During the productive period, a worker must also think about how he will survive his old age when he retires and cannot work anymore. One way to prepare for old age is to prepare funds that will be used after retirement, which is saved from while you are still working. Preparing these funds can be done by saving as usual and collecting money little by little, as well as through the Pension Fund.
“Pension Fund is a legal entity that manages and runs programs that promise pension benefits.”
There are 2 types of pension funds, namely:
Employer Retirement Fund
Namely a pension fund that is formed by a person or entity that employs employees, as the founder, to administer a defined benefit pension program or a defined contribution pension plan, for the benefit of part or all of its employees as participants, and which creates obligations to the employer
Financial Institution Retirement Fund
Namely a pension fund established by a bank or life insurance company to administer a defined contribution pension program for individuals, both employees and independent workers, which is separate from the employer’s pension fund for employees of the bank or life insurance company concerned. Here one of retirement service meetbeagle.com
The way the Pension Fund works is by taking contributions from participants or members periodically for a predetermined period of time, where afterwards after retirement, the contributions and investment returns earned are given to participants as pension benefits. In order to provide these pension benefits, the Pension Fund must be able to manage its wealth and invest properly. Management of Pension Fund assets must be carried out by the management in accordance with the investment directions outlined by the founder and in accordance with the provisions concerning investment stipulated by the Minister.
Of the several types of investments that are allowed, Pension Funds are prohibited from placing more than 20 investments in one party. For example, like savings in a bank, Pension Funds are prohibited from placing more than 20% of their savings investment in one bank.
Pension funds are also prohibited from conducting derivative transactions or owning derivative instruments, except:
Stock options and futures contracts traded on the Indonesia Stock Exchange
The derivative instrument is obtained by the Pension Fund as an instrument attached to Government Securities, shares or corporate bonds listed on the Indonesia Stock Exchange.
Derivative transactions for investment hedging in the form of Government Securities denominated in foreign currencies
