Tugu manages Arco pension

JAKARTA (JP): Atlantic Richfield Indonesia Inc. (Arco) has assigned PT Asuransi Jiwa Tugu Mandiri, an insurance firm affiliated with the state oil company Pertamina, to manage its employee pension fund under an agreement signed yesterday.

The agreement was inked by Tugu Mandiri's president, A.B. Ghifari, and Arco's president and resident manager, T.N. Machmud.

"Tugu Mandiri, as the fund manager, will offer a defined contribution plan with standard-based premiums as the way to collect funds from Arco's employees," Ghifari announced.

According to a government ruling, the standard premiums should not exceed 10 percent of the annual salaries of those insured. "We give therefore a ceiling at Rp 1 million ($460) per month for their contribution to the fund," he said.

Arco, operating oil fields in Indonesia under production sharing contracts with Pertamina, currently employs some 2,000 people.

According to Ghifari, Tugu Mandiri manages pension funds of 58 companies, including eight oil and gas contractors.(fhp)