Unions Threaten Pension Firm
Responding to a threat made by labor unions to conduct a massive fund withdrawal from state social security firm Jamsostek, the president director said that any withdrawals must adhere to certain regulations.
Several labor unions and confederations that claim to represent millions of workers said they are against a government plan that would allow the social security organizing agency (BPJS) to impose an additional levy on workers, and threatened to have their members withdraw their funds from Jamsostek this month.
“There is a mechanism in place with prevailing regulations on who can withdraw pension funds,” said Elvyn G. Masassya, president director of Jamsostek, on Friday. “That [person] must have reached 55 years of age or have been dismissed from their job.”
Elvyn said that as long as the criteria for withdrawals are met, there would be no problems in allowing the withdrawals to take place.
“It should not be done by violating the procedures,” added Junaidy, Jamsostek’s director for participation.
Under the Jamsostek scheme, a sum accounting for 2 percent of the worker’s salary is deducted every month and put into a fund.
That worker’s employer then has the obligation to allocate from its own funds a sum equal to 3.7 percent of the worker’s salary.
The money belongs to the employee and can be withdrawn once the worker turns 55, is incapacitated and unable to work, or loses his job.
If the worker dies, the fund is paid to his or her family.
Junaidy declined to speak further, saying that Jamsostek was merely an operator.
“The one with the authority to speak much about this matter is the government,” he said.
He said that if the government allows the widespread withdrawal of funds, Jamsostek would simply abide.
“As an operator we are, of course, ready,” Junaidy said, adding that such large withdrawals would not cause a problem.
Elvyn said that as of last month, funds managed by Jamsostek totaled Rp 131 trillion ($13.6 billion).
She said that Jamsostek also manages a health insurance program, but added that it was different in nature than the pension fund, which is more of a saving scheme.