281
Financial Information and Risk
Management
İş Bankası
Annual Report 2013
TÜRKİYE İŞ BANKASI A.Ş.
Notes to the Consolidated Financial Statements
for the Year Ended 31 December 2013
h.5.2. Liabilities arising from retirement benefits:
Liabilities of pension funds founded as per the Social Security Institution:
Within the scope of the explanations given in Section Three Note XVIII, in the actuarial report which was prepared as of 31 December
2013 for Türkiye İş Bankası A.Ş. Emekli Sandığı Vakfı (İşbank Pension Fund), of which each Bank employee is a member, and which
has been established according to the provisional Article 20 of the Social Security Act numbered 506, the amount of actuarial and
technical deficit stands at TL 1,7785,839. The Bank, provide provision in the related period for the foundation which is situated
in the financial statements for the current year. As a result of the actuarial valuation of Milli Reasürans T.A.Ş., besides the Parent
Bank, as of 31 December 2013, the amount of actuarial and technical deficit was determined to be TL 36,316. (31 December 2012:
TL 31,095). In this content, the difference between current period and prior period’s overall deficit which is TL 2,400 has been
reflected in the financial statement as additional provision.
The above mentioned actuarial audit, which was made in accordance with the principles of the related law, measures the cash value
of the liability as at 31 December 2013, in other words, it measures the amount to be paid to the Social Security Institution by the
Parent Bank. Actuarial assumptions used in the calculation are given below.
• 9.8% technical interest rate is used.
• After the date of 1 September 2013 taking into account the short term insurance premium is fixed by 2% and the total premium
rate is 34.5%
• CSO 1980 woman/man mortality tables are used.
Below table shows the cash values of premium and salary payments of the Parent Bank as of 31 December 2013, taking the health
expenses within the Social Security Institution limits into account.
Current Period
Prior Period
Net Present Value of Total Liabilities Other Than Health
(4,900,737)
(4,323,548)
Net Present Value of Long Term Insurance Line Premiums
2,173,772
1,779,033
Net Present Value of Total Liabilities Other Than Health
(2,726,965)
(2,544,515)
Net Present Value of Health Liabilities
(660,534)
(581,57)
Net Present Value of Health Premiums
1,235,098
1,014,295
Net Present Value of Health Liabilities
574,564
432,724
Pension Fund Assets
376,562
333,581
Amount of Actuarial and Technical Deficit
(1,775,839)
(1,778,210)
The assets of the pension fund are as follows.
Current Period
Prior Period
Cash
253,716
210,692
Securities Portfolio
96,722
96,928
Other
26,124
25,961
Total
376,562
333,581
On the other hand, after the transfer, the currently paid health benefits will be revised within the framework of the Social Security
Institution legislation and related regulations.
