SSO may use Swedish scheme as new model

The Labour Ministry will study Sweden’s pension system in a bid to improve the Social Security Office’s (SSO) scheme and better address the needs of social security subscribers in an aged society, according to Labour Minister Phiphat Ratchakitprakarn.
Mr Phiphat, who is leading a Thai delegation of labour officials to Stockholm, paid a visit to the Swedish Pension Agency (SPA) to gather information and exchange ideas aimed at improving the SSO’s pension programme.
He said three key topics were discussed during the visit: how the fund is sustainably managed, investment strategies for financial security, and innovative ways of improving services for members. Setting a flexible retirement age and designing pension payment methods to meet retirees’ needs were among the issues proposed to meet the demographic changes in Thailand, said Mr Phiphat.
The labour minister stressed that the SSO is determined to improve the pension scheme to better respond to the needs of the elderly. The SSO has also adopted digital technology to facilitate its management and ensure greater transparency, he added.
Boonsong Thapchaiyuth, the labour permanent secretary, said the SPA shared insights on ensuring the fund’s sustainability, which included the setting up of a “buffer fund” to manage the difference between incoming contributions and outgoing pension benefits.
He said the Swedish system includes a pension index that adjusts pension payments based on various factors, such as the average wage the recipient receives throughout their employment and changes in the average life expectancy.
Thanapong Chuamuangpan, an SSO member, said the SSO’s pension scheme is not managed separately but the information gained from the visit can be applied to improve the SSO’s management of the pension scheme. According to Swedish Pension Agency chief Anna Pettersson Westerberg, Sweden’s pension system provides over 50 types of benefits covering all Swedes.
The sources of funding include contributions from the government, employers, and insured individuals, as well as voluntary participation, she said.
Incentives are also offered to keep people in the workforce and these include extending the retirement age and allowing those reaching the minimum retirement age to partially claim their pension payments.