Financial Services Authority Regulation Number 60/POJK.05/2020 Concerning Amendments to Financial Services Authority Regulation Number 5/POJK.05/2017 on Contributions, Pension Benefits, and Other Benefits Administered by Pension Funds

FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA
COPY
FINANCIAL SERVICES AUTHABILITY REGULATION
REPUBLIC OF INDONESIA
NUMBER 60 /POJK.05/2020
CONCERNING
AMENDMENTS TO FINANCIAL SERVICES AUTHORITY
REGULATION NUMBER 5/POJK.05/2017 ON CONTRIBUTIONS, PENSION BENEFITS, AND OTHER BENEFITS ADMINISTERED BY PENSION FUNDS BY THE GRACE OF THE ALMIGHTY GOD THE COMMISSIONERS OF THE FINANCIAL SERVICES AUTHORITY, Considering :
a. that pension funds are expected to provide guarantees for maintaining the welfare and continuity of income for retirees in order to balance benefits that are continuously developing in the labor system and considering the conditions of pension funds; b. that in order to accommodate provisions for the payment of the first pension benefit as a lump sum and the addition of provisions for other benefits, it is necessary to adjust the Financial Services Authority Regulation Number 5/POJK.05/2017 on Contributions, Pension Benefits, and Other Benefits Administered by Pension Funds;
c. that based on the considerations referred to in letters a and b, it is necessary to establish a Financial Services Authority Regulation concerning Amendments to Financial Services Authority Regulation Number 5/POJK.05/2017 on Contributions, Pension Benefits, and Other Benefits Administered by Pension Funds;
Recalling :
1. Law Number 11 of 1992 concerning Pension Funds (State Gazette of the Republic of Indonesia Year 1992 Number 37, Supplement to the State Gazette of the Republic of Indonesia Number 3477);
2. Law Number 21 of 2011 concerning the Financial Services Authority (State Gazette of the Republic of Indonesia Year 2011 Number 111, Supplement to the State Gazette of the Republic of Indonesia Number 5253);
3. Government Regulation Number 76 of 1992 concerning Employer Pension Funds (State Gazette of the Republic of Indonesia Year 1992 Number 126, Supplement to the State Gazette of the Republic of Indonesia Number 3507);
4. Government Regulation Number 77 of 1992 concerning Financial Institution Pension Funds (State Gazette of the Republic of Indonesia Year 1992 Number 127, Supplement to the State Gazette of the Republic of Indonesia Number 3508);
5. Financial Services Authority Regulation Number 5/POJK.05/2017 on Contributions, Pension Benefits, and Other Benefits Administered by Pension Funds (State Gazette of the Republic of Indonesia Year 2017 Number 38, Supplement to the State Gazette of the Republic of Indonesia Number 6026);
DECIDING:
Establishing: FINANCIAL SERVICES AUTHORITY REGULATION CONCERNING AMENDMENTS TO FINANCIAL SERVICES AUTHORITY REGULATION NUMBER 5/POJK.05/2017 ON CONTRIBUTIONS, PENSION BENEFITS, AND OTHER BENEFITS ADMINISTERED BY PENSION FUNDS.
Article I
Several provisions in the Financial Services Authority Regulation Number 5/POJK.05/2017 on Contributions, Pension Benefits, and Other Benefits Administered by Pension Funds (State Gazette of the Republic of Indonesia Year 2017 Number 38, Supplement to the State Gazette of the Republic of Indonesia Number 6026) are amended as follows:
1. The provisions of item 6 and item 15 in Article 1 are amended, so that Article 1 reads as follows:
Article 1
In this Financial Services Authority Regulation, the following terms are meant:
1. Pension Fund is a legal entity that manages and runs a program promising pension benefits as referred to in Law Number 11 of 1992 concerning Pension Funds, including Pension Funds that conduct all or part of their business using Sharia principles.
2. Employer Pension Fund, hereinafter abbreviated as DPPK, is a Pension Fund established by a person or entity that employs employees, as the founder, to administer a defined benefit pension program or a defined contribution pension program, for the benefit of some or all of its employees as participants, and which creates obligations for the employer as referred to in Law Number 11 of 1992 concerning Pension Funds.
3. Financial Institution Pension Fund, hereinafter abbreviated as DPLK, is a Pension Fund established by a bank or life insurance company to administer a defined contribution pension program for individuals, both employees and self-employed workers, who are separate from the DPPK for employees of the respective bank or life insurance company, as referred to in Law Number 11 of 1992 concerning Pension Funds.
4. Actuarial Assumptions are a collection of estimates regarding changes in the future, which are used to calculate the present value of a payment or payments in the future, and include among others interest rates, probability rates of death, disability, and the rate of increase in basic pension income.
5. Pension Benefit is a periodic payment made to participants at the time and in the manner determined in the Pension Fund regulations as referred to in Law Number 11 of 1992 concerning Pension Funds.
6. Other Benefits are other Pension Benefit payments or benefits other than Pension Benefits that can be carried out by the Pension Fund and are regulated in the Pension Fund regulations.
7. Present Value is the value on a specific date, of a payment or payments to be made after that date, which is calculated by discounting the payment or payments actuarially based on interest rate assumptions and specific probability rates for the occurrence of the payment or payments.
8. Income is a person's income as referred to in Law Number 7 of 1983 concerning Income Tax as amended several times, lastly by Law Number 36 of 2008 concerning the Fourth Amendment to Law Number 7 of 1983 concerning Income Tax.
9. Basic Pension Income is part or all of an employee's Income received from the employer and determined in the regulations of a DPPK's Pension Fund as the basis for calculating the amount of contributions and/or Pension Benefits for participants.
10. Employer is the founder or co-founder who employs employees as referred to in Law Number 11 of 1992 concerning Pension Funds.
11. Founder is:
a. a person or entity that establishes a DPPK; or b. a bank or life insurance company that establishes a DPLK, as referred to in Law Number 11 of 1992 concerning Pension Funds.
12. Pension Fund Regulations, hereinafter abbreviated as PDP, are regulations containing provisions that form the basis for the administration of pension programs as referred to in Law Number 11 of 1992 concerning Pension Funds.
13. Deferred Pension is the right to Pension Benefits for participants who stop working before reaching normal retirement age, with payments deferred until the participant retires in accordance with the PDP as referred to in Law Number 11 of 1992 concerning Pension Funds.
14. Participant is any person who meets the PDP requirements as referred to in Law Number 11 of 1992 concerning Pension Funds.
15. Entitled Party is the party that has rights to Pension Benefits or Other Benefits in the event that the Participant or retiree dies, namely widow/widower, children, or parties designated by the Participant if the Participant is unmarried and has no children.
16. Defined Benefit Pension Program, hereinafter abbreviated as PPMP, is a pension program whose benefits are determined in the PDP or other pension programs that are not defined contribution pension programs as referred to in Law Number 11 of 1992 concerning Pension Funds.
17. Defined Contribution Pension Program, hereinafter abbreviated as PPIP, is a pension program whose contributions are determined in the PDP and all contributions and their development results are recorded in each Participant's account as Pension Benefits as referred to in Law Number 11 of 1992 concerning Pension Funds.
18. Monthly Formula is the method for calculating the amount of Pension Benefit per month to be received by the Participant.
