PT BANK MANDIRI PERSERO AND SUBSIDIARIES
Notes to the Consolidated Financial Statements Continued December 31, 2002 and 2001
Expressed in millions of Rupiah, unless otherwise stated
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111
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42. PENSION PLAN AND EMPLOYEE SERVICE ENTITLEMENTS Continued
As of December 31, 2001, the calculation of net asset value and pension liabilities is based on the actuarial report of PT Jasa Aktuaria Pensiun dan Asuransi. Based on the audited financial
statements of the respective pension plans DPBM as of December 31, 2001, the pension liabilities and net assets value as of December 31, 2001 are as follows:
DPBM I
DPBM II
DPBM III DPBM
IV
Pension liabilities 863,722
853,009 487,678
154,408 Net assets value
1,054,947 1,036,978
550,466 318,241
Surplus 191,225
183,969 62,788
163,833
One defined contribution pension program Program Pensiun Iuran Pasti is for permanent employees of PT Bank Syariah Mandiri “BSM”, a subsidiary. The members are employees under
the age of 56 years. The program, which commenced in August 2000, is managed by Principal Indonesia Financial Institution Pension Fund “Dana Pensiun Lembaga Keuangan Principal
Indonesia”, abbreviated as DPLK-PI. The employees’ pension contribution is 5, whilst the employer contributes 10 of the monthly employees’ Gross Pension Salary PhDP. The total cash
contributions received by DPLK-PI amounted to Rp870 and Rp1,368 as of December 31, 2002 and 2001, respectively.
Decree of the Minister of Manpower No. Kep-150Men2000 As of December 31, 2002, the Bank has engaged an actuarial company, PT Dayamandiri
Dharmakonsilindo, to calculate its liability for the provision of employee service entitlements. The assumptions used by the actuary were as follows:
a. The calculation is based on the Decree of the Minister of Manpower No. Kep-150Men2000 dated June 20, 2000 regarding The Settlement of Labor Dismissal and the Stipulation of
Severance Pay, Gratuity and Compensation in Companies. b. Actuarial date is December 31, 2002.
c. Actuarial method is projected unit credit method. d. Employee age is calculated as of December 31, 2002.
e. Employee working period is calculated from the employment date up to the actuarial date. f. Normal pension age is 56 years.
g. Interest rate is 11 per annum.
Based on the actuarial report, Bank Mandiri recognized a provision amounting to Rp674,062 as of December 31, 2002.
The calculation of the provisions for employee service entitlements as of December 31, 2001 is based on the actuarial report of PT Jasa Aktuaria Pensiun dan Asuransi. In its calculation, the
actuary used generally similar assumptions of the previous actuary, except that the interest rate for 2001 was assumed at 12 per annum. Based on the actuarial report, Bank Mandiri recognized a
provision amounting to Rp793,631 as of December 31, 2001.
PT BANK MANDIRI PERSERO AND SUBSIDIARIES
Notes to the Consolidated Financial Statements Continued December 31, 2002 and 2001
Expressed in millions of Rupiah, unless otherwise stated
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112
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43. OTHER OPERATING INCOME - OTHERS
2002 2001
Accretion in the realizable value of the security and effective reduction of principal related
to SUFRN
s
Notes 16, 30 and 31 281,691
327,313 Administration
fee 45,075
44,492 Others
481,477 348,604
808,243 720,409
44. OTHER OPERATING EXPENSES - OTHERS
2002 2001
Insurance premiums on customer guarantees 632,853
515,461 Provision for legal expenses
519,944 8,709
Others 181,366
218,661 1,334,163
742,831
45. NON-OPERATING INCOMEEXPENSES - NET
2002 2001
Reversal of over-provision for merger costs, investments and employee benefits
1,263,605 1,942,404
Gainloss on sale of premises and equipment 929
1,282 Penalties
52,893 97,733
Others -
net 25,908
359,035 1,237,549
2,204,988
Reversals of the provision related to merger costs were made in 2002 and 2001 as a result of Bank Mandiri’s periodic evaluation of the estimated remaining costs related to the merger. There is no
outstanding provision for merger cost as of December 31, 2002.