan

continued The calculation of actuarial retirement benefit liabilities for the Bank only on December 31, 2016 is based on the reports from PT Bestama Actuary as at January 5, 2017 with the Projected Unit Credit method. The calculation of actuarial retirement benefit liabilities for the Bank only on December 31, 2015 is based on the reports from PT Dayamandiri Dharmakonsilindo as at January 5, 2016 with the Projected Unit Credit method The assumptions used for the years ended December 31, 2016 and 2015 are as follows: DPBMS DPBMD DPBMT DPBME Discount rate 8.50 per annum 2015: 9.50 per annum 8.50 per annum 2015: 9.50 per annum 8.50 per annum 2015: 9.50 per annum 8.50 per annum 2015: 9.50 per annum Expected rate of return on pension plan assets 9.50 per annum 9.50 per annum 9.50 per annum 9.50 per annum Working period used As of July 31, 1999 As of July 31, 1999 As of July 31, 1999 As of July 31, 1999 Pensionable salary PhDP used Last month salary of July 31, 1999, which adjusted on January 1, 2003 Last month salary of July 31, 1999, which adjusted on January 1, 2003 Last month salary of July 31, 1999, which adjusted on January 1, 2003 Last month salary of July 31, 1999, which adjusted on January 1, 2003 Expected rates of PhDP increase Nil Nil Nil Nil Mortality Rate Table Indonesian Mortality Table 2011 TMI III for employee and former employee and Group Annuity Mortality 1983 GAM ’83 for pensioners Indonesian Mortality Table 2011 TMI III for employee and former employee and Group Annuity Mortality 1983 GAM ’83 for pensioners Indonesian Mortality Table 2011 TMI III for employee and former employee and Group Annuity Mortality 1983 GAM ’83 for pensioners Indonesian Mortality Table 2011 TMI III for employee and former employee and Group Annuity Mortality 1983 GAM ’83 for pensioners Turnover rate 5.00 for employees’ age of 25 and decreasing linearly 0.167 every year up to 0 at age 55 5.00 for employees’ age of 25 and decreasing linearly 0.167 every year up to 0 at age 55 5.00 for employees’ age of 25 and decreasing linearly 0.167 every year up to 0 at age 55 5.00 for employees’ age of 25 and decreasing linearly 0.167 every year up to 0 at age 55 Disability rate 10.00 of TMI III 10.00 of TMI III 10.00 of TMI III 10.00 of TMI III Actuarial method Projected Unit Credit Projected Unit Credit Projected Unit Credit Projected Unit Credit Normal retirement age 48 years to 56 years depending on the 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 of PhDP 75.00 of PhDP Expected rate of pension benefit increase Nil Nil Nil 2.00 per year Tax rates - average 3.00 of pension benefit 3.00 of pension benefit 3.00 of pension benefit 3.00 of pension benefit PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2016 and for the year then ended Expressed in millions of Rupiah, unless otherwise stated 187

50. EMPLOYEE BENEFITScontinued

Pension Plan continued The projected benefit obligations and fair value of plan assets as of December 31, 2016, based on independent actuarial report, are as follows: DPBMS DPBMD DPBMT DPBME Projected benefit obligations 1,393,976 1,673,195 717,416 479,583 Fair value of plan assets unaudited 1,620,439 1,810,473 827,718 575,742 Funded Status 226,463 137,278 110,302 96,159 Asset ceiling 226,463 137,278 110,302 96,159 Pension Plan Program Assets recognised in consolidated statement of financial position - - - - There are no unrecognised accumulated actuarial loss-net nor unrecognised past service cost and there are no present value of available future refunds or reductions of future contributions. There are no plan assets recognised in the consolidated statements of financial position because the requirements under SFAS No. 24 regarding “Employee Benefits” are not fulfilled. The projected benefit obligations and fair value of plan assets as of December 31, 2015, based on independent actuarial report, are as follows: DPBMS DPBMD DPBMT DPBME Projected benefit obligations 1,482,397 1,600,083 606,730 445,196 Fair value of plan assets unaudited 1,516,555 1,820,417 817,262 578,209 Funded Status 34,158 220,334 210,532 133,013 Asset ceiling 34,158 220,334 210,532 133,013 Pension Plan Program Assets recognised in consolidated statement of financial position - - - - There are no unrecognised accumulated actuarial loss-net nor unrecognised past service cost and there are no present value of available future refunds or reductions of future contributions. There are no plan assets recognised in the consolidated statements of financial position because the requirements under SFAS No. 24 regarding “Employee Benefits” are not fulfilled. The composition of plan assets from Pension Fund for the years ended December 31, 2016 and 2015 are as follows: December 31, 2016 unaudited DPBMS DPBMD DPBMT DPBME Deposit 6 8 4 12 Bonds 31 44 27 36 Direct Investment 6 16 28 15 Land and building 22 4 24 10 Shares 6 3 1 Government Bond 21 21 15 10 Others 8 4 2 16 Total 100 100 100 100