19. Lump Sum Formula is the method for calculating the amount of Pension Benefit to be received by the Participant in a lump sum value which will subsequently be converted into monthly Pension Benefits.
20. Insurance Company means life insurance companies and Sharia life insurance companies.
2. The provisions of Article 10 are added with 1 (one) paragraph, namely paragraph (2), so that Article 10 reads as follows:
Article 10
(1) In the context of paying Pension Benefits, the amount paid is calculated according to the following provisions:
a. for Pension Benefits calculated using the Monthly Formula, it must be based on the formula determined in the PDP; b. for Pension Benefits calculated using the Lump Sum Formula, it must be based on a table made based on Actuarial Assumptions containing factors to convert Pension Benefits calculated as a lump sum into monthly payments. (2) The provisions as referred to in paragraph (1) letter b only apply in the event that monthly Pension Benefit payments are made by the DPPK.
3. The provisions of paragraph (6) of Article 13 are amended, so that it reads as follows:
Article 13
(1) In the event that Pension Benefits are calculated using the Monthly Formula with Pension Benefits linked to working periods as referred to in Article 4 paragraph (2) letter a, then the annual working period appreciation factor must not exceed 2.5% (two point five percent), and the monthly Pension Benefit must not exceed 80% (eighty percent) of the last monthly Income. (2) In the event that Pension Benefits are calculated using the Monthly Formula with Pension Benefits not linked to working periods as referred to in Article 4 paragraph (2) letter b, the monthly Pension Benefit must not exceed 80% (eighty percent) of the last monthly Income. (3) In the event that Pension Benefits are calculated using the Lump Sum Formula with Pension Benefits linked to working periods as referred to in Article 4 paragraph (3) letter a, then the annual working period appreciation factor must not exceed 2.5 (two point five) times, and Pension Benefits must not exceed 80 (eighty) times the last monthly Income. (4) In the event that Pension Benefits are calculated using the Lump Sum Formula with Pension Benefits not linked to working periods as referred to in Article 4 paragraph (3) letter b, then the Pension Benefit appreciation factor must not exceed 80 (eighty) times the last monthly Income. (5) In the event that the right to Pension Benefits for Participants calculated using the Pension Benefit formulas as referred to in paragraph (1) and paragraph (2) has reached the maximum limit, the PDP may stipulate that the Participant's contributions to the DPPK administering the PPMP are stopped. (6) Payment of Pension Benefits calculated using the Pension Benefit formulas as referred to in paragraph (1), paragraph (2), paragraph (3), and paragraph (4) must be implemented on a monthly basis.
4. The provisions of Article 15 are amended so that it reads as follows:
Article 15
The PDP may provide options for DPPK Participants administering PPMP at the time of retirement or at the time of termination, and for widows/widowers or children, to receive the first Pension Benefit as a lump sum of at most 20% (twenty percent) of the Pension Benefits.
5. The provisions of paragraph (1) and paragraph (3) of Article 16 are amended, paragraph (2) and paragraph (4) of Article 16 are deleted, and 4 (four) paragraphs are added, namely paragraph (5), paragraph (6), paragraph (7), and paragraph (8), so that Article 16 reads as follows:
Article 16
(1) Participants, widows/widowers, or children in DPPKs administering PPMP have the right to choose lump sum payment of Pension Benefits if:
a. the Pension Benefit to be paid per month using the Monthly Formula is less than or equal to Rp1,600,000.00 (one million six hundred thousand rupiah); or b. the Pension Benefit calculated using the Lump Sum Formula is less than or equal to Rp500,000,000.00 (five hundred million rupiah). (2) Deleted. (3) In the event that the PDP provides the option to receive the first Pension Benefit as a lump sum as referred to in Article 15, the Pension Benefits as referred to in paragraph (1) are calculated after the withdrawal of the first Pension Benefit. (4) Deleted. (5) In the event that Pension Benefits from DPPKs administering PPMP that have been received monthly by retirees, widows/widowers, and/or children are less than or equal to Rp1,600,000.00 (one million six hundred thousand rupiah) as referred to in paragraph (1) letter a, the Present Value of unpaid Pension Benefits can be paid as a lump sum. (6) Payment of Pension Benefits as a lump sum as referred to in paragraph (1), paragraph (3), and paragraph (5) can be carried out if the provisions are contained in the PDP. (7) The Founder may determine Pension Benefits that can be paid as a lump sum with a value lower than the amounts as referred to in paragraph (1) and paragraph (3) in the PDP. (8) In the event that the Founder determines the value as referred to in paragraph (7), the Founder must apply the principle of prudence by considering the interests of Participants.
6. The provisions of Article 17 are added with 1 (one) paragraph, namely paragraph (3), so that it reads as follows:
Article 17
(1) In the event that DPPK Participants administering PPMP intend to increase the amount of Pension Benefits obtained other than the Pension Benefits promised according to the formula in the PDP, Participants can add their own contributions by providing a written statement to the DPPK administering the PPMP. (2) The addition of own contributions as referred to in paragraph (1) and the development results must be recorded separately from the recording of Pension Benefits according to the PDP formula. (3) Provisions regarding the addition of own contributions as referred to in paragraph (1) are implemented in accordance with the voluntary contribution provisions in Financial Services Authority Regulations concerning Pension Fund financing.
7. The provisions of Article 20 are amended so that it reads as follows:
Article 20
In the event that Participants, widows/widowers, or children:
a. are in a severe illness condition and experience financial difficulties supported by documents proving it; b. are Indonesian citizens who change citizenship; or
c. are foreign citizens who have ended their working period and no longer work in Indonesia,
DPPKs administering PPMP may make lump sum payments of Pension Benefits outside the provisions as referred to in Article 16.
8. Between Article 20 and Article 21, 1 (one) article is inserted, namely Article 20A, so that it reads as follows:
Article 20A
(1) In the event that there is a termination of a co-founder in a DPPK administering PPMP, payments of Pension Benefits for retirees, widows/widowers, and/or children of the co-founder can be paid as a lump sum as long as it does not exceed the value as referred to in Article 16 paragraph (1). (2) In the event that there is a change in pension programs in a DPPK from PPMP to PPIP, payments of Pension Benefits for retirees, widows/widowers, and/or children can be paid as a lump sum as long as it does not exceed the value as referred to in Article 16 paragraph (1). (3) In the event that payments of Pension Benefits as referred to in paragraph (2) exceed the value as referred to in Article 16 paragraph (1), the responsibility for such payments must be transferred through the purchase of lifetime annuities from Insurance Companies. (4) In the event that DPPKs administering PPMP are liquidated, the Present Value of unpaid Pension Benefits to retirees, widows/widowers, and/or children can be paid as a lump sum as long as it does not exceed the value as referred to in Article 16 paragraph (1).
9. The provisions of Article 25 are added with 1 (one) paragraph, namely paragraph (5), so that it reads as follows:
Article 25
