Despite missing its 1 million membership target for this year, the National Savings Fund (NSF), a voluntary pension fund for self-employed workers, has set the ambitious goal of more than doubling its members to 1.2 million next year.
Somchai: Highlights ease of contributions
By cooperating with partners, the NSF is expected to reach its membership target, said Somchai Sujjapongse, permanent secretary for finance.
The NSF yesterday signed a collaboration agreement with other state agencies -- the National Village and Urban Community Fund Office, the Comptroller-General's Department, the Agriculture and Cooperatives Ministry, the Student Loan Fund and the Education Ministry -- to help increase the NSF's membership base and serve as channels for enrolling in and paying contributions to it.
The NSF has 520,000 members, well below its target for this year.
Mr Somchai said he believed the ease with which members can make contributions will attract more self-employed workers to join the fund.
Under the initial plan, 500 out of 79,500 village funds across the country will be registration points for NSF membership.
The NSF, which was set up in August 2015, is a retirement safety net for self-employed workers not covered by a pension fund, social security or a provident fund.
People aged 15-60 are eligible to apply for membership.
The current structure requires voluntary pension fund members to make a minimum contribution of 50 baht a month, up to a maximum of 13,200 baht a year.
The structure sees the government make a matching contribution of up to 50% of whatever those aged 15-30 choose to pay, but not exceeding 600 baht a year.
For those in the 31-50 age bracket, it will pay up to 80% of their contribution but not more than 960 baht a year. Those over 50 can have their contribution fully matched by the state as long as it does not exceed 1,200 baht a year.
Mr Somchai said the NSF was set up with the aim of attracting 10-18 million self-employed workers across the country to allow them to live a more comfortable life in retirement.
The NSF's assets amount to 4.1 billion baht, of which 2.03 billion comes from members' contributions.
The fund allocates a quarter of its assets in deposit accounts, 39.5% in government bonds, 18.8% in debentures and the remainder in other financial instruments.
Sopawadee Lertmanaschai, acting secretary-general of the NSF, said if the fund reaches its 1.2-million-member goal, its assets could more than double to 6 billion baht.