Differences Employer Pension Fund (EPF) and

Financial Institutions Pension Fund (Pension Fund)

Term pensions certainly no stranger to the ear. Retirement is generally understood as a period

in which a person no longer has the obligation and responsibility of carrying out the work for

the period of its work has been completed. When is a worker retiring?

In Act No. 13 of 2003 on Labor no rules mandatory retirement age for private sector workers.

However, retirement prevailing typically begins when a worker aged 55 years, where age is

categorized as non-productive age. However, for certain types of work or profession as a

lecturer (professor) and physicians, the retirement age can be more than 55 years if his skills

are still needed.

The definition of a pension fund

Talk about retirement, not separated from the pension fund. What is a pension fund? Many are

understood as the allowance received by workers after stopping work. This allowance money

into the rights of workers and their families. That is, although the workers concerned had died,

allowances still given to the wife and children who are minors.

In Act No. 11 of 1992, the pension fund is defined as a legal entity which manages and runs a

program that promised pension benefits. Under the bill, the pension fund refers to the legal

entity or institution that is responsible for organizing and managing retirement programs in

order to provide welfare to workers and their families.

UU no. 11 of 1992 as a legal umbrella in the administration and management of voluntary

pension program but still there is an obligation to ensure the benefits. The benefits of the
pension plan is not just assure the income earned in the future, but also motivating at the same

time to encourage workers to work harder. Not only that, the pension plan also gives a sense

of security to workers related to health insurance, old age security, even home ownership.

As an entity, the pension fund must have a clear organizational structure and the hierarchy of

command line. Implementation of pension funds should be done in an organized, where there

is a party acting as an executor, who is responsible, as well as fund management supervisor.

Variety of pension funds

Is the pension program organizers should government agencies? Nor, pension plans can also

be run by private agencies. In this regard, the range or types of pension funds in Indonesia can

be broadly divided into three, namely:

 Employer Pension Fund (EPF)

Employer Pension Fund (EPF) is the organizer of the institution or organization defined

benefit pension plan or a defined contribution pension plan established by individuals or

entities that hire employees or as the founder for the benefit of some or all employees as

participants, and give rise to liability against the employer.

Founder DPPK be the employer, either for part or all of their employees. Employers who set

up a pension fund called Founders. Membership in pension funds not only from its own

employees, but it can also open to employees of another employer. Employers who engage

their employees in pension funds established by another employer referred to as Founding

Partners. Thus, the EPF membership not only employees of the internal sphere of the

Founder, but also the employees of the external sphere of other employers.

 Financial Institutions Pension Fund (Pension Fund)

 Financial Institutions Pension Fund (Pension Fund) is an agency or institution defined

contribution retirement plan providers for the general public, whether individuals,

employees and self-employed persons established by a bank or insurance company. The

existence of the Pension Fund can facilitate employers in managing its own assets. By

engaging employees to the Pension Fund, the employer can avoid cash flow problems in

later life. As for employees, followed DPLK advantage is gained income security in old age

on an ongoing basis.

 Pension Fund Based on Profits (DPBK)

Pension Fund Based on Profits (DPBK) is DPPK the defined contribution pension plan, where

contributions come only from the employer based on the formulation of a specific formula

that is associated with the benefits the employer.

Differences DPPK with DPLK

Even though the same act as the organizer of the pension program, EPF has significant

differences from the Pension Fund. Here's the difference.

 Founder or organizer

EPF was established by individuals or companies that hire employees (Employer). While the

Pension Fund was established by a commercial bank or insurance company. Bank or

insurance company at the same time it is possible to establish EPF Pension Fund, with

records management, operations, and management is done separately.

 Type pension plan

 Establishment of EPF to pension plans for its workers or employees is not mandatory.

However, given the government's stance encouraged by the positive benefits to be gained

employees or workers from the pension program.

In this regard, EPF may benefit pension plans and defined contribution, depending on the

ability of the employer to the pension fund. That is, EPF can choose the type of pension

plan that will convening, whether defined benefit plan or a defined contribution.

In contrast to the EPF, Pension Fund can only execute a defined contribution pension plan

alone. A defined contribution plan is a pension plan that is great contributions of

employees and employers already established company. The advantage of this retirement

program that is the result of development or investment funds managed for then added

to the fund participants.

 Participation

Participants EPF is an employee or worker of employer pension plans. Still do not rule out

the possibility of employees or employees of other companies can also be a participant

EPF held a particular employer. While the more diverse the participants DPLK individuals,

employees, and the self-employed.

 the Paying Dues

In operation, a good pension fund EPF and Pension Fund established a number of

contributions that must be paid every month. However, the payment of this fee is charged

to anyone? In EPF, contributions paid by employees and employers. That is, the burden of

payment of contributions pension plan partially borne by employees, partly borne by the

employer or the company.

 In contrast to the Pension Fund, contributions to pension plans are fully borne by the

participants, both individuals, employees, and the self-employed. The employer did not

burdened by responsibility to pay dues employee pension program.

From the points of disagreement between the EPF with DPLK above can be summarized in the

following table

Type Pension Fund

Information
DPPK DPLK
Individual / Agency
Founder / organizer Bank
Employer
Bank Life Insurance Company

Life Insurance Company

Type pension plan defined benefit defined contribution

defined contribution

Participation internal employees Individual

external employees employee

self-employed

dues payers Employer / company Individual

employee employee

self-employed