PREVI - Relatório Anual 2007

New records attained and benefit distribution in 2007

We had another excellent year in PREVI in terms of results as well as in terms of improvements and betterments for the participants. We succeeded having our 5th consecutive year of surpluses in Plano 1, exceeded all profitablity benchmarks for Plano Previ Futuro and reduced still more the cost of Capec.

First year with zero contribution

As the outcome of accumulated results and of decisions adopted together by PREVI's administration, the sponsors and participants, 2007 will outstand as the first year in which the contributions to Plano 1 were not required. This represents a real economy for all, meaning that there will be more available income for each participant.

To evaluate the impact of such decision, in 2005 the participants paid altogether 476 million in contributions. In 2006, with a reduction in the contribution rates, the participants paid 359 million. From now on, provided the contributions continue to be not required, those amounts will be transformed into income for Plano 1 participants, besides representing a cost reduction to the sponsors.

Special Benefits

As agreed upon in the beginning of 2007, Special Benefits were implemented after receiving the legal licenses for processing changes in Plano 1 Regulations. Those Special Benefits include the Remuneration Special Benefit, the new benefit calculation formula that takes into account the proportionality of PREVI's share, and the Fixed Income Special Benefit for those who had contributed for more than 30 years as active employees. It was not contemplated the anticipated retirement for 45 old women due to a negative ruling from the regulating organs.

At any rate, the implementation of those steps amounted to the constitution of funds worth almost R$5,6 billion, which reflects the dimension of those benefits along the time, and amount to nearly 10 % of the total mathematical reserves of that Plan.

Record enrollments

85 % of all active employees who have joined the bank since 1998 have enrolled in Plano PREVI Futuro. This is a record figure and reflects the perception of the importance that PREVI has for the BB staff.

Retirement simulations

The simulator at PREVI's site allows PREVI Futuro's participants to know the estimated income that they will receive upon retiring. This simulator considers the present value of the account balance, the future contributions, and the projected profitability. Then, it will calculate the lifelong monthly income to be granted when the participant retires. In case the participant has any additional moneys and wants to make optional contributions to increase his or her Account Balance and the amount of the future benefit, the participant can inform to the simulator the amount of the intended extra contribution an see how it will impact the retirement income.

Profitability above the actuarial goal is incorporated to the individual accounts

In 2007, Plano PREVI Futuro had the gross profitability of 15.96 % (15.63 %) of the quota income), against an actuarial goal of 11.20 %. All profitability ends up being incorporated to the reserves of the participants and adds more funds for the calculation of the future retirement income. Since the creation of this plan, PREVI Futuro's effective profitability has exceeded the actuarial goals in approximately 40 %. All that, means a direct gain for the participant.

Carim: financings are back at full steam

Due to the new methodology in servicing participants, that combines quality and quick services, virtually all Plano 1 associates who showed an interest in using real estate financing were summoned during 2007. 623 of them have already closed their contracts. Carim offers the best conditions that the participant can find in the market to finance his or her real estate unit. Those conditions include interest rates (INPC + 5.75 %), financing terms, facility in the approval, quittance guarantees and limits of the installments.

PREVI has already approved also the opening of Carim for the plan PREVI Futuro, starting in the middle of 2008, when the first participants will be completing 10 years in the plan.

More celerity in the substitution of the real estate unit offered as guarantee.

The procedures for substituting the real estate unit offered as collateral in Carim's financing without altering the contractual clauses (substitution of guarantee) have changed. During the process of substituting the guarantee, the contract conditions remain the same, inclusive in what refers to the collection of installments, the adjustment of the debit balance and the flow of interests.

Capec: revision resulted in a lower cost

Capec premiums (installments) were reduced during 2007 in virtually all brackets. The annuities, on the other hand, were raised. That happened because the new Capec methodology used different inputs when calculating the mortality rate on each age bracket. After a long period seeing its numbers dwindling, Capec started to recover in the second semester of 2007, when the number of enrollments exceeded that of cancellations.

Anticipated retirements show an increase

The number of retirements approved increased markedly. In 2007, more than 7,7 thousand were granted against a little more than 2,6 thousand in 2006. The reasons for that was that Plano1 had matured, and the implementation of the Sponsors'Anticipated Retirement Plan, PAA. Close to 6,7 thousand employees of Banco do Brasil joined PAA: 5,179 participants with anticipated retirement without INSS and virtually 1,5 thousand with the retirement based on the time of contribution.

New Table reflects a longer life span

With the change of the Mortality Table in Plano PRVI Futuro, the projections reflect that the participant will receive the monthly retirement payments during a longer period of time. That change - a legal requisite - will not bring any adverse effect on active Banco do Brasil staff, since the amount accumulated in the individual account will be integrally paid by PREVI on occasion of each one's retirement.

Corporative governing: board members' education

The already traditional Board Member's Meeting gathered together close to 190 incumbent and substitute members and 14 speakers at Costa do Sauípe (BA), between the days 7 and 8 of June. During those days, board members elected with PREVI support in 70 large corporations debated themes such as socio-environmental responsibility, macro-economic scenarios and corporate risk management. For the first time, this meeting counted with the participation of a foreign guest: David Pitt-Watson, an English executive from Hermes (Funds manager of British Telecom's Pension Plan).

New services in the site

• Simple Loans - participants and recipients can now contract, renew, liquidate and amortize their debit balance through Self-Service site or through the intranet BB. Credits can now be made in 48 hours and the Amendment to the Contract allows the transaction to be made at any time without the need of a signature for each new request.
• Carim 2007 - it was created a section in the Self-Service where the Plano 1 participant can consult the classification, simulate transactions and demonstrate an interest by real estate financing
• Capec (Annuities Portfolio) - gained a special section in the site, inclusive offering the option of processing simulations.