Social Security Retirement Pension Question

[opporna]

As far as I can tell, if you have worked (and paid into SS) for 15 years (180 months) or more in Thailand and are over 55 years old, you are entitled to a pension.

My question: how much will that monthly pension be?

Here's the information as I understand it, and I'd appreciate it if anyone with more knowledge than I could confirm or correct my understanding.

From this website:

2. Old-age pension paid monthly for a lifetime under the following conditions:
(1) Insured persons had continually made contributions for not less than 180 months.
(2) Cessation of insured status.
(3) Insured persons are fully 55 years of age.
The old-age pension benefit is equal to 20% of the average monthly wage of the last 60 months. Please be noted that the salary base used to calculate must range between 1,650 and 15,000 baht. In addition, for every additional 12 months of contribution above the consecutive 180-month obligation, the benefit will accumulate by 1.5%.

My calculation gives me that at the top rate, you would receive 20% of 15,000 baht or 3,000 baht per month after 15 years. After 20 years, you would receive (20% + 5 times 1.5%) or 27.5% of 15,000 or 4125 baht per month.

Can anyone confirm or correct this calculation?

(The term salary base is confusing to me.)

[PacificCrossInsurance]

Very interesting

[WitawatWatawit]

That would seem to be about right. But is this applicable to foreigners? I have been paying into the SS fund for almost 20 years, but have never been able to find out whether I am eligible for that pension. Considering that I am very low maintenance (), and have only utility bills to meet each month, it could end up being a major factor in deciding to retire completely (when I feel ready to make that decision).

[opporna]

Yes, you can definitely receive some retirement benefits from Thai social security as a farang. I have several farang colleagues who received those benefits when they retired.

Important note: You must go ask for your benefits after you retire, or you will not receive them.

The colleagues mentioned above received lump-sum payments that were not insubstantial. I believe that you receive back all money you pain into the system and the matching contribution your employer made plus (perhaps) some interest.

An example, I heard one colleague received a more than 150,000 baht lump-sum payment after about 10 years working.

My question above is about the alternative to the lump sum, the pension. I believe you will be given a choice, but for me to make that decision, I would like to know what figures we are looking at for both the lump sum and pension.

[BruceMangosteen]

I think it's only the lump sum for farangs. You can stay on the Social health plan. However, I've not talked with a farang who lasted the 15 years mentioned. I've seen farangs getting lump sum for as little as five years of "legal" work and the contributions made. In one case, a bar of all things...in another two, school teachers at a Government school. Another case was a legally employed farang for an industrial giant in the Chonburi are. So bottom line, it's worth going to the Social office with your card and checking on how much you have due. As the other member posted, they don't come looking for you to give you the money.

[johnh869]

I was suppose to get 70K+ Baht. I have been under the Thai SS plan since May 1991. They told me (in 2014) since I have contributed for more than 15 years I can get the lump sum But I would not still be able to be under the Thai SS health insurance plan! I was told that if I had taken the lump sum in 2003 when I stopped working and started to self contribute that I could have received the money and still be able to be under the plan per article 39. Like the man said they don't broadcast their bennies! What a crock this place is...Say La Vie!

Edited October 30, 2015 by johnh869

[opporna]

It seems no one is able to answer my original question. I suppose I must go down to the Social Security office and see what they have to say. It would be nice if I could get independent verification here, though, so if anyone understands this issue and could enlighten me, I would be grateful.

[johnh869]

It seems no one is able to answer my original question. I suppose I must go down to the Social Security office and see what they have to say. It would be nice if I could get independent verification here, though, so if anyone understands this issue and could enlighten me, I would be grateful.

You will get a lump sum!

[WitawatWatawit]

It seems no one is able to answer my original question. I suppose I must go down to the Social Security office and see what they have to say. It would be nice if I could get independent verification here, though, so if anyone understands this issue and could enlighten me, I would be grateful.

As John says - you will get a lump sum. But ... unlike the information given by a previous poster, I was able to continue my SS contribution (roughly 400 baht a month) and still receive the SS medical service. (When you retire, you have a six-months grace period before you have to resume the monthly contribution, which you do through a bank like Krung Thai.)

But I'm still curious about the monthly pension payment - are we foreigners entitled to it instead of the lump sum payout! If you find out, please let us know.

Cheers.

[BkkLifeA]

Around a year ago the Thaivisa connected lawyer said this: (based upon a question)

After checking with the labour department you can only receive the refund on your social security when you are 55 years old and only if you have paid for 5 years or more, with regarding the forms on the airport could this be for VAT?

Link to source:

http://www.thaivisa.com/forum/topic/731421-refund-of-payments-into-the-thai-provident-fund-social-security-from-employment/

For myself iam not yet 55 but i think had around 10 years a WP, will try to find back my social security number lol

[johnh869]

I just talked to the Thai SS office in Bangkok in Thai this morning. The official stated that in my case I can receive my lump sum payment but I would not be under article 39 (a self contributor) anymore. In other words, I would not be able to contribute to the Thai SS system under article 39 again and receive the usual medical benefits. However, If I went back to work (not likely since I'm 67) and re-contributed to the Thai SS for at least one year under article 33 and then left my place of work I would be eligible to re-enroll in the Thai SS system once again under article 39. Of course, I would receive another 6 months of free medical coverage before once again making my payment of 432 Baht per month.

