Govt Working on Pension Fund to Improve Civil Servants Welfare

TEMPO.CO, Jakarta - The government is working on a civil servant’s (PNS) pension fund financing scheme to improve pensioners’ welfare, said Minister of Administrative and Bureaucratic Reform (MenPAN-RB) Asman Abnur.

According to MenPAN-RB, pension fund received by retired civil servant are currently small to finance their daily lives.

“Imagine echelon I, whose income is around Rp40 million, once they retire only get Rp4.5 million per month,” said Asman after attending the launch of an online-based community service program in the area of the car-free day (CFD ), Imam Bonjol, Jakarta, Sunday, March 4.

So far, the government pays the retired civil servants using pay-as-you-go scheme. The government determines a retirement salary of 75 percent of its last basic salary. It makes the government's expenditures continue to swell as the number of pensioners increases each year.

In the Ministry of Finance R&D sites mentioned, from Rp60 trillion for pensioners, around Rp10 trillion comes from contributions and the rest is from the state budget.

In 2013, the government has planned to pay with a fully funded scheme like a private company. Employees and government share the burden of dues. But the plan was raw and was re-enacted in 2017.

According to Minister Asman, the fund will be managed by the government and given fully to civil servants when retired.

“We hope with the new pension scheme, the civil servant will be happier when retire, not stressed out like now,” said Asman.

ADAM PRIREZA