CALCULATION OF RETIREMENT FUNDING ACTUARIAL VALUE USING ENTRY AGE NORMAL METHOD REGARD TO THE MORTALITY ASSUMPTION
The calculation of retirement funding is all forms of benefits that provided by an employer for services rendered by employees to the employer. Labor’s law number 13 year 2003 requires companies to provide post-employment benefits guarantees. The funds are known as actuarial liabilities value or nor...
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| Format: | Final Project |
| Language: | Indonesia |
| Online Access: | https://digilib.itb.ac.id/gdl/view/65380 |
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| Institution: | Institut Teknologi Bandung |
| Language: | Indonesia |
| Summary: | The calculation of retirement funding is all forms of benefits that provided by an employer for services rendered by employees to the employer. Labor’s law number 13 year 2003 requires companies to provide post-employment benefits guarantees. The funds are known as actuarial liabilities value or normal cost which calculated actuarially. The aim of this research is to calculate retirement funding normal cost and liabilities value using the entry age normal method regard to the mortality assumption.
Based on SPA-DP (Actuarial Practical Standard-Pension Fund) that issued by the PAI (The Society of Actuaries of Indonesia) there are several methods in actuarial calculations, one of them is entry age normal method from the large group of projected benefit cost method, namely projecting aspects of the calculation. Data obtained from PT ABC, consists of 12,421 employees (participants) already passed away that recorded from 1 June 1960 until 13 July 2021. From the death data, the writer generates the probability of death. Next, calculating 1 case illustration for determining the total of normal cost and the actuarial liability value, using TMI IV 2019 male and the death probability from the data as well.
This calculation shows that the death probability from data overall has a bigger value compared to the TMI IV 2019 male. Then, with detailed observation determine that age of 25 to 30 years, death probability from data 1.2 times to the TMI value. It has an effect on the normal cost and actuarial value that has been calculated. Calculating with the death probability from data takes that normal cost and actuarial liability has a smaller value compared with calculating using TMI IV 2019 male. |
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