Bangkok: Dr. Anusorn Thammajai has called for the Ministry of Labour to implement the Care pension formula to aid insured persons without delay.
According to Thai News Agency, Dr. Anusorn Thammajai, a former chairman of the ad hoc subcommittee on pension reform and a member of the People’s Party’s economic team, stressed the urgency of adopting the Care pension formula to support approximately 570,000 individuals awaiting increased pension benefits. He emphasized the need for immediate action, irrespective of political uncertainties, to alleviate economic hardships faced by those with inadequate savings.
The shift to the CARE (Career-Average Revalued Earnings) formula aims to provide financial security for retirees, addressing the inadequacies of the previous formula that averaged wages from the last 60 months of contributions. This change seeks to offer a more equitable pension calculation that reflects the current economic climate and cost of living, ensuring a fair outcome for all insured persons.
The subcommittee responsible for revising the pension formula has completed its study and presented it to the Social Security Board, alongside public hearings conducted months ago. The implementation of the new formula is expected to be finalized soon, reflecting the urgent need for reform in Thailand’s aging society. The Social Security Fund, which categorizes contributions from various groups, underscores the importance of an efficient and sustainable pension system to support the quality of life for retirees.
Dr. Anusorn also highlighted concerns about the future sustainability of the pension fund, noting that demographic changes have led to increased pressure on pension systems globally. Without reform, Thailand’s fund may face insolvency by 2054. He advocates for comprehensive reforms involving all sectors to ensure the fund’s sustainability and effectiveness, underpinned by strategies focused on technological innovation, organizational trust, and enhanced social security access for all workers.
These reforms aim to transform the Social Security Office into a high-potential organization managed with good governance principles, enabling the efficient implementation of these crucial strategies.