This excerpt taken from the PBR 6-K filed Feb 4, 2005.
Petrobras restates actuarial assumptions of its Pension and Healthcare Plans
(Rio de Janeiro, February 4, 2005) - PETRÓLEO BRASILEIRO S/A - PETROBRAS, [Bovespa: PETR3/PETR4, NYSE: PBR/PBRA, Latibex: XPBR/XPBRA], a Brazilian international energy company, announces to its shareholders and investors in general that its Executive Board has approved the restating of the actuarial assumptions of its Complementary Pension Plan (Plano Petros) and its Supplementary Healthcare Plan (Assistência Médica Suplementar -AMS) for the Petrobras Groups employees and retirees, based on specialized technical studies.
The review of the actuarial assumptions is designed to track the changes in the profile of employees, retirees and pensioners, particularly in relation to biometric aspects based on longevity, age of invalidity and invalid mortality. The purpose of this process is principally to strengthen benefit plans in the light of a more exact evaluation of greater beneficiary life expectancy.
The progressive increase in longevity has direct impacts on the plans estimated and provisioned volume of commitments and obligations which are shown in the explanatory notes attached to the Companys financial statements.
The restated estimates approved today, will have no impact on the results for the fiscal year ending December 31 2004. The Companys Balance Sheet will therefore show in its Liabilities, an Outstanding Balance of the Complementary Pension Plan Obligations of R$ 1,114 million (R$ 772 million on December 31 2003).
On the other hand, an Explanatory Note will show an amount of R$ 8,291 million with respect to unrecognized actuarial losses to be amortized and posted to the results of subsequent fiscal years over the average life expectancy of the pension plans members.
It should be pointed out that unrecognized actuarial losses are values calculated as the difference between the forecasted restatement of the net value of the obligations according to the actuarial assumptions and the variations effectively occurring over time.
The following table shows the breakdown in the values registered in the financial Statements and respective Explanatory Notes with respect to the complementary pension and healthcare plans:
Through these measures, the Petrobras Group is seeking to demonstrate its efforts to readjust and technically improve its complementary pension and healthcare models in line with the recommendations of the specialists and regulatory bodies, guaranteeing total transparency in the way it conducts its business in accordance with the interests of employees and shareholders.
José Sergio Gabrielli de
Petróleo Brasileiro S.A PETROBRAS
Investor Relations Department
Raul Adalberto de Campos Executive Manager
Av. República do Chile, 65 - 4th floor
20031-912 Rio de Janeiro, RJ
(55-21) 2534-1510 / 2534-9947
This document may contain forecasts that merely reflect the expectations of the Companys management. Such terms as anticipate, believe, expect, forecast, intend, plan, project, seek, should, along with similar or analogous expressions, are used to identify such forecasts. These predictions evidently involve risks and uncertainties, whether foreseen or not by the Company. Therefore, the future results of operations may differ from current expectations, and readers must not base their expectations exclusively on the information presented herein.
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Date: February 4, 2005
This press release may contain forward-looking statements. These statements are statements that are not historical facts, and are based on management's current view and estimates offuture economic circumstances, industry conditions, company performance and financial results. The words "anticipates", "believes", "estimates", "expects", "plans" and similar expressions, as they relate to the company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends or results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.