(1) Contributions to DPPKs administering PPIP based on contributions determined as referred to in Article 24 paragraph (1) letter a consist of:
a. Employer and Participant contributions; or b. Employer contributions.
(2) Contributions as referred to in paragraph (1) are a percentage of Basic Pension Income.
(3) In the event that Participants also contribute, the amount of Participant contributions can be:
a. a nominal amount; or b. a specific percentage of Employer contributions, not exceeding the amount of Employer contributions.
(4) In the event that Participants intend to add their own contributions in order to increase the growth of their accumulated funds other than contributions as referred to in paragraph (3), Participants must provide a written statement to the DPPK administering the PPIP. (5) Provisions regarding the addition of own contributions as referred to in paragraph (4) are implemented in accordance with the voluntary contribution provisions in Financial Services Authority Regulations concerning Pension Fund financing.
10. The provisions of paragraph (1) and paragraph (2) of Article 31 are amended and between paragraph (1) and paragraph (2), 1 (one) paragraph is inserted, namely paragraph (1a), so that Article 31 reads as follows:
Article 31
(1) Development results as referred to in Article 30 paragraph (1) must take into account unrealized investment development results.
(1a) DPPKs administering PPIP must manage assets according to the age group of Participants.
(2) Asset management as referred to in paragraph (1a) for Participants who have reached an age of at most 5 (five) years and at least 2 (two) years before normal retirement age, must be placed in:
a. savings in conventional banks or Sharia principle banks; b. time deposits or on-call deposits in conventional banks or Sharia principle banks;
c. deposit certificates in conventional banks or Sharia principle banks;
d. securities issued by Bank Indonesia; and/or e. state securities recorded using the amortized cost method.
11. The provisions of Article 32 are amended so that it reads as follows:
Article 32
The PDP may provide options for DPPK Participants administering PPIP at the time of retirement or at the time of termination, and for widows/widowers or children, to receive the first Pension Benefit as a lump sum of at most 20% (twenty percent) of the Pension Benefits.
12. The provisions of paragraph (1) and paragraph (5) of Article 33 are amended, paragraph (3) and paragraph (4) of Article 33 are deleted, and 3 (three) paragraphs are added, namely paragraph (6), paragraph (7), and paragraph (8), so that Article 33 reads as follows:
Article 33
(1) Participants, widows/widowers, or children in DPPKs administering PPIP have the right to choose lump sum payment of Pension Benefits if the accumulated amount of contributions and transfer of funds from other DPPKs and DPLKs and their development results as referred to in Article 30 paragraph (1) which are the rights of Participants, widows/widowers, or children are less than or equal to Rp500,000,000.00 (five hundred million rupiah). (2) In the event that DPPKs administering PPIP add contribution forms in the form of share ownership as referred to in Article 24 paragraph (2), the fair value of the total shares owned by Participants is excluded from the lump sum Pension Benefits for Participants as referred to in paragraph (1). (3) Deleted. (4) Deleted. (5) In the event that the PDP provides the option to receive the first Pension Benefit as a lump sum as referred to in Article 32, the Pension Benefits as referred to in paragraph (1) are calculated after the withdrawal of the first Pension Benefit. (6) Payment of Pension Benefits as a lump sum as referred to in paragraph (1) and paragraph (5) can be carried out if the provisions are contained in the PDP. (7) The Founder may determine Pension Benefits that can be paid as a lump sum with a value lower than the amounts as referred to in paragraph (1) in the PDP. (8) In the event that the Founder determines the value as referred to in paragraph (7), the Founder must apply the principle of prudence by considering the interests of Participants.
13. The provisions of paragraph (1) and the explanation of paragraph (3) of Article 37 are amended, as contained in the explanation of Article by Article, so that Article 37 reads as follows:
Article 37
(1) DPPK Administrators administering PPIP, upon request and choice of Participants, must purchase lifetime annuities from Insurance Companies, with the condition that the chosen annuity:
a. provides Pension Benefits for widows/widowers or children of at least 60% (sixty percent) and at most 100% (one hundred percent) of the Pension Benefits received by Participants; b. meets the provisions of legislation in the field of Pension Funds and the PDP of DPPKs administering PPIP;
c. is a product from Insurance Companies that in the last 3 (three) years have met the minimum solvency ratio targets in accordance with Financial Services Authority Regulations concerning the financial health of insurance and reinsurance companies based on audited financial reports; and
d. is a product of Insurance Companies that has received approval from the Financial Services Authority.
(2) The requirements as referred to in paragraph (1) letter a do not apply to the purchase of annuities based on the request and choice of widows/widowers or children.
(3) If by 30 (thirty) days before the payment of Pension Benefits, Participants have not made the choice as referred to in paragraph (1) and paragraph (2), the administrators must purchase lifetime annuities that provide payments to widows/widowers or children equal to the payments to retirees. (4) Chosen annuities determined by Participants are declared void if Participants die before the start of Pension Benefit payments.
14. The provisions of paragraph (1), paragraph (2), and paragraph (3) of Article 38 are amended, so that Article 38 reads as follows:
Article 38
(1) DPPKs administering PPIP can pay Pension Benefits periodically to Participants, widows/widowers, or children.
(2) Periodic payment of Pension Benefits as referred to in paragraph (1) can only be paid based on the choice of Participants, widows/widowers, or children for a period of at least 10 (ten) years and at most 25 (twenty-five) years after Participants reach retirement age. (3) Payments as referred to in paragraph (2) are carried out with the following provisions:
a. payment of Pension Benefits must be carried out through the purchase of lifetime annuities from Insurance Companies when the period of periodic payment of Pension Benefits through DPPKs administering PPIP ends; and b. making early reserves for the purchase of lifetime annuities from Insurance Companies of at least 20% (twenty percent) of the Pension Benefits adjusted to the period of periodic payment of Pension Benefits through DPPKs administering PPIP, before DPPKs administering PPIP make periodic payments of Pension Benefits. (4) In the event that Pension Benefits are paid by DPPKs administering PPIP, the PDP must contain:
a. the form of periodic payment of Pension Benefits or annuities that can be chosen by Participants; and b. the procedure for payment of Pension Benefits carried out by DPPKs administering PPIP.
(5) In the event that DPPKs administering PPIP pay Pension Benefits periodically as referred to in paragraph (2), DPPKs administering PPIP must make actuarial valuations at least every 3 (three) years. (6) In the context of paying Pension Benefits periodically, it must be based on a table made to convert the total accumulated contributions and development results into monthly payments.
15. The provisions of Article 40 are amended so that it reads as follows:
Article 40
In the event that Participants, widows/widowers, or children:
a. are in a severe illness condition and experience financial difficulties supported by documents proving it; b. are Indonesian citizens who change citizenship; or

