Exciting changes are on the horizon for social security subscribers who have long awaited a revamp of their pension and severance pay. The Social Security Board is shaking things up by planning a revision of the calculation methods to ensure fairness and encourage more individuals to subscribe to Section 39 of the social security law. This section provides a lifeline for people who choose to continue their contributions voluntarily, even after they part ways with their jobs in the private sector.
To jump onto this opportunity, individuals must have been previously insured under Section 33, the section that covers company employees. In addition, they need to have clocked in at least a year’s worth of contributions and should have been unemployed for no longer than half a year. Sustarum Thammaboosadee, a board member with a flair for optimistic forecasts, has announced that the board will convene on December 11 to dissect the new benefits that await the insured, including a brand-new pension calculation formula and expanded unemployment insurance coverage.
“The blueprint for the new method is now ready, promising to be an advantageous twist for social security members,” Mr. Sustarum enthusiastically stated. The anticipated revision proposes a shift in the pension calculation under Section 39. Instead of the traditional method, which hinged on the average monthly income of the last five years of employment, the proposed formula will take into account the entire span of an individual’s employment as a company employee. This understandably makes the pension larger and more equitable, according to Mr. Sustarum.
Additionally, there’s more good news in store with severance pay receiving a considerable boost. Presently, the payout is based on 50% of 180 days worth of average daily income. However, the revision aims for an elevation, calculating the pay at 60% of 270 days worth of average daily income. These revisions have already been approved by the sub-committee, awaiting the green light from board members.
The dynamic Mr. Sustarum also highlighted a key benefit for employees hitting the 55-year mandatory retirement mark; they can opt to subscribe to Section 39. Of course, this means the financial load on the scheme may increase. Despite having to allocate an additional billion baht annually to cover the enhancements in severance pay and pensions, the scheme stands firm on a solid foundation, bolstered by an impressive annual influx of 200 billion baht from member contributions.
“This won’t just keep the Social Security Fund (SSF) robust; it’s poised to draw in more subscriptions to Section 39 due to the enticing larger payouts in both pensions and severance,” Mr. Sustarum noted. He remarked that many were previously lukewarm about jumping on board as members, considering past rewards too meager. Yet, with a newfound sense of fairness integrated into the scheme, it is expected to sway more individuals to join the bandwagon. “When fairness prevails, people are more likely to join,” he wisely concluded.
This pension reform sounds like a disaster waiting to happen. Increasing benefits without considering the long-term implications on the fund’s sustainability seems reckless.
I disagree, Jane. I think these reforms could actually draw more people to contribute, which in turn might strengthen the fund.
But what if the increased payouts outweigh the new subscriptions? It could deplete the fund quicker than anticipated.
Jane makes a good point. History has shown that government projections often underestimate costs.
A well-fed Social Security system is paramount for equity and justice in society. Everyone deserves financial security in retirement.
Those who oppose this reform must consider that bigger pensions could reduce poverty among retirees. Isn’t that a worthy goal?
But at what cost? Sacrificing future stability for short-term gain isn’t a sustainable strategy.
Future strategies can be adjusted. It’s crucial to address pressing issues now, like inadequate retiree support.
My parents can’t wait for these changes. They’ve struggled enough with the minimal benefits all these years. It’s about time something is done.
Exactly, Karen. We need to think about the existing generation of retirees who need these adjustments now.
Isn’t that what Social Security is for? To help everyone live comfortably after retirement?
These benefits are likely to be funded by increasing taxes on the working class. How is that fair to us?
Right. Young people like us will end up paying the price for these short-sighted decisions.
But one day you’ll also rely on these systems. It’s an investment in your future too.
I’m in my late 50s and skeptical about these changes coming in time to help me. These promises have been made before.
Stay hopeful, Alice. Maybe this time they’ll follow through.
Sounds like the government trying to placate the masses with shiny new promises while avoiding the real issues.
Can someone explain the benefit of this section something change in simple terms? I’m a bit lost here.
Basically, they want to give more money to people who keep paying in after they retire or leave their job.
Incorporating tech-driven solutions could optimize fund management. Why is no one discussing digital strategies?
Yet another scheme that overlooks the disabled and those unable to contribute. Inclusion is still an issue.
I’d like to see data demonstrating this won’t lead to another economic crisis. Show us the numbers!
Totally agree. Transparency is necessary to win public trust.
Interesting discussion. Watching how it unfolds but staying neutral for now.
These specifics should have been implemented ages ago! Every retiree deserves a decent livelihood.
I agree, but why hasn’t it happened until now? Must be wary of political motivations behind timing.
Remember guys, politicians promise many things! Let’s see what they actually deliver.
It’s valid skepticism, David. We need to hold them accountable.
These changes could drastically improve my retirement plans, assuming they go through as promised.
How do these changes not address environmental impacts? More retirees, more resource consumption!