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Material Fact - Petrobras restates actuarial assumptions of its Pension and Healthcare Plans

            PETRÓLEO BRASILEIRO S.A. - PETROBRAS
Public Company

PRESS RELEASE

Petrobras restates actuarial assumptions of its Pension and Healthcare Plans
 

 

(Rio de Janeiro, February 4, 2005) - PETRÓLEO BRASILEIRO S/A - PETROBRAS, [Bovespa: PETR3/PETR4, NYSE: PBR/PBRA, Latibex: XPBR/XPBRA], a Brazilian international energy company, announces to its shareholders and investors in general that its Executive Board has approved the restating of the actuarial assumptions of its Complementary Pension Plan (Plano Petros) and its Supplementary Healthcare Plan (Assistência Médica Suplementar -AMS) for the Petrobras Group’s employees and retirees, based on specialized technical studies.

The review of the actuarial assumptions is designed to track the changes in the profile of employees, retirees and pensioners, particularly in relation to biometric aspects based on longevity, age of invalidity and invalid mortality. The purpose of this process is principally to strengthen benefit plans in the light of a more exact evaluation of greater beneficiary life expectancy.

The progressive increase in longevity has direct impacts on the plans’ estimated and provisioned volume of commitments and obligations which are shown in the explanatory notes attached to the Company’s financial statements.

The restated estimates approved today, will have no impact on the results for the fiscal year ending December 31 2004. The Company’s Balance Sheet will therefore show in its Liabilities, an Outstanding Balance of the Complementary Pension Plan Obligations of R$ 1,114 million (R$ 772 million on December 31 2003).

On the other hand, an Explanatory Note will show an amount of R$ 8,291 million with respect to unrecognized actuarial losses to be amortized and posted to the results of subsequent fiscal years over the average life expectancy of the pension plan’s members.

It should be pointed out that unrecognized actuarial losses are values calculated as the difference between the forecasted restatement of the net value of the obligations according to the actuarial assumptions and the variations effectively occurring over time.

The following table shows the breakdown in the values registered in the financial Statements and respective Explanatory Notes with respect to the complementary pension and healthcare plans:
 

 

                                     Pension Plan Commitments – R$ Millions
 

 

  2004 with
restatement of
assumptions
2003 Change
Present value of obligations
Value of plan assets
Net value of the obligations
(30,487)
21,082
(9,405)
(22,445)
18,425
(4,020)
(8,042)
2,657
(5,385)
Unrecognized actuarial losses
 
8,291 3,248 5,043
Net outstanding balance of the
obligations in the liabilities
(1,114) (772) (342)
Expense in the following fiscal year
 
1,655 665 990


 

                                Healthcare Plan Commitments – R$ Millions
 

 

  2004
restatement of
assumptions
2003 Change
Valor Presente das obrigações
Perdas atuariais não reconhecidas
Saldo líquido das obrigações no passivo
(10,648)
5,010
(5,638)
(8,780)
4,316
(4,464)
(1,868)
694
(1,174)
Expense in the following fiscal year 1,694 1,477 217


 

Through these measures, the Petrobras Group is seeking to demonstrate its efforts to readjust and technically improve its complementary pension and healthcare models in line with the recommendations of the specialists and regulatory bodies, guaranteeing total transparency in the way it conducts its business in accordance with the interests of employees and shareholders.

 
José Sergio Gabrielli de Azevedo
CFO and Investor Relations Officer

 

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