Gov’t to Prepare New Pension Scheme for ASN

By Office of Assistant to Deputy Cabinet Secretary for State Documents & Translation
Date 26 Juni 2018
Category: News
Read: 1.495 Views
PANRB Minister Asman Abnur gives statement to reporters after a Limited Meeting, at the Presidential Office, Jakarta, Tuesday (26/6). (Photo by: Rizki/Public Relations Division)

PANRB Minister Asman Abnur gives statement to reporters after a Limited Meeting, at the Presidential Office, Jakarta, Tuesday (26/6). (Photo by: Rizki/Public Relations Division)

The Government is preparing a new pension scheme, which is expected to be way more beneficial for ASN (Civil State Apparatus).

“With this new concept, of which I cannot reveal now as it still needs discussion, the pension will be way more beneficial than the current one,” Minister of the Empowerment of State Apparatus and Bureaucratic Reform (PANRB) Asman Abnur told reporters after a Limited Meeting on Retired ASN, at the Presidential Office, Jakarta, Tuesday (26/6) afternoon.

The Minister went on to explain that PNS (Civil Servant) pays pension premium of 4.75% of basic salary and family benefits. The pension fund is currently managed by state-owned pension insurance company PT Taspen, just like the management of other state-owned enterprises (BUMN), in which the return of profit is not directly enjoyed by ASN.

“We hope that with this new scheme, it will benefit ASN, such as for the provision of housing or apartments for ASN, so that with efficient fund management, later retired civil servants have already had a guarantee of having a house at retirement,” Asman explained.

Thus, with the professional management of pension funds by the pension agency, whether in the form of BUMN or not, it will be earmarked to benefit ASN, such as providing housing with reasonable price for ASN.

“Currently, retired echelon I receives Rp4.5 million or Rp5 million at a maximum. Later, with a new system, it will be above Rp20 million more or less. I think, it will be better,” the Minister said.

When it comes to the enforcement of new pension scheme, the Minister said after the proposed scheme is agreed to be finalized on the next Limited Meeting.

“It is still in the finalization stage. God willing, it will be agreed in the next meeting,” the Minister said.

The Minister also explained that the new pension scheme definitely does not apply to those who have retired. Later on, there will be a cut off.

The Minister added that the scheme will be fully applied to the newly recruited employee. However, for those who are about to retire in the next five or ten years retirement, two schemes will apply, that is, before the cut off, the current scheme will apply.

Regarding the formation of a new body that will manage the ASN pension funds, the Minister explained, it could be Taspen to be integrated into the new body. According to the Minister, specific rules will apply; be it the investment security or the benefits are really aimed at for the welfare of ASN.

Is it a BLU (public service agency) or something, Pak? “Well that’s not stipulated yet,” the Minister replied.

The Minister also believes the new pension model will not burden the State Budget, unlike the current one, in which the Government must pay more than Rp100 trillion in pensions.(MAY/RSF/JAY/ES)(MUR/MMB/YM/Naster).

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