OJK Responds to Constitutional Court Ruling on Pension Benefit Payments, Here Are the Latest Rules
The Financial Services Authority (OJK) has followed up on the Constitutional Court (MK) rulings Number 139/PUU-XXIII/2025 and Number 164/PUU-XXIII/2025 concerning pension benefits. The policy was established through the OJK Board of Commissioners Decision Number KEP-54/D.05/2026.
Agus Firmansyah, Head of the OJK’s Integrated Financial Services Sector Surveillance and Policy Department, stated that the decision concerns the granting of approvals or policies differing from OJK regulations governing the operation of pension fund businesses related to the payment of pension benefits for participants, widows/widowers, or children.
“This policy aims to provide legal certainty, protect the interests of Pension Fund participants, and maintain the sustainability of Pension Fund business operations while prioritising prudential principles and good governance,” Agus said in a statement in Jakarta, cited on Tuesday, 14 July 2026.
Through this policy, the OJK stipulates that the payment of pension benefits originating from severance pay, long-service awards, and/or compensation for rights for participants, widows/widowers, or children can be made in a lump sum or periodically according to the choice of the participant, widow/widower, or child.
“The issuance of this decision is an exercise of the OJK’s authority in providing legal certainty for the implementation of the Constitutional Court’s Ruling, while safeguarding the interests of Pension Fund participants, the sustainability of Pension Fund operations, and the stability of the Pension Fund industry,” Agus said.
Furthermore, Pension Funds may also pay these pension benefits in a lump sum without regard to the lump-sum payment value limits or certain conditions as stipulated in previous OJK provisions. In carrying out the payment of pension benefits as a follow-up to the Constitutional Court’s Ruling, Pension Funds must first obtain approval for amendments to the Pension Fund Regulations from the OJK.
The OJK Board of Commissioners Decision remains in effect until it is revoked or new provisions are established in the laws and regulations governing the payment of pension benefits.
Agus conveyed that the follow-up to the Constitutional Court’s Ruling reflects the OJK’s commitment to continuously present policies that are adaptive to legal developments and the dynamics of the pension fund industry. The OJK also stated that it will continue to strengthen the regulatory and supervisory functions of the insurance, guarantee, and pension fund (PPDP) sector. This is done to maintain a balance between industry development, the application of prudential principles, strengthening governance, consumer protection, and national financial system stability.