hotel borobudur, jakarta, 20 october 2014€¦ · hotel borobudur, jakarta, 20 october 2014 steven...

DPLK:DPLK:Areas of ImprovementAreas of Improvement

ASOSIASI DANA PENSIUN LEMBAGA KEUANGANASOSIASI DANA PENSIUN LEMBAGA KEUANGAN

Hotel Borobudur, Jakarta, 20 October 2014Hotel Borobudur, Jakarta, 20 October 2014

Steven TannerSteven [email protected]@pacific.net.id

2Rapat Umum Anggota ADPLK Rapat Umum Anggota ADPLK –– 20 October 201420 October 2014

Your team is a keyYour team is a key

Capacity and servicesCapacity and services

InvestmentInvestment

EducationEducation

Benefit statementsBenefit statements

The futureThe future

ContentsContents


Should have appropriate level of knowledge, skill, and Should have appropriate level of knowledge, skill, and competencecompetence

Should also possess soft skillsShould also possess soft skills Presentation, communication, writing, etc.Presentation, communication, writing, etc.

Ongoing self development and improvementOngoing self development and improvement Professional credentials?Professional credentials?

Certification of competency?Certification of competency?

Size of your team does matterSize of your team does matter

Your team is a keyYour team is a key


StateState‐‐ofof‐‐thethe‐‐art technologyart technology Ability to adapt quickly with everAbility to adapt quickly with ever‐‐changing needschanging needs

Improve online activities, including future demands in online Improve online activities, including future demands in online investment switch investment switch –– this may reduce timing lag and limitation this may reduce timing lag and limitation of investment switchof investment switch

Take advantage of the social mediaTake advantage of the social media

How often do you update your website?How often do you update your website?

Provide standard and consistent reportingProvide standard and consistent reporting Avoid poor manual reportingAvoid poor manual reporting

Capacity and servicesCapacity and services(1)(1)


Provide retirement software and toolsProvide retirement software and tools Allow participants to see how they would benefit from Allow participants to see how they would benefit from

increasing their savingsincreasing their savings

What is your process and standard of practice of What is your process and standard of practice of returning calls and attending complaints?returning calls and attending complaints?

How do you communicate changes to participants and How do you communicate changes to participants and clients quickly?clients quickly?

How often do you review your contracts to see if all How often do you review your contracts to see if all promises have been fulfilled?promises have been fulfilled?

ContinuedContinued

Capacity and servicesCapacity and services(2)(2)


ChoicesChoices: too many (may be confusing), too little (not : too many (may be confusing), too little (not enough to choose from), and not flexible (too rigid)enough to choose from), and not flexible (too rigid) Fixed investment packagesFixed investment packages: are they designed with specific : are they designed with specific

type of participants/clients?type of participants/clients?

Do you distinguish the needs between individuals and Do you distinguish the needs between individuals and corporations?corporations?

Make available sufficient detail of risk profile of each Make available sufficient detail of risk profile of each funds funds –– individual circumstances may changeindividual circumstances may change Ensure that they understand (care for your clients) Ensure that they understand (care for your clients) –– do you do you

provide investment education materials and how do you provide investment education materials and how do you measure they understand?measure they understand?

Ensure individuals understand to balance risk and returnEnsure individuals understand to balance risk and return

InvestmentInvestment(1)(1)


Most individuals do not have investment knowledge Most individuals do not have investment knowledge and they end up leaving the initial choices unchangedand they end up leaving the initial choices unchanged How do you assist them in choosing?How do you assist them in choosing?

How do you ensure that participants are regularly made aware How do you ensure that participants are regularly made aware of their current investment choice and strategy?of their current investment choice and strategy?

Retirement saving is not just about investing, but it is Retirement saving is not just about investing, but it is also about the future outcomesalso about the future outcomes How do you monitor, communicate, review, and change?How do you monitor, communicate, review, and change?

Have you ever performed gap analysis to indentify gap Have you ever performed gap analysis to indentify gap between income needed in retirement and amount between income needed in retirement and amount contributed?contributed?

