Financing and Policy Strategies for Pensions in Indonesia

3. 4. DB/DC/ NDC discussions (contd.) I Defined benefit (DB) scheme => Benefit formulae and benefit conditions (e.g. retirement age) set in advance; Calculate the required contribution rate for the defined formulae and benefit conditions Gradually increase the contribution rate in future, with rationalizing benefits and conditions (e.g. retirement age) Adjusting benefits, contributions and reserve funds in line with demographic, economic and social conditions Usually include disability or survivors' pensions Adopted by many developed as well as east Asian countries (e.g. Japan, ROK, China, Thailand, the Philippines, Viet Nam, Lao PDR) 9

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