Overhaul in the works for Thai social security fund

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Overhaul in the works for social security fund
The Nation

Labour Ministry to set up committee to revamp fund so its management meets international standards

BANGKOK: -- The Labour Ministry plans to set up a committee to overhaul Bt1.2 trillion in social security and compensation funds, while at the same time encouraging people to save more money.

Labour Minister General Surasak Kanjanarat has appointed Dr Noppadol Kannika - an adviser to the Labour Minister - as the chairman of a working committee established to find a way to restructure the Bt1.2 trillion.

The new social security restructuring guidelines include revamping the management of the security fund in terms of investment and risk management in a bid to make it independent and professional on a par with international standards.

The revamp includes strengthening the Social Security Office in an effort to make it free from interference from influential groups and generate more employer and employee satisfaction.

It also features the public disclosure of procurements, hiring activities and the Social Security Office (SSO)'s investment plans in various funds.

Noppadol said the previous government tried to improve the social security system without success, including introducing a new Social Security Act.

He said the Labour Ministry would propose the new measures to the National Legislative Assembly to approve as a new Act.

The Act, he said, would provide expanded coverage for all state and private employees and private employers, especially in unexpected cases such as natural disasters which interrupted business operations.

The Cabinet would review and approve compensation pay-outs.

Noppadol said the members of committee were required to publicly disclose their assets to the National Anti-Corruption Council and must refrain from seeking benefit for themselves and others, either directly or indirectly, while managing funds.

He said the Labour Minister, General Surasak Kanjanarat, welcomed representatives from all sectors of the economy to participate in the restructuring effort in an effort to protect it from influential groups so that it operates in a more professional, independent and transparent manner.

The committee will conduct workshops to help facilitate the transformation in what it hopes will be an effective and efficient manner.

The Social Security Office will over 30 days search data nationwide and follow that with a second 30-day phase of analysing the data, setting up investment models for several options and testing them.

A final 30-day phase involves implementation, as per the roadmap, and proposing it to the Labour minister, who will decide whether to proceed with the restructuring.

Noppadol said the revamped Social Security Office would serve as a "white government" and "open government" in which employers and employees can monitor operations to hopefully ensure funds are managed in a professional, transparent and independent manner.

The workshops will include a seminar, discussions involving stakeholders and seeking advice from the Bank of Thailand, the Stock Exchange of Thailand and relevant state agencies on how to best manage - locally and internationally - the funds under the management of the Social Security Office.

They will also feature testing investment models for funds with the aim to best protect the assets of tax-payers and maximise investment returns within a legal framework to ensure the nation's financial stability.

Source: http://www.nationmultimedia.com/national/Overhaul-in-the-works-for-social-security-fund-30247468.html


-- The Nation 2014-11-11

[noitom]

Why not start with disclosing publicly how it has been managed? Let's get some transparency here. It's a good opportunity for the generals to bust some Thai big men investment "professionals" to use the term loosely. Bust a few of the Thai big men bankers and hedge funds skimming off this fund for years.

[Krataiboy]

If the Thai government wants to encourage people to save money, it should start by leaning on the banks to improve their interest rates to borrowers.

[elgordo38]

I hope they boost the pensions of the ordinary folk and not just government workers. 500 bahts a month will barely pay the utilities for a frugal retired couple