Good People's Representatives, Retirement Funds For Life

Photo Illustration By Andry Winarko VOI

JAKARTA - The allowance for a lifetime pension for members of the Indonesian House of Representatives has drawn a polemic. The reason is, elected members of the House of Representatives for a period or five years will get pension funds throughout their lives.

Researcher at the Indonesian Parliamentary Concerned Community Forum (Formappi) Lucius Karus said there was not enough reason to provide a life-long pension allowance for members of the DPR. He questioned how the DPR members could receive a life-long pension allowance even though they only served for 5 years.

"When it comes to whether or not it is appropriate, I don't think there is enough reason to provide pension allowances for members of the DPR. Yes, their position is only for a period of 5 years. They get so many benefits during that short term of office," he told VOI in a written message.

Direktur Eksekutif Citra Institute, Yusak Farchan menilai, rasa keadilan publik akan terusik bila rencana pemberian dana pensiun seumur hidup bagi anggota DPR direalisasikan. Sebab, anggota DPR di setiap periode hanya bekerja selama lima tahun dan kinerja mereka kerap dianggap mengecewakan publik, terutama dari sisi produksi regulasi.

"Work five years, but can you retire for life? The DPR should find a good agreement with the people and increase its image. Of course it would be better if the DPR itself could eliminate the pension money by revising the law," he said, Sunday, October 6, 2024.

In addition to improving the image in the eyes of the public, the DPR will reduce the burden on the state budget if it does not realize the pension fund for life. Moreover, until now there are still many people who have difficulty meeting their daily needs.

Rules For Retired Money For Members Of The DPR

The salary provisions for retired members of the DPR are regulated in Law No. 12 of 1980. Based on these regulations, pension money is given to members of the DPR who have resigned with respect from their positions. The pension money for members of the DPR is determined based on the length of their term of office and given for life until the person concerned dies. When the pension recipient dies, the pension money will be given to a legal wife or husband in the amount of 72 percent of the pension basis.

The legal basis regarding the pension of the leadership and members of the DPR is Article 12 paragraph (1) of Law 12/1980 which states that the leadership and members of high state institutions who have resigned with respect from their positions are entitled to pensions. This pension is determined based on the length of the term of office and pensions given by a Presidential Decree.

Regarding the payment, the pension is paid starting the following month since the person concerned stopped with respect. As for the dismissal, it is carried out if the recipient of the pension concerned Dies or is reappointed as the head of a high state institution or a member of a high state institution.

From the explanation above, it can be concluded that a member of the DPR who has resigned with respect from his position has the right to retire for a lifetime until he dies, unless he is reappointed as a leader or member of the DPR. However, if a pension recipient is reappointed as a leader or member of a high state institution, then stops with respect from his position, then he will be given a pension money again, taking into account his term of office.

Simulation Of Accounting Funds For Members Of The DPR

Main salary (retired base) = IDR 4,200,000.00

Work period = 60 months (5 x 12 months)

Basic Pension Money

= 1% x the working period x the basic salary (based on retirement)

= 1% x 60 x IDR 4,200,000.00

= 0.60 x IDR 4,200,000.00

= IDR 2,520,000.00

Remove DPR Pension Funds Can Reduce State Burden

Executive Director of the Institute for Development of Economics and Finance (Indef) Tauhid Ahmad assessed that the burden on the state is because pension funds must be reduced. This can start from the elimination of pensions for members of the DPR.

"What must be changed is the mindset, the management should not be included in the APBN. It must be managed by a pension institution. Retirement must be taken from the pay cut of the worker. Then give them a choice, if they are immediately taken when they retire or taken at every salary per month," explained Tauhid.

Support for removing the pension allowances of the representatives of the people who are in the Senayan parliament building, Jakarta was also conveyed by the former Minister of Maritime Affairs and Fisheries (2014-2019 period) Susi Pudjiastuti. Susi expressed her support through her personal Twitter account @susipudjiastuti on Thursday (1/9/2022) citing a national news article entitled 'It's Time for the People's Representative Retirement Ratah'. "Yesss.. 100% support Mrs. SMI (Sri Mulyani Indrawati)," he wrote.

Susi has not yet stated her support so that ministers or former ministers do not need to be retired. This was conveyed through his Twitter account which was written on Saturday (27/8/2022).

"I agree like us ministers also don't need to be given a pension (just checked today there is an account at Mandiri Taspen," wrote Susi.