ContinuedContinued



Should provide information on performance of Should provide information on performance of individual funds as well as combination of fundsindividual funds as well as combination of funds

Comparisons should be made among funds within the Comparisons should be made among funds within the provider and the industry to identify the impact of provider and the industry to identify the impact of different outcomes of assets allocationdifferent outcomes of assets allocation

Benchmark used should be clearly defined and how it is Benchmark used should be clearly defined and how it is matched with clients asset allocationmatched with clients asset allocation

ContinuedContinued



Should hold regular meeting with clients to review Should hold regular meeting with clients to review investmentinvestment Identify if clients investments are under performingIdentify if clients investments are under performing

How do you assist clients to correct them?How do you assist clients to correct them?

Explicit information on charges must be disclosed, Explicit information on charges must be disclosed, including charges on mutual fundsincluding charges on mutual funds

Ensure that your external fund managers are in line with Ensure that your external fund managers are in line with your standard quality of serviceyour standard quality of service

ContinuedContinued



Education should be a priority to assist Education should be a priority to assist participants/clients make informed decisionsparticipants/clients make informed decisions

Education materials on basic financial, retirement Education materials on basic financial, retirement planning, and investment concepts should be made planning, and investment concepts should be made available and easy to understandavailable and easy to understand …… and it is dynamicand it is dynamic

Newsletter, bulletin, website, etc.Newsletter, bulletin, website, etc.

Face to face participants communication and education Face to face participants communication and education at plan launch and on a routine basisat plan launch and on a routine basis

EducationEducation(1)(1)


Conduct regular public seminars and workshopsConduct regular public seminars and workshops

What about public education and campaign?What about public education and campaign?

Information to assist participants who are approaching Information to assist participants who are approaching retirementretirement Annuity products or any monthly paymentsAnnuity products or any monthly payments

How to invest the lump sum (if any)How to invest the lump sum (if any)

ContinuedContinued

EducationEducation(2)(2)


Disclosure of account balances (inflows/outflows) are Disclosure of account balances (inflows/outflows) are important for accountabilityimportant for accountability But mostly not easy to interpret and it does not deal with the But mostly not easy to interpret and it does not deal with the

end result (enough savings at retirement)end result (enough savings at retirement)

Benefit statements and other communications should Benefit statements and other communications should help participants understand how they are progressing help participants understand how they are progressing towards their desired retirement incometowards their desired retirement income

Providing only funds value is meaninglessProviding only funds value is meaningless

Benefit statementsBenefit statements(1)(1)


Good quality benefit statements should clearly explain Good quality benefit statements should clearly explain (supplement with short narrative), at least the following(supplement with short narrative), at least the following Amount of contributions have been savedAmount of contributions have been saved

How they are being invested and how they have performedHow they are being invested and how they have performed

Overall investment returns (in %) of the funds for the periodOverall investment returns (in %) of the funds for the period

Charges taken out of the contributions and investmentsCharges taken out of the contributions and investments

Estimate or general illustration of the accumulated value of Estimate or general illustration of the accumulated value of their accounts at retirement (methodology and assumptions their accounts at retirement (methodology and assumptions should be clearly specified)should be clearly specified)

Participants need to know if desired retirement income Participants need to know if desired retirement income can be achieved at the current rate of contributionscan be achieved at the current rate of contributions If not, how much additional contribution is neededIf not, how much additional contribution is needed

ContinuedContinued

Benefit statementsBenefit statements(2)(2)


The immediate futureThe immediate future You are supposed to provide quality services to clients, You are supposed to provide quality services to clients,

participants, market, and the society as a wholeparticipants, market, and the society as a whole

Data on clients profile, participants age profile, investment Data on clients profile, participants age profile, investment profile, etc. are essential statistics information for future profile, etc. are essential statistics information for future development of the industrydevelopment of the industry

Databases must be upDatabases must be up‐‐toto‐‐date at all timesdate at all times

So, please, please, pleaseSo, please, please, please……!!

The futureThe future(1)(1)


The notThe not‐‐soso‐‐long futurelong future Develop code of ethics and professional responsibilityDevelop code of ethics and professional responsibility

Regulating principles of client first, integrity, objectivity, fRegulating principles of client first, integrity, objectivity, fairness, airness, professionalism, competence, confidentiality, and diligence professionalism, competence, confidentiality, and diligence

Develop standards of practiceDevelop standards of practice Practice is based on norm practice, advancement of Practice is based on norm practice, advancement of

professionalism, and enhancement of practice processprofessionalism, and enhancement of practice process

ContinuedContinued

The futureThe future(2)(2)

hotel borobudur, jakarta, 20 october 2014€¦ · hotel borobudur, jakarta, 20 october 2014 steven...

Documents