New NSF members lag due to economy

The National Savings Fund (NSF), a voluntary pension fund for self-employed workers, saw its new membership growth halved since the beginning of this year, largely attributed to the floundering economy.

New memberships have averaged 20,000-30,000 a month, down from 50,000-60,000 in the past, though existing members are making higher contributions, 300-500 baht a month to the fund, up from 200, said Jaruluk Ruangsuwan, the fund’s secretary-general.

The NSF allows its members affected by the stuttering economy to temporarily stop contributions to the fund, resuming when they have the ability, she said.

Despite the decline in new member growth, the fund is maintaining its goal of 700,000 new members this year, adding to the 2.3 million current members.

To attract new members, the NSF will promote the fund to those residing in villages, with at least one representative in every district across the country to build up networks and provide additional benefits to members, said Ms Jaruluk.

The NSF has joined hands with Thai Life Insurance Plc to offer personal accident policies to members with a premium of 1 baht a day.

The pension fund yielded a 4.4% return to members in 2019 and 1% this year. NSF’s capital amounts to 7 billion baht.

The NSF is required to allocate 80% of its capital to low-risk assets including government bonds, and the remaining 20% to high-risk ones such as equities.

She forecast some 21 million selfemployed workers are not covered by the Social Security Fund, provident funds nor the Government Pension Fund, and can become members of NSF.

The government is considering making higher contributions to the fund, Ms Jaruluk said. The National Reform Steering Committee earlier estimated NSF membership could be increased to 15 million by 2022 if the government contributions are higher.

The fund requires members to contribute 50 baht a month, up to a maximum of 13,200 baht a year.