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PBR » Topics » 21.7 Actuarial assumptions

This excerpt taken from the PBR 6-K filed Mar 31, 2009.

21.7 Actuarial assumptions

The main assumptions adopted in the calculation for the Brazilian companies were the following:

                                               Type    Current assumption 
   
Benefit plan (pension and healthcare)   Defined benefit / Variable contribution and the Supplementary healthcare benefits 
Actuarial valuation method    Projected credit unit 
Mortality table    AT 2000 * 
Disability    ZIMMERMANN adjusted by GLOBALPREV and TASA 1927 
Mortality table of disabled persons    AT 49 * 
Pension plan turnover    0% p.a. 
Multidisciplinary healthcare plan turnover    Average annual % of withdrawal – 0,607% p.a. ** 
Discount rate for the actuarial liability    Interest: 7,70% p.a. *** + inflation: 5,0% to 4,0% p.a. **** 
Expected rate of return on the plan's assets    Interest: 7,02% p.a. + inflation: 5,0% p.a. **** 
Growth in salary    2,24% p.a. + inflation: 5,0% to 4,0% p.a. **** 

(*) Separated according to sex (male/female).
(**) Varies according to age and time of service.
(***) Based on studies carried out internally that positively establish the considerable increase in the market robustness and liquidity of Brazilian sovereign papers in recent years, the company implemented a methodology for calculating the real rate from the interest curve of the longest term government bonds, which was used for discounting the actuarial liability. This change was necessary in order to maintain the alignment between the measurement of the present value of assets and liabilities of the pension and healthcare plans and for adjustment to international accounting standards (IFRS) referring to the pricing of assets by their market value.
(****) Decreasing inflation on a straight-line basis from 5,0% p.a. (2009) to 4,0% p.a. (2014) and stable at 4% p.a. from 2014 onwards.

This excerpt taken from the PBR 6-K filed Mar 4, 2008.

19.8 Actuarial assumptions

The main assumptions adopted by the Brazilian companies in the actuarial calculation were the following:

Type   Current assumption
   
 
     
Benefit plans (pension and healthcare)   Defined benefit / Variable Contribution and Additional Healthcare 
Actuarial valuation method    Projected credit unit 
Mortality Table    AT 2000 * 
Disability    ZIMMERMANN adjusted by GLOBALPREV 
Disabled pensioners table    AT 49 * 
Pension Plan rotation    0% p.a. 
AMS rotation    % average of annual discharge - 0,597% a.a. ** 
Discount rate for actuarial liability    Interest: 6% p.a. + inflation: 4.5% p.a. 
Expected return on plan assets    Interest: 6.32% p.a. + inflation: 4.0% p.a. 
Salary growth    2.40% p.a. + inflation: 4.0% p.a. 

(*) Segregated by sex (male and female).
(**) Varia de acordo com a idade e tempo de serviço
(***) Up to age 47. Over that age, only inflation applies.

EXCERPTS ON THIS PAGE:

6-K
Mar 31, 2009
6-K
Mar 4, 2008

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