|
Parent Company |
|
2009 |
2008 |
| Term of atypical contractual relationship (“TRCA”) |
4,067 |
4,290 |
| PAMA |
715 |
427 |
|
4,782 |
4,717 |
|
Consolidated |
|
2009 |
2008 |
| Term of atypical contractual relationship (“TRCA”) |
4,067 |
4,290 |
| PAMA |
3,187 |
1,946 |
| PAMEC/assets policy |
273 |
189 |
|
7,527 |
6,425 |
Supplementary Pension Plan
On August 7, 2006, the Company’s administrative council approved the implementation by Itaú Vida e Previdência S.A, of PGBL and VGBL Supplementary Pension Plans for the Company, TIM Celular and TIM Nordeste merged into TIM Celular. All employees not benefiting from pension plans sponsored by the Company and its subsidiaries are eligible for these supplementary plans.
Term of Atypical Contractual Relationship(“TRCA”)
The Company is the succeeding sponsoring company arising from the partial spin-off of Telecomunicações do Paraná S.A. – TELEPAR, of the private pension supplementation plans introduced in 1970 under a Collective Agreement, approved by the Atypical Contractual Agreement entered into by said company and the Unions representing the professional categories then existing.
This agreement covers 86 employees hired before December 31, 1982, to whom a supplementary pension is granted, on the condition that the retirement only occurs after a minimum service length of 30 years for men and 25 years for women.
As a result of Telebras split in June 1998, the Company opted for extinguishment of this supplementary pension plan, and accordingly, the participants were entitled to payment in cash of accumulated benefits or transfer to the PBT-SISTEL plan of the obligations assumed under this plan. Most of the participants opted for payment in cash or adherence to the PBT-SISTEL plan, the remainder, duly provided for, will be used to cover benefits due to employees who have not made their option (4 employees as of December 31, 2009 and 2008).
SISTEL and TIMPREV
The Company, TIM Nordeste, merged into TIM Celular, and TIM Celular have sponsored a private defined benefits pension plan for a group of Telebras system’s former employees, which is managed by Fundação Sistel de Seguridade Social – SISTEL, as a consequence of the legal provisions applicable to the privatization process of these companies in July 1998.
As in 1999 and 2000 the sponsors of the pension plans managed by SISTEL had already negotiated conditions for the creation of individual pension plans for each sponsoring company and maintenance of joint liability only in relation to the participants already assisted on January 31, 2000, the Companies and their subsidiaries, like other companies resulting from the former Telebras system, in 2002 started the creation of a pension plan for defined contributions meeting the most modern social security standards adopted by private companies, with the possibility of migration to this plan of the employee groups linked to SISTEL.
On November 13, 2002, the Brazilian Secretariat for Supplementary Pension Plans, through official ruling no. 1.917 CGAJ/SPC, approved the statutes of the new pension plan, denominated Statutes of TIMPREV Benefits Plan, defined contributions, which provide for new conditions for benefits granting and maintenance, as well as the rights and obligations of the Plan Managing Entity, the sponsoring companies, participants and the beneficiaries thereof.
Under this new plan, the sponsor’s regular contribution will correspond to 100% of a participant’s basic contribution, and TIMPREV's managing entity will ensure the benefits listed below, under the terms and conditions agreed upon, with no obligation to grant any other benefits, even if the government-sponsored social security entity starts granting them:
• Normal retirement pension
• Early retirement pension
• Disability pension
• Deferred proportional benefit
• Death pension
However, as not all of the Company’s and its subsidiaries' employees have migrated to TIMPREV plan, the pension and health care plans deriving from the Telebras system briefly listed below remain:
PBS: benefits plan of SISTEL for defined benefits, which includes the employees paying contributions to the plan (active) who participated in the plans sponsored by the companies of the former Telebras system;
PBS Assistidos: a private, multi-sponsored pension plan for employees receiving benefits;
Convênio de Administração: for managing pension payment to retirees and pensioners of the predecessors of the subsidiary companies;
PAMEC/Apólice de Ativos: health care plan for pensioners of the predecessors of the subsidiary companies;
PBT: defined-benefit plan for pensioners of the predecessors of the company and its subsidiaries;
PAMA: health care plan for retired employees and their dependents, on a shared-cost basis.
