THE ANALYSIS OF POST EMPLOYMENT BENEFIT LIABILITIES USING VARIOUS MORTALITY TABLES AND INTEREST RATES FOLLOWING AUTOREGRESSIVE MODEL
The Employment Law No. 13 of 2003 modulates a multitude of specified benefits earned by workers at the time of retirement, the reporting of which is governed by the Statement of Financial Accounting Standards (PSAK) 24 regarding Employee Benefit. Moreover, after the employee delivered their servi...
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Format: | Theses |
Language: | Indonesia |
Online Access: | https://digilib.itb.ac.id/gdl/view/54943 |
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Institution: | Institut Teknologi Bandung |
Language: | Indonesia |
Summary: | The Employment Law No. 13 of 2003 modulates a multitude of specified benefits
earned by workers at the time of retirement, the reporting of which is governed by
the Statement of Financial Accounting Standards (PSAK) 24 regarding Employee
Benefit. Moreover, after the employee delivered their services, the employer is
obligated to pay post-employment benefit. The Projected Unit Credit (PUC)
approach is used to calculate post-employment benefit, which normally involves
two principles, specifically demographic assumptions (mortality rates) and
economic assumptions (interest rates). The effects of discrepancies in mortality
tables and interest rates upon on estimation of post-employment benefit obligations
at BPJS Ketenagakerjaan had been investigated in this study. The life tables used
are the 2019 Indonesia Mortality Table IV, the 2017 Jamsostek Mortality Table and
a mortality table developed by modeling the allocation of worker age ranges at
extinction, while the interest rates are modelled from the high-quality Government
Bond interest rates from 2013 to 2020. For modeling the distribution of worker
mortality age, the results obtained are Weibull Distribution with parameters !) is
7.1245 and #$
is 50.0523 which would then be constructed as a simple mortality
table. For interest rates, the modeling obtained results are AR(1) with parameter %$
is 0,9089 and an average &? is 7,1691 which would then be forecasted for another
12 months. The impact achieved was its value of liabilities estimated by using
mortality table IV to provide such a liability severely compromised than the value
calculated using the Jamsostek Mortality Table and the simple mortality table. In
terms of interest rates, the results reveal that the lower the interest rate assumption
employed, the bigger the calculation of the value of post-employment obligations,
which decreases exponentially as interest rates are elevated. The outcome of
determining the ratio of the post-employment benefit liability for another year
would be forecasted in the shape of a timeframe referring to the predicted value of
the interest rate. |
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