NORMAL COST OLD AGE SAVING PROGRAM FOR CIVIL SERVANTS USING ENTRY AGE NORMAL METHOD BASED ON SALARY DISTRIBUTION

• Main Author: KARTIKA (NIM: 20814017), VONNY
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/31517
• Institution: Institut Teknologi Bandung

Actuarial liabilities on Pension Program stating adequacy of benefit payment which would be the obligation of the employer. Unfunded liability occurs when benefits paid is greater than the normal cost (contribution). When a defined benefit pension plan is associated with a salary at retirement which contain uncertainty in its amount in the future, then the normal cost should be change parallel with the retirement benefits. But the problems in the Old Age Saving Program for civil servants, the increase of pension benefits are not balanced with the contributions. <br /> <br /> Based on Government Regulation number 25 year 1981, the contribution for old age saving program is 3.25% from monthly salary, and this percentage still used until now. In this thesis, the normal cost can be determined by aggregat entry age normal pension funding method. Factors affecting the aggregate normal cost are the average of entry age and the average of salary population. In here, will be used 4 points age populations: 25, 35, 45 and 55 years old as a sample for calculating the new normal cost. Based on the results of the regression analysis obtained a <br /> <br /> linear relationship between the amount of salaries with the class, so the data will be disaggregated per age group code to get the average entry age of each population more accurately. Salary distribution in this thesis assumed lognormal, and the average salary from the active employee population is obtained by dividing the population of each age into 3 groups based on salary levels low, medium and <br /> <br /> high. The result of normal cost for the population ages 25, 35, 45, and 55 years are different for each age and depends on the average of entry age. Still using the same <br /> <br /> method, can be found another alternative problem solving for unfunded liability as well that is by changing the coefficient of pension benefits.