Social Security Fund board rejects pension formula
The Social Security Fund (SSF) Board recently declined a proposed pension formula, citing its complexity as the reason for rejection.
Board member Associate Professor Sustarum Thammaboosadee, who coordinates the Progressive Social Security Team, expressed regret over his inability to persuade the SSF Board to adopt the proposal. Despite this setback, he plans to continue advocating for the formula at the next board meeting in March.
The proposed changes would impact over 300,000 insured individuals under Section 39, who were previously employed and now self-fund their SSF contributions. The new pension calculation would account for inflation and living cost fluctuations, updating past salary figures, such as those from two decades ago, to reflect current inflation rates.
He explained that although the SSF would incur additional expenses to cover these 300,000 members, the research team determined this would not jeopardise the fund’s sustainability. Over 10 years, pensions for this group are projected to require around 60 billion baht from the fund, which currently stands at 2.6 trillion baht.
The calculation method received preliminary approval from a sub-committee last October and was submitted to the SSF Board recently. Professor Sustarum reassured that the formula would not affect the rights of employers and employees under Section 33, as additional contributions from both parties would be included.
The board resolved to have the team revise the formula and resubmit it for consideration. Professor Sustarum voiced concerns over the delay, suggesting it might relate to their rigorous questioning of the board. He urged the public to oversee the process, emphasising the importance of transparency and accountability in managing the fund, reported Bangkok Post.
The SSF is the largest public fund in Thailand, currently valued at over 2.65 trillion baht, and it provides welfare and financial security to 24 million subscribers.
In similar news, Thailand will open registration for a new round of state welfare cards next month to support low-income individuals and vulnerable groups. The last registration was held from September 5 to October 31, 2022. This new round aims to assist even more people, providing financial aid of 1,545 baht per month.
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