Pension Plan Rejected Over Complexity; Debate Resurfaces in March

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The Social Security Fund (SSF) Board recently turned down a new pension formula, citing its complexity. This decision has sparked ongoing debates, especially among the 300,000 insured individuals under Section 39, who once were employees but now self-fund their SSF contributions.

 

Associate Professor Sustarum Thammaboosadee, of the Progressive Social Security Team, expressed his disappointment at failing to convince the board. He remains determined, however, to reintroduce the formula in March.

 

The proposed changes aim to adjust pensions for inflation and rising living costs by updating old salary figures. While this would increase SSF expenses, research shows it would not threaten the fund's $2.6 trillion baht sustainability, totaling 60 billion baht over a decade.

 

 

Earlier approved by a sub-committee, the formula spared the rights of Section 33 employers and employees, factoring in additional contributions from both sides. Despite this, the board insisted on formula revisions before reconsideration.

 

Professor Sustarum suggested the setback might be due to arduous questioning by the formula's proponents. He called for public oversight, highlighting the need for transparency in fund management.

 

As the largest public fund in Thailand, the SSF holds over 2.65 trillion baht and supports 24 million subscribers. With another round of discussions slated for March, the focus remains on ensuring fairness and sustainability in pension provisions, reported The Thaiger.

 

-- 2025-02-26