EXPLANATORY NOTES 1.Operational Context | 2. Benefit Plans | 3. Presentation of the Financial Statements | 4. Relevant Fact |
5. Main Accounting Practices | 6. Receivables - Pension Program | 7. Receivables - Investment Program | 8. Fixed Income | 9. Variable Income | 10. Real Estate Investments | 11. Operations with Participants |
12. Investments - PREVI Futuro Plan | 13. Investments - Annuity Portfolio - CAPEC | 14. Operating Liabilities | 15. Contingency Liabilities | 16. Actuarial Liabilities | 17. Mathematical Provisions - Benefit Plan 1 | 18. Mathematical Provisions - PREVI Futuro | 19. Technical Balance | 20. Found | 21. Income Statement

TECHNICAL BALANCE

Benefit Plan 1

The annual income at the amount of R$ 15,936,081 thousand, plus that accumulated until 2005, at the amount of R$ 18,870,306 thousand, formed the accumulated positive balance of R$ 34,806,387 thousand, which generated a coverage index of 1.61 of the actuarial commitments.


a) Contingency Reserve

It records the exceeding assets in relation to the actuarial commitments up to the limit of 25% of the Mathematical Provisions. In December 2006, the value recorded in this account amounted to R$ 14,264,323 thousand (R$ 11,539,181 thousand in 2005).


b) Plan Review Reserve

It records the exceeding assets in relation to the actuarial commitments above 25% of the Mathematical Provisions. In December 2006, the value recorded in this account amounted to R$ 20,542,064 thousand (R$ 5,581,712 thousand in May/2006 - Extraordinary Balance - and R$ 7,331,125 thousand in 2005), already considering the use referring to the cost of the 40% reduction in the personal and patronal contributions (R$ 3,862,860 thousand) and supply to the Administrative Fund (R$ 175,569 thousand), both in May 2006.


PREVI Futuro Benefit Plan

Since it is a variable contribution plan, it does not evidence positive/negative balances, but only the residual variations of its actuarial rates, when these are applied in Part I, where the risk benefits are calculated, which correspond to the definite benefit regime.