PTFI Savings Plan Program Helps You Save For Retirement
28 April 2019
Freeporters, have you started saving for your retirement? The earlier you start saving, the more likely you are to have enough in the bank to last your retirement. Unfortunately, it’s a sad fact, many of us will struggle without a proper financial plan.
Fortunately, PT Freeport Indonesia has a Savings Plan Program for its employees, which they can receive at the end of their career, in addition to the pension benefit managed by the PTFI Pension Fund and the Pension Plan (JHT) by BPJS.
To better understand this Savings Plan Program, below is an exclusive interview with Dianty Sirait, Head, Benefits.
Why is it important to the company that employees join this Savings Plan Program? What are the benefits and how does it work?
Dianty: Established in 2011, the Savings Plan Program is aimed to accommodate our employee’s request for added benefits in addition to the PTFI Pension Fund and Pension Plan (JHT) by BPJS.
All PTFI staff and non-staff employees can join this Savings Plan Program. It uses the ‘matching program’ method to encourage employees to start saving for their retirement. The minimum contribution each month is IDR 50,000, and the company will contribute the same amount up to a predetermined maximum limit.
For example, a Grade 1 employee registers for the Savings Plan Program and chooses to save IDR 1,650,000 each month. The company contributes the same amount, so this employees receives IDR 3,300,000 in his Saving Plan account.
In addition, the company adds a starting investment ranging from IDR 3 to 15 million based on how long the employee has been working at PTFI. To receive this, staff employees must have worked a minimum of five years since December 2011 and non-staff employees since February 2012.
Who is the employee fund manager appointed by the company? How are the employees involved in managing their funds?
Dianty: Officially the company works with Manulife and Prudential to manage the employee funds. Employees can choose which investment portfolio they want to invest their savings. There are four investment portfolios based on investment risk; Money Market Fund, Fixed-Income Fund, Mixed-Income Fund and Stocks.
From an employee’s perspective, the benefits of this program is not one we can enjoy right now but rather later on in life. How does the company ensure that this program is safe?
Dianty: Yes, all the funds and benefits will be paid at the end of the employee’s working period at PTFI. So, if the employee’s status is still as an active employee, he cannot leave the program. The company continually communicates the Savings Plan Program is a corporate-to-corporate contract of agreement. The company works with Manulife and Prudential, not with agents. We also review their performances to ensure the funds are being well managed.
What should the employee do when they are close to the end of their working period? How does an employee claim their funds?
Dianty: We recommend employees complete the requirements needed one month before the end of their working period. The process and conditions are pretty simple, provided the employee has the completed documents to file a claim, including their policy book or policy card.
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