POJK on Requirements for Management and Supervisory Board of Employer-Sponsored Pension Funds and Acting Management of Financial Institution Pension Funds

FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA
FINANCIAL SERVICES AUTHORITY REGULATION
NUMBER 15 /POJK.05/2016
CONCERNING
REQUIREMENTS FOR MANAGEMENT AND SUPERVISORY BOARD OF EMPLOYER-SPONSORED PENSION FUNDS AND ACTING MANAGEMENT OF FINANCIAL INSTITUTION PENSION FUNDS BY THE GRACE OF GOD THE ALMIGHTY THE BOARD OF COMMISSIONERS OF THE FINANCIAL SERVICES AUTHORITY, Considering:
a. that in order to improve the effective and efficient organization and management of pension funds, the requirements for persons who can be appointed as management and supervisory board of employer-sponsored pension funds need to be clarified; b. that in order to improve the accountability of financial institution pension funds to the public, it is necessary to establish requirements for persons who can be appointed as acting management of financial institution pension funds;
c. that based on the considerations as referred to in letters a and b, it is necessary to establish a Financial Services Authority Regulation concerning Requirements for Management and Supervisory Board of Employer-Sponsored Pension Funds and Acting Management of Financial Institution Pension Funds;

COPY

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 Number 3477);
2. Law Number 21 of 2011 concerning the Financial Services Authority (State Gazette of the Republic of Indonesia Year 2011 Number 111, Supplement to the State Gazette of the Republic of Indonesia Number 5253);
3. Government Regulation Number 76 of 1992 concerning Employer-Sponsored Pension Funds (State Gazette of the Republic of Indonesia Year 1992 Number 120, Supplement to the State Gazette Number 3507);
4. Government Regulation Number 77 of 1992 concerning Financial Institution Pension Funds (State Gazette of the Republic of Indonesia Year 1992 Number 127, Supplement to the State Gazette Number 3508);

DECIDING:
Determining: FINANCIAL SERVICES AUTHORITY REGULATION CONCERNING REQUIREMENTS FOR MANAGEMENT AND SUPERVISORY BOARD OF EMPLOYER-SPONSORED PENSION FUNDS AND ACTING MANAGEMENT OF FINANCIAL INSTITUTION PENSION FUNDS.

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

1. Pension Fund is a legal entity that manages and runs a program promising pension benefits.
2. Employer-Sponsored Pension Fund is a Pension Fund formed by a person or entity that employs employees, as the founder, to implement 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.
3. Financial Institution Pension Fund is a Pension Fund formed by a bank or life insurance company to implement a defined contribution pension program for individuals, whether employees or self-employed workers, which is separate from the employer-sponsored pension fund for employees of the respective bank or life insurance company.
4. Management refers to the management of an Employer-Sponsored Pension Fund.
5. Supervisory Board refers to the supervisory board of an Employer-Sponsored Pension Fund.
6. Acting Management refers to an official from the founder of a Financial Institution Pension Fund who is tasked to carry out the operational activities of the Financial Institution Pension Fund.
7. Financial Services Authority, hereinafter abbreviated as OJK, is the Financial Services Authority as referred to in Law Number 21 of 2011 concerning the Financial Services Authority.

CHAPTER II
APPOINTMENT AND REQUIREMENTS FOR MANAGEMENT AND ACTING MANAGEMENT
Article 2
(1) In the context of managing a Pension Fund, the founder of a Financial Institution Pension Fund must appoint an Acting Management.
(2) The appointment of Acting Management as referred to in paragraph (1) and its replacement must be reported to the OJK no later than 30 (thirty) working days before the appointment or replacement takes effect.

