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Assoc. Prof. Sustarum Thammaboosadee’s Pension Reform Proposal: What Lies Ahead for Thailand’s Social Security Fund?

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Photo of SSF Meeting

The Social Security Fund’s (SSF) board recently faced a little hiccup on its quest for reform. The scene was set with a proposal for a new pension formula that ended up being labeled as “too complicated.” Yes, complexity seems to be everybody’s archenemy these days! In the heat of the moment, Assoc Prof Sustarum Thammaboosadee, who stands at the forefront as the coordinator of the intrepid Progressive Social Security Team, expressed his remorse for not swaying the SSF Board to embrace the change. Not one to throw in the towel, Sustarum is gearing up to renew his efforts with fervor when the board reconvenes in March.

The repercussions of this thwarted proposal ripple through the lives of more than 300,000 insured folks under the umbrella of Section 39—those industrious souls who once held jobs before deciding to shoulder the burden of insurance contributions themselves. The proposed recalibration was designed to dance in harmony with the tunes of inflation and the ever-fluctuating cost of living. Imagine a time machine for pensions, recalculating proportions from a salary of 5,000 baht two decades ago to today’s evaluative standards. That was the vision!

To paint a picture by numbers, if this new calculation strategy hopped off the drawing board, it was expected that catering to these 300,000 insured members would require a bit more dough. However, the sages of the research team assured us it wouldn’t dent the fund’s resilience in the long run. Even if the future forecast predicts that, within ten years, paying the pensions for this contingent would tally up to about 60 billion baht, the current status of the fund standing robust at 2.6 trillion baht seems unfazed by the surmounting figures.

This reimagined pension model even enjoyed the prelude of approval by a diligent sub-committee back in October. Now, after being served again to the SSF, it faces unplanned revision rounds. Furthermore, Sustarum firmly claims that the innovative calculation won’t meddle with the privileges of contributors under Section 33. The proposed plan anticipates corralling additional donations, hence, cleverly engineering a win-win for both employers and employees.

The SSF board’s decision to press the pause button left Sustarum scratching his head. “Why the delay?” he mused out loud, echoing sentiments shared by many who keenly monitored these proceedings. Could it be a case of nerves from the ongoing detailed questioning of the board? The mystery lingers unsolved, and Sustarum is urging the public to rally around, ensuring that the fund’s operations remain under the glare of transparency.

With a treasure chest brimming over 2.65 trillion baht, SSF positions itself as the sovereign of public funds, serving the welfare and safeguarding financial solidity for its legion of approximately 24 million subscribers. One might say it’s the savior of savings! Thus, while the SSF board deliberates on the next step, the country’s citizens are united in anticipation, keeping a watchful eye on the unfolding drama of this very necessary yet elusive pension reform.

21 Comments

  1. Joe February 26, 2025

    This proposal sounds like a step forward to me! Pension systems need updating to stay relevant.

    • Amanda Smith February 26, 2025

      I totally agree! But it’s disheartening to see good proposals get stuck because of ‘complexity’.

      • Joe February 26, 2025

        Complexity can be simplified with proper understanding. Maybe they need better communication strategies?

    • knowledge_seeker99 February 26, 2025

      Isn’t it essential for a proposal to be straightforward? It defeats the purpose if most people can’t comprehend it.

  2. Larry D February 26, 2025

    I don’t trust this reform. More money needed sounds like a recipe for higher taxes!

    • Karen Green February 26, 2025

      It’s important to look at the bigger picture. If it ensures better pensions, isn’t it worth the investment?

    • taxpayer124 February 26, 2025

      That’s always the concern, taxes. Is there a guarantee this will actually benefit the people paying in?

  3. grower134 February 26, 2025

    I think people in Section 39 should be prioritized. They bear their own insurance burdens.

    • melonhead February 26, 2025

      Exactly! They’ve done so much on their own, seems only fair to give them more support.

    • grower134 February 26, 2025

      It’s about time they got some recognition for their efforts!

  4. Suzy Q February 26, 2025

    The SSF board’s hesitation is frustrating. What’s holding them back?

    • educator_in_thailand February 26, 2025

      Bureaucratic red tape, likely. Reform always meets resistance from those comfortable with the status quo.

  5. Larry D February 26, 2025

    I heard there’s fear that the fund won’t sustain if the proposal goes through. Thoughts?

    • econ_whiz February 26, 2025

      Actually, with 2.6 trillion baht, the fund seems well-positioned to handle increased requirements.

    • Larry D February 26, 2025

      True, but projections can be misleading. We’ve seen funds drain quickly before.

  6. Melinda T February 26, 2025

    I’m all for transparency. SSF should make all their deliberations public so we can trust their decisions.

    • watchman February 26, 2025

      I second this. Involving the public can shift the paradigm towards accountability and trust.

  7. FinLover89 February 26, 2025

    This seems like a big win for the Thai economy if implemented correctly.

  8. doubtingThomas February 26, 2025

    I doubt it’ll take off. Too much red tape and opposition from inside the system.

  9. Laura Paul February 26, 2025

    Pensions need to match the reality of our economy. If not now, when?

  10. historybuff February 26, 2025

    Looking back, pension reforms have always faced challenges. This isn’t an exception, but I’m hopeful.

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