Explanatory notes
20. Funds
The evolution of Funds is shown below:
a) Pension Plan Program
Item 4 of these Notes refers to the constitution of Pension Plan Funds of Benefit Plan 1, as a result of the Agreement to use the 2006 Surplus. The following table reflects the apports, monetary corrections, applications and adjustments that took place until December 31st, 2007.
Plano PREVI Futuro Pension Plans showed the following development:
Purpose:
(1) Cover the risk with modifications necessary to Plan during 2008.
(2) To allow the verification of the technical results that most precisely reflects the situation of Plan.
3) To recompose the balance of sponsors' contributions to Part II of participants who were reincorporated to that Plan.
(4) To protect this Plan from risks that might cause variations in this Plan's commitments.
The Single Payment Benefit Plan (Pecúlio) - Capec - accumulated R$147,355 thousand, showing a positive evolution of R$13,272 thousand in comparison to 2007.
b) Administrative Program
The Administrative Program Fund aims at covering the surplus expenses relative to maintaining PREVI's administrative structure. It is formed by the positive results after the verification of its income and expenses accounts.
In December 2007, the Administrative Fund accumulated R$644,872 thousand
c) Investments Program
The Funds of the Investments Program are formed by percentages collected monthly in through the installment payments of Simple Loans and Real Estate Financing, as established in the regulations in force. The Quittance by Death Funds are directed to the quittance of future obligations in case of death of the participant.
In the Real Estate Portfolio, the purpose of the Liquidity Fund is to cover the eventual residues remaining at the expiration of the contractual tenor, except those relative to defaults, as well as to cover the discounts in the debit balances of participants who moved to Nova Carim.
In the Simple Loan Portfolio, the funds allocated to the Liquidity Fund are directed to cover that portfolio's credit risk, after having exhausted all feasible procedures for the recuperation of not performing credits.