Article 3
(1) Persons who can be appointed as Management or Acting Management must meet the following requirements:
a. citizens of the Republic of Indonesia; b. having good ethics and morals;
c. never having committed disgraceful acts in the Pension Fund industry or other financial services industries;
d. never having been sentenced for proven criminal acts involving a prison sentence of 5 (five) years or more and/or criminal acts in the field of Pension Funds or other financial services; e. having knowledge in the field of Pension Funds. (2) The requirement to have knowledge in the field of Pension Funds as referred to in paragraph (1) letter e must be met by the Management of an Employer-Sponsored Pension Fund within a maximum of 6 (six) months from the date of OJK approval of the establishment of the Employer-Sponsored Pension Fund. (3) Further provisions regarding the knowledge requirements in the field of pension funds as referred to in paragraph (1) letter e and the procedures for fulfilling them for Management and Acting Management are regulated by an OJK Circular Letter.

Article 4
(1) In addition to the requirements as referred to in Article 3, persons appointed as Management or Acting Management must pass a competence and propriety assessment. (2) The competence and propriety assessment as referred to in paragraph (1) refers to the Financial Services Authority Regulation regarding competence and propriety assessments for principal parties of insurance companies, pension funds, financing companies, and guarantee companies.

Article 5
Management and Acting Management cannot hold concurrent positions as Management of another Pension Fund or as members of the board of directors or executive positions in other business entities.

Article 6
Persons who can be appointed as the Supervisory Board must meet the requirements as referred to in Article 3 paragraph (1) letters a, b, and c.

CHAPTER III
CLOSING PROVISIONS
Article 7
At the time this Financial Services Authority Regulation takes effect, provisions regarding the requirements for Management and Supervisory Board of Employer-Sponsored Pension Funds and Acting Management of Financial Institution Pension Funds are subject to this Financial Services Authority Regulation.

Article 8
This Financial Services Authority Regulation takes effect on the date of its promulgation.

In order for everyone to know it, it is ordered to promulgate 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

Promulgated 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 YEAR 2016 NUMBER 40 Copy in accordance with the original Director of Law 1 Ministry of Law signed Yuliana

EXPLANATION
OF
FINANCIAL SERVICES AUTHORITY REGULATION
NUMBER 15 /POJK.05/2016
CONCERNING
REQUIREMENTS FOR MANAGEMENT AND SUPERVISORY BOARD OF EMPLOYER-SPONSORED PENSION FUNDS AND ACTING MANAGEMENT OF FINANCIAL INSTITUTION PENSION FUNDS

I. GENERAL
That since December 31, 2012, the functions, duties, and authorities for regulation and supervision of financial services activities in the insurance sector, Pension Funds, financing institutions, and other financial service institutions, as well as the capital market sector, have shifted from the Minister of Finance and the Capital Market and Financial Institution Supervisory Agency to the Financial Services Authority.

In relation to the above, it is necessary to reorganize the existing regulatory structure, particularly those related to Pension Funds, by converting regulations prior to the formation of the Financial Services Authority into Financial Services Authority Regulations and their implementing regulations into Financial Services Authority Circular Letters. This reorganization is carried out so that there are Financial Services Authority Regulations concerning Pension Funds that are consistent with Financial Services Authority Regulations in other sectors.

Based on this background, it is necessary to replace the legislation in the Pension Fund sector regulating the requirements for Management and Supervisory Board of Employer-Sponsored Pension Funds and Acting Management of Financial Institution Pension Funds, namely the Decision of the Minister of Finance of the Republic of Indonesia Number 513/KMK.06/2002 dated December 4, 2002 concerning Requirements for Management and Supervisory Board of Employer-Sponsored Pension Funds and Acting Management of Financial Institution Pension Funds as amended by the Minister of Finance Regulation Number 36/PMK.010/2010 dated February 12, 2010 concerning Amendments to the Decision of the Minister of Finance of the Republic of Indonesia Number 513/KMK.06/2002 concerning Requirements for Management and Supervisory Board of Employer-Sponsored Pension Funds and Acting Management of Financial Institution Pension Funds, into a Financial Services Authority Regulation concerning Requirements for Management and Supervisory Board of Employer-Sponsored Pension Funds and Acting Management of Financial Institution Pension Funds.

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.

Article 8
Sufficiently clear.

SUPPLEMENT TO THE STATE GAZETTE OF THE REPUBLIC OF INDONESIA NUMBER 5854