c. is a foreign citizen whose employment period has ended and who no longer works in Indonesia,
The Pension Fund Administrator (DPPK) organizing the Mandatory Pension Program (PPIP) may make a lump-sum payment of Pension Benefits outside the provisions referred to in Article 33 paragraph (1).

16. The provisions of Article 43 are added with 1 (one) paragraph, namely paragraph (4), so that Article 43 reads as follows:

Article 43
(1) Contributions to a Voluntary Pension Fund (DPLK) consist of:
a. Employer Contributions and Participant Contributions; b. Employer Contributions; or
c. Participant Contributions.

(2) Contributions to a Voluntary Pension Fund (DPLK) as referred to in paragraph (1) may be:
a. a nominal amount; or b. a certain percentage of the Employer Contribution, not exceeding the amount of the Employer Contribution.

(3) Participants may at any time add their own contributions to increase the growth of their fund accumulation, in addition to the contributions referred to in paragraph (2).

(4) The provisions regarding the addition of own contributions as referred to in paragraph (3) are implemented in accordance with the provisions on voluntary contributions in DPPKs organizing the PPIP in Financial Services Authority Regulations regarding Pension Fund financing.

17. The provisions of paragraph (1) of Article 47 are amended and paragraph (2) of Article 47 are deleted, so that Article 47 reads as follows:

Article 47
(1) Investment returns as referred to in Article 46 paragraph (1) must take into account unrealized investment returns.
(2) Deleted.

18. Between Article 47 and Article 48, 1 (one) article is inserted, namely Article 47A, so that it reads as follows:

Article 47A
(1) A Voluntary Pension Fund (DPLK) manages assets according to the Participant's age group or based on the Participant's choice.

(2) Asset management as referred to in paragraph (1) for Participants who have reached an age of at most 5 (five) years and at least 2 (two) years before normal retirement age, must be placed in:
a. savings in conventional banks or banks with Sharia principles; b. time deposits or on-call deposits in conventional banks or banks with Sharia principles;
c. deposit certificates in conventional banks or banks with Sharia principles;
d. securities issued by Bank Indonesia; and/or e. government securities recorded using the amortized cost method.

(3) Participants may choose investment placements other than those referred to in paragraph (2).

(4) The Participant's choice as referred to in paragraph (1) and the choice of investment placement as referred to in paragraph (3) must be stated in a written declaration.

(5) The Voluntary Pension Fund (DPLK) must ensure that Participants receive information regarding the risks of the chosen investment placement.

19. The provisions of Article 48 are amended so that they read as follows:

Article 48
The Pension Fund Deed (PDP) may provide a choice for DPLK Participants at retirement or upon termination, and for widows/widowers or children, to receive the first Pension Benefit as a lump sum of at most 20% (twenty percent) of the Pension Benefit.

20. The provisions of paragraph (1) and paragraph (4) of Article 49 are amended, paragraph (2) and paragraph (3) of Article 49 are deleted, and 1 (one) paragraph is added, namely paragraph (5), so that Article 49 reads as follows:

Article 49
(1) Participants, widows/widowers, or children in a Voluntary Pension Fund (DPLK) are entitled to choose a lump-sum payment of Pension Benefits if the accumulated amount of contributions paid on their behalf, the transfer of funds from other DPPKs and DPLKs, and the investment returns thereof as referred to in Article 46 paragraph (1) that belong to the Participant, widow/widower, or child, are less than or equal to Rp500,000,000.00 (five hundred million rupiah).

(2) Deleted.

(3) Deleted.

(4) In the event that the Pension Fund Deed (PDP) provides a choice to receive the first Pension Benefit as a lump sum as referred to in Article 48, the Pension Benefit as referred to in paragraph (1) is calculated after the withdrawal of the first Pension Benefit.

(5) The lump-sum payment of Pension Benefits as referred to in paragraph (1) and paragraph (4) may be carried out if the provisions are included in the Pension Fund Deed (PDP).

21. The provisions of paragraph (1) and paragraph (3) of Article 51 are amended, so that Article 51 reads as follows:

Article 51
(1) The Acting Board of Directors of a Voluntary Pension Fund (DPLK), upon request by the Participant at retirement, must purchase a lifetime annuity from an Insurance Company, with the selected annuity meeting the following conditions:
a. provides Pension Benefits for widows/widowers or children of at least 60% (sixty percent) and at most 100% (one hundred percent) of the Pension Benefit received by the Participant; b. meets the provisions of legislation in the field of Pension Funds and the Pension Fund Deed (PDP) of the DPLK;
c. is a product from an Insurance Company that has met the minimum solvency ratio targets in the last 3 (three) years in accordance with Financial Services Authority Regulations regarding the financial health of insurance and reinsurance companies based on audited financial statements; and
d. is a product of an Insurance Company that has received approval from the Financial Services Authority.

(2) The requirements as referred to in paragraph (1) letter a do not apply to the purchase of annuities based on the request and choice of widows/widowers or children.

(3) If by 30 (thirty) days before the payment of Pension Benefits, the Participant has not made a choice as referred to in paragraph (1) and paragraph (2), the Acting Board of Directors must purchase a lifetime annuity with the conditions as referred to in paragraph (1), which provides payments to widows/widowers or children of the same amount as payments to the retiree.

(4) An annuity choice determined by the Participant is declared void if the Participant dies before the payment of Pension Benefits begins.

22. The provisions of paragraph (1), paragraph (2), and paragraph (3) of Article 52 are amended, so that Article 52 reads as follows:

Article 52
(1) A Voluntary Pension Fund (DPLK) may pay Pension Benefits periodically to Participants, widows/widowers, or children.

(2) Periodic payment of Pension Benefits as referred to in paragraph (1) may only be paid based on the choice of the Participant, widow/widower, or child for a period of at least 10 (ten) years and at most 25 (twenty-five) years after the Participant reaches retirement age.

