Notes to the Consolidated Financial Statements for the Year Ended
31 December 2012
Information on other provisions:
. Provisions for potential risks:
The Bank management provided a general provision for the possible result of the negative circumstances which may arise from any changes
in economy or market conditions amounting TL 1,000,000 thousands, TL 50,000 thousands of which was charged to the income statement
as expense in the current period.
. Liabilities arising from retirement benefits:
Liabilities of pension funds founded as per the Social Security Institution:
Within the scope of the explanations given in Section Three Note XVIII, in the actuarial report which was prepared as of 31 December 2012
for Türkiye İş Bankası A.Ş. Emekli Sandığı Vakfı (İşbank Pension Fund), of which each Bank employee is a member, and which has been
established according to the provisional Article 20 of the Social Security Act numbered 506, the amount of actuarial and technical deficit
stands at TL 1,778,210. The Parent Bank, provide provisions for the foundation which is situated in the income statement for the previous
years as an amount of the TL 1,338,159 with newly identified amount of TL 440,051 additional provision for the difference.
As a result of the actuarial valuation of Milli Reasürans T.A.Ş., besides the Parent Bank, as of 31 December 2012, the amount of actuarial and
technical deficit was determined to be TL 31,095.
The above mentioned actuarial audit, which was made in accordance with the principles of the related law, measures the cash value of the
liability as of 31 December 2012, in other words, it measures the amount to be paid to the Social Security Institution by the Parent Bank.
• 9.8% technical deficit interest rate is used.
• Published in the Official Gazette numbered 28533 dated 19 January 2013 with Law numbered 6385, after the date of 01.09.2013 taking
into account the insurance premium is fixed by 2% and the total premium rate is 33.5% until the date of 31.08.2012, after the date of
01.09.2013, the total premium rate is 34.5%.
• CSO 1980 mortality table is used.
• Collective agreement that ended on 31.03.2012, from the date of the renewal process 01.04.2012 has not been expired yet, fee increases
determined within the cautious approach in the account.
On the other hand “Provisional Article 39” is added to Social Security and General Health Insurance Law numbered 5510 via Amendment
to Social Security and General Health Insurance Law numbered 6283 published in the Official Gazette dated 8 March 2012 and numbered
28227. According to aforementioned amendment, while members payments which is paid for retired or died before January 2000 and
entitled invalidity, old-age pension per indexed system of the Law numbered 506 and members’ payments, which is paid for invalidity or
old-age before January 2000 and died after this date, will be recalculated. This application will be used from the date of 1 January 2013. In
this context, actuarial calculation, invalidity, elderliness or survivor’s pension who take salary to the foundation mentioned calculation made
considering regulation. The amount of the actual and Technical Deficit played an important role in the regulation which mentioned like
increase over the previous year.
Below table shows the cash values of premium and salary payments of the Parent Bank as of 31 December 2012, taking the health expenses
within the Social Security Institution limits into account.
Current Period
Prior Period
Net Present Value of Total Liabilities Other Than Health
Net Present Value of Long Term Insurance Line Premiums
Net Present Value of Total Liabilities Other Than Health
Net Present Value of Health Liabilities
Net Present Value of Health Premiums
Net Present Value of Health Liabilities
Pension Fund Assets
Amount of Actuarial and Technical Deficit
The assets of the pension fund are as follows.
Current Period
Prior Period
Securities Portfolio
1...,262,263,264,265,266,267,268,269,270,271 273,274,275,276,277,278,279,280,281,282,...300