Financial Services Authority Regulation Number 8 of 2018 Concerning Pension Fund Financing

FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA
COPY
FINANCIAL SERVICES AUTHORITY REGULATION
NUMBER 8 /POJK.05/2018
CONCERNING
PENSION FUND FINANCING
BY THE GRACE OF GOD THE ALMIGHTY,
THE COMMISSIONERS OF THE FINANCIAL SERVICES AUTHORITY, Considering: a. that in order to provide assurance of the continuity of participants' income at the time of retirement or for entitled parties in the event of a participant's death, the financing of pension programs must be conducted based on the principle of prudence; b. that with the permission for pension funds to manage and execute programs that provide pension benefits and other benefits to pension fund participants, regulations regarding the financing of such programs need to be established;
c. that based on the considerations mentioned in letters a and b, it is necessary to establish a Financial Services Authority Regulation concerning Pension Fund Financing;
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);

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);
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);
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);
DECIDING:
Decree: FINANCIAL SERVICES AUTHORITY REGULATION CONCERNING PENSION FUND FINANCING.

CHAPTER I
GENERAL PROVISIONS
Article 1
In this Financial Services Authority Regulation, the following terms are defined as:

Pension Fund is a legal entity that manages and executes programs promising pension benefits, including Pension Funds that conduct all or part of their business based on Sharia principles.
Employer Pension Fund, hereinafter abbreviated as DPPK, is a Pension Fund established by an individual or entity that employs employees, as the founder, to execute 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.
Financial Institution Pension Fund, hereinafter abbreviated as DPLK, is a Pension Fund established by a bank or life insurance company to execute a defined contribution pension program for individuals, both employees and self-employed workers, which is separate from the DPPK for employees of the respective bank or life insurance company.
Pension Fund Regulation, hereinafter abbreviated as PDP, is a regulation containing provisions that serve as the basis for the execution of pension programs.
Pension Benefit is periodic payment paid to participants at the time and in the manner determined in the PDP.
Defined Benefit Pension Program, hereinafter abbreviated as PPMP, is a pension program whose benefits are determined in the PDP or another pension program that is not a defined contribution pension program.
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 credited to each participant's account as Pension Benefits.
Other Benefits are benefit payments other than Pension Benefits that can be conducted by the Pension Fund and regulated in the PDP.
Other Benefits Program is a program that executes or provides Other Benefits conducted by the Pension Fund.
Defined Benefit Other Benefits Program, hereinafter abbreviated as PMLMP, is an Other Benefits Program whose benefits are determined in the PDP or an Other Benefits Program that is not a defined contribution Other Benefits Program.
Defined Contribution Other Benefits Program, hereinafter abbreviated as PMLIP, is an Other Benefits Program whose contributions are determined in the PDP and all contributions and their development results are credited to each participant's account as Other Benefits.
Founder is:
a. an individual or entity that establishes a DPPK; or b. a bank or life insurance company that establishes a DPLK.
Co-Founder is an employer that participates in a Founder's DPPK, for the benefit of some or all of its employees.
Employer is the Founder or Co-Founder that employs employees.
Management is the management of the Pension Fund.
Supervisory Board is the supervisory board of the Pension Fund.
Participant is any individual who meets the PDP requirements.
Financing Assets are the Pension Fund's assets calculated to determine the quality of the Pension Fund's financing.
Solvency Liability is the Pension Fund's obligation calculated based on the assumption that the Pension Fund is dissolved on the actuarial valuation date.
Actuarial Present Value is the Pension Fund's obligation calculated based on the assumption that the Pension Fund continues to operate until all obligations to Participants and entitled parties are fulfilled.
Surplus is the excess of Financing Assets over the Actuarial Present Value.
Deficit is the shortage of Financing Assets compared to the Actuarial Present Value.
Solvency Shortfall is the shortage of Financing Assets compared to Solvency Liability.
Funding Ratio is the result of dividing Financing Assets by the Actuarial Present Value.
Solvency Ratio is the result of dividing Financing Assets by Solvency Liability.
Fully Funded:
a. for Pension Funds executing a PPMP, is the state where the Pension Fund's Financing Assets are not less than its Actuarial Present Value; or b. for Pension Funds executing a PPIP, is the condition where the monthly due contributions have been deposited to the DPPK executing the PPIP.
Minimum Contribution is the contribution that must be deposited to the DPPK for pension program financing.
Participant Voluntary Contribution is additional contributions originating from DPPK Participants to increase Pension Benefits.
Normal Contribution is the contribution required in one year to finance the portion of the present value of Pension Benefits allocated to that year, calculated based on the larger amount between the Participant contribution amount determined in the PDP and the portion of the present value of Pension Benefits allocated to that year, according to the actuarial valuation method used.
Additional Contribution is the contribution deposited to settle Deficits.
Actuary is a consulting actuary who has obtained a registered certificate from the Financial Services Authority.
Actuarial Report is the report of actuarial valuation results prepared by an Actuary that serves as the basis for calculating contributions, payment of Pension Benefits, and/or Other Benefits.
Periodic Actuarial Report is an actuarial report submitted periodically to the Financial Services Authority, not for the approval of the establishment of a Pension Fund, changes to the PDP, or the dissolution of a Pension Fund.

CHAPTER II
FINANCING OF EMPLOYER PENSION FUNDS EXECUTING DEFINED BENEFIT PENSION PROGRAMS First Section Quality of Financing of Employer Pension Funds Executing Defined Benefit Pension Programs
Article 2
(1) The Management of a DPPK executing a PPMP is required to report the quality of PPMP financing periodically to the Financial Services Authority.
(2) The funding quality as referred to in paragraph (1) includes the following states:
a. first level, namely when the DPPK executing the PPMP is in a Fully Funded state; b. second level, namely when Financing Assets are less than the Actuarial Present Value and not less than Solvency Liability; and
c. third level, namely when Financing Assets are less than Solvency Liability.
Article 3
(1) The funding quality as referred to in Article 2 paragraph (1) is assessed based on actuarial valuation.
(2) The actuarial valuation as referred to in paragraph (1) is conducted by determining:
a. Solvency Liability; and b. Actuarial Present Value.
(3) Solvency Liability as referred to in paragraph (2) letter a is calculated based on the larger amount between the sum of Participant contributions plus their development results and the present value of Pension Benefits calculated based on the assumption that the Participant stops working on the actuarial valuation date and all have rights to the funds.

(4) Actuarial Present Value as referred to in paragraph (2) letter b is calculated based on the larger amount between Solvency Liability and the portion of the present value of Pension Benefits allocated to the period before the actuarial valuation date according to the actuarial valuation method used to determine Normal Contribution.
Article 4
(1) For the determination of funding quality as referred to in Article 2 paragraph (1), the Actuary must determine the amount of Financing Assets.
(2) Financing Assets as referred to in paragraph (1) are calculated from net assets minus:
a. assets in dispute in court, or controlled or seized by competent authorities; b. contributions, whether partially or fully, that on the actuarial valuation date have not been deposited to the DPPK for more than 3 (three) months since their due date; and
c. types of assets categorized as other receivables and other assets.
Article 5
(1) Net assets as referred to in Article 4 paragraph (2) are obtained from audited financial reports as of the actuarial valuation date if the Actuarial Report is prepared for:
a. Periodic Actuarial Report; b. dissolution of a DPPK executing a PPMP; and/or
c. changes to the PDP for changes in pension programs or those resulting in the transfer of assets from or to a DPPK executing a PPMP.
(2) In the event that there are no audited financial reports as of the actuarial valuation date as referred to in paragraph (1), the following provisions apply:

a. net assets as referred to in Article 4 paragraph (2) can be obtained from the financial report of the DPPK executing the PPMP signed by the Management if the Actuarial Report is prepared for changes to the PDP other than the purposes referred to in paragraph (1) letter c; and b. the Actuary must verify the data in the financial report used based on actuarial practice standards for Pension Funds applicable in Indonesia. (3) Financing Assets in the approval of the establishment of a DPPK executing a PPMP are determined as nil or calculated equal to the cash funds transferred to the DPPK executing the PPMP as determined by the Founder. Second Section Deficit and Surplus
Article 6
(1) The Actuary must determine Deficit or Surplus by comparing the Actuarial Present Value as referred to in Article 3 paragraph (2) letter b against Financing Assets as referred to in Article 4. (2) Deficit as referred to in paragraph (1) must be separated into:
a. the portion of Deficit calculated as Solvency Shortfall; and b. the portion of Deficit other than that calculated as Solvency Shortfall.
Article 7
(1) Each portion of Deficit as referred to in Article 6 paragraph (2) must be settled with Additional Contributions within a maximum period of:

a. 36 (thirty-six) months, for Deficit calculated as Solvency Shortfall; or b. 180 (one hundred eighty) months, for Deficit other than that calculated as Solvency Shortfall. (2) In the event that settlement as referred to in paragraph (1) is conducted in a lump sum, the Additional Contribution payment is determined equal to the portion of Deficit to be settled and must be conducted no later than 3 (three) months since:
a. receipt of the Periodic Actuarial Report containing the lump sum settlement of Deficit by the Financial Services Authority; or b. approval of the PDP by the Financial Services Authority. (3) In the event that settlement as referred to in paragraph (1) is conducted in a lump sum, Financing Assets in the Deficit calculation must consider all due contributions. (4) In the event that the deposit of Additional Contributions in a lump sum exceeds the time limit as referred to in paragraph (2), the Additional Contribution must be subject to reasonable interest or sanctions (ta'zir) in the form of a fine calculated since the actuarial valuation date. (5) In the event that settlement as referred to in paragraph (1) is conducted monthly, the amount of Additional Contribution each month is calculated such that the present value of the series of monthly Additional Contributions to be made during the installment period is equal to the amount of the corresponding portion of Deficit. (6) The Financial Services Authority may permit the extension of the settlement period for Deficit calculated as Solvency Shortfall as referred to in paragraph (1) letter a to a maximum of 5 (five) years if the Employer experiences financial difficulties.

