KS Pension Fund Closes Program
Bisnis Indonesia, page B4, 2006-05-16
Krakatau Steel (KS) Pension Fund closed its Program Pensiun Manfaat Pasti (Stable Benefit Pension Program) for new members and applied a dual pension program starting this year. New members will be entered in the Dana Pensiun Lembaga Keuangan (Financial Institutionís Pension Fund), which is not owned by KS, with a Program Pensiun Iuran Pasti (Stable Fee Pension Fund).
Krakatau Steelís current pension fund only has a capital adequacy ratio (CAR) of 92 percent. If the program conversion is done this year, the company must deposit Rp.96 billion to cover its lack of asset as much as 8 percent. The deposit amount is from the percentage lacked from the CAR of its total assets. By December 2005, Krakatau Steel managed assets worth Rp.1.2 trillion.