DETERMINATION OF PENSION FUND CONTRIBUTIONS USING VASICEK INTEREST RATE MODEL WITH PARTITION
In recent decades, financial knowledge has provided insights for people to prepare funds for their old age, one of which is in the form of pension funds. Pension funds are offered by two institutions in Indonesia, namely DPPK (Employer Pension Fund) and DPLK (Financial Institution Pension Fund),...
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| Format: | Final Project |
| Language: | Indonesia |
| Online Access: | https://digilib.itb.ac.id/gdl/view/84077 |
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| Institution: | Institut Teknologi Bandung |
| Language: | Indonesia |
| Summary: | In recent decades, financial knowledge has provided insights for people to prepare
funds for their old age, one of which is in the form of pension funds. Pension funds
are offered by two institutions in Indonesia, namely DPPK (Employer Pension
Fund) and DPLK (Financial Institution Pension Fund), which are supervised by
the Financial Services Authority (OJK). Pension funds are created with the aim that
workers can continue to live decently after they stop working until old age by paying
monthly pension contributions. The contributions received are generally invested
in investment instruments to obtain returns that provide significant benefits for
workers in the future. This study aims to estimate the contributions that workers
need to pay to achieve the desired benefits using interest rates modeled by Vasicek
with partitions. The data used is from pension fund participants of ABC company
and the method used is the Vasicek stochastic interest rate model with partitions
and the salary rate function. From the experiments conducted, it was found that
with the Vasicek stochastic interest rate model with partitions, workers must pay
20,58% of their basic salary each month to achieve the desired benefits in old age,
which is 70% of the wages during the last three years of working. |
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