Comparison of Projected Unit Credit, Entry Age Normal, and Individual Level Premium Methods in Calculation of Normal Retirement on PNS Pension Funds

Aulianda Anisa Putri S. R.; Dwi Susanti; Riaman Riaman

doi:10.46336/ijqrm.v5i2.692

Comparison of Projected Unit Credit, Entry Age Normal, and Individual Level Premium Methods in Calculation of Normal Retirement on PNS Pension Funds

Aulianda Anisa Putri S. R., Dwi Susanti, Riaman Riaman

Abstract

Every individual’s desire for a prosperous old age lead to the need for a pension fund program to ensure the welfare of every employee in their old age. The calculation of pension fund in this study was carried out using the Projected Unit Credit, Entry Age Normal and Individual Level Premium methods. This study aimed to determine the value of normal cost and actuarial liability using Projected Unit Credit method, Entry Age Normal method, and Individual Level Premium. Then the best method was determined based on the comparison results of the normal cost value and the actuarial liability value obtained using the three methods. The data used in this study is secondary data from PT Taspen (Persero) KCU Bandung. The results showed that the best method among the three methods studied was the Projected Unit Credit method because it produced the highest total normal cost with the lowest actuarial liability value each year.

Keywords

Pension fund, normal cost, actuarial liability, Projected Unit Credit, Entry Age Normal, Individual Level Premium

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DOI: https://doi.org/10.46336/ijqrm.v5i2.692