(3) Payments as referred to in paragraph (2) are carried out with the following provisions:
a. payment of Pension Benefits must be carried out through the purchase of a lifetime annuity from an Insurance Company when the period of periodic payment of Pension Benefits through the DPLK ends; and b. setting aside reserves at the beginning for the purchase of a lifetime annuity from an Insurance Company of at least 20% (twenty percent) of the Pension Benefit adjusted to the period of periodic payment of Pension Benefits, before the DPLK makes periodic payments of Pension Benefits.

(4) In the event that Pension Benefits in the DPLK are paid directly by the DPLK, the Pension Fund Deed (PDP) must contain:
a. the choice of the form of periodic payment of Pension Benefits or annuity that can be chosen by the Participant; and b. the procedure for payment of Pension Benefits carried out by the DPLK.

(5) In the event that the DPLK pays Pension Benefits periodically as referred to in paragraph (2), the DPLK must conduct an actuarial valuation at least once every 3 (three) years.

(6) In the context of periodic payment of Pension Benefits, it must be based on a table created to convert total accumulated contributions and investment returns into monthly payments.

23. The provisions of Article 55 are amended so that they read as follows:

Article 55
In the event that the Participant, widow/widower, or child:
a. is in a condition of severe illness and experiences financial difficulties supported by documentary evidence; b. is an Indonesian citizen who changes citizenship; or
c. is a foreign citizen whose employment period has ended and who no longer works in Indonesia,
The Voluntary Pension Fund (DPLK) may make a lump-sum payment of Pension Benefits outside the provisions as referred to in Article 49 paragraph (1).

24. The title of Part One of Chapter V is amended and placed before Article 58, so that the title of Part One reads as follows:

Part One
General

25. The provisions of Article 58 are amended so that they read as follows:

Article 58
(1) In addition to organizing pension programs, Pension Fund Administrators (DPPK) and Voluntary Pension Funds (DPLK) may organize or provide Other Benefits to Participants and/or Beneficiaries.

(2) The types of Other Benefits that can be provided to Participants and/or Beneficiaries are:
a. education funds for children; b. housing funds;
c. religious pilgrimage funds;
d. disability benefit funds; e. death benefit funds; f. health benefit funds; g. post-employment compensation funds; and/or h. additional benefit funds.

(3) The types of Other Benefits as referred to in paragraph (2) can be categorized as:
a. Other Pension Benefits; or b. benefits other than Pension Benefits.

26. Between Article 58 and Article 59, 1 (one) article is inserted, namely Article 58A, so that it reads as follows:

Article 58A
(1) Types of Other Benefits that can be categorized as Other Pension Benefits as referred to in Article 58 paragraph (3) letter a include:
a. post-employment compensation funds as referred to in Article 58 paragraph (2) letter g; and b. additional benefit funds as referred to in Article 58 paragraph (2) letter h.

(2) Post-employment compensation funds as referred to in paragraph (1) letter a are categorized as Other Pension Benefits if:
a. the payment of Other Benefits is linked to retirement age; b. a fund accumulation system is used; and
c. the source of funds comes from Employer Contributions and/or Participant Contributions.

(3) Additional benefit funds as referred to in paragraph (1) letter b are categorized as Other Pension Benefits if:
a. the payment of Other Benefits is linked to retirement age; and b. a fund accumulation system is used.

27. The provisions of Article 59 are amended so that they read as follows:

Article 59
Pension Funds may only organize or provide Other Benefits to Participants and/or Beneficiaries if the Employer has included in the collective labor contract, company regulations, or joint labor agreement that it will provide Other Benefits to Participants and/or Beneficiaries.

28. The provisions of Article 60 are deleted.

29. The provisions of paragraph (1) and paragraph (2) of Article 61 are amended, so that they read as follows:

Article 61
(1) Types of Other Benefits as referred to in Article 58 paragraph (2), except letter g, are prohibited from being given to anyone other than Participants who have followed the pension program in the relevant DPPK or DPLK and the Beneficiaries of such Participants.

(2) Types of Other Benefits in the form of post-employment compensation funds as referred to in Article 58 paragraph (2) letter g are prohibited from being given to anyone other than:
a. DPPK Participants; or b. DPLK Participants who have followed a pension program or pension guarantee program.

30. The provisions of Article 63 are amended, so that they read as follows:

Article 63
In the event that a Participant pays contributions for Other Benefits in the form of disability benefit funds until the Participant retires without making a benefit claim, the Participant is entitled to the return of their own contributions plus investment returns, minus operational costs.

31. The provisions of Article 65 are deleted.

32. The provisions of Article 66 letter c are deleted, so that Article 66 reads as follows:

Article 66
To organize Other Benefits as referred to in Article 58 paragraph (1), the Pension Fund Deed (PDP) of DPPKs and DPLKs must contain the procedure for organizing Other Benefits, which must at least regulate regarding:
a. types of Other Benefits; b. funding sources;
c. Deleted;
d. the membership period for Participants to be able to receive Other Benefits; e. the amount of Other Benefits that can be received by Participants or Beneficiaries; and f. the time and procedure for payment of Other Benefits.

33. The provisions of paragraph (1) and paragraph (2) of Article 67 are amended, so that Article 67 reads as follows:

Article 67
(1) In the event that DPPKs and DPLKs organize or provide Other Benefits to Participants and/or Beneficiaries, DPPKs and DPLKs must separate the accounting between Pension Benefits and Other Benefits.

(2) In the event that DPPKs and DPLKs organize or provide Other Benefits to Participants and/or Beneficiaries, DPPKs and DPLKs must separate the accounting of each type of Other Benefits.

(3) DPPKs and DPLKs that organize or provide Other Benefits must calculate the amount of contributions required to meet the payment obligations of Other Benefits performed by actuaries.

34. The provisions of paragraph (1) and paragraph (2) of Article 68 are amended, 1 (one) paragraph is inserted between paragraph (1) and paragraph (2), namely paragraph (1a), and 4 (four) paragraphs are added, namely paragraph (3), paragraph (4), paragraph (5), and paragraph (6), so that Article 68 reads as follows:

Article 68
(1) Funding sources for DPPKs and DPLKs that organize or provide Other Benefits to Participants are:
a. Employer Contributions; and/or b. Participant Contributions.

(1a) In addition to the funding sources as referred to in paragraph (1), funding sources for DPPKs organizing the Mandatory Pension Program (PPMP) and organizing or providing Other Benefits to Participants may come from a certain percentage of the investment returns of the pension program.

(2) The percentage as referred to in paragraph (1a) can only be calculated at most 20% (twenty percent) of the investment returns of the pension program.

(3) In the event that the actuarial report of a DPPK organizing the PPMP shows a surplus, the surplus may be used as Employer Contributions as referred to in paragraph (1) letter a.