Now, you can get the pension option if you have contributed for at least 180 months and you are at least 55 years of age. I have been under the Thai SS since 2534 but they modified the Thai SS laws in 2541 to include a lump sum payment or pension benefit. I stopped working in 2546 (2005) to take care of my disabled Thai wife.They never said a word about this lump sum option at that time. So, I'll let them have the money and stay under the Thai SS system until I'm cremated!

Edited November 3, 2015 by johnh869

[opporna]

Thanks for that. Very useful.

However, I still have no idea how to calculate what the pension would be!

[johnh869]

Thanks for that. Very useful.

However, I still have no idea how to calculate what the pension would be!

I believe the English Thai SS website has the calculation formulas. 4000 Baht per month is about right. If you take the pension you cannot contribute to the SS program anymore per the current laws. Most of the private health insurance companies won't cover you after age 80. I have many health insurance policies from AIA and that is their age limit. I use the Thai SS for doctor visits only,however, it covers operations,etc. The Thai SS is good for life!

Edited November 3, 2015 by johnh869

[opporna]

Thanks for that. Very useful.

However, I still have no idea how to calculate what the pension would be!

I believe the English Thai SS website has the calculation formulas. 4000 Baht per month is about right. If you take the pension you cannot contribute to the SS program anymore per the current laws. Most of the private health insurance companies won't cover you after age 80. I have many health insurance policies from AIA and that is their age limit. I use the Thai SS for doctor visits only,however, it covers operations,etc. The Thai SS is good for life!

I looked at the site and I'm still not sure of my calculations on the pension. I sure wish there were an expert on these things that could explain.

The health insurance is definitely a great thing.

[johnh869]

Thanks for that. Very useful.

However, I still have no idea how to calculate what the pension would be!

I believe the English Thai SS website has the calculation formulas. 4000 Baht per month is about right. If you take the pension you cannot contribute to the SS program anymore per the current laws. Most of the private health insurance companies won't cover you after age 80. I have many health insurance policies from AIA and that is their age limit. I use the Thai SS for doctor visits only,however, it covers operations,etc. The Thai SS is good for life!

I looked at the site and I'm still not sure of my calculations on the pension. I sure wish there were an expert on these things that could explain.

The health insurance is definitely a great thing.

Call the 1506 number...They have reps for Thai and English. Give the rep your Thai SS number and they will calculate the pension amount for you. Good luck!

[opporna]

I had the secretary at work call them, and they were less than forthcoming. They just said that it is possible for farangs to receive the pension, but said they could give no figure until the actual calculation time, i.e. when you go in to get the pension. I'm asking people in personnel next to check into it.

[canopus1969]

Coming under the Thai SS does that mean you do not pay when going into a Government hospital/seeing a Doctor ?

[opporna]

You receive limited but very beneficial health insurance, yes.

I've seen the calculations on the SS site.

15 years at top rate = 3000 a month as I said (20% x 15,000 top rate)

20 years at top rate = 4125 a month ((20%+1.5%*5) = 27.5% x 15,000 top rate)

25 years at top rate = 5250 a month ((20%+1.5%*10) = 35% x 15,000 top rate)

etc.

From this page (in Thai, but you can see the calculations):

http://www.sso.go.th/wpr/category.jsp?lang=th&cat=935

Edited November 3, 2015 by opporna

[johnh869]

Coming under the Thai SS does that mean you do not pay when going into a Government hospital/seeing a Doctor ?

You pay the monthly fee of 432 Baht per month via your bank account. When you go to the hospital for an office visit there are usually no other charges.

[johnh869]

I just talked to the Thai SS office in Bangkok in Thai this morning. The official stated that in my case I can receive my lump sum payment but I would not be under article 39 (a self contributor) anymore. In other words, I would not be able to contribute to the Thai SS system under article 39 again and receive the usual medical benefits. However, If I went back to work (not likely since I'm 67) and re-contributed to the Thai SS for at least one year under article 33 and then left my place of work I would be eligible to re-enroll in the Thai SS system once again under article 39. Of course, I would receive another 6 months of free medical coverage before once again making my payment of 432 Baht per month.

Now, you can get the pension option if you have contributed for at least 180 months and you are at least 55 years of age. I have been under the Thai SS since 2534 but they modified the Thai SS laws in 2541 to include a lump sum payment or pension benefit. I stopped working in 2546 (2005) to take care of my disabled Thai wife.They never said a word about this lump sum option at that time. So, I'll let them have the money and stay under the Thai SS system until I'm cremated!

Here is some good info about the Thai SS system...Social Security Act.pdf

[canopus1969]

Coming under the Thai SS does that mean you do not pay when going into a Government hospital/seeing a Doctor ?

You pay the monthly fee of 432 Baht per month via your bank account. When you go to the hospital for an office visit there are usually no other charges.

Thank you