Bangkok: "Pipat" has reassured insured individuals that the Social Security Fund's budget will remain intact.
According to Thai News Agency, Phiphat Ratchakitprakarn, Minister of Labor, announced plans to consult with investment experts to maintain a 5% return, aiming to prevent the fund's bankruptcy over the next 30 years and extend its viability by 55 years. Additionally, there are plans to enhance health check-up rights and increase retirement benefits. Pipat emphasized the authenticity of the investigation into the Social Security budget, refuting any claims of deceptive tactics. The Permanent Secretary of Labor has already submitted the relevant information.
Mr. Pipat addressed concerns raised during a no-confidence motion debated by the opposition party regarding the Social Security Fund's operations. He clarified recent news about a building purchase, stating it was false and denied any staged conflicts. Mr. Anutin Charnvirakul, Deputy Prime Minister and Minister of the Interior, has initiated a fact-finding committee to investigate, with Pipat unable to interfere. His primary focus is on managing the Social Security Fund to avert bankruptcy by 2054, a risk highlighted by various institutions. He reported that investment yields were 3.1% in 2023 and are projected to reach 5.34% in 2024, aligning with his target of achieving a 5% interest rate or higher.
Pipat elaborated that historically, 60% of the fund was allocated to low-risk investments, resulting in modest returns. The remaining 40% requires strategic investments to balance and achieve an average 5% annual return. The Social Security Board, comprising elected representatives from employers, employees, and sub-committees, will play a crucial role in evaluating and planning for the fund's future.
Pipat stated that sustaining a 5% fixed income over 30 years could extend the fund's life to 55 years. He has engaged international experts to devise strategies for social security compensation, projecting a potential fund growth to 6 trillion baht within 12 years if proactive measures are taken. Otherwise, the fund risks collapse.
Pipat assured insured individuals that their contributions will be managed prudently, aiming to maximize interest returns. Achieving these goals would enhance benefits such as preventive health examinations and increased retirement payouts.
Mr. Boonsong Thapchaiyut, Permanent Secretary of the Ministry of Labor, confirmed the submission of the Social Security budget's explanation to the fact-finding committee, chaired by the Permanent Secretary of the Ministry of Interior, for their upcoming meeting. The Social Security Office has provided the necessary documentation.