Financing and Policy Strategies for Pensions in Indonesia
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8. Some points for consideration
Tax-based universal pensions
Social insurance system to provide higher benefit level
for wage earners (as partial income replacement)
Faster scheme integrations for formal economy
Better annual accrual rate (4/3% instead of 1%) to
comply with C.102
Better minimum pensions for disability and survivors'
pensions to comply with C.102, especially for those with
short contributing periods.
Indexation in line with the wage increase or inflation
(not 50% of inflation)
Faster increase in the retirement age (and above 65 as
needed)
Scaled premium financing method
Contribution level gradually adjusted in years to come,
taking into account aging, affordability of contributions
and investment opportunities.
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