Accelerated Pension Fund Calculations Using the Individual Level Premium Method and the Projected Unit Credit Method Case Study: PT. Dirgantara Indonesia

This paper examines the calculation of accelerated pension funds using two actuarial methods: the Individual Level Premium (ILP) method and the Projected Unit Credit (PUC) method. The case study focuses on PT. Dirgantara Indonesia. We compare the methods' impact on normal contribution amounts, actuarial liabilities, and retirement benefits. The research highlights the advantages and disadvantages of each approach, considering factors like participant age and contribution period. The findings demonstrate that the PUC method generally leads to lower normal contributions but may result in lower final retirement benefits compared to the ILP method. This study provides valuable insights for companies and employees in PT. Dirgantara Indonesia to choose the most suitable method for their accelerated pension plan, considering their financial goals and risk tolerance.

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Publication Details

Journal
International Journal of Global Operations Research
Published
2024-08-30
DOI
https://doi.org/10.47194/ijgor.v5i3.325
Primary Topic
Financial Literacy, Pension, Retirement Analysis
Type
article
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article

Accelerated Pension Fund Calculations Using the Individual Level Premium Method and the Projected Unit Credit Method Case Study: PT. Dirgantara Indonesia

Aletta Divna Valensia Rohman, Chibi Adinda Mayaningtyas
International Journal of Global Operations Research
Financial Literacy, Pension, Retirement Analysis
article

Accelerated Pension Fund Calculations Using the Individual Level Premium Method and the Projected Unit Credit Method Case Study: PT. Dirgantara Indonesia

Aletta Divna Valensia Rohman, Chibi Adinda Mayaningtyas
article en

Abstract

This paper examines the calculation of accelerated pension funds using two actuarial methods: the Individual Level Premium (ILP) method and the Projected Unit Credit (PUC) method. The case study focuses on PT. Dirgantara Indonesia. We compare the methods' impact on normal contribution amounts, actuarial liabilities, and retirement benefits. The research highlights the advantages and disadvantages of each approach, considering factors like participant age and contribution period. The findings demonstrate that the PUC method generally leads to lower normal contributions but may result in lower final retirement benefits compared to the ILP method. This study provides valuable insights for companies and employees in PT. Dirgantara Indonesia to choose the most suitable method for their accelerated pension plan, considering their financial goals and risk tolerance.

International Journal of Global Operations ResearchVol. 5(3)
Padjadjaran University (ID)
Openalex Percentile: Top 77%
Financial Literacy, Pension, Retirement Analysis
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