Article 8
In the event that a new actuarial valuation shows that the present value of the remaining series of monthly Additional Contributions determined in the previous Actuary's statement is smaller than the corresponding Deficit determined on the actuarial valuation date, the difference must be settled with new Additional Contributions, the settlement of which is governed by the provisions as referred to in Article 7.
Article 9
(1) In the event that a new actuarial valuation shows that the present value of the remaining series of Additional Contributions for a specific portion of Deficit is larger than the corresponding portion of Deficit according to the new actuarial valuation determined on the actuarial valuation date, the corresponding portion of Deficit can be settled with new Additional Contributions. (2) In the event that new Additional Contributions to settle the portion of Deficit as referred to in paragraph (1) are conducted in a lump sum, the settlement of the new Additional Contributions is governed by the provisions as referred to in Article 7 paragraphs (2) to (4). (3) In the event that new Additional Contributions to settle the portion of Deficit as referred to in paragraph (1) are conducted monthly, new monthly Additional Contributions are calculated such that the present value of the series of new monthly Additional Contributions is equal to the corresponding portion of Deficit and meets the following provisions:
a. new monthly Additional Contributions are equal to or larger than previous monthly Additional Contributions, with a settlement period shorter than the remaining settlement period established in the previous Actuarial Report; or b. new monthly Additional Contributions are smaller than previous monthly Additional Contributions, with a settlement period equal to the remaining settlement period established in the previous Actuarial Report. (4) In the event that there are changes in actuarial assumptions and/or actuarial valuation methods that result in a decrease in Deficit or an increase in Surplus, the Actuarial Report must determine monthly Additional Contributions that are at least equal to the monthly Additional Contributions in the previous Actuarial Report. (5) In the event that there are changes in actuarial assumptions and/or actuarial valuation methods that result in an increase in Deficit or a decrease in Surplus, the Actuarial Report becomes effective as of the actuarial valuation date.
Article 10
(1) In the event that the Employer cannot make lump sum deposits of Additional Contributions as referred to in Article 7 paragraph (2) and Article 9 paragraph (1), within the established time limit, the Employer must make monthly Additional Contribution payments sufficient to cover the minimum financing needs reflected in the Actuary's statement. (2) In the event that the Employer does not make lump sum deposits of Additional Contributions as referred to in Article 7 paragraph (2) and Article 9 paragraph (2), the deposit of Additional Contributions is conducted monthly with a settlement period as referred to in Article 7 paragraph (1). (3) Late payment of monthly Additional Contributions as referred to in paragraph (2) must be subject to reasonable interest or sanctions (ta'zir) in the form of a fine calculated since the actuarial valuation date.
Article 11
Monthly Additional Contributions contain additional costs as a result of settling Deficits monthly, and these additional costs are an inseparable part of the monthly Additional Contributions in question.
Article 12
(1) In the event that the Actuarial Report shows a Surplus, the remaining monthly Additional Contributions not yet due on the new actuarial valuation date are cancelled. (2) Surplus as referred to in paragraph (1) can be used for:
a. settling contribution debts, both Employer Normal Contributions and Additional Contributions; b. paying due Employer Normal Contributions for periods after the actuarial valuation date;
c. funding Other Benefits Programs; and/or
d. assisting the financing of other Employers, in the event that the DPPK executing the PPMP has Co-Founders, and the Employer does not bear pension program costs evenly (non-sharing pension cost). (3) The use of Surplus to assist the financing of other Employers as referred to in paragraph (2) letter d can only be conducted if:
a. the Employer receiving financing assistance is a party legally affiliated with the Employer experiencing Surplus; and b. there is written approval from the Employer experiencing Surplus. (4) In the event that Surplus exceeds the larger amount between:
a. 20% (twenty percent) of the Actuarial Present Value; and b. the portion of Employer Normal Contribution plus 10% (ten percent) of the Actuarial Present Value, the excess Surplus must be calculated as Employer Normal Contribution.

(5) In the event that there are changes in actuarial assumptions and/or actuarial valuation methods that result in the existence of Surplus or an increase in Surplus, the Surplus or increase in Surplus cannot be calculated as Employer Normal Contribution. (6) In the event that there are changes in actuarial assumptions and/or actuarial valuation methods that result in a decrease in Surplus, the Surplus in question can still be calculated as Employer Normal Contribution. Third Section Minimum Contributions
Article 13
The Founder of a DPPK executing a PPMP is responsible for maintaining the DPPK in a Fully Funded state, or in the event that this state has not been reached, is responsible for ensuring that the DPPK gradually reaches a Fully Funded state.
Article 14
(1) Employers are required to pay and deposit Minimum Contributions to the DPPK executing the PPMP consisting of:
a. Normal Contribution; and b. Additional Contribution, in the event of a Deficit, according to the amount and time determined in the Actuary's statement.
(2) Additional Contributions as referred to in paragraph (1) letter b can consist of:
a. Additional Contributions to settle past service Deficit calculated as Solvency Shortfall; and/or b. Additional Contributions to settle past service Deficit other than that calculated as Solvency Shortfall.

Article 15
(1) The amount of Normal Contribution as referred to in Article 14 paragraph (1) letter a until the end of the first book year after the actuarial valuation date is determined by one of the following methods:
a. based on nominal value; or b. based on a percentage of basic pension income.
(2) The amount of Normal Contribution becoming the Employer's responsibility per month is determined as follows:
a. 1/12 (one-twelfth) of the nominal value as referred to in paragraph (1) letter a; or b. the percentage as referred to in paragraph (1) letter b multiplied by the monthly basic pension income. (3) In the event that there are Normal Contributions becoming the Participant's responsibility per month, the amount of contributions is calculated based on the provisions in the PDP. (4) The amount of Normal Contribution to be paid for years after the first book year as referred to in paragraph (1) is calculated based on a percentage of basic pension income as determined in the Actuary's statement.
Article 16
(1) Contributions becoming the Employer's responsibility determined in the Periodic Actuarial Report or in the approval of changes to the PDP for a DPPK executing a PPMP are paid starting from the actuarial valuation date. (2) Contributions becoming the Employer's responsibility determined in the Actuarial Report prepared for the approval of the establishment of a DPPK executing a PPMP are paid starting from the date of said approval. (3) The start of the settlement period for Deficit determined in the Actuarial Report prepared for the approval of the establishment of a DPPK executing a PPMP begins from the date of approval. (4) Before the Actuary's statement in the Periodic Actuarial Report is signed, Employer contributions to the DPPK executing the PPMP are paid in the amount of Employer contributions determined in the previous Actuary's statement. (5) Before the approval of changes to the PDP is granted, Employer contributions to the DPPK executing the PPMP are paid in the amount of Employer contributions determined in the previous Actuary's statement.
Article 17
(1) In the event that the amount of Employer contributions for a DPPK executing a PPMP based on the new Actuary's statement is larger than the amount of Employer contributions determined in the previous Actuary's statement, the contribution shortfall must be settled no later than 12 (twelve) months since the actuarial valuation date or 3 (three) months since the date of PDP approval. (2) In the event that the contribution shortfall is not settled within the time limit as referred to in paragraph (1), the deposit of the contribution shortfall must be subject to reasonable interest or sanctions (ta'zir) in the form of a fine calculated since the actuarial valuation date or the date of PDP approval. (3) In the event that the amount of Employer contributions for a DPPK executing a PPMP based on the new Actuary's statement is smaller than the amount of Employer contributions determined in the previous Actuary's statement, the excess contributions must be calculated as subsequent Employer contributions. (4) In the event that there are excess contributions as referred to in paragraph (3), the Employer is prohibited from paying contributions to the DPPK until all excess contributions are exhausted as Employer contributions. Fourth Section Participant Voluntary Contributions
Article 18
(1) In the event that a Participant of a DPPK executing a PPMP wishes to increase the amount of Pension Benefits to be received other than the Pension Benefits promised according to the formula in the PDP, the Participant can add contributions in the form of Participant Voluntary Contributions. (2) Participant Voluntary Contributions as referred to in paragraph (1) are based on a written statement from the Participant containing at least:
a. the contribution amount; b. the frequency of contribution payments; and
c. the date the contribution payments begin.
(3) The written statement from the Participant as referred to in paragraph (2) must be submitted to the Employer and the Management.
(4) The date the contribution payments begin as referred to in paragraph (2) letter c becomes effective no earlier than 1 (one) month since the written statement from the Participant as referred to in paragraph (2) is submitted to the Management. (5) The Management is required to compile and determine the mechanism for submitting the written statement from the Participant as referred to in paragraph (2) and its amendments.
Article 19
(1) Participant Voluntary Contributions as referred to in Article 18 paragraph (1) are paid to the DPPK through the Employer.

(2) In the event of Voluntary Participant Contributions as referred to in Article 18 paragraph (1), the Employer:
a. is the collector of Voluntary Participant Contributions; and b. is required to deposit Voluntary Participant Contributions to the DPPK.
(3) The Employer is required to deposit Voluntary Participant Contributions as referred to in paragraph (2) letter b no later than the 15th of the following month.

Article 20
(1) The DPPK Investment Policy (PDP) of a DPPK implementing a Defined Contribution Program (PPMP) must contain:
a. the mechanism for distributing the development results of Voluntary Participant Contributions to each Participant's account; and b. the mechanism for paying Pension Benefits originating from the accumulation of Voluntary Participant Contributions. (2) In the management of Voluntary Participant Contributions, the DPPK Investment Policy (PDP) of a DPPK implementing a PPMP may contain regulations regarding:
a. the separation of asset management sourced from Voluntary Participant Contributions; b. the Participant's right to determine the type or investment package of Voluntary Participant Contribution funds; and/or
c. fees charged to Participants for the management of Voluntary Participant Contribution funds.
(3) A DPPK implementing a PPMP is required to book Voluntary Participant Contributions separately from the accounting of Participant contributions that are part of the Mandatory Contribution. (4) A DPPK implementing a PPMP is required to provide information regarding the accumulation of Voluntary Participant Contributions to Participants at least every 3 (three) months.

