TCC calls for pension scheme reversal

Proposes 3,000-baht monthly handouts for elderly

TCC calls for pension scheme reversal
An elderly woman rests near the Hua Lamphong railway station in Bangkok. (Bangkok Post file photo)

The Thailand Consumers Council (TCC) is insisting the new government revise a new regulation that limits some elderly people from receiving monthly allowances and restores the universal pension scheme with an upgrade of 3,000 baht per month.

Nimit Tienudom, TCC vice chair and representative of the People’s Network for Welfare State, told an online forum on Friday that monthly allowances for the elderly were first introduced in 2009.

The scheme must be improved, not downgraded, he said.

“Every senior citizen should have the right to a monthly allowance from the state,” he said. “The basic pension should allow the elderly to have enough to spend on their daily life.”

“A 3,000-baht monthly allowance is suitable as the rate will help the elderly earn a little above the poverty line, defined by the National Economic and Social Development Council as 2,800 baht per month per person,” he said.

The new regulation, published in the Royal Gazette and which took effect on Aug 12, says that only elderly people with little-to-no income to cover the cost of living will be entitled to monthly allowances from the state.

The new rule will not affect those already receiving allowances (worth between 600 baht and 1,000 baht depending on age), only those who will become 60 years old after the rule took effect.

“We want the government to keep its universal pension [scheme] and try to improve the quality of life of the elderly, rather than thinking that universal welfare payments will be a burden on state coffers,” Mr Nimit said.

Asst Prof Weerasak Putthasri, deputy secretary-general of the National Health Commission, said the health assembly has promoted guaranteed basic income for the elderly as a national agenda item.

“Monthly allowances for the elderly are a basic right that every old-aged citizen should receive without needing to prove they are poor,” he said.

“The issue is a challenge for the new government to elevate the living condition of all senior citizens.”

Katikar Tipayalai, a lecturer from the Faculty of Economics at Chulalongkorn University, said a recent study showed that more than 90% of elderly people in the country do not have savings.

Among those who do, only 9% have the money to cover spending for the next five years, she said, noting that state welfare is a necessity.

Currently, about 11 million people aged over 60 receive monthly allowances, which requires about 88 billion baht a year, she said, adding if the payment is adjusted to 3,000 baht a month, a budget of 400 billion baht will be required.

“The 400 billion baht is not high because the money will be spent on purchasing goods, and that will help stimulate the economy,” she said.

It is estimated that the “investment” could stimulate up to 600 billion baht in spending, and the government could collect the taxes, she said.

She also said the new government should reform its yearly budget as well as increase the value-added tax (VAT) rate for luxury goods and services to cover the pension fund.

She estimated that every 1% increase in the VAT would help add 70-100 billion baht to the pension scheme.

Saree Aongsomwang, secretary-general of the Foundation for Consumers, said the foundation wants the new government to revise the regulation so the elderly can have universal welfare payments.

“Many political parties promised to improve the pension scheme to win votes,” she said.

“When the new government is formed, we will push this issue forward as pensions should benefit every old-age citizen.”