Abstract
The study aims to identify factors that influence adequacy ratio of fund (RKD) of the Defined Benefit Pension Plan (PPMP) Pension Fund for 2009-2018 period such as Return on Asset (ROA), Cash Conversion Rate (CCR), Central Board Revenue (CBR), Operating Expense Ratio (OER), Investment Expense Ratio (IER), and investment. The data analysis was common effect panel data regression method and the samples were twenty pension funds. The results showed that ROA, CCR, and investment have a significant and positive influence towards RKD, CBR and OER have a significant and negative influence towards RKD. IER did not have significant influence towards RKD.
Highlights
Every worker dreams of having a stable income both while working and after retirement
Objective of the study was to test the influence of probability, liquidity, operating expenses, investment expenses, cash flow and investment funds towards RKD of Pension Funds with Defined Benefit Pension Program in Indonesia between 2009 and 2018
Profitability was measured with Return on Asset (ROA), liquidity was measured with Cash Coverage Ratio, cashflow was measured with contribution to retirement benefit ratio, operating expenses were measured using comparison between operating expenses and investment return, investment expenses were measured using comparison between investment expenses and investment return, and investment fund was measured using growth of investment fund
Summary
Every worker dreams of having a stable income both while working and after retirement. Business institution should pay attention to this aspect because income is closely associated to working motivation. Type of welfare a worker earns after retirement is called pension or retirement fund. Yusof & Sabri (2017) stated that need for pension fund is determined by several factors including economic, socio-economic and non-economic (psychological and demographical aspects, such as age, level of education, gender and race). Study of Nzioka & Hazel (2013) described organizational policy, resource, communication, and public policy on pension funds in Sacco Industry in Kenya. Chatterjee (2010) in his study mentioned that number of private and public employees participating in retirement saving is increasing along with age, income, and level of education Study of Nzioka & Hazel (2013) described organizational policy, resource, communication, and public policy on pension funds in Sacco Industry in Kenya. Chatterjee (2010) in his study mentioned that number of private and public employees participating in retirement saving is increasing along with age, income, and level of education
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