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Published on August 8, 2007

This scheme does not apply to state officials.

Fiscal Policy Office director-general Pannee Sathavarodom said those who would receive a pension after they retire this year could deposit their money - Bt300,000 minimum to a maximum of Bt1 million - with the GSB and receive a fixed interest rate of 5 per cent.

Depositors can choose between a 10-year or a lifetime account.

The scheme is designed to support pensioners before the country can find proper measures to help the older population, said Pannee.

Depositors may withdraw their money before the contract's maturity, but if they do, they will not receive the 5-per-cent interest rate. If they choose the 10-year account with a Bt500,000 deposit, they will receive a monthly return from the GSB of Bt5,255 for 120 months for a total of Bt630,600.

If pensioners choose the lifetime savings plan with a Bt500,000 deposit, men will receive Bt3,371 a month and women Bt3,140 a month. If they die before they receive a return equal to their deposit, the GSB will return the remaining cash to their inheritors.

Government employees who have not earned state-official status and will retire this year can contact the GSB next month. The GSB estimates it will receive Bt6 billion worth of deposits if 6,000 retiring employees participate in the savings scheme.

Some state employees yesterday expressed objections about this long-term savings plan, saying they preferred floating rates.

However, Pannee pointed out that the scheme was voluntary.

Pannee said the Finance Ministry was concerned about pensioners' welfare, because the existing social-welfare or pension system could not provide adequate income for pensioners.

She added that the Finance Ministry would propose to the next government the establishment of a compulsory national pension fund that would require both employers and employees to contribute up to 3 per cent of an employee's monthly salary.

Wichit Chaitrong

The Nation