Pension Schemes in Indonesia

Legal Updates
Pension Schemes in Indonesia
5 November 2015

SSEK Legal Consultants partner Fahrul S. Yusuf and Maria Yudhitama, an associate at the firm, have contributed the Indonesia chapter of the new Practical Law global guide to pension schemes. The following is an excerpt.

Member's transfer of funds

The transfer of funds to another pension fund occurs when the member of a pension fund transfers his membership to another pension fund. The transfer can occur as a result of the employer's policy and must fulfil the following requirements:

  • Both pension funds must have the same program.
  • Before the transfer, the employer must be responsible for the obligations relating to the transferred employee's duration of service, as provided in the pension fund rules.

If the member stopped working more than ten years before the normal retirement age of 55, the member can choose for the pension benefits to be transferred to another pension fund.

Taking pension benefits

Pension benefits are usually paid on a monthly basis.

Legal restrictions

Legal restrictions for access to pension benefits will be based on the respective pension fund rules.

Early and ill-health retirement

Arrangements for early and ill-health retirement are typically based on a formula provided in the pension fund rules.

Dependents' benefits Spouses and children, under 21 years of age, of deceased pension fund members are entitled to receive the benefits payable and typically will be paid monthly.

This publication is intended for informational purposes only and does not constitute legal advice. Any reliance on the material contained herein is at the user\'s own risk. You should contact a lawyer in your jurisdiction if you require legal advice. All SSEK publications are copyrighted and may not be reproduced without the express written consent of SSEK.

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