Title Page
Contents
ABSTRACT 14
국문초록 16
CHAPTER 1. INTRODUCTION 18
CHAPTER 2. CRITERION FOR THE COMPARISON OF PENSION SYSTEMS' PERFORMANCE 23
2.1. Objective, Pillars, and Structure 23
2.2. Coverage 24
2.3. Vesting, Preservation, Choice and Portability 24
2.4. Retirement Products 25
2.5. Engagement, Expectation, and Education of Members 27
2.6. Governance and Regulation 28
2.7. Contribution, Benefit and Investment 28
2.8. Taxation system 29
CHAPTER 3. RESULTS OF THE COMPARISON OF PENSION SYSTEMS' PERFORMANCE 31
3.1. Objective, Pillars, and Structure 31
3.2. Coverage 35
3.2.1. Australia 36
3.2.2. Denmark 37
3.2.3. Finland 38
3.2.4. Iceland 39
3.2.5. Japan 40
3.2.6 Netherlands 41
3.3. Vesting, Preservation, Choice and Portability 43
3.4. Retirement Products 46
3.4.1. Lump Sum Pension 46
3.4.2. Annuities 49
3.4.3. Programmed Withdrawal 53
3.5. Engagement, Expectation, and Education of Members 54
3.5.1. Australia 56
3.5.2. Denmark 57
3.5.3. Finland 58
3.5.4. Iceland 59
3.5.5. Japan 60
3.5.6. Netherlands 61
3.6. Governance and Regulation 63
3.6.1. Australia 64
3.6.2. Denmark 65
3.6.3. Finland 66
3.6.4. Iceland 67
3.6.5. Japan 68
3.6.6. Netherlands 69
CHAPTER 4. THE ADEQUACY OF THE PENSION SYSTEM'S FINANCIAL BENEFITS 70
4.1. Contribution and Benefit 70
4.2. Investment 74
4.3. Taxation System 80
4.3.1. Taxation of Contributions to Funded Private Pension Plan 81
4.3.2. Taxation of Investment Returns and Fund Accumulation 85
4.3.3. Pension Income Taxation 86
4.3.4. Social Contribution and Financial Incentives 87
4.4. Gross and Net Replacement Rate 89
CHAPTER 5. INSIGHT FOR THE IMPROVEMENT OF INDONESIAN PENSION SYSTEM 91
5.1. Condition of Pension System in Indonesia and Comparison with Other Countries 91
5.1.1. Objective, Pillars, and Structure 91
5.1.2. Coverage 94
5.1.3. Vesting, Preservation, Choice and Portability 97
5.1.4. Retirement Products 101
5.1.5. Engagement, Expectation, and Education of Members 104
5.1.6. Governance and Regulation 109
5.1.7. Contribution, and Benefit 114
5.1.8. Investment 116
5.1.9. Taxation and Financial Incentives 118
5.2. Suggestion to Improve Pension System in Indonesia 121
CHAPTER 6. SUMMARY AND FUTURE STUDIES 130
6.1. Summary and Conclusion 130
6.2. Future Studies 134
REFERENCES 137
[Table 1-1] Selected Countries by Mercer's Index Value 19
[Table 1-2] Demographic Data of Selected Countries 21
[Table 2-1] Advantages and Disadvantages of Retirement Products 26
[Table 2-2] illustrates of Pension Taxation Regimes 30
[Table 3-1] Pillars of Pension System 32
[Table 3-2] Social Pensions Coverage for Selected Countries 35
[Table 3-3] Membership for Mandatory Pension for Selected Countries 36
[Table 3-4] Department of Social Services (DSS) Age Pension's Recipients 37
[Table 3-5] Department of Veteran Australia(DVA) Pension's Recipients 37
[Table 3-6] Pensioners' Coverage in Denmark 38
[Table 3-7] Pensioners' Coverage in Finland 39
[Table 3-8] Pensioners' Coverage in Japan 41
[Table 3-9] Common annuity products by jurisdictions 49
[Table 4-1] Summary of Contribution for Mandatory Pension System 72
[Table 4-2] Contributionsinto Funded and Private Pension Plans (% GDP) 73
[Table 4-3] Paid Benefits from Funded and Private Pension Plans(% GDP) 74
[Table 4-4] Total Funded and Private Pension Plan Assets (USD million) 75
[Table 4-5] Total Funded and Private Pension Plan Assets (% GDP) 75
[Table 4-6] Annual Nominal Investment Rate of Return 77
[Table 4-7] Annual Real Investment Rate of Return 78
[Table 4-8] Tax Treatment of Personal Pension Plans 80
[Table 4-9] Replacement Rate of Selected Countries 90
[Table 5-1] Membership for BPJS Ketenagakerjaan 2021 94
[Table 5-2] Membership for Mandatory Pension in Indonesia (2021) 95
[Table 5-3] Membership for Voluntary Pension in Indonesia (2021) 96
[Table 5-4] Indonesian Financial Literacy 106
[Table 5-5] Indonesian Financial Inclusion 106
[Table 5-6] Improvement in P2SK Act 112
[Table 5-7] New Provisions in P2SK Act 113
[Table 5-8] New Provisions for Mandatory Pension in P2SK Act 114
[Figure 3-1] Proportion of Pensioners by Provider in Iceland 40
[Figure 3-2] Pension Members in Netherlands 41
[Figure 3-3] Pension Fund's Coverage in Netherlands 42
[Figure 4-1] Asset Allocation in Funded and Private Pension Plans between 2017 and 2021 79