A new board urges essential changes
PUBLISHED: Mar. 6, 2024 at 04 :43
According to the Labour Ministry, the Social Security Fund ( SSF ) may collapse over the next 30 to 40 years.
The newly established Social Security Board ( SSB), led by Sustarum Thammaboosadee, an academic from Thammasat University, met with Labour Ministry officials on Monday to discuss ideas and advocate for a more effective social security policy.
According to Labour Minister Phiphat Ratchakitprakarn, if nothing changes, the Social Security Fund may go destitute in the next 30 to 40 years.
According to Mr. Phiphat, the SSB may need to increase the peak years of employees who contribute to the bank from 55 to 60 and raise the bank collection cap from 15 000 to 20 000.
He also suggested that the board increase the maximum allowed for low-risk asset investments from 60 % to 75 %.
Phiphat says,” Something must be done.”
Additionally, investments in higher-risk assets may have a BBB or higher investment grade.
According to Mr. Phiphat, the Social Security Fund has so far accumulated an estimated 200 billion ringgit and has collected around 70 billion baht annually.
The SSF curve may quickly fall and tumble in a” V” design” when the account reaches its peak, which is anticipated to occur in the near future. Therefore, it is necessary to plan in advance,” he said.
He continued,” The SSF made a 59 billion baht revenue from 2.34 trillion ringgit in purchases last time.”
He claimed that to increase revenue to 120 billion baht, investment needs to be increased from 2.4 % to 5 %.
” The SSF’s new investment projects must not produce a profit of less than 5 % or at least 4 % during this and the following year,” he said.
He added that putting in foreign businesses also raises the risk of exchange rates.
He also urged the new board to talk about the protections it wants to include for bank people: former staff under Section 39, or separate staff under Section 40.
In addition, the country’s first-elective SSB has pledged clarity in the Social Security Fund’s management, including promoting life meetings and lowering costs.
The SSF committee’s meetings must be broadcast, according to SSB spokeswoman Ketnakorn Pojanavorapong, and the public should be able to get information about past meetings.
She also pointed out a flaw in the Prayut government’s social security law, which she claimed was proposed while the SSF was being overseen by a select section. As the first social protection commission to get elected,” we hope this will be the start of a change that may lead to a better quality of life for all people,” she said.