POJK on Procedures for Requesting Approval of Employer-Sponsored Pension Fund Formation and Approval of Changes to Employer-Sponsored Pension Fund Regulations

FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA
FINANCIAL SERVICES AUTHORITY REGULATION
NUMBER 13/POJK.05/2016
CONCERNING
PROCEDURES FOR REQUESTING APPROVAL OF THE FORMATION OF AN EMPLOYER-SPONSORED PENSION FUND AND APPROVAL OF CHANGES TO THE REGULATIONS OF AN EMPLOYER-SPONSORED PENSION FUND BY THE GRACE OF THE ALMIGHTY GOD THE BOARD OF COMMISSIONERS OF THE FINANCIAL SERVICES AUTHORITY, Considering:
a. that in order to approve the formation of an Employer-Sponsored Pension Fund and the approval of changes to the regulations of an Employer-Sponsored Pension Fund, it is necessary to regulate the form and structure of the application form; b. that based on the considerations referred to in letter a, it is necessary to establish a Financial Services Authority Regulation concerning Procedures for Requesting Approval of the Formation of an Employer-Sponsored Pension Fund and Approval of Changes to the Regulations of an Employer-Sponsored Pension Fund; Recalling:

1. Law Number 11 of 1992 concerning Pension Funds (State Gazette of 1992 Number 37, Supplement to the State Gazette Number 3477);
2. Law Number 21 of 2011 concerning the Financial Services Authority (State Gazette of the Republic of Indonesia of 2011 Number 111, Supplement to the State Gazette of the Republic of Indonesia Number 5253);
3. Government Regulation Number 76 of 1992 concerning Employer-Sponsored Pension Funds (State Gazette of 1992 Number 120, Supplement to the State Gazette Number 3507);
   DECIDING:
   Establishing: A FINANCIAL SERVICES AUTHORITY REGULATION CONCERNING PROCEDURES FOR REQUESTING APPROVAL OF THE FORMATION OF AN EMPLOYER-SPONSORED PENSION FUND AND APPROVAL OF CHANGES TO THE REGULATIONS OF AN EMPLOYER-SPONSORED PENSION FUND.

Article 1
In this Financial Services Authority Regulation, the following terms are defined:

1. Employer-Sponsored Pension Fund (Dana Pensiun Pemberi Kerja) is a pension fund established by a person or entity that employs employees, as the founder, to administer a defined benefit pension program or a defined contribution pension program, for the benefit of some or all of its employees as participants, and which creates obligations for the employer.
2. Pension Fund Regulations (Peraturan Dana Pensiun) are regulations containing provisions that serve as the basis for administering the pension program.
3. Financial Services Authority (Otoritas Jasa Keuangan), hereinafter abbreviated as OJK, is the Financial Services Authority as referred to in Law Number 21 of 2011 concerning the Financial Services Authority.

Article 2
The formation of an Employer-Sponsored Pension Fund and changes to the regulations of an Employer-Sponsored Pension Fund must obtain approval from the OJK.

Article 3
To obtain approval for the formation of an Employer-Sponsored Pension Fund as referred to in Article 2, the founder submits an application to the OJK according to the example of Form A as contained in the Appendix, which is an integral part of this OJK Regulation.

Article 4
To obtain approval for changes to the regulations of an Employer-Sponsored Pension Fund as referred to in Article 2, the founder submits an application to the OJK according to the example of Form B as contained in the Appendix, which is an integral part of this OJK Regulation.

Article 5
(1) The Pension Fund Regulations attached to the application for approval as referred to in Article 3 and Article 4 are submitted in duplicate (two copies). (2) The Pension Fund Regulations as referred to in paragraph (1), after being approved by the OJK, one copy is returned to the founder and the other is stored at the OJK. (3) In the event of a discrepancy between the two Pension Fund Regulations as referred to in paragraph (2), the Pension Fund Regulations stored at the OJK shall be considered correct.

Article 6
Upon the commencement of this Financial Services Authority Regulation, provisions regarding the procedures for requesting approval for the formation of an Employer-Sponsored Pension Fund and approval of changes to the regulations of an Employer-Sponsored Pension Fund shall be subject to this Financial Services Authority Regulation.

Article 7
This Financial Services Authority Regulation takes effect upon the date of enactment.
For everyone to know, it is ordered to enact this Financial Services Authority Regulation by placing it in the State Gazette of the Republic of Indonesia. Established in Jakarta on 23 February 2016 CHAIRMAN OF THE BOARD OF COMMISSIONERS FINANCIAL SERVICES AUTHORITY, signed MULIAMAN D. HADAD Enacted in Jakarta on 1 March 2016 MINISTER OF LAW AND HUMAN RIGHTS REPUBLIC OF INDONESIA, signed YASONNA H. LAOLY STATE GAZETTE OF THE REPUBLIC OF INDONESIA OF 2016 NUMBER 38 Copy consistent with the original Legal Director 1 Legal Department signed Yuliana

EXPLANATION
OF
FINANCIAL SERVICES AUTHORITY REGULATION
NUMBER 13/POJK.05/2016
CONCERNING
PROCEDURES FOR REQUESTING APPROVAL OF THE FORMATION OF AN EMPLOYER-SPONSORED PENSION FUND AND APPROVAL OF CHANGES TO THE REGULATIONS OF AN EMPLOYER-SPONSORED PENSION FUND

