Thai PM Guarantees Older People’s Right to Social Pension

HelpAge International

April 15, 2009 

Thailand

The Prime Minister of Thailand, Abhisit Vejjajiva, has declared social pensions a basic human right and will seek ways to expand the country's current pension system to deliver income security for all older people.

Mr Abhisit was speaking at a forum, 'Sustainable universal social pensions for older people in Thailand’, held last week in Bangkok. The event was hosted by a group of NGOs including HelpAge International and was attended by representatives from civil society, national and international organisations, and academia.

In his opening speech to the forum, Mr Abhisit said: 

"The old age social pension is not populist policy, but rather a basic human right that everyone deserves. Social pensions promote income security in old age and the government is committed to ensure access to basic social pensions for all."

Expanding the current scheme
From April 2009, Thailand’s citizens aged 60 and above who are not receiving any government subsidies are eligible for a monthly payment of 500-baht (US$14). This, along with existing pension schemes, covers more than 5 million older people - 71.4% of older people in Thailand.

The Prime Minister recognised that 500-baht was an insufficient level of benefit but said that new sources of income must be found before the payment could be increased to the national poverty line - 1453-baht (US$41). This would take time but, he assured, would be placed as one of the government’s priorities.

Mr Abhisit also called for contributory schemes that would be subsidised by the government and would complement a basic social pension. He said that both compulsory and voluntary schemes were under consideration.

Recommendations

Following the Prime Minister’s speech, participants at the forum went on to exchange views on pensions and discuss the development of policy recommendations which would help the government fund a universal scheme and ensure it is sustainable. Key areas of discussion were:

• Beneficiaries: Some suggested a two-tier pension system where two age groups would receive different levels of benefit. The older the person, the larger the benefit 

• Eligibility: Most stakeholders supported 60 years old as an entry age 

• Size of benefit: It was agreed that the benefit should be increased at least up to the poverty line of 1453-baht per month (US$41) 

• Source of income: New sources of revenue to increase the level of benefit could include increases in VAT, excise tax, inheritance tax and corporate tax 

• Participation: The government should encourage participation of all key stakeholders in the pension debate including civil society, local authorities and communities. This could include the creation of a working group, with the participation of civil society, to be functioning in the next few years 

• Sustainability: To motivate participation, a voluntary contributory scheme should be subsidised by the government 

The policy recommendations will be finalised and presented to the government next month.

Recognising older people's contribution

Co-hosts of the forum included the United Nations Population Fund (UNFPA), Chulalongkorn University, AgeNet Chiang Mai, the Foundation for Older Persons’ Development (FOPDEV) and the Civil Society Network for Welfare State.

Mr Najib Assifi, UNFPA Representative to Thailand and Deputy Regional Director for UNFPA Asia Pacific Regional Office, says:

"It is time to recognise the significant contributions that older people make to our families, communities and societies.

"Throughout their lives, they have given their time and energy to helping others and they continue to do so. In return, we should do more to support their human rights and freedoms, including their right to live in dignity and security—free from want and free from fear.”

Mr Eduardo Klien, HelpAge International Regional Representative, says:

"Let’s not forget that we will all be old some day, and will want the same security, dignity and recognition that older people currently desire.

"Let us do our part to support older people in their rights, in particular in their right to income security in old age, their right to receive health services and their right to participate and be respected in their communities."

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