(4) In the event that a Participant stops working, the following provisions apply:
a. the pool of Employer Contributions as referred to in paragraph (1) letter a for Participants who stop working may be used as Employer Contributions for other Participants; and b. the pool of Participant Contributions as referred to in paragraph (1) letter b plus investment returns, minus operational costs, is paid as a lump sum when the Participant stops working.

(5) The provisions as referred to in paragraph (4) letter b do not apply to Other Benefits in the form of:
a. disability benefit funds in the event that the Participant stops working due to permanent disability or severe illness resulting in the person being unable to work; b. death benefit funds in the event that the Participant stops working due to death; or
c. health benefit funds.

(6) Provisions regarding the funding sources of Other Benefits as referred to in paragraph (1) and paragraph (1a) and the use of surplus as referred to in paragraph (3) are implemented in accordance with the provisions as regulated in Financial Services Authority Regulations regarding Pension Fund financing.

35. The provisions of paragraph (4) of Article 69 are amended, so that they read as follows:

Article 69
(1) DPPKs and DPLKs are required to separate funds categorized as inactive funds.

(2) Before separating inactive funds, DPPKs and DPLKs are required to make efforts to pay Pension Benefits to Participants or Beneficiaries since the Participant enters normal retirement age, at most 1 (one) year.

(3) If by the end of the 1 (one) year period as referred to in paragraph (2) the DPPK and DPLK have not made Pension Benefit payments due to:
a. the Participant's whereabouts being unknown; or b. the Participant not having a designated Beneficiary or having one but their whereabouts being unknown, Such Pension Benefits are categorized as inactive funds.

(4) If by 180 (one hundred eighty) days since the separation of such funds there is still no payment of Pension Benefits, the DPPK and DPLK may hand over the inactive funds to the Estate Office in accordance with the provisions of legislation.

(5) In the event that the DPPK and DPLK hand over such funds to the Estate Office as referred to in paragraph (4), the Participants or Beneficiaries of such funds request payment from the Estate Office.

36. The provisions of paragraph (1) of Article 72 are amended, so that they read as follows:

Article 72
(1) In the event that a Participant is a Participant of a DPPK and/or a pension guarantee program and a DPLK, when the Participant enters normal retirement age or early retirement age:
a. Pension Benefits to be received from the DPLK may be paid as a lump sum outside the provisions as referred to in Article 49; and b. Pension Benefits to be received from the DPPK must be paid monthly outside the provisions as referred to in Article 16 and Article 33.

(2) The provisions as referred to in paragraph (1) letter b do not apply if the Present Value of the accumulated Pension Benefits to be received from the DPPK and DPLK upon entering normal retirement age or early retirement age is less than or equal to Rp500,000,000.00 (five hundred million rupiah), in which case the DPPK Pension Benefits may be paid as a lump sum.

(3) In the event that Pension Benefits from a DPPK organizing the PPMP using the Monthly Formula, the Present Value of the accumulated Pension Benefits to be received must be calculated into the Lump Sum Formula in order to calculate the accumulated Pension Benefits as referred to in paragraph (2).

37. Between Article 72 and Article 73, 1 (one) article is inserted, namely Article 72A, so that it reads as follows:

Article 72A
(1) In the event that the responsibility for paying Pension Benefits to Participants or Beneficiaries in a Pension Fund is transferred through the purchase of a lifetime annuity from an Insurance Company, the purchase of the annuity must meet the annuity conditions as referred to in Article 37 paragraph (1) and Article 51 paragraph (1).

(2) In the event that there is no Insurance Company selling lifetime annuities with the annuity conditions as referred to in Article 37 paragraph (1) and Article 51 paragraph (1), the Pension Fund may make a lump-sum payment of Pension Benefits.

(3) For Pension Funds that organize all or part of their business with Sharia principles, the annuity products as referred to in paragraph (1) and paragraph (2), in Article 20A paragraph (3), Article 37, Article 38 paragraph (3) and paragraph (4) letter a, Article 39, Article 41 paragraph (1) letter e and letter g, Article 46 paragraph (2), Article 51, Article 52 paragraph (3) and paragraph (4) letter a, Article 53, and Article 56 paragraph (1) letter d and letter f, are annuity products organized based on Sharia principles.

38. The title of Chapter VII is amended so that it reads as follows:

CHAPTER VII
COMPLIANCE ENFORCEMENT

39. The title of Part One of Chapter VII is added and placed before Article 73, so that the title of Part One reads as follows:

Part One
Administrative Sanctions

40. The provisions of paragraph (1), paragraph (2), and paragraph (3) of Article 73 are amended and paragraph (4) of Article 73 is deleted, so that Article 73 reads as follows:

Article 73
(1) Violations of the provisions as referred to in Article 61 and Article 69 paragraph (1) and paragraph (2) are subject to administrative sanctions in the form of a written warning, which remains valid until the provisions are fulfilled.

(2) In the event that a Pension Fund violates the provisions as referred to in paragraph (1) but the violation has been corrected, it is still subject to a written warning sanction that ends automatically.

(3) In the event that a Pension Fund has fulfilled the provisions as referred to in paragraph (1), the Financial Services Authority revokes the written warning sanction.

(4) Deleted.

41. The title of Part Two of Chapter VII is added and placed before Article 73A, so that the title of Part Two reads as follows:

Part Two
Reduction of Health Assessment Results, Reassessment of Competence and Suitability for Principal Parties, and Written Orders

42. Between Article 73 and Article 74, 1 (one) article is inserted, namely Article 73A, so that it reads as follows:

Article 73A
In the event that the Financial Services Authority has imposed administrative sanctions as referred to in Article 73 paragraph (1) and the Pension Fund does not fulfill the provisions causing the administrative sanction to be imposed, the Financial Services Authority may:
a. reduce the health assessment results; b. conduct a reassessment of competence and suitability for principal parties; and/or
c. issue a written order to the Founder to replace the supervisory board, board of directors, and/or acting board of directors.

Article II

1. Pension Funds that, at the time this Financial Services Authority Regulation is promulgated, have included provisions regarding lump-sum payment of Pension Benefits if:
   a. Pension Benefits paid per month using the Monthly Formula are above Rp10,000,000.00 (ten million rupiah); or b. Pension Benefits calculated using the Lump Sum Formula are above Rp1,500,000,000.00 (one billion five hundred million rupiah), in the Pension Fund Deed (PDP), may continue to pay such Pension Benefits.

2. The lump-sum payment of Pension Benefits as referred to in number 1 consists of the excess difference of the Pension Benefits received after being reduced by the value as referred to in number 1 letter a or letter b.

3. In the event that by the time this Financial Services Authority Regulation is promulgated, Participants and Beneficiaries have not received Pension Benefit payments due to obstacles in transferring Pension Benefit payments through the purchase of lifetime annuities from Insurance Companies, the payment as referred to in Article 72A paragraph (2) may be carried out.