Article 21
(1) In the event of Voluntary Contributions, the payment of Pension Benefits to which the Participant is entitled consists of Pension Benefits based on the formula in the PDP and the accumulation of Voluntary Participant Contributions. (2) The accumulation of Voluntary Participant Contributions as referred to in paragraph (1) may be paid in a lump sum.

CHAPTER III
FINANCING OF EMPLOYER PENSION FUNDS IMPLEMENTING DEFINED CONTRIBUTION PROGRAMS First Section Quality of Financing of Employer Pension Funds Implementing Defined Contribution Programs

Article 22
(1) A DPPK implementing a Defined Contribution Program (PPIP) is in a state of Fully Funded if the monthly Mandatory Contribution due has been deposited to the DPPK.
(2) The monthly Mandatory Contribution as referred to in paragraph (1) is the total contribution amount for all Participants, both originating from the Employer and Participants, as established in the PDP.

Second Section
Mandatory Contribution

Article 23
The Founder of a DPPK implementing a PPIP is responsible for ensuring that the DPPK remains in a Fully Funded state.

Article 24
(1) The amount of Mandatory Contribution for a DPPK implementing a PPIP, both originating from the Employer and Participants, is established in the PDP.
(2) The Mandatory Contribution originating from Participants as referred to in paragraph (1) does not include Voluntary Participant Contributions.
(3) The Employer is required to deposit the Mandatory Contribution as referred to in paragraph (1), both originating from the Employer and Participants, to the DPPK every month no later than the 15th of the following month. (4) In the event the Employer's Mandatory Contribution for a DPPK implementing a PPIP originates from a certain percentage of the Employer's profits, the Mandatory Contribution must be deposited to the DPPK every year. (5) The Employer's Mandatory Contribution as referred to in paragraph (4) must be deposited to the DPPK no later than 120 (one hundred twenty) days from the end of the Employer's fiscal year.

Third Section
Voluntary Participant Contributions

Article 25
(1) In the event a Participant of a DPPK implementing a PPIP wishes to increase their fund accumulation, the Participant may add contributions in the form of Voluntary Participant Contributions. (2) Voluntary Participant Contributions as referred to in paragraph (1) are based on a written statement from the Participant containing at least:
a. the contribution amount; b. the frequency of contribution payments; and
c. the date the payment of contributions begins.
(3) The written statement from the Participant as referred to in paragraph (2) must be submitted to the Employer and the Management.
(4) The date the payment of contributions begins as referred to in paragraph (2) letter c becomes effective no earlier than 1 (one) month from the date the written statement from the Participant as referred to in paragraph (2) is submitted to the Management. (5) The Management is required to formulate and establish the mechanism for submitting the written statement from the Participant as referred to in paragraph (2) and its amendments.

Article 26
(1) Voluntary Participant Contributions as referred to in Article 25 paragraph (1) are paid to the DPPK through the Employer.
(2) In the event of Voluntary Participant Contributions as referred to in Article 25 paragraph (1), the Employer:
a. is the collector of Voluntary Participant Contributions; and b. is required to deposit Voluntary Participant Contributions to the DPPK.
(3) The Employer is required to deposit Voluntary Participant Contributions as referred to in paragraph (2) letter b no later than the 15th of the following month.

Article 27
(1) In the event of Voluntary Contributions, the payment of Pension Benefits to which the Participant is entitled consists of Pension Benefits based on the formula in the PDP and the accumulation of Voluntary Participant Contributions. (2) The accumulation of Voluntary Participant Contributions as referred to in paragraph (1) may be paid in a lump sum.

Article 28
A DPPK implementing a PPIP is required to provide information regarding the accumulation of Participant funds to Participants at least every 3 (three) months.

Article 29
(1) The DPPK Investment Policy (PDP) of a DPPK implementing a PPIP must contain:
a. the mechanism for distributing the development results of Voluntary Participant Contributions to each Participant's account; and b. the mechanism for paying Pension Benefits originating from the accumulation of Voluntary Participant Contributions. (2) A DPPK implementing a PPIP is required to book Voluntary Participant Contributions separately from the accounting of Participant contributions that are part of the Mandatory Contribution. (3) The PDP may establish fees charged to Participants for the management of Voluntary Participant Contribution funds.

CHAPTER IV
FINANCING OF FINANCIAL INSTITUTION PENSION FUNDS

Article 30
(1) In pension program financing, the employer may pay contributions to the DPLK on behalf of employees.
(2) In the event the employer pays contributions as referred to in paragraph (1), the employer is required to state in writing their obligation to pay all contributions in cash. (3) The written statement as referred to in paragraph (2) must contain at least provisions regarding:
a. the contribution amount; and b. the contribution due date.
(4) In the event the written statement as referred to in paragraph (3) is amended and causes a decrease in the contribution amount, the written statement cannot apply retroactively. (5) The written statement as referred to in paragraph (3) and its amendments as referred to in paragraph (4) are submitted to the DPLK and announced to eligible employees.

Article 31
The DPLK is required to possess and administer the written statement as referred to in Article 30 paragraph (3) and its amendments as referred to in Article 30 paragraph (4).

Article 32
In the event the employer pays contributions to the DPLK as referred to in Article 30 paragraph (1), the employer is required to pay such contributions to the DPLK in accordance with the written statement as referred to in Article 30 paragraph (3) and its amendments as referred to in Article 30 paragraph (4).

Article 33
(1) Participants may pay contributions to the DPLK by:
a. direct deposit by the Participant to the DPLK; or b. deposit through the employer.
(2) In the event the Participant pays contributions to the DPLK directly as referred to in paragraph (1) letter a, the contribution amount is established in the written statement. (3) In the event the Participant pays contributions to the DPLK through the employer as referred to in paragraph (1) letter b, the Participant's contribution amount and the Participant's contribution due date must be stated in the employer's written statement as referred to in Article 30 paragraph (3). (4) The employer is required to deposit the Participant's contributions as referred to in paragraph (3) to the DPLK in accordance with the employer's written statement as referred to in Article 30 paragraph (3) and its amendments as referred to in Article 30 paragraph (4).

CHAPTER V
FINANCING OF OTHER BENEFIT PROGRAMS
First Section
Financing of Employer Pension Funds Implementing Defined Other Benefits Programs

Article 34
(1) In the event a DPPK implements a Defined Other Benefits Program (PMLMP), the financing of the PMLMP is the responsibility of the Employer.
(2) The Management of a DPPK implementing a PMLMP is required to calculate and report the sufficiency of PMLMP funds periodically to the Financial Services Authority.
(3) Fund sufficiency as referred to in paragraph (2) is assessed based on actuarial valuation by comparing:
a. the program asset value of the PMLMP; and b. the present value of potential PMLMP payments.
(4) Actuaries must establish the excess or deficiency of PMLMP financing by calculating the sufficiency of PMLMP funds as referred to in paragraph (3).
(5) The Employer is required to settle the PMLMP financing deficiency as referred to in paragraph (4) in accordance with the Actuarial Statement.
(6) PMLMP financing excess may be used to:
a. settle Employer contribution debts for the PMLMP; and/or b. pay Employer contributions for the PMLMP for periods after the actuarial valuation date.
(7) In the event there are changes in actuarial assumptions and/or actuarial valuation methods that result in PMLMP financing excess, an increase in PMLMP financing excess, or a decrease in PMLMP financing deficiency, the PMLMP financing required to be deposited to the DPPK must be at least equal to the financing established based on the previous actuarial valuation.

Article 35
(1) The PMLMP financing deficiency as referred to in Article 34 paragraph (5) must be settled with Employer contributions within a maximum period of 5 (five) years.
(2) The Financial Services Authority may permit an extension of the settlement period for the PMLMP financing deficiency as referred to in paragraph (1) if the Employer experiences financial difficulties.

Article 36
(1) Funding sources for a DPPK implementing a PMLMP are:
a. Employer contributions; b. Participant contributions; and/or
c. a certain percentage of the development results of the pension program.
(2) A DPPK implementing a PPIP is prohibited from using funding sources in the form of a certain percentage of the development results of the pension program as referred to in paragraph (1) letter c. (3) Funding sources in the form of a certain percentage of the development results of the pension program as referred to in paragraph (1) letter c may only be used by a DPPK implementing a PPMP with first-tier financing quality as referred to in Article 2 paragraph (2) letter a or second-tier as referred to in Article 2 paragraph (2) letter b. (4) A DPPK implementing a PMLMP may only use funding sources from a certain percentage of the development results of the pension program as referred to in paragraph (1) letter c if added with:
a. Employer contributions as referred to in paragraph (1) letter a; or b. Employer contributions as referred to in paragraph (1) letter a and Participant contributions as referred to in paragraph (1) letter b. (5) The mechanism for using the development results of the pension program as referred to in paragraph (1) letter c must be stated in the PDP. (6) In the event a DPPK provides PMLMP in the form of severance pay, the funding sources as referred to in paragraph (1) may only originate from Employer contributions.

Article 37
(1) In the event a DPPK implements a PMLMP, the PDP of the respective DPPK must contain the frequency and due dates for PMLMP contribution payments.
(2) The contribution frequency as referred to in paragraph (1) is at least once every 1 (one) year.

Article 38
(1) Contributions for financing a PMLMP implemented by a DPPK are established in the Actuarial Statement.
(2) Participant contributions as referred to in Article 36 paragraph (1) letter b are paid to the DPPK through the Employer.
(3) In the event there are Participant contributions as referred to in paragraph (2), the Employer:
a. is the collector of Participant contributions; and b. is required to deposit Participant contributions to the DPPK.

Article 39
The Employer is required to deposit PMLMP contributions implemented by the DPPK, both originating from the Employer and Participants, to the DPPK in accordance with the contributions established in the Actuarial Statement.