In accordance with the rules established by NPC-26 issued by the Institute of Independent Auditors of Brazil – IBRACON, and approved by CVM Deliberation No, 371, the actuarial position of these plans represents a surplus not recorded by the Company as it was impossible to recover these amounts, and also considering that the amount of contributions will not be reduced for the future sponsor.
On January 29, 2007 and April 9, 2007, through the Supplementary Social Security Secretariat (SPC), the Ministry of Social Security approved the transfer of the benefit plans management: “PBS–Tele Celular Sul”, “TIM Prev Sul”, “PBT–TIM”, “Convênio de Administração”, “PBS–Telenordeste Celular” and “TIM Prev Nordeste” (according to Communications SPC/DETEC/CGAT, n°s, 169, 167, 168, 912, 171 and 170, respectively) from SISTEL”, to “HSBC – Fundo de Pensão”.
The other plans – “PAMA and PBS – Assistidos” – continue to be managed by SISTEL”. The only exception is “Plano PAMEC/Apólice de Ativos”, which was terminated, with the Company remaining responsible for coverage of the respective benefit, from now on called “PAMEC/Apólice de Ativos”.
In view of the approval of the proposed migration by the Administrative Council in January 2006, and those of the Ministry of Social Security, the transfer of the above mentioned Funds from SISTEL” to “HSBC – Fundo de Pensão” came into effect in April 2007.
During the year ended December 31, 2009, the contributions to the pension funds and other post-employment benefits totaled R$182 (R$224 in 2008).
Please find below the actuarial position of assets and liabilities of pension and health care plans as of December 31, 2009, based on the rules established by NPC-26, issued by the Institute of Independent Auditors of Brazil (IBRACON), as approved by CVM Rule No. 371, for the plans sponsored before the formation of TIMPREV, which still have active members:
Parent Company
a) Effects as of December 31:
| |
Plans |
Total |
| |
PBS(*) |
PAMA |
TRCA |
2009 |
2008 |
| Reconciliation of assets and liabilities at 12/31/09 |
|
|
|
|
|
| |
|
|
|
|
|
| Present value of actuarial liabilities |
9,542 |
1,140 |
4,067 |
14,749 |
14,065 |
| |
|
|
|
|
|
| Fair value of plan assets |
(20,383) |
(425) |
- |
(20,808) |
(19,092) |
| Present value of liabilities in excess of fair value of assets |
(10,841) |
715 |
4,067 |
(6,059) |
(5,027) |
| |
|
|
|
|
|
| Net actuarial liabilities (assets) |
(10,841) |
715 |
4,067 |
(6,059) |
(5,027) |
| (*) No asset was recognized by the sponsor because this excess is not refundable and because future sponsor contributions will not be reduced. |
b) Changes in net actuarial liabilities (assets)
| |
Plans |
| |
PBS |
PAMA |
TRCA |
| Net actuarial liabilities (assets) at 12/31/08 |
(9,743) |
427 |
4,290 |
| |
|
|
|
| Expense (income) recognized in prior year’s income |
(1,219) |
45 |
471 |
| Sponsor’s contributions |
- |
(1) |
(288) |
| Actuarial (gains) losses recognized |
121 |
244 |
(406) |
| |
|
|
|
| Net actuarial liabilities (assets) at 12/31/09 |
(10,841) |
715 |
4,067 |
c) Statement of loss (gain)
| |
Plans |
| |
PBS |
PAMA |
TRCA |
