Wealth creation for employees
Wealth creation for employees
Indonesia's pension fund prospects are very healthy, according
to Simas Lend Lease Life's President Director and BII Lend Lease
Investment Services' Commissioner, Bob Bettridge.
Together, the above two companies offer a full range of
solutions for creating employee wealth. Services offered range
from full-service pension funds, including administration,
investment and insurance through Simas Lend Lease Life, to
investment only management of funds through BII Lend Lease
Investment Services.
Indonesia has an advanced pension funding system. As elsewhere
in the world, retirement funding will develop as a main pillar of
employee welfare and for funding industrial development. Medical
science continues to improve worldwide. As a result, employees
live longer, spend more time in retirement and, therefore, there
is a greater need for employee wealth creation during their
working life to live comfortably in retirement.
Simas Lend Lease Life Pension Fund was approved by the
Ministry of Finance in 1994. It is a joint venture between the
Sinar Mas Group and Lend Lease Corporation from Australia. The
Lend Lease Group has been managing money for over 100 years and
currently manages assets in excess of A$70 billion worldwide.
Lend Lease Corporation is a leader in employee benefits for
its own staff and in pension fund administration. The philosophy
is now part of the DKLK Simas Lend Lease Life Pension Fund, which
believes in customer investment flexibility. Investment can be
done via Simas Lend Lease Life or BII Lend Lease Investment
Services and also through alternative fund managers if required.
As Indonesia continues to recover, and interest rates fall,
investing in cash alone for long-term wealth creation can cause
financial hardships later in life. There will be a need for
investment diversification. Many employees do not understand the
concept of risk, return, their own investment profile and how it
changes as they get closer to retirement. Bettridge sees
education as an essential part of the retirement business. So,
education seminars are offered to our clients and their staff, so
they understand what they have.
Unfortunately, not all employees have an easy run and some do
not make it to retirement, due to illness or accident. To
compliment retirement funding, Simas Lend Lease Life will design
extensive employee benefit programs, such as health insurance and
group life insurance.
Both Simas Lend Lease Life and BII Lend Lease Investment
Services are budgeting for a major increase in the pension fund
business in 1999. Bettridge is convinced that pension funds will
grow rapidly as the Indonesian economy continues to grow. It is a
key market and a key need for all Indonesian employees.