SEOJK regarding Knowledge Requirements in the Pension Fund Field and the Procedures for Fulfilling Them for Employer Pension Fund Managers and Acting Managers of Financial Institution Pension Funds

To:
Pension Fund Managers
At their place.

COPY
CIRCULAR LETTER OF THE FINANCIAL SERVICES AUTHORITY NUMBER 12/SEOJK.05/2016 REGARDING KNOWLEDGE REQUIREMENTS IN THE PENSION FUND FIELD AND THE PROCEDURES FOR FULFILLING THEM FOR EMPLOYER PENSION FUND MANAGERS AND ACTING MANAGERS OF FINANCIAL INSTITUTION PENSION FUNDS

In accordance with the mandate of Article 3 paragraph (3) of Financial Services Authority Regulation Number 15/POJK.05/2016 concerning Requirements for Managers and Supervisory Boards of Employer Pension Funds and Acting Managers of Financial Institution Pension Funds (State Gazette of the Republic of Indonesia Year 2016 Number 40, Supplement to the State Gazette of the Republic of Indonesia Number 5854), it is necessary to regulate implementation provisions regarding knowledge requirements in the pension fund field and the procedures for fulfilling them for employer pension fund managers and acting managers of financial institution pension funds in this Financial Services Authority Circular Letter as follows:

I. GENERAL PROVISIONS

1. Pension Fund is a legal entity that manages and runs programs promising pension benefits.

2. Employer Pension Fund is a Pension Fund established 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 established by a bank or life insurance company to implement a defined contribution pension program for individuals, whether employees or self-employed workers, separate from the employer pension fund for employees of the respective bank or life insurance company.

4. Manager refers to the manager of an Employer Pension Fund.

5. Acting Manager refers to an official from the founder of a Financial Institution Pension Fund who is tasked with carrying out the operational activities of the Financial Institution Pension Fund.

6. 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.

II. MASTERY OF BASIC KNOWLEDGE

1. Every person appointed as a Manager or Acting Manager must master knowledge in the field of Pension Funds.

2. Knowledge in the field of Pension Funds as referred to in number 1 includes basic knowledge and advanced knowledge.

3. Mastery of basic knowledge in the field of Pension Funds as referred to in number 2 is evidenced by the relevant person's passing of the basic knowledge examination in the field of Pension Funds before the date of appointment of the relevant person as a Manager or Acting Manager.

4. The basic knowledge examination in the field of Pension Funds as referred to in number 3 is organized by the Pension Fund Professional Standards Institution established jointly by the Indonesian Pension Fund Association and the Financial Institution Pension Fund Association.

5. The Institution as referred to in number 4 provides a certificate of passing the basic knowledge examination in the field of Pension Funds to examination participants who pass.

6. The Institution as referred to in number 4 must ensure that:
   a. the planning and organization of the basic knowledge examination in the field of Pension Funds and the determination of results are conducted in an orderly and honest manner; b. the costs charged to participants are solely for reasonable purposes for the organization of the basic knowledge examination in the field of Pension Funds; and
   c. examination questions for the basic knowledge examination in the field of Pension Funds are made by referring to the basic knowledge criteria in the field of Pension Funds as outlined in the Appendix which is an integral part of this OJK Circular Letter and have reasonable weight to ensure that participants declared to have passed have mastered the basic knowledge in the field of Pension Funds.

7. The Institution as referred to in number 4 must create guidelines for the basic knowledge examination in the field of Pension Funds, which at a minimum contain:
   a. registration and examination procedures; b. the scope of material examined;
   c. references that can be used as study guides; and
   d. the method for evaluating passing status.

III. ENHANCEMENT OF BASIC KNOWLEDGE

1. To fulfill the provisions of Article 3 of OJK Regulation Number 15/POJK.05/2016 concerning Requirements for Managers and Supervisory Boards of Employer Pension Funds and Acting Managers of Financial Institution Pension Funds, Managers and Acting Managers who have passed the basic knowledge examination must continuously enhance their knowledge in the field of Pension Funds.

2. The material for continuous enhancement of knowledge in the field of Pension Funds as referred to in number 1 includes investment, accounting, risk management, and actuarial science.