Second Section
Financing of Employer Pension Funds Implementing Defined Contribution Other Benefits Programs

Article 40
(1) In the event a DPPK implements a Defined Contribution Other Benefits Program (PMLIP), the financing of the PMLIP is the responsibility of the Employer.
(2) The Management of a DPPK implementing a PMLIP is required to calculate and report the sufficiency of PMLIP funds in the annual financial report.
(3) Fund sufficiency as referred to in paragraph (2) is assessed based on contributions deposited to the DPPK.

Article 41
(1) Funding sources for a DPPK implementing a PMLIP are:
a. Employer contributions; b. Participant contributions; and/or
c. a certain percentage of the development results of the pension program.
(2) A DPPK implementing a PPIP is prohibited from using funding sources in the form of a certain percentage of the development results of the pension program as referred to in paragraph (1) letter c. (3) Funding sources in the form of a certain percentage of the development results of the pension program as referred to in paragraph (1) letter c may only be used by a DPPK implementing a PPMP with first-tier financing quality as referred to in Article 2 paragraph (2) letter a or second-tier as referred to in Article 2 paragraph (2) letter b. (4) The mechanism for using the development results of the pension program as referred to in paragraph (1) letter c must be stated in the PDP.

Article 42
(1) Contributions for financing a PMLIP implemented by a DPPK are established in the PDP.
(2) Participant contributions as referred to in Article 41 paragraph (1) letter b are paid to the DPPK through the Employer.
(3) In the event there are Participant contributions as referred to in paragraph (2), the Employer:
a. is the collector of Participant contributions; and b. is required to deposit Participant contributions to the DPPK.
(4) The frequency and due dates for PMLIP contribution payments implemented by the DPPK are established in the PDP.

Article 43
The Employer is required to deposit PMLIP contributions implemented by the DPPK, both originating from the Employer and Participants, to the DPPK in accordance with the contributions established in the PDP.

Third Section
Financing of Financial Institution Pension Funds Implementing Other Benefits Programs

Article 44
(1) In the event a DPLK implements an Other Benefits Program, the financing of the Other Benefits Program is the responsibility of the employer and/or Participants.
(2) The responsibility of the employer and/or Participants for the DPLK as referred to in paragraph (1) is stated in a written statement.
(3) The written statement as referred to in paragraph (2) must contain at least provisions regarding:
a. the contribution amount; and b. the contribution due date.
(4) In the event the written statement as referred to in paragraph (3) is amended and causes a decrease in the contribution amount, the written statement in question cannot apply retroactively. (5) For the employer, the written statement as referred to in paragraph (3) and amendments as referred to in paragraph (4) are submitted to the DPLK and announced to eligible employees.

Article 45
The DPLK is required to possess and administer the written statement as referred to in Article 44 paragraph (3) and its amendments as referred to in Article 44 paragraph (4).

Article 46
(1) Participants may pay contributions for the Other Benefits Program to the DPLK by:
a. direct deposit by the Participant to the DPLK; or b. deposit through the employer.
(2) In the event the Participant pays contributions to the DPLK directly as referred to in paragraph (1) letter a, the contribution amount is established in the written statement as referred to in Article 44 paragraph (3) from the Participant. (3) In the event the Participant pays contributions to the DPLK through the employer as referred to in paragraph (1) letter b, the Participant's contribution amount and the Participant's contribution due date must be stated in the written statement as referred to in Article 44 paragraph (3) from the employer. (4) The employer is required to deposit the Participant's contributions as referred to in paragraph (3) and the employer's contributions in accordance with the written statement as referred to in Article 44 paragraph (3) and its amendments as referred to in Article 44 paragraph (4) to the DPLK.

Fourth Section
Management, Administration, and Accounting of Other Benefits Programs

Article 47
(1) Pension Funds are required to manage, administer, and account for Other Benefits Programs separately from the management, administration, and accounting of pension programs. (2) The separation of management, administration, and accounting of Other Benefits Programs as referred to in paragraph (1) is done for each type of Other Benefits as referred to in the Financial Services Authority Regulation regarding contributions, Pension Benefits, and Other Benefits implemented by Pension Funds.

CHAPTER VI
FINANCING OF EMPLOYER PENSION FUNDS IN SPECIAL CONDITIONS First Section Transfer of Funds from Employer Pension Funds to Other Employer Pension Funds

Article 48
(1) In the event a DPPK implementing a PPMP transfers funds to another DPPK and has a Solvency Deficiency, the transfer may only be implemented if the transfer to another DPPK is permitted by pension fund legislation. (2) In the event a DPPK implementing a PPMP transfers funds to another DPPK and has a Solvency Deficiency as referred to in paragraph (1) and the subsequent Actuarial Report shows a decrease in the Funding Ratio as a result of the fund transfer to another DPPK, the Employer is required to pay Additional Contributions in a lump sum to maintain the Funding Ratio as before the payment occurred. (3) The obligation to pay Additional Contributions as referred to in paragraph (2) is not required if the subsequent Actuarial Report shows that the DPPK does not have a Solvency Deficiency. (4) The provisions as referred to in paragraph (1) do not apply in the event the fund transfer is caused by the termination of a Founding Partner or the separation of the DPPK.

Second Section
Termination of Founding Partners of Employer Pension Funds Implementing Defined Benefit Pension Programs

Article 49
(1) In the event there is a termination of a Founding Partner in a DPPK implementing a PPMP, the amount of funds that are the rights of the Participants of the respective Founding Partner is established by the Actuary considering the DPPK's Solvency Ratio and the Employer's obligations that have become due to the DPPK. (2) In the event the Founding Partner as referred to in paragraph (1) still has obligations to Participants, the respective Founding Partner must still settle their obligations to Participants. (3) Obligations to Participants as referred to in paragraph (2) in the form of due contributions must be paid until the date of the written statement of termination of the Founding Partner. (4) The written statement of termination of the Founding Partner as referred to in paragraph (3) is addressed to the Founder. (5) Payment of Pension Benefits for retirees, widows/widowers, and/or children of the Founding Partner as referred to in paragraph (1) may be continued at the DPPK receiving the transfer or purchased as an annuity from a life insurance company. (6) Payment of Pension Benefits for retirees, widows/widowers, and/or children of the Founding Partner as referred to in paragraph (1) may be paid in a lump sum provided it does not exceed the value established by the Financial Services Authority as referred to in the Financial Services Authority Regulation regarding contributions, Pension Benefits, and Other Benefits implemented by Pension Funds.

Third Section
Changes to Pension Programs

Article 50
(1) In the event there is a change in the pension program at a DPPK from a PPMP to a PPIP, the Employer's obligation to Participants up to the date of the pension program change is at least equal to their Solvency Liabilities. (2) In the event the Employer as referred to in paragraph (1) still has obligations to meet Solvency Deficiencies and/or contribution debts to the DPPK, the respective Employer is required to fulfill such obligations in a lump sum no later than 1 (one) month since the PDP was approved. (3) In the event the DPPK as referred to in paragraph (1) has excess assets over liabilities, such excess assets are calculated as:
a. an addition to the Participant's initial account; and/or b. subsequent Employer contributions.

Article 51
(1) In the event a DPPK implementing a PPMP has changed to implementing a PPIP and at the time of the pension program change has assets in the form of:
a. assets in dispute in court, or controlled or seized by competent parties; b. contributions, either partially or fully, that have not been deposited to the DPPK implementing the PPMP as of the actuarial valuation date for more than 3 (three) months from their due date; and/or
c. types of assets categorized as other receivables and other assets,
such assets may only be used for future Employer contributions and/or increasing Participant balances.
(2) The use of assets for future Employer contributions and/or increasing Participant balances may only be done if such assets no longer meet the provisions as referred to in paragraph (1).

Article 52
(1) In the event there is a change in the pension program at a DPPK from a PPIP to a PPMP, the Pension Benefit formula in the PDP of the PPMP DPPK resulting from the program change must guarantee that Participant rights upon cessation of work are not less than:
a. the result of Participant fund accumulation on the date of the program change; and b. Participant contributions and their development results from the program change until the Participant is entitled to Pension Benefits. (2) In the event there is a change in the pension program at a DPPK from a PPIP to a PPMP, the PDP must contain the nominal balance value of each Participant as of the date of the program change based on financial reports audited by a public accountant. (3) A DPPK changing its program from a PPIP to a PPMP must conduct an actuarial valuation to determine PPMP contributions.

Fourth Section
Dissolution of Employer Pension Funds Implementing Defined Benefit Pension Programs

Article 53
(1) The determination of Assets for Financing for a DPPK implementing a PPMP that is dissolved is calculated based on the liquidation value of the DPPK's assets established by a public accountant. (2) The distribution of DPPK assets to Participants, retirees, widows/widowers, children, and other entitled parties is established by the Actuary and distributed pro-rata according to their Solvency Liabilities. (3) In the event there is still excess assets after all obligations to Participants, retirees, widows/widowers, children, and other entitled parties are settled, such excess must be used to increase Pension Benefits for Participants, retirees, widows/widowers, children, and other entitled parties up to the maximum limit established by the Financial Services Authority as referred to in the Financial Services Authority Regulation regarding contributions, Pension Benefits, and Other Benefits implemented by Pension Funds. (4) In the event there is still excess assets after the increase in Pension Benefits as referred to in paragraph (3), such excess must be distributed in a lump sum to Participants, retirees, widows/widowers, children, and other entitled parties to Pension Benefits, proportionally in line with the amount of Pension Benefits entitled to each party.

(5) In the event that the remaining assets are insufficient to meet obligations to Participants, pensioners, widows/widowers, children, and other entitled parties, Pension Benefits for Participants, pensioners, widows/widowers, children, and other entitled parties shall be reduced proportionally, so that the total amount of obligations to such parties equals the remaining assets of the DPPK.

