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Government Pension Fund

          The Government Pension Fund was established under the Government Pension Fund Act B.E. 2539 with the purposes of ensuring benefits upon retirement, promoting saving consciousness and providing other welfare to members. The GPF is supervised and managed by the Government Pension Fund Board.

          A Defined Contribution System, the GPF is a mandatory saving scheme under the Pillar II category of the World Bank. Benefits are related to member contributions and returns on investment. As the name implies, the GPF only applies to government officials. Those who were employed after March 27, 1997 are required to become contributing members; others taking office before then can choose either contributing or non-contributing membership.

Contribution and Benefit Payout
               Members are required to contribute 3% of their salaries every month; the government, as the employer, adds the same amount to the fund. Termination of membership depends on three conditions: retirement at the age of 60, leaving governmental services or death.  Members receive the whole amount upon meeting either one of the three criteria. At present, fund transfers from the GPF to provident funds are not permitted but amendments of regulations are in process.

Tax Benefits
                Member contributions not exceeding 300,000 baht are entitled to exemption of personal income tax. Benefits received upon membership termination for the cause of old age (retirement at 60 or leaving work at the age of 55) are fully exempted. Officials with a continual employment of at least five years are entitled to partial tax exemption.

              Since the GPF is an exclusive program for government officials, the Fiscal Policy Office of the Ministry of Finance is drawing a blueprint for a national saving plan to provide non-government workforce with retirement saving benefits.

                   More details at The Government Pension Fund