Abstract:
This research aims to conduct a comprehensive study on the issues related to
pension funds for civil servants in Indonesia, focusing on the Accrued Benefit Cost
Method (ABCM) for calculating pension funds in terms of normal cost. The ABCM is
utilized to determine termination plan liabilities and actuarial liabilities within the
normal cost calculation process. The study reveals that pension fund calculations can
be effectively executed using the ABCM, which considers variables such as the
employee's age at appointment (y), current age (x), retirement age limit (r), work period
(t), remaining length of service (r-x), and initial salary. The findings highlight the
necessity for the government to review the employee pension payment system,
considering factors such as interest rate, pension benefit size, pension benefit value,
termination plan liability value, and interest rate to prevent overburdening the state
budget. The study concludes with specific financial implications: the termination
liabilities for an employee retiring at age 27 is Rp. 16,824,999, with additional costs of
Rp. 361,1431 for retirement after 7 years of service. Moreover, if all employees resign
and the pension fund faces a deficit, the total additional cost for the 34-employee period
until 2030 is Rp. 57,901,678. The use of the ABCM is justified as it provides a
systematic and actuarially sound approach to calculate pension liabilities, ensuring
accuracy and reliability in financial planning. This method aligns the pension cost with
the employee's period of service, offering a clear reflection of the actual financial
obligation incurred over time.