Article 54
(1) In the event that a DPPK administering a PPMP is dissolved and the Employer has contribution arrears to the DPPK, the contribution arrears that the Employer is required to pay shall be equal to the amount of such contribution arrears. (2) In the event that a DPPK administering a PPMP is dissolved and the Employer has contribution arrears to the DPPK greater than the Solvency Shortfall, the contribution arrears that the Employer is required to pay shall be at least equal to the Solvency Shortfall, provided that the Employer experiences financial difficulties.

Fifth Section
Merger and Separation of Employer Pension Funds

Article 55
(1) In the event that a DPPK merger occurs due to the merger of Employers, the Employer receiving the merger is required to be responsible for the Minimum Contributions that must be deposited prior to the merger. (2) In the event that a DPPK merger occurs not due to the merger of Employers, each Employer is required to be responsible for the Minimum Contributions that must be deposited prior to the merger. (3) In the event that a DPPK administering a PPMP intends to conduct a merger and has a Solvency Shortfall, there must be an Employer responsible for obligations related to the Service Period of Participants, as stipulated in the PDP before the merger takes effect.

Article 56
(1) An Employer that separates a DPPK is required to be responsible for the Minimum Contributions that must be deposited prior to the separation.
(2) Responsibility for Minimum Contributions as referred to in paragraph (1) extends until the date of the Employer's statement of separation.
(3) In the event that the separation of a DPPK administering a PPMP results in the formation of a DPPK administering a PPIP and the Employer intending to separate has an asset excess over Solvency Liabilities and contribution arrears, the aforementioned Employer is required to fulfill such obligations simultaneously. (4) In the event that the separation of a DPPK administering a PPMP results in the formation of a DPPK administering a PPIP and the Employer intending to separate has an asset excess over Solvency Liabilities, such asset excess shall be calculated as:
a. an addition to the Participant's initial account; and/or b. the Employer's next contribution.

CHAPTER VII
ACTUARIAL REPORTS

First Section
Obligation to Prepare Actuarial Reports

Article 57
DPPKs administering PPMPs, Pension Funds administering PPIPs and making periodic Pension Benefit payments, and DPPKs administering PMLMPs are required to prepare and submit Actuarial Reports to the Financial Services Authority in accordance with the provisions of this Financial Services Authority Regulation.

Article 58
(1) In the event that the content of the Actuarial Report does not comply with the provisions of this Financial Services Authority Regulation, resulting in incorrect information regarding the Employer's obligation to finance the pension program or Other Benefits Program, the Financial Services Authority may order the Board of Trustees to submit a new Actuarial Report. (2) The actuarial valuation date used in the new Actuarial Report as referred to in paragraph (1) shall be determined by the Financial Services Authority. (3) In the event that the same Actuary cannot or is unwilling to create a new Actuarial Report in accordance with the provisions of this Financial Services Authority Regulation, the Board of Supervisors is prohibited from appointing such Actuary to prepare Actuarial Reports for subsequent periods.

Second Section
Actuarial Reports for Employer Pension Funds Administering Defined Benefit Pension Programs

Article 59
(1) DPPKs administering PPMPs as referred to in Article 57 are required to conduct actuarial valuations at least every 3 (three) years or whenever there are changes to the PDP. (2) Actuarial Reports in actuarial valuations as referred to in paragraph (1) must contain at least:
a. the Actuarial Statement; b. the actuarial valuation date reported and the previous actuarial valuation date;
c. the purpose of preparing the Actuarial Report;
d. a summary of the PDP and changes that have occurred in the PDP since the previous actuarial valuation date; e. a summary of the number of Participants and the number of entitled parties along with changes that have occurred since the previous actuarial valuation date; f. the actuarial valuation method used, accompanied by an explanation regarding the selection of such method; g. the actuarial assumptions used in calculating obligations and changes from those used in the previous actuarial valuation, accompanied by an explanation regarding the selection and changes of such assumptions; h. the Funding Asset Value;
i. an analysis of changes in Surplus or Deficit;
j. the overall results of the actuarial valuation, both for the actuarial valuation date reported and previously; k. the name and address of the Actuary and an explanation of whether the Actuary concerned also signed the Actuarial Statement in the previous Actuarial Report; and
l. a projection of the monthly Actuarial Present Value for at least the first 3 (three) years.
(3) In the event that DPPKs administering PPMPs as referred to in Article 57 have third-tier funding quality as referred to in Article 2 paragraph (2) letter c, the Actuarial Present Value projection as referred to in paragraph (2) letter l that is included represents the monthly Actuarial Present Value projection for the next 1 (one) year.

Article 60
(1) The actuarial valuation date for Actuarial Reports prepared for the approval of the formation of DPPKs administering PPMPs is the date of the written statement of the Founder regarding the Formation of the DPPK. (2) The actuarial valuation date for Actuarial Reports prepared for the dissolution of DPPKs administering PPMPs is the effective date of the dissolution of the DPPK. (3) The actuarial valuation date for Actuarial Reports prepared in the application for approval of changes to the PDP related to PPMP financing is at most 3 (three) months before the date of the PDP change application. (4) The actuarial valuation date for Periodic Actuarial Reports for DPPKs administering PPMPs is as of December 31.

Article 61
(1) In the event that the results of the actuarial valuation show that the DPPK administering the PPMP has third-tier funding quality, the DPPK is required to conduct the next actuarial valuation at the latest for the position 1 (one) year from the date the actuarial valuation was conducted. (2) In the event that the actuarial valuation as referred to in paragraph (1) is conducted for a position after June 30, the next actuarial valuation may be conducted at the latest at the end of the following fiscal year.

Article 62
(1) The Actuarial Statement as referred to in Article 59 paragraph (2) letter a must contain:
a. a statement that the data received by the Actuary, to the best of their knowledge, is complete and accountable for the purpose of preparing the Actuarial Report, and for that purpose, testing has been conducted to assess its reliability; b. a statement that the Actuarial Report in question:

complies with regulations in the field of Pension Funds;
has met the Employer's requirements;
has been prepared based on the PDP; and
has been prepared based on actuarial practice standards for Pension Funds applicable in Indonesia;
c. an affirmation regarding the Actuarial Present Value, Solvency Liabilities, Funding Assets, Surplus or Deficit, Solvency Ratio, Funding Ratio, and funding quality;
d. an affirmation regarding:
the amount of Normal Contributions that must be paid until the end of the first fiscal year after the actuarial valuation date, detailed for the portion to be paid by Participants and Employers;
the percentage of Normal Contributions against the basic pensionable income for the year after the fiscal year as referred to in number 1, up to the submission of the next Actuarial Report;
the portion of Normal Contributions whose fulfillment becomes the responsibility of the Employer that can be paid from Surplus that occurs, along with its usage period; and
e. an affirmation regarding the amount of Additional Monthly Contributions and their payment period.
(2) In the event that the DPPK administering the PPMP has Co-Founders, and the Employer does not intend to bear the financing of the pension program evenly (non-sharing pension cost), the Actuarial Statement must contain affirmations as referred to in paragraph (1) letters c through e for each Employer. (3) Actuarial Statements prepared for the approval of PDP changes or transfer of membership must contain information as referred to in paragraph (1) letters c through e for the state before and after the implementation of such changes.

Article 63
(1) Actuarial Reports as referred to in Article 59 paragraph (2) must be completed with a statement of the Founder signed by the Founder.
(2) The Founder's statement as referred to in paragraph (1) must contain:
a. a statement that the data and PDP submitted to the Actuary are complete and correct; b. a statement that the Founder is capable of paying contributions in accordance with the minimum financing stipulated in the Actuarial Statement; and
c. a statement that the Founder intends to use Surplus as referred to in Article 12 paragraph (1) to reduce Employer Normal Contributions, in the event there is Surplus.
(3) In the event that the DPPK administering the PPMP has Co-Founders, the DPPK is required to have statements as referred to in paragraph (2) letter b from each Co-Founder for each actuarial valuation as referred to in Article 59. (4) In the event that the DPPK administering the PPMP has Co-Founders, and the Employer intends to bear the financing of the pension program evenly (sharing pension cost), the Founder's statement as referred to in paragraph (2) letter c must contain an affirmation regarding the use of Surplus representing the statement of all Employers. (5) In the event that the DPPK administering the PPMP has Co-Founders, and the Employer does not intend to bear the financing of the pension program evenly (non-sharing pension cost), the Founder's statement as referred to in paragraph (2) letter c must contain an affirmation regarding the use of Surplus for each Employer that experiences Surplus. (6) In the event that the DPPK administering the PPMP has Co-Founders, and the Employer does not intend to bear the financing of the pension program evenly (non-sharing pension cost), the DPPK may conduct the transfer of part or all of the Surplus (sharing asset) among Employers with the provision that the Employer conducting the transfer of part or all of the Surplus (sharing asset) must still maintain the condition of Funded Status.

Third Section
Actuarial Reports for Pension Funds Administering Defined Contribution Pension Programs and Making Periodic Pension Benefit Payments

Article 64
(1) Pension Funds administering PPIPs and making periodic Pension Benefit payments as referred to in Article 57 are required to conduct actuarial valuations at least every 3 (three) years. (2) Actuarial Reports in actuarial valuations as referred to in paragraph (1) are first submitted to the Financial Services Authority at the time of submitting the PDP change application for the implementation of periodic Pension Benefit payments. (3) Actuarial Reports in actuarial valuations as referred to in paragraph (1) must contain at least:
a. the Actuarial Statement; b. the actuarial valuation date reported and the previous actuarial valuation date;
c. the purpose of preparing the Actuarial Report;
d. a summary of the PDP, including payment patterns and normal retirement age; e. a summary of the number of Participants, widows/widowers, and children choosing periodic Pension Benefit payments; f. the interest rate used; g. cash flow projections; h. analysis of actuarial gain or loss;
i. analysis of investment results and costs;
j. conversion tables; and k. conclusions and recommendations.
(4) The Actuarial Statement as referred to in paragraph (3) letter a must contain:
a. a statement that the data received by the Actuary, to the best of their knowledge, is complete and accountable for the purpose of preparing the Actuarial Report, and for that purpose, testing has been conducted to assess its reliability; and b. a statement that the Actuarial Report in question:

complies with regulations in the field of Pension Funds;
has met the Employer's requirements;
has been prepared based on the PDP; and
has been prepared based on actuarial practice standards for Pension Funds applicable in Indonesia.
(5) The actuarial valuation date for Periodic Actuarial Reports for Pension Funds administering PPIPs and making periodic Pension Benefit payments is as of December 31.

