BPJS proposes pension guarantees not defined benefits
Reporter: Christine Novita Nababan | Editor: Sanny Cicilia
JAKARTA. The Employment Defined Guarantee Agency (BPJS) is planning for the pension security to be implemented using a defined contribution scheme, not a definite benefit. There is a bad precedent for pension guarantees with defined benefits, such as in developed countries, America or Europe, which will burden the country’s fiscal.
Endro Sucahyono, Head of the Technical Division of BPJS Ketenagakerjaan, said that so far, the pension guarantee implemented by the government for Civil Servants, Indonesian National Army and Police (PNS / TNI / Polri) uses a defined benefit scheme. Not surprisingly, the budget is swollen from year to year, which is obtained from the state budget.
“They have retired for years. If the retiree dies, it is passed on to the wife until their children. And it was given over the years. It is different if the scheme is a definite contribution, they will only receive it according to their pension fund and the results of its development, “he said, Friday (21/2).
However, it should be remembered, that even that is only a temporary suggestion. The initial scheme, the pension guarantee applied by BPJS Ketenagakerjaan uses defined benefits. It is true that the hammer has not been knocked down, considering that the Presidential Regulation (Perpres) itself has not been issued. “The concern is that the benefits will definitely burden the country,” said Endro.
For your information, defined benefit is a program that provides a certain formula for the benefits that participants will receive when they reach retirement age. For retirees, this program is attractive because the benefits they will receive are close to the last salary they received. In, defined contribution, the benefit is calculated based on the accumulated contribution plus the investment return.
In the Financial Institution Pension Fund (DPLK) Industry, participants only have a defined contribution program. There is no defined benefit program like the one imposed at PT Taspen (Persero) or PT Asabri (Persero).
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