Determination of the Annual Pension Fund Premium for Joint-Life Status Using the Aggregate Cost Method

Abstract

A pension fund is one of the responsibilities of an institution or company for all employees during their working life. In pension fund insurance, several agreements must be agreed upon by the insured and the insurer for the agreement, namely the premium. The premium to be paid by the insured (employee) of the pension fund insurance must adjust to the income earned, so that the premium to pay does not burden the insured. This study aims to determine the annual pension fund premium amount that must pay use the Aggregate Cost method in the joint-life case. The case study uses information from a husband and wife as civil servants with a husband class III B and wife III A participating in a pension program with a retirement age limit of 58 years (r = 58). The husband (insured x) was 28 years old, and the wife (insured y) was 24 when they started working and joined the pension program. The result of calculating the value of the annual pension fund insurance premium that must pay use the Aggregate Cost method is Rp.41,440,163. If the husband's age is lower than the wife's (x=24, y=28), then the value of the premium paid is more significant than when the husband's age is higher than the wife's (x=28, y=24), which is IDR 41,594,217. That is because the husband's working period is more extended than the wife's, while the chance of death for men is higher than for women. Meanwhile, premiums producing if the husband and wife are of the same age, which is cheaper than when the husband and wife are of different ages