| (Gains) losses on actuarial liabilities |
277 |
258 |
(406) |
| (Gains) losses on plan assets |
(156) |
(14) |
- |
| |
|
|
|
| (Gains) losses at 12/31/09 |
121 |
244 |
(406) |
d) Reconciliation of present value of liabilities
| |
Plans |
| |
PBS |
PAMA |
TRCA |
| Liabilities at 12/31/08 |
8,951 |
825 |
4,290 |
| Cost of current service |
(13) |
2 |
- |
| Interest on actuarial liabilities |
1,015 |
95 |
471 |
| Benefits paid in the year |
(688) |
(40) |
(288) |
| Liabilities |
(106) |
- |
- |
| (Gains) losses on liabilities |
277 |
258 |
(406) |
| |
|
|
|
| Liabilities at 12/31/09 |
9,436 |
1,140 |
4,067 |
e) Reconciliation of fair value of assets
| |
Plans |
| |
PBS |
PAMA |
TRCA |
Fair value of assets at 12/31/08 |
18,694 |
397 |
- |
Benefits paid in the year |
(688) |
(40) |
- |
Sponsor’s contributions |
- |
1 |
- |
Actual yield on assets in the year |
2,377 |
67 |
- |
| |
|
|
|
Fair value of assets at 12/31/09 |
20,383 |
425 |
- |
f) Expenses expected for 2010
| |
Plans |
| |
PBS |
PAMA |
TRCA |
| Interest on actuarial liabilities |
1,015 |
123 |
415 |
| Expected yield on assets |
(1,976) |
(37) |
- |
| Total expenses recognized |
(961) |
86 |
415 |
| |
|
|
|
| Participants’ expected contributions for next year |
- |
- |
- |
| |
|
|
|
| Total expenses (income) to be recognized, net |
(961) |
86 |
415 |
Consolidated
a) Effects as of December 31:
|
Plans |
Plans |
|
PBS(*) |
PBS Assistidos(*) |
Convênio de Administração(*) |
PAMEC/
Apólice de Ativos(*) |
PBT(*) |
PAMA |
TRCA |
2009 |
2008 |
Reconciliation of assets and
liabilities at 12/31/09 |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| Present value of actuarial liabilities |
26,205 |
5,373 |
864 |
273 |
1,420 |
5,074 |
4,067 |
43,276 |
39,796 |
| |
|
|
|
|
|
|
|
|
|
| Fair value of plan assets |
(50,606) |
(8,475) |
(2,273) |
- |
(2,064) |
(1,887) |
- |
(65,305) |
(60,849) |
| |
|
|
|
|
|
|
|
|
|
| Present value of liabilities in excess of fair value of assets |
(24,401) |
(3,102) |
(1,409) |
273 |
(644) |
3,187 |
4,067 |
(22,029) |
(21,053) |
| |
|
|
|
|
|
|
|
|
|
| Net actuarial liabilities (assets) |
(24,401) |
(3,102) |
(1,409) |
273 |
(644) |
3,187 |
4,067 |
(22,029) |
(21,053) |
| (*) No asset was recognized by the sponsor because this excess is not refundable and because future sponsor contributions will not be reduced. |
b) Changes in net actuarial liabilities (assets)
|
Plans |
|
PBS |
PBS Assistidos |
Convênio de Administração |
PAMEC/
Apólice de Ativos |
PBT |
PAMA |
TRCA |
| Net actuarial liabilities (assets) at 12/31/08 |
(22,102) |
(3,135) |
(1,282) |
189 |
(960) |
1,946 |
4,290 |
| |
|
|
|
|
|
|
|
| Expense (income) recognized in prior year’s income |
(2,756) |
(330) |
(158) |
22 |
(120) |
218 |
471 |
| |
|
|
|
|
|
|
|
| Sponsor’s contributions |
- |
- |
- |
(9) |
- |
(5) |
(288) |
| |
|
|
|
|
|
|
|
| Actuarial (gains) losses recognized |
457 |
363 |
31 |
71 |
436 |
1,028 |
(406) |
| |
|
|
|
|
|
|
|
| Net actuarial liabilities (assets) at 12/31/09 |
(24,401) |
(3,102) |
(1,409) |
273 |
(644) |
3,187 |
4,067 |
c) Statement of loss (gain)
|
Plans |
|
PBS |
PBS Assistidos |
