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
FUNDS
The evolution of the Funds is demonstrated below.
a) Social Security Program
Item 4 of these Notes covers the use of the Parity Funds of the Social Security Program, at the total amount of R$ 6,122,392 thousand, which explains the reduction evidenced in this Program.
In 2006, the constitution of three new Funds for the PREVI Futuro Plan was approved, as follows:
Finalidade específica:
(1) Cover the costs of modifications necessary for the Plan along 2007
(2) Permit the verification of a technical result that better reflects the situation of the Plan
(3) Recompose the balance of patronal contributions of Part II of participants that return to the Plan
(4) Protect the Plan against risks that may cause variations to the commitments of the Plan
The Annuity Portfolio Fund - Capec - accumulated R$ 134,083 thousand, with an evolution of R$ 21,192 thousand in relation to 2005.
b) Administrative Program
OThe Administrative Program Fund is destined to guarantee the excessive expenses related to the maintenance of the PREVI administrative structure. It is constituted by the positive result found in the verification of the revenues and expenses of the Program.
A supply was made to the Administrative Fund at the amount of R$ 193,143 thousand (R$ 175,569 thousand in May and R$ 17,574 thousand in December/2006) as a result of the 40% reduction in the contributions of Benefit Plan 1. At the end of the year, the Administrative Fund reached the amount of R$ 485,551 thousand (R$ 195,909 thousand in 2005).
c) Investment Program
The Investment Program Funds are constituted by percentages covered on a monthly basis in the installments of simple loans and real estate financing agreements, established pursuant to the regulations currently in force.
These operations are destined for settlement in case of death of the borrower, of residues that may exist after the contractual term, as well as to support the bonuses of the negative balances of the real estate financing agreements of the borrowers that adhered to Nova Carim, distributed as shown in the chart below:
