Publisher

RESCOLLACOMMRESCOLLACOMM

Journal International Journal of Quantitative Research and ModelingInternational Journal of Quantitative Research and Modeling Abstract

The selection of an appropriate actuarial liability calculation method will help PT Taspen (Persero) to ensure the adequacy of pension funds that must be prepared, optimize pension fund management, and reduce the risk of future underfunding. This study aims to analyze the comparison between the Projected Unit Credit and Attained Age Normal methods in the context of estimating actuarial liabilities at PT Taspen (Persero), and evaluate how the differences in these methods affect pension fund planning and management. Through this analysis, it is expected to find a method that is more suitable for the characteristics of pension participants and the long-term needs of PT Taspen (Persero) in ensuring the sustainability of an efficient pension program. Comparative descriptive research was conducted in this study to describe the comparison of the results of estimating actuarial liabilities from two methods: Projected Unit Value (PUC) and Attained Age Normal (AAN) and assess their impact on funding conditions. In total, the value of actuarial liabilities generated by the PUC method is slightly higher at IDR421,875,241,393.40, compared to the AAN method of IDR420,746,185,877.40. This difference shows that the method used in the calculation greatly affects the amount of liabilities that must be met by the pension fund.

Conclusion

This study compared the Attained Age Normal (AAN) and Projected Unit Credit (PUC) methods for estimating actuarial liabilities at PT Taspen.The results indicate that each method produces different estimates, with the PUC method yielding a slightly higher total liability.The AAN method offers more stable and equitable annual contributions, while the PUC method better reflects the conditions of participants with longer service periods.Ultimately, the choice of method should align with PT Taspens specific characteristics and long-term objectives.

Future Research

Further research could explore the impact of varying discount rates on actuarial liability estimations using both the PUC and AAN methods, providing PT Taspen with a sensitivity analysis to inform their financial planning. Additionally, a study investigating the integration of demographic factors, such as regional variations in life expectancy and retirement patterns among PT Taspen participants, could refine the accuracy of liability calculations. Finally, research could focus on developing a hybrid actuarial method that combines the strengths of both PUC and AAN, potentially offering a more comprehensive and tailored approach to managing pension fund obligations, considering the unique characteristics of the Indonesian State Civil Apparatus pension system and its long-term sustainability. These studies should be conducted using the same data and methodology as the current paper to ensure comparability and build upon the existing findings.

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Pages	14
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