PREVI - Relatório Anual 2007

The profitability of Plano PREVI Futuro is different from that of Plano 1 due to the history of its investments and, consequently, of the outline of its investments in the Fund. The greatest difference lies in the composition of its assets, 78.74 % of which represent Fixed Income investments. Such composition, considered to be quite conservative, is being gradually changed to include higher percentages of Variable Income instruments. The overall profitability of 15.96 % exceeded the actuarial goal of 11.20 %.

Comparatively to other Pension Plans, Plano PREVI Futuro exceeds those with similar investment outlines, considering also that out of all plans analyzed, PREVI Futuro is the only one that has directed the largest amount of its resources to Transactions with Participants.

In relation to market benchmarks, Plano PREVI Futuro exceeds also the specific benchmarks established for each investment segment, when separately considered. To evaluate the consolidated profitability, it becomes necessary to take into account that this Plan's portfolio is mostly composed by Fixed Income assets, in addition to Variable Income instruments and Operations with Participants.

Plano PREVI's profitability adjusts the balance in the account of each participant (composed by individual and sponsors' savings reserve), that means that it will have a direct impact on the formation of the reserve that will be utilized to calculate the future benefit. Therefore, positive and consistent results will, along the time, have a direct effect for the improvement of future benefits.

Limit for investment in Variable Income is increased

The limit for investment of PREVI resources in Variable Income was increased from 10 % to 30 %. That move was decided in November 2007, by the Executive Board, and subsequently approved by the Board of Trustees. Until then, only 10 % of total PREVI Futuro investments were allocated to Variable Income.

Certificate for participants

PREVI sends to every Banco do Brasil employee enrolled to Plano PREVI Futuro, a certificate which explains the requisites that regulate the admission and the permanence as such, of all participants, as well as the requirements for the electivity and the system by which the benefits are calculated. During 2007, close to 40,000 were sent to those already enrolled.

Simple Loans

The new requirements to obtain a Simple Loan have benefited PREVI Futuro participants with reduction in rates and smaller installments for new borrowers as well as for those who wish to renew the previous loans. Those changes resulted from a revision of conditions and from a desire to comply with the requests of participants. The average age or 33 years of PREVI Futuro participants, significantly lower than that of 53 years of Plano 1 participants, implies in a lesser risk, and that allowed a reduction in the rate of Quittance Fund (FQM), from 1 % per year to 0.1 % per year. The rate of the Liquidity Fund was also lowered from 0.5 % to 0.1 % annually.

Modification in the Mortality Table

In 2007, PREVI adopted the new Table for Plano 1 and for PREVI Futuro. The Mortality table (known also as Biometrical, Life or Actuarial) is an essential instrument to pension funds, since it estimates the life expectancy of participants and reflects in a reliable manner the amount of resources needed to pay retirements and pensions to the beneficiaries. With this new Table implemented by PREVI even before the date determined by Resolution CGPC 18, the average life expectation for women is of 85.6 years in Plano 1 and of 84.8 years in Plano PREVI Futuro. For men, the utilization of the Table AT-83 produces an average life expectancy of 82.7 years under Plano 1and of 80 years for Plano PREVI Futuro.