PROPOSED NEW STRATEGY FOR DEFINED BENEFIT PENSION FUND OF BADAK LNG IN DANA PENSIUN PERTAMINA (CASE STUDY BADAK LNG)

• Main Author: Arfianto, Fany
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/36200
• Institution: Institut Teknologi Bandung

Underfunding of defined benefit pension fund Badak LNG in Dana Pensiun Pertamina (DPP) has been performed for several years and similar condition is projected still occur for future years to go. Hence, significant amount of fund has been and will be required to lift-up the Fund Adequacy Ratio (RKD) at 100% of defined benefit (DB) plan Badak LNG in DPP accordingly. Taking into abovementioned consideration, it is necessary to identify the root cause(s) as well as the solution alternatives. The significant variable in this evaluation is fund adequacy ratio Badak LNG pension fund in Dana Pensiun Pertamina (DPP). Various scenarios are assessed, namely Termination of defined benefit plan (switching from Defined Benefit to Defined Contribution Plan), Combination of Defined Benefit and Defined Contribution Plan and maintaining existing defined benefit plan in Dana Pensiun Pertamina. According to actuary annual report of 2012 – 2016, it is confirmed that unsatisfactory fund adequacy ratio is contributed by two major factors, those are regulation of Badak LNG regarding pension benefit (internal factor) and performance of Dana Pensiun Pertamina (external factor). According to financial and technical aspects considerations as well as minimum reluctance from stake holders (specifically the Labour Union and retired employees), the Scenario-2 of Combining Defined Benefit and Defined Contribution Plan (freezing defined benefit plan) provides moderate future additional contribution fund as well as reluctant from the pensioners and employees. This scenario also provides long term good relationship between PT Pertamina (Persero) and Badak LNG.