NSF seeks to widen net

The

National Savings Fund, a voluntary pension fund for 27 million self-employed workers, has raised the idea of allowing those already covered by the Government Pension Fund, the Social Security Fund or a provident fund to become NSF members.

The proposal is aimed at increasing the ranks of NSF members and providing an option to enlarge retirement nest-eggs, a source familiar with the matter said.

The NSF, which was launched in August 2015, reached the 500,000member mark earlier this year and aims to double that figure by year-end. The fund started the year with capital of 2 billion baht.

The source said an NSF open to all people would encourage saving for retirement, as money set aside by the 12 million members of the Social Security Fund is unlikely to ensure a comfortable retirement without additional savings.

The NSF proposal is subject to approval by the Finance Ministry and can come into force only if the current law governing the NSF is amended. The law as written bars members of the Social Security Fund, the Government Pension Fund and provident funds from being NSF members.

The NSF is part of the government’s efforts to reinforce the retirement safety net for the elderly and limit the state’s financial burden for taking care of them.

To draw more self-employed workers into the fund, the NSF board recently agreed to seek the Finance Ministry’s approval in raising the ceiling for the government’s matching contribution to 2,500 baht per year per member across the board, while the contributions of 50%, 80% and 100%, depending on age, will remain in place.

The current structure sees the government make a matching contribution worth up to 50% of savings but not exceeding 600 baht a year for workers aged 15-30, up to 80% but not more than 960 baht a year for workers aged 31-50, and up to 100% but not over 1,200 baht a year for those over 50.

Members are required to make a minimum contribution of 50 baht a month, with the maximum annual contribution set at 13,200 baht.