I. GENERAL
Since 31 December 2012, the functions, duties, and authority for regulating and supervising financial business activities in the insurance sector, Pension Funds, financing institutions, and other financial service institutions, as well as the capital market sector, have transferred from the Minister of Finance and the Capital Market and Financial Institutions Supervisory Agency to the Financial Services Authority. In light of the above, it is necessary to reorganize the existing regulatory structure, particularly those related to Pension Funds, by converting regulations prior to the establishment of the Financial Services Authority into Financial Services Authority Regulations. This reorganization is conducted to ensure that there are Financial Services Authority Regulations regarding Pension Funds that are consistent with Financial Services Authority Regulations in other sectors. Based on the background reasoning above, it is necessary to replace the existing legislation regarding Pension Funds that regulates the procedures for requesting approval for the formation of an Employer-Sponsored Pension Fund and approval of changes to the regulations of an Employer-Sponsored Pension Fund, namely the Decision of the Minister of Finance of the Republic of Indonesia Number 227/KMK.017/1993 dated 26 February 1993 concerning Procedures for Requesting Approval for the Formation of an Employer-Sponsored Pension Fund, Adjustment of Pension Fund Foundations, and Approval of Changes to the Regulations of an Employer-Sponsored Pension Fund, as amended by the Decision of the Minister of Finance of the Republic of Indonesia Number 344/KMK.017/1998 dated 13 July 1998 concerning Amendments to the Decision of the Minister of Finance of the Republic of Indonesia Number 227/KMK.017/1993 concerning Procedures for Requesting Approval for the Formation of an Employer-Sponsored Pension Fund, Adjustment of Pension Fund Foundations, and Approval of Changes to the Regulations of an Employer-Sponsored Pension Fund, into a Financial Services Authority Regulation concerning Procedures for Requesting Approval for the Formation of an Employer-Sponsored Pension Fund and Approval of Changes to the Regulations of an Employer-Sponsored Pension Fund.

II. ARTICLE BY ARTICLE
Article 1
Sufficiently clear.
Article 2
Sufficiently clear.
Article 3
Sufficiently clear.
Article 4
Sufficiently clear.
Article 5
Sufficiently clear.
Article 6
Sufficiently clear.
Article 7
Sufficiently clear.
SUPPLEMENT TO THE STATE GAZETTE OF THE REPUBLIC OF INDONESIA NUMBER 5852

FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA
APPENDIX
FINANCIAL SERVICES AUTHORITY REGULATION
NUMBER 13/POJK.05/2016
CONCERNING
PROCEDURES FOR REQUESTING APPROVAL OF THE FORMATION OF AN EMPLOYER-SPONSORED PENSION FUND AND APPROVAL OF CHANGES TO THE REGULATIONS OF AN EMPLOYER-SPONSORED PENSION FUND

EXAMPLE OF FORM A
Number: ………..,…………………
Attachments:
Subject: Request for Approval for the Formation of an Employer-Sponsored Pension Fund To: The Executive Head Supervisor of Insurance, Pension Funds, Financing Institutions, and Other Financial Service Institutions u.p. Head of Department Supervision of IKNB 1A Menara Merdeka Floor 26 Jl. Budi Kemuliaan No. 2 Central Jakarta 10110

Hereby we submit a request for approval for the formation of an Employer-Sponsored Pension Fund:

1. Name of Pension Fund:
2. Full address:
   (including Telephone Number and Fax Number)
3. Attachments:
   (1) Pension Fund Regulations (duplicate);
   (2) Written statement from the Founder;
   (3) Approval from the company owner or the General Meeting of Shareholders or equivalent regarding the written statement from the Founder; (4) Written statement from Co-Founders (if any Co-Founders exist); (5) Approval from the company owner or the General Meeting of Shareholders or equivalent regarding the written statement from Co-Founders (if any Co-Founders exist); (6) Investment Guidelines; (7) Letter of Appointment of Management; (8) Written statement from Management members; (9) Letter of Appointment of Supervisory Board; (10) Written statement from Supervisory Board members; (11) Letter of Appointment of Custodian; (12) Agreement between Management and Custodian; (13) Actuarial Report (for Defined Benefit Pension Programs);

Thank you for your attention.
Founder of the Pension Fund
Signature
Name
Position

EXAMPLE OF FORM B
Number: ………..,…………………
Attachments:
Subject: Request for Approval for Changes to the Regulations of an Employer-Sponsored Pension Fund To: The Executive Head Supervisor of Insurance, Pension Funds, Financing Institutions, and Other Financial Service Institutions u.p. Head of Department Supervision of IKNB 1A Menara Merdeka Floor 26 Jl. Budi Kemuliaan No. 2 Central Jakarta 10110

Hereby we submit a request for approval for changes to the regulations of an Employer-Sponsored Pension Fund:

1. Name of Pension Fund:
2. Full address:
   (including Telephone Number and Fax Number)
3. Attachments:
   (1) Pension Fund Regulations (duplicate);
   (2) Written statement from the Founder;
   (3) Approval from the company owner or the General Meeting of Shareholders or equivalent regarding the written statement from the Founder (if the changes to the Pension Fund Regulations result in changes to Funding and/or the amount of Pension Benefits); (4) Written statement from Co-Founders (if there are new Co-Founders); (5) Approval from the company owner or the General Meeting of Shareholders or equivalent regarding the written statement from Co-Founders (if there are new Co-Founders); (6) Actuarial Report (if changes to the Pension Fund Regulations result in changes to Funding and/or Pension Benefits for Defined Benefit Pension Programs).

Thank you for your attention.
Founder of the Pension Fund
Signature
Name
Position
Established in Jakarta on 23 February 2016
CHAIRMAN OF THE BOARD OF COMMISSIONERS
FINANCIAL SERVICES AUTHORITY, signed
MULIAMAN D. HADAD
Copy consistent with the original
Legal Director 1
Legal Department signed
Yuliana