The Social Security Fund (SSF) needs a revamp to function effectively and stay afloat, as MPs and academics fear it might go under in 30 years if nothing is done to improve its financial standing.
The SSF's operation took centre stage during a House debate yesterday, with Khattiya Sawasdipol, a Pheu Thai list MP, saying the 750-baht monthly contribution from private workers to the SSF was too small.
It needs larger contributions to grow into a secure source of income for pensioners, she said, adding SSF subscribers will be happy to contribute more if they could be assured that the fund is managed in a transparent manner.
According to Ms Khattiya, the fund manager hired to invest SSF funds in stocks and bonds said that the return on investment between 2019 to 2021 averaged 1.6%, which is below market standards.
The MP asked if the SSF will revise its investments to improve profitability, noting the SSF was 28 billion baht in the red in 2021.
Chutima Kotchapan, a list MP from the Move Forward Party (MFP), said some employers have not submitted their mandatory contribution to the SSF.
Worawan Charnduaywit, a social security programme adviser at the Thailand Development Research Institute (TDRI), said the SSF risks suffering a financial collapse in the next 30 years.
He said the fund will be paying pensions to more and more people due to the ageing population while the workforce continues to shrink each year.
SSF investments are also not turning in much profit, as a large portion of the fund is invested in low-risk ventures and assets with low returns, he said.
Meanwhile, Social Security Office secretary-general Boonsong Thapchaiyut said the SSF has continued to grow except between 2020-2022 when the Covid-19 pandemic caused financial hardship that forced workers to contribute less to it.
However, he said that by 2027, the fund will have more than three trillion baht in its reserve. He assured a plan is being worked out to increase members' contributions.
"The SSF is constantly looking for ways to improve its investment portfolios," he said, insisting the fund was stable and secure.
Mr Boonsong also gave his assurance that the fund was being managed professionally and with transparency.
No politicians can manipulate or abuse the SSF, he added.