Fourth Section
Actuarial Reports for Employer Pension Funds Administering Defined Benefit Other Benefits Programs

Article 65
(1) DPPKs administering PMLMPs as referred to in Article 57 are required to conduct actuarial valuations at least every 3 (three) years or whenever there are changes to the PDP. (2) Actuarial Reports in actuarial valuations as referred to in paragraph (1) are first submitted to the Financial Services Authority at the time of submitting the PDP change application for the implementation of PMLMP. (3) Actuarial Reports in actuarial valuations as referred to in paragraph (1) must contain at least:
a. the Actuarial Statement; b. the actuarial valuation date reported and the previous actuarial valuation date;
c. the purpose of preparing the Actuarial Report;
d. a summary of the PDP and changes that have occurred in the PDP since the previous actuarial valuation date; e. a summary of the number of Participants and the number of entitled parties to Other Benefits along with changes that have occurred since the previous actuarial valuation date; f. the actuarial valuation method used, accompanied by an explanation regarding the selection of such method; g. the actuarial assumptions used in calculating obligations and changes from those used in the previous actuarial valuation, accompanied by an explanation regarding the selection and changes of such assumptions; h. the program asset value of the PMLMP;
i. an explanation of the determination of the PMLMP program asset value;
j. the overall results of the actuarial valuation, both for the actuarial valuation date reported and previously; k. an analysis of changes in PMLMP funding adequacy;
l. the name and address of the Actuary and an explanation of whether the Actuary concerned also signed the Actuarial Statement in the previous Actuarial Report; and
m. a projection of the present value of potential Other Benefit payments semi-annually for at least the first 3 (three) years.

Article 66
(1) The actuarial valuation date for Actuarial Reports prepared in the application for approval of changes to the PDP related to PMLMP financing is at most 3 (three) months before the date of the PDP change application. (2) The actuarial valuation date for Periodic Actuarial Reports is as of December 31.

Article 67
(1) The Actuarial Statement as referred to in Article 65 paragraph (3) letter a must contain:
a. a statement that the data received by the Actuary, to the best of their knowledge, is complete and accountable for the purpose of preparing the Actuarial Report, and for that purpose, testing has been conducted to assess its reliability; b. a statement that the Actuarial Report in question:

complies with regulations in the field of Pension Funds;
has met the Employer's requirements;
has been prepared based on the PDP; and
has been prepared based on actuarial practice standards for Pension Funds applicable in Indonesia;
c. an affirmation regarding the program asset value of the PMLMP, the present value of potential Other Benefit payments, and PMLMP funding adequacy; and
d. an affirmation regarding the amount of financing needed in the implementation of PMLMP.
(2) In the event that the DPPK administering the PMLMP has Co-Founders, and the Employer does not intend to bear the financing of the pension program evenly (non-sharing pension cost), the Actuarial Statement must contain affirmations as referred to in paragraph (1) letters c and d for each Employer. (3) Actuarial Statements prepared for the approval of PDP changes or transfer of membership must contain information as referred to in paragraph (1) letters c and d for the state before and after the implementation of such changes.

Article 68
(1) Actuarial Reports as referred to in Article 65 paragraph (3) must be completed with a statement of the Founder signed by the Founder.
(2) The Founder's statement as referred to in paragraph (1) must contain:
a. a statement that the data and PDP submitted to the Actuary are complete and correct; b. a statement that the Founder is capable of paying contributions in accordance with the minimum financing stipulated in the Actuarial Statement; and
c. a statement that the Founder intends to use the PMLMP funding excess that occurs to reduce PMLMP contributions, in the event there is a PMLMP funding excess.
(3) In the event that the DPPK administering the PMLMP has Co-Founders, Actuarial Reports as referred to in Article 65 paragraph (3) must be completed with statements as referred to in paragraph (2) letter b for each Co-Founder, signed by the Co-Founder. (4) In the event that the DPPK administering the PMLMP has Co-Founders, and the Employer intends to bear the financing of the pension program evenly (sharing pension cost), the Founder's statement as referred to in paragraph (2) letter c must contain an affirmation regarding the use of PMLMP funding excess representing the statement of all Employers. (5) In the event that the DPPK administering the PMLMP has Co-Founders, and the Employer does not intend to bear the financing of the pension program evenly (non-sharing pension cost), the Founder's statement as referred to in paragraph (2) letter c must contain an affirmation regarding the use of PMLMP funding excess for each Employer that experiences PMLMP funding excess. (6) In the event that the DPPK administering the PMLMP has Co-Founders and does not bear the financing of the pension program evenly (non-sharing pension cost), the Pension Fund may conduct the transfer of part or all of the PMLMP funding excess (sharing asset) among Employers with the provision that the Employer conducting the transfer of part or all of the PMLMP funding excess (sharing asset) must still maintain PMLMP funding adequacy.

Article 69
Actuarial Reports from DPPKs administering PPMPs and administering PMLMPs must include information regarding the general funding condition of the DPPK, which must contain at least:
a. assets; b. liabilities;
c. funding position;
d. funding quality; and e. funding ratio.

Fifth Section
Actuarial Practice Standards

Article 70
(1) Actuarial practice standards applicable in Indonesia as referred to in Article 5 paragraph (2) letter c, Article 62 paragraph (1) letter b number 4, Article 64 paragraph (4) letter b number 4, and Article 67 paragraph (1) letter b number 4 are actuarial practice standards established by the Actuary Association recognized by the Ministry of Finance. (2) Actuarial practice standards as referred to in paragraph (1) for actuarial valuations of DPPKs administering PPMPs must regulate the determination of technical interest rates fairly.

Sixth Section
Submission of Actuarial Reports

Article 71
(1) Pension Funds are required to submit every Actuarial Report that serves as the basis for determining Employer contributions to the Financial Services Authority.
(2) The submission of Actuarial Reports as referred to in paragraph (1) must be the original report accompanied by electronic data identical to the data in such Actuarial Report. (3) Actuarial Reports as referred to in paragraph (1) are submitted in computer printout form (hardcopy) to:
Executive Head of Insurance, Pension Fund, Financing Institutions, and Other Financial Services Supervision of the Financial Services Authority u.p. Director of Pension Fund and Manpower Social Security Supervision Wisma Mulia 2 Building Jalan Jenderal Gatot Subroto Number 42 Jakarta 12710. (4) The submission of Actuarial Reports as referred to in paragraph (1) is also submitted to the Financial Services Authority online through the Financial Services Authority's data communication network system. (5) In the event that the Financial Services Authority's data communication network system:
a. is not yet available; or b. experiences technical disturbances, Actuarial Reports as referred to in paragraph (4) are submitted in softcopy form offline.
(6) The submission of Actuarial Reports in softcopy form offline as referred to in paragraph (5) is conducted via official email (email) at LB.DanaPensiun@ojk.go.id.
(7) In the event that the Financial Services Authority experiences technical disturbances on the Financial Services Authority's data communication network system as referred to in paragraph (5) letter b, the Financial Services Authority announces this through the Financial Services Authority's website on the same day the technical disturbance occurs. (8) The submission of Actuarial Reports as referred to in paragraph (3) is conducted by one of the following methods:
a. handed directly to the Financial Services Authority office; or b. sent through a courier service company.
(9) A Pension Fund is deemed to have submitted the Actuarial Report with the following provisions:
a. for online submission through the Financial Services Authority's data communication network system, proven by a receipt from the Financial Services Authority; or b. for offline submission, proven by:

a receipt letter from the Financial Services Authority, if the report is handed directly as referred to in paragraph (8) letter a; or
a shipping receipt from the courier service company, if the report is sent through a courier service company as referred to in paragraph (8) letter b.
(10) In the event of a change in the address of the Financial Services Authority office for report submission as referred to in paragraph (3), the Financial Services Authority will convey notification regarding the address change via letter or announcement through the Financial Services Authority's website.

Article 72
The submission of Actuarial Reports for the approval of Pension Fund formation or the approval of PDP changes serves as the basis for determining the obligation to submit subsequent Actuarial Reports.

Article 73
Pension Funds are required to submit Periodic Actuarial Reports to the Financial Services Authority at the latest by April 30 of the following year.

CHAPTER VIII
OTHER PROVISIONS

Article 74
(1) Pension Funds administering PPIPs may pay Pension Benefits periodically to Participants and widows/widowers or children for a certain period.
(2) The mechanism for periodic Pension Benefit payments as referred to in paragraph (1) is stipulated in the PDP.
(3) The implementation of periodic Pension Benefit payments as referred to in paragraph (1) must be carried out with the approval of Participants, widows/widowers, or children before the first Pension Benefit payment is made. (4) The approval of Participants, widows/widowers, or children as referred to in paragraph (3) must be conducted in writing containing at least:
a. the mechanism for Pension Benefit payments chosen by the Participant, widow/widower, or child;

b. the period of periodic payment of Pension Benefits; and
c. a statement that the Participant, widow/widower, or child is aware of the risks associated with the periodic payment of Pension Benefits.
(5) In the event that the periodic payment of Pension Benefits ends, and the reserve fund for the purchase of a lifetime annuity is insufficient, such reserve fund may be paid out as a lump sum to the Participant, widow/widower, or child.

