Govt audits pension funds

JAKARTA (JP): The government will audit pension funds at least every five years, Ministry of Finance spokesman Agus Haryanto said yesterday.

Agus said auditing could occur any time there was an indication that a pension fund was violating regulations.

Based on a ministerial decree, signed by Minister of Finance Mari'e Muhammad on Jan. 22, 1997, the Directorate of Pension Funds of the Directorate General of Financial Institutions will notify a pension fund before an audit.

Pension funds must help auditors gain data or certificates from public accountants, actuaries or other parties related to their funds. But they can refuse to be audited if they have not received notification from the appropriate government office.

The government may replace a pension funds' executive board within 60 days as a sanction for not cooperating with, or misleading, an audit. A pension fund may be dissolved after the 60-day deadline.

The government has licensed 265 pension funds. (icn)