Thai Labour Solidarity Committee (TLSC) has submitted an open letter objecting to a proposed amendment to the social security law, saying it does not bode well for the stability of the Social Security Fund.
In the letter signed by TLSC President Sawit Kaewwan, the labour rights advocacy group said the Labour Ministry's proposed amendment will pose risks to the fund and subscribers' financial security.
Under the amendment approved by the cabinet last month, fund subscribers will be allowed to get a partial advance on their pension and use part of their pension as collateral for loans.
The TLSC has echoed concerns of economists that the SSF could collapse if too many members take out an advance and the fund will likely be in deficit by 2044.
According to the group, the Labour Ministry should implement pension benefit increases for fund beneficiaries by revising the formula to calculate pension payouts.
Currently, the pension benefit is equal to 20% of the average salary for the final 60 months before retirement with a cap of 15,000 baht.
The TLSC has called for an increase in pension benefits from 20% to 50% and a rise in the salary ceiling for contributions to the fund from 15,000 baht to 30,000 baht a month.
The group has also urged the government to end monthly contribution reductions by employees and employers to the fund which were introduced to help ease the impact of economic hardship because it adversely affects the fund's pension scheme.
It has asked the government to return the 66 billion baht it owes the SSF so it can be invested and managed in the best interests of all SSF subscribers.
Other demands made by the group are the creation of a bank to provide low-interest loans for insured workers and the election of a new Social Security Office board.
Similar concerns were raised this week at a seminar organised by the Women and Men Progressive Movement Foundation, the Labour Network for People's Rights, the Health Promotion Movement and the Migrant Working Group.
Sia Champathong, president of the Textile Labourer Association, said he disagreed with the proposed amendments to the pension scheme because it is intended for life after retirement.
Assoc Prof Anusorn Thammajai, a member of a sub-committee on SSF contributions and benefits, said the proposed changes would destabilise the fund which could be depleted in 30-40 years, instead of 75 years.
"There are other options that [the Labour Ministry] can use to help subscribers such as increasing unemployment benefits or giving financial relief. Drawing money out of the fund helps the government amass debts without considering the long-term impacts," he said.
Assoc Prof Anusorn also said electing a new SSO board should take place this year and if possible the SSO should be restructured to become an independent agency like the Bank of Thailand.
Bandit Thanachaisetthawut, a labour academic, said that he agreed with only one of the proposed amedments, that allows eligible SSF members to choose between receiving their pension in one lump sum, or in monthly instalments for the rest of their lives.
He also proposed an increase in contributions to the SSF which has remained unchanged since 1990 and an age increase for those eligible to get a pension from 55 to 60.