CHAPTER IX
ADMINISTRATIVE SANCTIONS

Article 75
Violations of the provisions as referred to in Article 2 paragraph (1), Article 12 paragraph (3) and (4), Article 14 paragraph (1), Article 17 paragraph (4), Article 18 paragraph (5), Article 19 paragraph (2) letter b and paragraph (3), Article 20 paragraph (3) and (4), Article 24 paragraph (3), (4), and (5), Article 25 paragraph (5), Article 26 paragraph (2) letter b and paragraph (3), Article 28, Article 29 paragraph (2), Article 30 paragraph (2), Article 31, Article 32, Article 33 paragraph (3) and (4), Article 34 paragraph (2) and (5), Article 36 paragraph (2), (3), (4), and (6), Article 38 paragraph (3) letter b, Article 39, Article 40 paragraph (2), Article 41 paragraph (2) and (3), Article 42 paragraph (3) letter b, Article 43, Article 45, Article 46 paragraph (3) and (4), Article 47 paragraph (1), Article 48 paragraph (1) and (2), Article 49 paragraph (3), Article 50 paragraph (2), Article 51, Article 53 paragraph (3) and (4), Article 54, Article 55 paragraph (1) and (2), Article 56 paragraph (1) and (3), Article 57, Article 58 paragraph (3), Article 59 paragraph (1), Article 61 paragraph (1), Article 63 paragraph (3), Article 64 paragraph (1), Article 65 paragraph (1), Article 69, Article 71 paragraph (1), Article 73, Article 74 paragraph (3) and (4) of this Financial Services Authority Regulation shall be subject to administrative sanctions in the form of:
a. written warning; b. implementation of a re-evaluation of competence and propriety for the Board of Directors, Board of Supervisors, and/or Acting Board of Directors; and/or
c. dissolution of the Pension Fund.

Article 76
(1) A Pension Fund that violates the provisions as referred to in Article 75 but such violation has been resolved, shall still be subject to the first written warning sanction which expires automatically. (2) Administrative sanctions in the form of written warnings as referred to in Article 75 letter a may be given for a maximum of 3 (three) consecutive times with a validity period of maximum 1 (one) month each, namely:
a. first written warning; b. second written warning; and
c. third written warning.
(3) In the event that by the end of the validity period of the third written warning as referred to in paragraph (2) letter b, the Pension Fund has not yet fulfilled the provisions as referred to in paragraph (1), the Board of Directors, Board of Supervisors, and/or Acting Board of Directors shall be subject to a re-evaluation of competence and propriety.

Article 77
In the event that a Pension Fund receives administrative sanctions in the form of written warnings as referred to in Article 75 letter a cumulatively as many as 5 (five) times or more within a period of 2 (two) years, the Financial Services Authority may request the Board of Directors, Board of Supervisors, and/or Acting Board of Directors to undergo a re-evaluation of competence and propriety.

Article 78
(1) The Financial Services Authority may impose sanctions in the form of dissolution of the Pension Fund as referred to in Article 75 letter c, in the event that violations of this Financial Services Authority Regulation are assessed as endangering the interests of Participants and/or entitled parties. (2) The imposition of sanctions for the dissolution of the Pension Fund as referred to in paragraph (1) may be carried out without prior imposition of other sanctions.

CHAPTER X
TRANSITIONAL PROVISIONS

Article 79
In the event that a Employer-Sponsored Pension Fund (DPPK) implementing a Defined Benefit Program (PPMP) has implemented Other Benefit Programs prior to the enforcement of the Financial Services Authority Regulation Number 5/POJK.05/2017 concerning Contributions, Pension Benefits, and Other Benefits Implemented by Pension Funds, and the funding mechanism for such Other Benefit Programs is sourced from Surplus, upon the enforcement of this Financial Services Authority Regulation, the relevant Pension Fund may continue to implement such funding mechanism for the Other Benefit Program.

CHAPTER XI
CLOSING PROVISIONS

Article 80
Upon the enforcement of this Financial Services Authority Regulation, provisions concerning Pension Fund financing shall be subject to this Financial Services Authority Regulation.

Article 81
This Financial Services Authority Regulation shall come into force on the date of its promulgation.

This copy is in accordance with the original
Director of Law 1
Legal Department signed
Yuliana

To ensure that everyone knows it, it is ordered to promulgate this Financial Services Authority Regulation by placing it in the State Gazette of the Republic of Indonesia. Determined in Jakarta on 30 May 2018 CHAIRMAN OF THE COMMISSIONERS BOARD FINANCIAL SERVICES AUTHORITY, signed WIMBOH SANTOSO

Promulgated in Jakarta on 31 May 2018
MINISTER OF LAW AND HUMAN RIGHTS
REPUBLIC OF INDONESIA, signed
YASONNA H. LAOLY

STATE GAZETTE OF THE REPUBLIC OF INDONESIA YEAR 2018 NUMBER 84

EXPLANATION
OF
FINANCIAL SERVICES AUTHORITY REGULATION
NUMBER 8 /POJK.05/2018
CONCERNING
PENSION FUND FINANCING

I. GENERAL
Based on Law Number 11 of 1992 concerning Pension Funds, the implementation of pension programs is carried out through a fund accumulation system or a funding system. Thus, Pension Funds as organizers of pension programs need to maintain the availability of their funds to fulfill their obligations to Participants or entitled parties.

Existing provisions require the Founder to ensure that the Pension Fund is in a Fully Funded state. To achieve this condition, Employers have an obligation to pay contributions to the Pension Fund. Provisions regarding financing for Employer-Sponsored Pension Funds (DPPK) are stipulated in the Minister of Finance Decision Number 510/KMK.06/2002 concerning Financing and Solvency of Employer Pension Funds (KMK 510) as last amended by the Minister of Finance Regulation Number 21/PMK.010/2012 concerning the Second Amendment to the Minister of Finance Decision Number 510/KMK.06/2002 concerning Financing and Solvency of Employer Pension Funds (hereinafter referred to as KMK 510 and its amendments).

In recent years, there have been significant changes in the external environment of Pension Funds that generally affect the funding conditions of Pension Funds. One important change during that period is the trend of transferring the management of DPPKs implementing PPMPs to DPLKs. In the last 5 (five) years, many DPPKs implementing PPMPs have dissolved and then transferred their employees' pension programs to DPLKs.

Another change that impacts Pension Fund financing is the issuance of the Financial Services Authority Regulation Number 5/POJK.05/2017 concerning Contributions, Pension Benefits, and Other Benefits Implemented by Pension Funds (POJK 5/2017). This Financial Services Authority Regulation permits Pension Funds to implement programs that provide Other Benefits. To date, the funding mechanism for such Other Benefit Programs has not been regulated. Another matter regulated in POJK 5/2017 related to financing is the existence of various new contribution schemes (e.g., Participant Voluntary Contributions) and the permission for Pension Funds implementing PPIP to make periodic payments of Pension Benefits. These factors drive the need to refine KMK 510 and its amendments, which simultaneously converts such regulations into a Financial Services Authority Regulation.

This Financial Services Authority Regulation contains regulations regarding the financing of DPPKs implementing both PPMPs and PPIPs, the financing of DPLKs, the financing of DPPKs in special conditions, and the obligation to prepare Actuarial Reports.

II. ARTICLE BY ARTICLE

Article 1
It is clear enough.

Article 2
Paragraph (1)
What is meant by "funding quality" is the funding quality of the implementation of PPMPs.

Paragraph (2)
It is clear enough.

Article 3
It is clear enough.

Article 4
Paragraph (1)
It is clear enough.

Paragraph (2)
Letter a
It is clear enough.

Letter b
It is clear enough.

Letter c
What is meant by "other receivables and other assets" is other receivables and other assets as referred to in the Pension Fund's financial statements.

Article 5
Paragraph (1)
Letter a
It is clear enough.

Letter b
It is clear enough.

Letter c
Examples of actuarial valuations that impact the transfer of assets from DPPKs implementing PPMPs include changes in the PDP for the termination of a Founder Partner.

Paragraph (2)
It is clear enough.

Paragraph (3)
It is clear enough.

Article 6
It is clear enough.

Article 7
Paragraph (1)
It is clear enough.

Paragraph (2)
It is clear enough.

Paragraph (3)
It is clear enough.

Paragraph (4)
What is meant by "fair interest" is the interest rate applicable during the delay in depositing the said amount. Given that there are various interest rates, a fair interest rate must be chosen as the basis for calculation, namely the most beneficial government-owned general bank deposit interest rate for the relevant Participant.

Paragraph (5)
It is clear enough.

Paragraph (6)
What is meant by "experiencing financial difficulties" includes, among others, an Employer experiencing losses for the last 3 (three) years, having liquidity difficulties, and not having funding sources or assets that can be used to pay contributions in the next 1 (one) year.

Article 8
It is clear enough.

Article 9
It is clear enough.

Article 10
It is clear enough.

Article 11
It is clear enough.

Article 12
Paragraph (1)
It is clear enough.

Paragraph (2)
Letter a
It is clear enough.

Letter b
It is clear enough.

Letter c
It is clear enough.

Letter d
What is meant by "not bearing pension program costs evenly (non-sharing pension cost)" is the financing of DPPKs implementing PPMPs where the pension program funding is not borne evenly by the Employer. In this system, the funding condition of the pension program is calculated and funded separately for each Employer.

Paragraph (3)
Letter a
What is meant by "Employer experiencing Surplus" is an Employer whose Pension Program funding position has a Surplus.

Letter b
It is clear enough.

Paragraph (4)
It is clear enough.

Paragraph (5)
It is clear enough.

Paragraph (6)
It is clear enough.

Article 13
It is clear enough.

Article 14
It is clear enough.

Article 15
It is clear enough.

Article 16
It is clear enough.

Article 17
It is clear enough.

Article 18
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)
The mechanism for submitting written statements established by the Board of Directors includes, among others, the minimum validity period of the Participant's written statement before changes to the statement are allowed.

Article 19
It is clear enough.

Article 20
Paragraph (1)
Letter a
It is clear enough.

Letter b
What is meant by "accumulation of Participant Voluntary Contributions" is the collection of Participant Voluntary Contributions including their development results.

Paragraph (2)
Letter a
Participant Voluntary Contribution funds in DPPKs implementing PPMPs can be managed together with or separately from the management of other Pension Fund assets.

