Thai Cabinet nods for national savings fund project

BANGKOK, March 4 (TNA) - The Thai Cabinet has endorsed a plan to set up a national savings fund, aimed to woo three million informal workers over the next five years. Deputy Government Spokesman Major General Sansern Kaewkamnerd told journalists the Cabinet approved the plan at its weekly meeting on Tuesday, aimed at taking care of 25 million informal workers nationwide, including farmers, self-employed people, vendors, taxi motorcyclists and taxi drivers, as government and state enterprises' officials have already had their pension funds, while private company staffs have had their social security fund. The deputy spokesman said the Thai Cabinet also approved a plan to transfer the social security fund's members who want retirement pensions to the national savings fund, with an official guarantee that the people will receive retirement pensions worth no less than the interest rate of 12-month fixed savings of seven large commercial banks on the condition that they deposit their money with the fund for at least 10 years. The deputy spokesman explained if members save with the national savings fund until they are 60 years old, they will obtain the retirement pension, as well as medical and aging welfare, but if they die early, their heirs will receive all the saving. Besides, if they have an accident that prevents them from continuously contributing to the fund, they will receive all the savings. According to the deputy spokesman, the conditions should interest a large number of people and in the first five years of the fund operation, the government expects the fund to gather three million members, while the government will contribute 2.7 billion baht to the newly-set up fund. The deputy spokesman pointed out if all 25 million informal workers in Thailand become the national savings fund's members, the Thai government will pay 22.54 billion baht for the fund contribution. The deputy spokesman stated that members of the national savings fund aged 15-60 years must not be members of the social security fund or any provident fund and must each contribute more than 50 baht monthly to the fund. For members aged 15-30 years, the government offers 50 per cent of their savings, but the contribution will not exceed 600 baht per year. For those aged 30-50, the government offers 80 per cent of their savings, but the contribution will not exceed 960 baht per year. For those aged 50 and over, the government offers 100 per cent of their savings, but the contribution will not exceed 1,200 baht a year. The deputy spokesman anticipated that the fund organization should be set up and be ready for subscription by June 2015. (TNA)