Bangkok: The Pheu Thai party announced a major overhaul of the social security system, reiterating its seven-point stance to improve public confidence in the social security fund. If formed, reforming the fund's structure will be a top priority for the first 100 days.
According to Thai News Agency, Mr. Pongkavin Chulrungruangkit, Deputy Leader of the Pheu Thai Party and former Minister of Labour, expressed concerns about the Social Security Fund, which has accumulated funds totaling 2.8 trillion baht but yields an average return of only 2.8 percent. He highlighted this as a sign of economic opportunity loss, as funds meant for retirement are not keeping pace with inflation and the rising cost of living.
During a two-month tenure as Minister of Labour, Mr. Pongkavin initiated the transfer of the Permanent Secretary of the Ministry of Labour for transparent investigations. He emphasized that if reinstated, his priority would be restructuring the Social Security Board to ensure proficient fund management and better returns for insured individuals.
Corruption and inefficient management are cited as significant issues. Mr. Pongkavin noted that generating more profits could yield approximately 100 billion baht more per year, broadening welfare benefits. He stressed the fund's ownership by insured persons, advocating for management by knowledgeable professionals.
Dr. Prommin Lertsuriydet, from the Pheu Thai Party's policy working group, addressed transparency concerns in fund management. Allegations include cronyism in procurement, questionable investments, and diminished power of insured individuals. The party acknowledges these issues and proposes a reform to guarantee security for insured members.
The Pheu Thai Party outlined seven reform points: protecting insured persons' rights, ensuring democratic selection of representatives, electing a knowledgeable board chairman, engaging expert fund managers, enhancing transparency, establishing performance indicators, and improving healthcare benefits. The party aims for the Social Security Fund to match other healthcare programs, addressing dissatisfaction among insured individuals.
The party reiterated its commitment to social security reform, recognizing the fund's importance to insured individuals and the economy. It plans to implement concrete measures to restore justice and security for all insured individuals.
Dr. Prommin clarified that the Social Security Fund and the 30-baht universal healthcare scheme were established separately, explaining differences in benefits. The party proposes expanding the Social Security Fund's healthcare services. If elected, they plan to adjust reimbursement systems for medical expenses to be more appropriate.
Regarding fund management, Mr. Pongkavin emphasized the need for professional expertise. He noted the differences in returns between the Social Security Fund and the Government Pension Fund (GPF). Dr. Prommin underscored the urgency of addressing social security rights, aiming to prioritize this within the first 100 days if they form a government.