Tugu manages Arco pension

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)