PROJECTION OF INTEREST RATE OF ACCUMULATED CONTRIBUTIONS, FUND ADEQUACY RATIO AND ESTABLISHMENT OF BUFFER FUNDS FOR JAMINAN HARI TUA PROGRAM

• Main Author: Jaya, Dinar
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/60141
• Institution: Institut Teknologi Bandung

BPJS Ketenagakerjaan Jaminan Hari Tua Program is organized based on the principle of social insurance or mandatory savings with the aim of ensuring that participants receive cash if they enter retirement, experience permanent total disability, or die. In the principle of social security, the benefit of program is the accumulated contribution plus the result of its development which is intended for the long term, meaning that the principal value will not decrease. As a savings account, JHT aims to maintain and increase the principal value of participants' savings from year to year and can help participants to maintain their economic value. Accumulated contributions and developments are recorded in Notional Balance (Liabilities) and placed in investment instruments which become initial assets. In this condition, Liabilities are the same as Assets, where there is a portion of assets marked to market which causes the interest rate of accumulated contributions and Fund Adequacy Ratio to change, in the event of a decline in market value it will cause the Fund Adequacy Ratio to be below the standard financial soundness level of 100%. To maintain the Adequacy Ratio of Funds and to stabilize the Development Level, it is necessary to project these two things and establish a Buffer Fund. The projection method used in the projection is the Markov Chain method