THE ANALYSIS OF POST EMPLOYMENT BENEFIT LIABILITIES USING VARIOUS MORTALITY TABLES AND INTEREST RATES FOLLOWING AUTOREGRESSIVE MODEL

• Main Author: Aswin
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/54943
• Institution: Institut Teknologi Bandung

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.