4. At the time this Financial Services Authority Regulation takes effect, Article 36 paragraph (6) of Financial Services Authority Regulation Number 8/POJK.05/2018 concerning Pension Fund Financing (State Gazette of the Republic of Indonesia Year 2018 Number 84, Supplement to the State Gazette of the Republic of Indonesia Number 6212) is repealed and declared invalid.

5. This Financial Services Authority Regulation takes effect on the date of promulgation.

To ensure that everyone knows it, order the promulgation of this Financial Services Authority Regulation by placing it in the State Gazette of the Republic of Indonesia.

Established in Jakarta on December 11, 2020
CHAIRMAN OF THE COMMISSIONERS BOARD
FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA, signed
WIMBOH SANTOSO

Promulgated in Jakarta on December 16, 2020
MINISTER OF LAW AND HUMAN RIGHTS
REPUBLIC OF INDONESIA, signed
YASONNA H. LAOLY

STATE GAZETTE OF THE REPUBLIC OF INDONESIA YEAR 2020 NUMBER 289

EXPLANATION
OF
FINANCIAL SERVICES AUTHORITY REGULATION
OF THE REPUBLIC OF INDONESIA
NUMBER 60 /POJK.05/2020
CONCERNING
AMENDMENT TO FINANCIAL SERVICES AUTHORITY REGULATION NUMBER 5/POJK.05/2017 CONCERNING CONTRIBUTIONS, PENSION BENEFITS, AND OTHER BENEFITS ORGANIZED BY PENSION FUNDS

I. GENERAL
Financial Services Authority Regulation Number 5/POJK.05/2017 concerning Contributions, Pension Benefits, and Other Benefits Organized by Pension Funds is one of the legal bases for Pension Funds to provide Pension Benefits, including managing Other Benefits. However, to balance the benefits that continue to develop in the labor system and considering the condition of Pension Funds after the emergence of the Old Age Security Program and the mandatory Pension Guarantee Program, amendments are made to the aforementioned Financial Services Authority Regulation.

Amendments to the aforementioned Financial Services Authority Regulation include changing the provisions allowing Participants to receive the first Pension Benefit as a lump sum if stipulated in the Pension Fund Deed (PDP) and adding provisions regarding Other Benefits.

In relation to this matter, the Financial Services Authority establishes this Financial Services Authority Regulation, which is an amendment to Financial Services Authority Regulation Number 5/POJK.05/2017 concerning Contributions, Pension Benefits, and Other Benefits Organized by Pension Funds.

II. ARTICLE BY ARTICLE
Article I
Number 1
Article 1
It is clear enough.
Number 2
Article 10
It is clear enough.
Number 3
Article 13
Paragraph (1)
It is clear enough.
Paragraph (2)
It is clear enough.
Paragraph (3)
It is clear enough.
Paragraph (4)
It is clear enough.
Paragraph (5)
It is clear enough.
Paragraph (6)
What is meant by "carried out monthly" is monthly payments made by the Pension Fund Administrator (DPPK) administering the Pension Contribution Savings Program (PPMP) or monthly payments redirected through the purchase of a lifetime annuity from an Insurance Company. Number 4
Article 15
This provision can give Participants the option to receive a first payment of at most 20% (twenty percent) of the present value of Pension Benefits, for transition purposes at the beginning of retirement.

Number 5
Article 16
Paragraph (1)
It is clear enough.
Paragraph (2)
Deleted.
Paragraph (3)
It is clear enough.
Paragraph (4)
Deleted.
Paragraph (5)
It is clear enough.
Paragraph (6)
It is clear enough.
Paragraph (7)
It is clear enough.
Paragraph (8)
It is clear enough.
Number 6
Article 17
Paragraph (1)
What is meant by "written statement" is a voluntary statement from the Participant to increase contributions to increase the Pension Benefits that will be obtained.
Paragraph (2)
It is clear enough.
Paragraph (3)
It is clear enough.
Number 7
Article 20
Letter a
Documents proving that the Participant, widow/widower, or child are in a condition of severe illness and experiencing financial difficulties include among others a letter from a hospital showing the participant is severely ill and a self-declaration letter witnessed by a village or sub-district official stating that the participant is experiencing financial difficulties. Letter b Documents proving that the Participant, widow/widower, or child have changed citizenship include among others a passport issued by another country. Letter c Documents proving that the Participant, widow/widower, or child have ended their working period and are no longer working in Indonesia include among others a work contract with the employer or a statement letter stating that the person is no longer working in Indonesia. Number 8
Article 20A
It is clear enough.
Number 9
Article 25
It is clear enough.
Number 10
Article 31
Paragraph (1)
It is clear enough.
Paragraph (1a)
What is meant by managing assets according to the Participant's age group (life cycle fund) is investment placement adjusted to the age and time until retirement age of the Participant. For Participants who are relatively young and whose time until retirement is still long, assets are placed in long-term investments with higher return opportunities, whereas for Participants whose age is approaching retirement age, assets are placed in more conservative investments. Example application of managing assets according to the Participant's age group (life cycle fund) includes among others grouping asset management into 2 (two) Participant groups, namely:

1. assets for the group of Participants who have an age of more than 20 (twenty) years before normal retirement age are placed in long-term investments with higher investment return opportunities, so that they can be protected from the impact of inflation but with a higher level of risk; and
2. assets for the group of Participants who have an age of at most 20 (twenty) years and at least 5 (five) years before normal retirement age are placed in long-term investment instruments but with more conservative return and risk opportunities compared to the age group of more than 20 (twenty) years before normal retirement age.
   Paragraph (2)
   It is clear enough.
   Number 11
   Article 32
   This provision can give Participants the option to receive a first payment of at most 20% (twenty percent) of the present value of Pension Benefits, for transition purposes at the beginning of retirement. Number 12
   Article 33
   Paragraph (1)
   It is clear enough.

