A sound PREVI
Benefit plans Plano 1
Another year with good results
Approval of changes in Regulations made this fiscal year be a special one
With the approval by the Department of Complementary Pension Plans, SPC, of alterations in Plano 1 resulting from the utilization of the Special Reserve, a process of long negotiations among Banco do Brasil, government organs and staff representative organizations came to an end. Approved by 92.41 % of the participants who took part in the consultation carried out by s and associations all over Brazil, an Agreement between Banco do Brasil and the labor unions to use part of the accumulated surplus at the end of 2006 to improve Plano de Benefícios 1was concluded. PREVI participated as intervenient.
In the middle of this year, active participants and retirees received back the amount relative to contributions paid to PREVI since January. On that occasion, the payment of contributions was suspended. In accordance to the new rules, such suspension may be annually renewed by decision of the Board of Trustees and subject to the existence of credit balances in the Special Reserve.
Special benefits apply to thousands of participants
The utilization of the surplus produced Special Benefits, which began to be paid in January 2008, retroactive to January 2007.
Remuneration Special Benefit
Raising the contribution ceiling to PREVI from 75 % to 90 % of the remuneration. That move benefited more than 38 thousand active and retired participants. This Special Benefit stems from positive difference between the 90 % ceiling considered just for calculation purposes and the 75 % ceiling.
Fixed Income Special Benefit
It is a credit from personal and sponsors' contributions to more than 13 thousand participants (active and retired) that, being in active service between March 4th, 1980 and December 31st, 2006 (period of capitalization of Plano 1), had contributed to this plan longer than 30 years.
Proportionality special Benefit
New special calculation formula to complement PREVI, which refers to:
i) retirees with pensions granted after December 24th, 1997, and that counted less than 30 years of association to PREVI at the time of their retirement;
ii) employees who retired having contributed less than 30 years . 21 thousand participants were benefited.
Previous formula:
PREVI Benefit = SRB x t / 360 - PV
New Formula :
PREVI Benefit = (SRB - PV) x t / 360
SRB means Benefit Real Salary (Salário Real de Benefício). Represents the arithmetical average of the 36 last contribution-salaries prior to the month when the benefit began to be paid, added with 1/4 of the amount calculated and referring to the semiannual gratifications.
t - time of contribution in months
PV - PREVI Share Appreciated (Parcela PREVI Valorizada) is the average amount of the 36 last PREVI Shares appreciated according to the INPC index.
Profitability reaches 37.27 %
Profitability is one of the main yardsticks to measure the performance of each Plan. Through the profitability analysis we may observe:
a) whether the Plan has reached its actuarial goal;
b) how the Plan performed compared to other plans; and
c) whether each portfolio within the Plan had a performance in line with its market benchmarks.
Plano 1 obtained a profitability of 37.27 %, that greatly exceeded the actuarial goal of 11.02 %.
Such profitability indicates an excellent performance in the investment policy. For comparison purposes, the Ibovespa, the most important index of the stock exchange (which resulted to be the best investment during that year) was 43.65 % and Plano 1 reached a profitability close to that, despite having in its portfolio other assets, such as Simple Loans, Real Estate Financing, Real Estate and Fixed Income instruments, the returns of which are traditionally lower than those of the stock exchange.
Profitability - Comparison of Indices
Profitability - record profitability among funds
Compared to other Complementary Pension Plans, Plano 1 should stand as the one with the greatest profitability (such comparison is incomplete, for until the closing of this Report there were no definitive figures about certain plans) performance has been repeatedly attained in the last few years. Those results are even more meaningful considering that a portion of its investments refers to operations with participants in which the profit performance is limited to the minimum actuarial goal. That kind of investment is negligible in other entities.
* PREVI informs that comparisons are just references, do not mean an absolute measurement of efficiency Each index and each fund has an specific composition which cannot be perfectly compared with one another. Reflect different parameters and requirements that their managers have to comply with.
(1) Retirement Funds exclusively managed by Pension Fund Plans as classified under "Multimarkets Pension Plan Funds With Variable Income (Previdenciário Multimercados C / RV").
(2) The profitability calculated is the average one, weighed daily.
(3) Corresponds to Net Liquid Assets