3. The obligation to continuously enhance knowledge in the field of Pension Funds as referred to in number 1 is fulfilled by Managers and Acting Managers by engaging in activities with themes relevant to the implementation of Pension Funds, namely:
   a. attending seminars, workshops, or other similar activities; b. attending courses, training, or similar educational programs; or
   c. writing papers, articles, or other written works that are published, or acting as speakers in activities as referred to in letter a or as instructors in activities as referred to in letter b.

4. Activities as referred to in number 3 letters a and b are organized by parties other than the Institution as referred to in Roman numeral II number 4.

5. For each implementation of continuous enhancement of knowledge in the field of Pension Funds as referred to in number 2, Managers and Acting Managers obtain specific credit scores.

6. Credit scores as referred to in number 5 are determined by taking into account at least:
   a. the frequency and attendance hours or practice hours in activities as referred to in number 3 letters a and b; b. the quality of material and the role of the relevant person in activities as referred to in number 3 letter c; and
   c. the scale of activities or publications.

7. Criteria, procedures, and other provisions related to the recognition of continuous enhancement of knowledge activities in the field of Pension Funds and the method for determining credit scores as referred to in number 3 and number 5 are formulated and established by the Institution as referred to in Roman numeral II number 4.

8. Managers and Acting Managers must obtain a specific accumulated credit score each year, as established by the Institution as referred to in Roman numeral II number 4.

9. Managers and Acting Managers who have passed the basic knowledge examination in the field of Pension Funds but do not meet the provisions regarding continuous enhancement of knowledge in the field of Pension Funds as referred to in number 1 through number 8 for 2 (two) consecutive years must retake and pass the basic knowledge examination.

IV. PENSION FUND PROFESSIONAL STANDARDS INSTITUTION

1. The Institution as referred to in Roman numeral II number 4 must formulate a code of ethics for its managers to ensure the independence and credibility of the institution.

2. At the latest 1 (one) month after the implementation of the basic knowledge examination in the field of Pension Funds, the Institution as referred to in Roman numeral II number 4 must submit the names of passing participants to the Director of Institutions and Non-Banking Financial Products.

3. The Institution as referred to in Roman numeral II number 4 must submit to the Director of Institutions and Non-Banking Financial Products every year, at the latest by March 31 of the following year, the names of Employer Pension Fund Managers and Acting Managers of Financial Institution Pension Funds who have met the accumulated credit score requirements in the reported year.

4. The Institution as referred to in Roman numeral II number 4 must submit to the Director of Institutions and Non-Banking Financial Products every 6 (six) months, at the latest by March 31 and September 30:
   a. a report on the implementation of the basic knowledge examination in the field of Pension Funds, which at a minimum contains:

1. the number of examination participants and the number declared to have passed;
2. the costs charged to examination participants;
3. the material examined; and
4. passing standards.
   b. a report on continuous enhancement of knowledge activities in the field of Pension Funds, which at a minimum contains:
5. activities recognized as enhancement of knowledge in the field of Pension Funds;
6. institutions implementing recognized activities;
7. the date of activity implementation;
8. credit scores for each activity; and
9. the accumulated credit scores that Managers and Acting Managers must obtain.

5. The Institution as referred to in Roman numeral II number 4, upon request by examination participants in the basic knowledge examination in the field of Pension Funds, must provide relevant information regarding the organization of examinations, including matters regulated in Roman numeral II number 6 letters a, b, and c, to examination participants when requested.

V. OTHER PROVISIONS

The Director of Institutions and Non-Banking Financial Products may provide guidance so that the provisions as referred to in Roman numeral II number 6 and number 7, Roman numeral III number 5, and Roman numeral IV number 1 through number 5, can be fulfilled by the Institution as referred to in Roman numeral II number 4.

VI. CLOSING

With the establishment of this OJK Circular Letter, provisions regarding knowledge requirements in the field of Pension Funds and the procedures for fulfilling them for Managers and Acting Managers are subject to this OJK Circular Letter.

Provisions in this OJK Circular Letter take effect on the date of establishment.

Established in Jakarta on April 18, 2016

EXECUTIVE HEAD OF INSURANCE, PENSION FUND,
FINANCING INSTITUTION, AND
OTHER FINANCIAL SERVICES INSTITUTIONS
FINANCIAL SERVICES AUTHORITY,

signed

FIRDAUS DJAELANI

Copy matches the original

Director of Legal Affairs 1
Legal Department

signed

Yuliana