"Radklao" submits five proposals to reform social security towards sustainability, recommending its separation as a legal entity and the employment of professionals to manage 2.7 trillion baht.
On 24 Sep 2026 GMT+7 at the parliament, Radklao Intawong Suwankiri, a party-list Member of Parliament from the Democrat Party, addressed the report from the auditor and the financial statements of the Social Security Fund, Social Security Office, for the fiscal year ending 31 Dec 2024 GMT+7. She stated that the Social Security Fund, with vast assets exceeding 2.7 trillion baht from contributions by insured persons, employers, and the government, is being questioned by working citizens regarding outdated service quality. Many insured persons lament that using the universal health coverage scheme is preferable. The root of these issues is clearly reflected in the fund's official financial reports.
Radklao revealed that the Office of the Auditor General (OAG) issued a qualified opinion on the financial statements due to alarming underestimation of liabilities and obligations in multiple categories, including:
1. Old-age benefit liabilities in 2024 were understated by 294 billion baht (and by 230 billion baht in 2023).
2. Disability benefit liabilities were understated by approximately 22 billion baht.
3. Outstanding contribution receivables were retroactively reduced by over 1.234 billion baht without supporting documentation or traceable sources. The concealed liabilities for old-age and disability benefits alone total 316 billion baht, a massive figure that cannot be dismissed as merely an accounting error. This is particularly concerning as Thailand moves toward a fully aged society.
The Democrat MP further noted that the Social Security's main operational cash flow is currently negative by 21.5 billion baht, forcing the fund to rely on investment income from 2.7 trillion baht to subsidize operations. However, a deeper look into the financial statements reveals troubling risk management issues, such as:
1. Increased hiring of external fund managers, yet this segment recorded a total negative return of 1.2 billion baht.
2. Losses from foreign exchange hedging contracts amounted to nearly 12 billion baht.
3. Custodian fees significantly increased compared to previous contracts.
Radklao cited the management example of the Government Pension Fund (GPF), a legal entity separate from the civil service system, which manages assets worth 1.4 trillion baht and delivers average annual returns of 4.31% for members (with some plans reaching 8.93%). In contrast, Social Security remains mired in the bureaucratic structure under the Ministry of Labour and lacks legal entity status.
She also revealed that the Social Security Fund, valued at 2.7 trillion baht, employs fewer than 100 finance experts, with only 38 trained in finance and investment, and just 4 staff responsible for risk management. This means each risk management officer oversees approximately 700 billion baht, which fundamentally violates international investment management principles.
Radklao submitted five proposals urging the government to accelerate reform of the Social Security Fund:
1. Elevate the Social Security Fund to a legal entity, strictly separating benefits administration from investment management.
2. Restructure the Social Security board to be independent by increasing the proportion of experts, insured persons, and employers appropriately.
3. Set qualifications for board members and a professional investment team, establishing transparent and verifiable key performance indicators (KPIs).
4. Regularly assess long-term liabilities using actuarial principles and publicly disclose the results.
5. Ensure transparency in fees and returns, with regular reports directly to insured persons and parliament.
“Isn't it time for the government to reform the entire Social Security Fund structure by separating it into an independent legal entity so that civil servants, workers, citizens, and all of us can survive together?” Radklao concluded.