OJK regulates pension fund funding for other benefit programs
ILLUSTRATION. Financial Services Authority (OJK)
Reporter: Tendi Mahadi | Editor: Herlina Kartika Dewi
KONTAN.CO.ID – JAKARTA. The Financial Services Authority (OJK) released a regulation regarding pension fund funding. This includes funding for other benefit programs.
In the explanatory part of OJK Regulation No.8 of 2018 concerning Pension Fund Funding, the Chairman of the OJK Board of Commissioners Wimboh Santoso said that this regulation regulates funding for other benefit programs, to complement the issuance of POJK Number 5 of 2017 concerning contributions, pension benefits, and other benefits. organized by the pension fund.
The POJK allows pension funds to organize programs that provide other benefits. “Until now, the funding mechanism for these other benefit programs has not been regulated,” Wimboh explained as quoted from POJK No.8 / 2018.
Funding for this other benefit program is divided into three, depending on the type of pension fund that organizes it. For example, for employer pension funds that run a defined benefit pension program, aka DPPK-PPMP.
This type of pension fund. Funding for other benefit programs is the responsibility of the employer. Then pension fund managers are required to calculate and report the adequacy of other benefit funds regularly to the regulator.
The adequacy of these funds is assessed based on actuarial valuation by comparing the plan asset value from other benefits and the present value of potential payment of other benefits.
Sources of funds for other benefit programs consist of employer contributions, participant contributions, and a certain percentage of the proceeds from the development of the pension program. Then if there is a lack of funding for other benefits, it must be paid in full with the employer’s contribution within a maximum period of five years.
In addition, other benefit funding is also arranged for financial institution pension funds (DPLK). Among them, they must make a written statement that at least contains the amount of the contribution and the due date of the contributions.
Payment of contributions can be made directly to the DPLK organizer or through the employer.
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