Convênio de Administração |
PAMEC/ Apólice de Ativos |
PBT |
PAMA |
TRCA |
| (Gains) losses on actuarial liabilities |
1,017 |
423 |
(36) |
71 |
17 |
1,018 |
(406) |
| (Gains) losses on plan assets |
(560) |
(60) |
67 |
- |
419 |
10 |
- |
| Losses on employees’ contributions |
- |
- |
- |
- |
- |
- |
- |
| |
|
|
|
|
|
|
|
| (Gains) losses at 12/31/09 |
457 |
363 |
31 |
71 |
436 |
1,028 |
(406) |
d) Reconciliation of present value of liabilities
|
Plans |
|
PBS |
PBS Assistidos |
Convênio de Administração |
PAMEC/ Apólice de Ativos |
PBT |
PAMA |
TRCA |
| Liabilities at 12/31/08 |
24,445 |
4,850 |
870 |
189 |
1,387 |
3,764 |
4,290 |
| Cost of current service |
(8) |
- |
- |
- |
- |
23 |
- |
| Interest on actuarial liabilities |
2,770 |
549 |
99 |
22 |
156 |
436 |
471 |
| Benefits paid in the year |
(2,017) |
(450) |
(69) |
(9) |
(142) |
(168) |
(288) |
| (Gains) losses on liabilities |
1,015 |
424 |
(36) |
71 |
19 |
1,019 |
(406) |
| |
|
|
|
|
|
|
|
| Liabilities at 12/31/09 |
26,205 |
5,373 |
864 |
273 |
1,420 |
5,074 |
4,067 |
e) Reconciliation of fair value of assets
|
Plans |
|
PBS |
PBS Assistidos |
Convênio de Administração |
PAMEC/ Apólice de Ativos |
PBT |
PAMA |
TRCA |
| Fair value of assets at 12/31/08 |
46,547 |
7,985 |
2,152 |
- |
2,347 |
1,818 |
- |
| Benefits paid in the year |
(2,017) |
(450) |
(69) |
(9) |
(141) |
(167) |
- |
| Participants’ contributions |
- |
- |
- |
- |
- |
- |
- |
| Sponsor’s contributions |
- |
- |
- |
9 |
- |
5 |
- |
| Actual yield on assets in the year |
6,076 |
940 |
190 |
- |
(142) |
232 |
- |
| |
|
|
|
|
|
|
- |
| Fair value of assets at 12/31/09 |
50,606 |
8,475 |
2,273 |
- |
2,064 |
1,888 |
- |
f) Expenses expected for 2010
|
Plans |
|
PBS |
PBS Assistidos |
Convênio de Administração |
PAMEC/ Apólice de Ativos |
PBT |
PAMA |
TRCA |
| Cost of current service (including interest) |
10 |
- |
- |
- |
- |
31 |
- |
| Interest on actuarial liabilities |
2.784 |
570 |
92 |
29 |
151 |
552 |
415 |
| Expected yield on assets |
(4.893) |
(779) |
(221) |
- |
(198) |
(169) |
- |
| |
|
|
|
|
|
|
|
| Participants’ expected contributions for next year |
- |
- |
- |
- |
- |
- |
- |
| Total expenses (income) to be recognized, net |
(2.099) |
(209) |
(129) |
29 |
(47) |
414 |
415 |
Actuarial assumptions adopted in the calculation
The main actuarial assumptions adopted in the calculation were as follows:
| |
|
| Nominal discount rate of actuarial liabilities: |
11.08% p.a. |
| Expected nominal yield rate on plan assets: |
PBS-A: 9.44% p.a. |
| |
PAMA: 9.42% p.a. |
| Convênio de Administração: 9.88% p.a. |
| PBT-TIM: 9.88% p.a. |
| PAMEC: N/A |
| PBS-TCS: 9.88% p.a. |
| PBS-TNC: 9.88% p.a. |
| ATÍPICO: N/A |
| Estimated nominal rate of salary increase: |
6.28% p.a. |
| Estimated nominal rate of benefit increase: |
4.20% p.a. |
| Biometric general mortality table: |
AT83 segregated by gender |
| Biometric disability table: |
Mercer Disability Table |
| Estimated turnover rate: |
Nil |
| Retirement likelihood: |
100% upon first eligibility to a plan benefit |
| Estimated long-term inflation rate |
4.20% |
| Computation method |
Projected Credit Unit Method |