Paragraph (2)
Example simulation calculation of the Pension Fund Administrator (DPPK) administering the Pension Contribution Savings Program (PPIP) by adding the form of contribution in the form of stock ownership (employee stock ownership plan) adjusted to the example simulation contained in the latest Financial Accounting Standards Statement regarding share-based payments. Paragraph (3) Deleted. Paragraph (4) Deleted. Paragraph (5) It is clear enough. Paragraph (6) It is clear enough. Paragraph (7) It is clear enough. Paragraph (8) It is clear enough. Number 13
Article 37
Paragraph (1)
It is clear enough.
Paragraph (2)
It is clear enough.
Paragraph (3)
What is meant by "day" is calendar day.
Paragraph (4)
It is clear enough.
Number 14
Article 38
Paragraph (1)
What is meant by "widow/widower or child" in this provision includes the widow/widower or child of a Participant who died during the period of periodic Pension Benefit payments.
Paragraph (2)
It is clear enough.
Paragraph (3)
It is clear enough.
Paragraph (4)
It is clear enough.
Paragraph (5)
It is clear enough.
Paragraph (6)
It is clear enough.
Number 15
Article 40
It is clear enough.
Number 16
Article 43
It is clear enough.
Number 17
Article 47
Paragraph (1)
It is clear enough.
Paragraph (2)
Deleted.
Number 18
Article 47A
Paragraph (1)
In the implementation of this provision, the Pension Fund Administrator (DPLK) recommends managing assets according to the Participant's age group (life cycle fund) as the default (default) asset management choice before giving Participants the opportunity to determine the choice of asset management package. What is meant by managing assets according to the Participant's age group (life cycle fund) is investment placement adjusted to the age and time until retirement age of the Participant. For Participants who are relatively young and whose time until retirement is still long, assets are placed in long-term investments with higher return opportunities, whereas for Participants whose age is approaching retirement age, assets are placed in more conservative investments. Example application of managing assets according to the Participant's age group (life cycle fund) includes among others grouping asset management into 2 (two) Participant groups, namely:

1. assets for the group of Participants who have an age of more than 20 (twenty) years before normal retirement age are placed in long-term investments with higher investment return opportunities, so that they can be protected from the impact of inflation but with a higher level of risk; and
2. assets for the group of Participants who have an age of at most 20 (twenty) years and at least 5 (five) years before normal retirement age are placed in long-term investment instruments but with more conservative return and risk opportunities compared to the age group of more than 20 (twenty) years before normal retirement age.
   Paragraph (2)
   It is clear enough.
   Paragraph (3)
   It is clear enough.

Paragraph (4)
Example content of a written statement includes among others the Participant agrees with the chosen package or type of investment and the Participant realizes the risks of the chosen package or type of investment. Paragraph (5) It is clear enough. Number 19
Article 48
This provision can give Participants the option to receive a first payment of at most 20% (twenty percent) of the present value of Pension Benefits, for transition purposes at the beginning of retirement. Number 20
Article 49
Paragraph (1)
It is clear enough.
Paragraph (2)
Deleted.
Paragraph (3)
Deleted.
Paragraph (4)
It is clear enough.
Paragraph (5)
It is clear enough.
Number 21
Article 51
It is clear enough.
Number 22
Article 52
It is clear enough.

Number 23
Article 55
It is clear enough.
Number 24
It is clear enough.
Number 25
Article 58
Paragraph (1)
Other Benefits are an additional option for Participants.
Paragraph (2)
Letter a
What is meant by "children's education fund" is funds collected from the Employer and/or Participant used for the education costs of the Participant's child who has entered school age at a certain level. Letter b What is meant by "housing fund" is funds collected from the Employer and/or Participant used to pay the down payment or buy a house or apartment as a place of residence. Letter c What is meant by "religious worship fund" is funds collected from the Employer and/or Participant used for religious activities. Letter d What is meant by "disability benefit fund" is funds collected from the Employer and/or Participant paid in a lump sum for Participants who experience disability in the form of total and permanent disability that causes a person to no longer be able to perform work that provides a decent income according to education, expertise, skills, and experience. Letter e What is meant by "death benefit fund" is funds collected from the Employer and/or Participant used for the Participant's interests when the person dies such as burial costs and benefits to the Entitled Party. Letter f What is meant by "health benefit fund" is funds collected from the Employer and/or Participant used for payment of health costs for the Participant and/or the Entitled Party. Letter g What is meant by "post-employment compensation fund" is funds collected from the Employer and/or Participant used as post-employment compensation. Letter h What is meant by "additional benefit fund" is funds collected from the Employer and/or Participant paid to the Participant along with the results of its development. Paragraph (3) It is clear enough. Number 26
Article 58A
Paragraph (1)
It is clear enough.
Paragraph (2)
Letter a
It is clear enough.

Letter b
What is meant by "fund accumulation system" is the collection of funds from the Employer and/or Participant, so that it is sufficient to fulfill the Participant's rights.
Letter c
It is clear enough.
Paragraph (3)
It is clear enough.
Number 27
Article 59
It is clear enough.
Number 28
Article 60
Deleted.
Number 29
Article 61
Paragraph (1)
It is clear enough.
Paragraph (2)
Letter a
It is clear enough.
Letter b
What is meant by "pension guarantee program" is a pension guarantee program that is included in the social security program as referred to in the Law concerning the national social security system. Number 30
Article 63
It is clear enough.

Number 31
Article 65
Deleted.
Number 32
Article 66
Letter a
It is clear enough.
Letter b
It is clear enough.
Letter c
Deleted.
Letter d
It is clear enough.
Letter e
It is clear enough.
Letter f
It is clear enough.
Number 33
Article 67
It is clear enough.
Number 34
Article 68
Paragraph (1)
It is clear enough.
Paragraph (1a)
It is clear enough.
Paragraph (2)
It is clear enough.
Paragraph (3)
It is clear enough.
Paragraph (4)
What is meant by "stop working" is:
a. resigning;

b. termination of employment at the employer's wish;
c. death; or
d. permanent disability or severe illness that causes a person to be unable to work.
Paragraph (5)
It is clear enough.
Paragraph (6)
It is clear enough.
Number 35
Article 69
Paragraph (1)
It is clear enough.
Paragraph (2)
It is clear enough.
Paragraph (3)
It is clear enough.
Paragraph (4)
The handover of inactive funds to the Estate Office is accompanied by a handover report and attached with documents that at least include data of the Participant or Entitled Party.
Paragraph (5)
The Pension Fund Administrator (DPPK) and Pension Fund Administrator (DPLK) verify the data of the Participant or Entitled Party regarding the payment request by the Participant or Entitled Party to the Estate Office, or the determination of the Entitled Party over inactive funds through court determination or judgment. Number 36
Article 72
It is clear enough.

Number 37
Article 72A
It is clear enough.
Number 38
It is clear enough.
Number 39
It is clear enough.
Number 40
Article 73
Paragraph (1)
It is clear enough.
Paragraph (2)
It is clear enough.
Paragraph (3)
It is clear enough.
Paragraph (4)
Deleted.
Number 41
It is clear enough.
Number 42
Article 73A
Letter a
It is clear enough.
Letter b
What is meant by "key party" is a party that owns, manages, supervises, and/or has significant influence on the Pension Fund, including those who no longer own, manage, supervise, and/or have influence at the time of reassessment as referred to in the Financial Services Authority Regulation regarding reassessment for key parties of financial service institutions. Letter c It is clear enough.
Article II
It is clear enough.
SUPPLEMENT TO THE STATE GAZETTE OF THE REPUBLIC OF INDONESIA NUMBER 6598

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