1. 1 Pension Fund Industry in Thailand Chaibhondh Osataphan Chairman Association of Provident Fund Manager Thailand First International Pension Fund Conference 13-14 April 2000 Hotel Ritz, Madrid, Spain

2. 2 Thailand’s Population and Labor force Total Population = 61.0 million Non-Labor Force = 28.2 million Labor Force = 32.8 million Life expectancy: M=68yrs F=72yrs Labor Force 12.6 million 4.6 million 10.2 million 2.6 million 2.8 million

3. 3 Demographics 1999 2020 6 workers: 1 retiree 3 workers: 1 retiree

4. 4 The Current Pension Programs in Thailand 1st pillar-Old Age Pension Fund - 5.6 mi. people ~8.8 billion Baht 2nd pillar-Gov. Pension Fund - 1.1 mi. people ~117.4 billion Baht 3rd pillar-Gov. Permanent Employees Fund - 0.1 mi. 3rd pillar-State-Owned Enterprises Fund- 0.2 mi. 3rd pillar-Private sector Fund-0.7mi. Total -7million people(23% of labor force) 304.4 billion Baht (No coverage for Self Employed &Agri. Sectors) (US$ 8 Billion) 6% of GDP ~178.2 billion Baht

5. 5 3rd pillar- Pension Funds’ Investment Portfolio As at December 31, 1999 Total Investment : 178,162.27 million Baht (~4.69 billion US$) Invested in domestic market only

6. 6 MAIN CONCERNS&FUTURE REFORM CONCERNS: Allows cross border investment. Mobility of pension fund. Individual choice of investments. Minimum vesting schedule for employer contributions. Provides annuities insurance. Individual Retirement Fund. FUTURE REFORMS: Raise normal retirement age from 55 to 60 for 1 st pillar Extends coverage of 1 st pillar to smaller employers & self employed. Introduce 2nd pillar for private sector.