Letter b
The management of Participant Voluntary Contributions can be conducted like the management of DPLKs, where Participants can determine the type or investment package.

Letter c
Management fees for Participant Voluntary Contribution funds are costs charged to the Participant Voluntary Contribution funds.

Paragraph (3)
Participants of DPPKs implementing PPMPs may be charged the payment of Minimum Contributions in the form of Normal Contributions as stipulated in the PDP. In the event there are Participant Voluntary Contributions, the Pension Fund is required to separate the accounting for Participants' Normal Contributions and Participant Voluntary Contributions.

Paragraph (4)
It is clear enough.

Article 21
It is clear enough.

Article 22
It is clear enough.

Article 23
It is clear enough.

Article 24
It is clear enough.

Article 25
It is clear enough.

Article 26
It is clear enough.

Article 27
Paragraph (1)
For DPPKs implementing PPIP, the formula for Pension Benefits is the sum of Minimum Contributions and their development results.

Paragraph (2)
It is clear enough.

Article 28
Components of Participant fund accumulation include Employer contributions, Participant contributions, development results, and Participant Voluntary Contributions (if any).

Article 29
Paragraph (1)
It is clear enough.

Paragraph (2)
It is clear enough.

Paragraph (3)
Management fees for Participant Voluntary Contribution funds are costs charged to the Participant Voluntary Contribution funds.

Article 30
Paragraph (1)
What is meant by "employer" is a person or entity that employs employees and includes them as DPLK Participants.

Paragraph (2)
What is meant by "in cash" is payment that is not deferred.

Paragraph (3)
It is clear enough.

Paragraph (4)
It is clear enough.

Paragraph (5)
It is clear enough.

Article 31
It is clear enough.

Article 32
In examinations by the Financial Services Authority, DPLKs must be able to show the written statement from the employer.

Article 33
Paragraph (1)
Letter a
The deposit of contributions directly by Participants to DPLKs is carried out, among others, by automatic debit from the Participant's account.

Letter b
It is clear enough.

Paragraph (2)
Written statements from Participants can be formulated in the form of membership forms or other written documents.

Paragraph (3)
It is clear enough.

Paragraph (4)
It is clear enough.

Article 34
Paragraph (1)
What is meant by "responsibility" is being responsible for the scheme established in the PDP. The source of funds for PMLMP is determined in the PDP.

Paragraph (2)
The calculation and periodic reporting of the sufficiency of PMLMP funds are carried out for each type of Other Benefit as referred to in the Financial Services Authority Regulation concerning contributions, Pension Benefits, and Other Benefits implemented by Pension Funds.

Paragraph (3)
It is clear enough.

Paragraph (4)
It is clear enough.

Paragraph (5)
It is clear enough.

Paragraph (6)
It is clear enough.

Paragraph (7)
It is clear enough.

Article 35
It is clear enough.

Article 36
Paragraph (1)
It is clear enough.

Paragraph (2)
It is clear enough.

Paragraph (3)
The funding quality conditions of the first and second levels for the use of PMLMP funding sources as a certain percentage of the pension program's development results apply throughout the funding process. The funding quality condition must be met after considering the use of development results for PMLMP funding.

Paragraph (4)
It is clear enough.

Paragraph (5)
It is clear enough.

Paragraph (6)
It is clear enough.

Article 37
It is clear enough.

Article 38
It is clear enough.

Article 39
It is clear enough.

Article 40
Paragraph (1)
What is meant by "responsibility" is being responsible for the scheme established in the PDP. The source of funds for PMLIP is determined in the PDP.

Paragraph (2)
Provisions regarding the reporting of PMLIP fund sufficiency are regulated in the Financial Services Authority Regulation concerning periodic reports of Pension Funds.

Paragraph (3)
It is clear enough.

Article 41
It is clear enough.

Article 42
It is clear enough.

Article 43
It is clear enough.

Article 44
Paragraph (1)
What is meant by "responsibility" is being responsible for the chosen scheme. The source of funds for Other Benefit Programs is determined in the written statement.

Paragraph (2)
It is clear enough.

Paragraph (3)
It is clear enough.

Paragraph (4)
It is clear enough.

Paragraph (5)
It is clear enough.

Article 45
It is clear enough.

Article 46
Paragraph (1)
Letter a
The deposit of contributions directly by Participants to DPLKs is carried out, among others, by automatic debit from the Participant's account.

Letter b
It is clear enough.

Paragraph (2)
Written statements from Participants can be formulated in the form of membership forms or other written documents.

Paragraph (3)
It is clear enough.

Paragraph (4)
It is clear enough.

Article 47
It is clear enough.

Article 48
Paragraph (1)
What is meant by "transfer of funds" is the transfer of funds as a result of the transfer of DPPK membership to another DPPK.

Paragraph (2)
It is clear enough.

Paragraph (3)
It is clear enough.

Paragraph (4)
It is clear enough.

Article 49
It is clear enough.

Article 50
It is clear enough.

Article 51
Paragraph (1)
When a DPPK implementing a PPMP changes its program, there may be DPPK assets that cannot be categorized as Assets for Financing in determining the Employer's obligation to Participants as referred to in Article 50 paragraph (1). After the program change occurs and the DPPK becomes a PPIP organizer, such assets may change characteristics to become a type of asset that can be counted as Assets for Financing. For example, at the time of program change, there may be assets in dispute so they are not allocated to the Participant's account balance. After the program changes, there is a possibility that such assets are no longer in dispute in court and become the absolute right of the Pension Fund. In that case, such assets can be counted as Assets for Financing.

Paragraph (2)
It is clear enough.

Article 52
Paragraph (1)
Letter a
The accumulation of Participant funds is the accumulation of contributions and development results that have been booked in the Participant's account.

Letter b
It is clear enough.

Paragraph (2)
It is clear enough.

Paragraph (3)
It is clear enough.

Article 53
It is clear enough.

Article 54
It is clear enough.

Article 55
It is clear enough.

Article 56
Paragraph (1)
It is clear enough.

Paragraph (2)
It is clear enough.

Paragraph (3)
What is meant by "Employer about to separate having a deficiency of assets over Solvency Liabilities" is an Employer whose Pension Program funding position has assets less than Solvency Liabilities.

Paragraph (4)
What is meant by "Employer about to separate having a surplus of assets over Solvency Liabilities" is an Employer whose Pension Program funding position has assets more than Solvency Liabilities.

Article 57
It is clear enough.

Article 58
It is clear enough.

Article 59
Paragraph (1)
What is meant by "actuarial valuation" is the actuarial valuation for the implementation of PPMPs.

Paragraph (2)
It is clear enough.

Paragraph (3)
It is clear enough.

Article 60
It is clear enough.

Article 61
Paragraph (1)
It is clear enough.

Paragraph (2)
For example, if a Pension Fund conducts an actuarial valuation in a PDP change effective August 1, 2017, and the result of that actuarial valuation shows that the Pension Fund has a third-level funding quality, the Pension Fund is required to conduct another actuarial valuation at the latest for the position as of December 31, 2018.

Article 62
It is clear enough.

Article 63
It is clear enough.

Article 64
Paragraph (1)
What is meant by "actuarial valuation" is the actuarial valuation for the implementation of periodic payment of Pension Benefits by Pension Funds implementing PPIP.

Paragraph (2)
It is clear enough.

Paragraph (3)
It is clear enough.

Paragraph (4)
It is clear enough.

Paragraph (5)
It is clear enough.

Article 65
Paragraph (1)
What is meant by "actuarial valuation" is the actuarial valuation for the implementation of PMLMP.

Paragraph (2)
It is clear enough.

Paragraph (3)
Letter a
It is clear enough.

Letter b
It is clear enough.

Letter c
It is clear enough.

Letter d
It is clear enough.

Letter e
It is clear enough.

Letter f
It is clear enough.

Letter g
It is clear enough.

Letter h
It is clear enough.

Letter i
What is meant by "description of asset program valuation" is an explanation regarding the method of determining the value per type of program asset.

Letter j
It is clear enough.

Letter k
It is clear enough.

Letter l
It is clear enough.

Letter m
It is clear enough.

Article 66
It is clear enough.

Article 67
It is clear enough.

Article 68
It is clear enough.

Article 69
The general funding condition of DPPKs is the aggregated presentation of the funding conditions of PPMPs and PMLMPs.

Article 70
Paragraph (1)
It is clear enough.

Paragraph (2)
What is meant by "fair technical interest rate" is the technical interest rate that reflects the ability of DPPKs implementing PPMPs to develop managed funds in the long term.

Article 71
It is clear enough.

Article 72
It is clear enough.

Article 73
It is clear enough.

Article 74
Paragraph (1)
The period of periodic payment of Pension Benefits refers to the Financial Services Authority Regulation concerning contributions, Pension Benefits, and Other Benefits implemented by Pension Funds.

Paragraph (2)
Examples of mechanisms for periodic payment of Pension Benefits include, among others, payment of Pension Benefits with a fixed value every month during the payment period, payment of Pension Benefits with an increasing value during the payment period, and payment using the unit pricing method.

Paragraph (3)
The decision on periodic payment of Pension Benefits before the first Pension Benefit payment is made means that if the Participant dies during the period of periodic payment of Pension Benefits, the payment shall continue according to the period chosen by the Participant.

Paragraph (4)
It is clear enough.

Paragraph (5)
Examples of conditions where the reserve fund for the purchase of a lifetime annuity is insufficient include, among others, the fund being insufficient to purchase a lifetime annuity available in the market.

Article 75
It is clear enough.

Article 76
It is clear enough.

Article 77
It is clear enough.

Article 78
It is clear enough.

Article 79
It is clear enough.

Article 80
It is clear enough.

Article 81
It is clear enough.

SUPPLEMENT TO THE STATE GAZETTE OF THE REPUBLIC OF INDONESIA NUMBER 6212

Financial Services Authority Regulation Number 8 of 2018 Concerning Pension Fund Financing

Lineage: Amended

Timeline