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 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.
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