2011 Annual Report Financial Supplements - BDO

NOTES TOFINANCIAL STATEMENTSDECEMBER 31, 2011, 2010 AND 2009(Amounts in Millions of Philippine Pesos, Except Per Share Data or As Indicated)23. EMPLOYEE BENEFITS23.01 Employee Benefits ExpenseExpenses recognized for employee benefits are presented below.BDO Unibank Group2011 2010 2009Salaries and wages P 8,154 P 7,415 P 6,977Bonuses 2,734 2,367 2,217Retirement – defined benefit plan 1,319 1,336 1,309Social security costs 357 325 309Other benefits 1,438 2,176 1,587P 14,002 P 13,619 P 12,399Parent Bank2011 2010 2009Salaries and wages P 7,616 P 6,895 P 6,385Bonuses 2,557 2,201 2,079Retirement – defined benefit plan 1,237 1,264 1,239Social security costs 340 307 291Other benefits 1,357 2,109 1,52623.02 Post-employment BenefitsP 13,107 P 12,776 P 11,520The BDO Unibank Group maintains a partially funded, tax-qualified noncontributoryretirement plan that is being administered by the Parent Bank’s trust and investment groupcovering all regular full-time employees. Actuarial valuations are made annually to update thepost-employment benefit costs and the amount of contributions.The amounts of retirement benefit asset recognized as part of Retirement asset under OtherResources (see Note 13) are determined as follows:BDO Unibank GroupParent Bank2011 2010 2011 2010Present value of the obligation (P 12,070 ) (P 10,130 ) (P 11,422) (P 9,658 )Fair value of plan assets 9,044 7,390 8,689 7,106Deficiency of plan assets ( 3,026 ) ( 2,740 ) ( 2,733) ( 2,552 )Unrecognized actuarial losses 4,520 3,821 4,252 3,650Transfer from the plan assets - ( 72 ) - ( 72 )Unrecognized net transition obligation - ( 11 ) - -P 1,494 P 998 P 1,519 P 1,026