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Welcome to Government Pension Fund |
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Bequesting gratuity
Means the single lump-sum payment to the heirs in case
of death of a member or a pensioner.
Capital
Means the initial monetary power that is used in the pursuit
of remuneration.
Compensation
Means the money which is paid by the state to a member
at the rate of 2 percent of each month's salary on the
condition that the member will receive the compensation
money upon leaving government service and choosing to
receive the pension.
Contractual savings
Are long-term contractual savings. It is long-term savings
on the condition that savings must be made on a regular
basis for the stipulated time period, such as every or
every 3 months, etc.
Contribution
Means the money paid by the state to a member who saves
money in the Fund, that is, 3 percent of salary each month.
So, if any member does not save money in the Fund, he
or she will not receive contribution from the state.
Credit / Default
Risk is the risk arising from the stability of the issuer
of an instrument to repay the debt, that is, the interest
and the principal, to the holder of the instrument or
the investor on the redemption date.
Custodian
Is the keeper of an asset who performs the duty of looking
after and storing the asset, including the looking after
of the benefits arising from that asset.
Defined Benefit
Is the money which is receivable by a government official.
It is a definite amount according to the prescribed formula
due to leaving the job in accordance with the government
officials Pay-as-you-go system.
Defined Contribution
Is the amount of money received by a member upon leaving
the Fund. It is not definite whilst the system provides
for certainty in the remittance of money into the Fund
according to the principle of provident fund. The amount
of money which is paid out is equal to the money paid
in, including the benefits from the investment of the
said money.
Fund manager
Is the manager of the Fund. The fund management company
is assigned to manage and administer the money so as to
obtain benefits and returns in accordance with the objectives.
Government term of service
Means the period commencing from the date on which a member
serves as an official until the last day of his/her service
pursuant to the criteria and procedures and also includes
the period of double official term under the law of officials'
gratuity and pension.
Gratuity
Means the single lump-sum payment to a member when his/her
membership has terminated, receivable from the government
agency to which he/she belongs.
Inflation / Purchasing Power Risk
Is the risk arising from inflation which causes a drop
in purchasing power, for example, the original amount
of money can buy only a small amount of goods.
Inflation hedge instrument
Is the investment which gives a higher or equivalent return
to the rate of inflation.
Interest rate risk
Is the risk arising from changes in interest rates. If
the interest rate rises, it means a loss from investments
in monetary instruments as a rise in the interest rate
results in a drop of the price of that instrument.
Members of the Government Pension Fund
The Act stipulates 12 categories of government officials,
namely, civil officials, police officials, military officials,
judicial officials under the law on judicial official
rules, prosecution officials, civil officials in universities,
teachers, Judicial officials under the law on Constitutional
Court rules, Civil officials of the Office of the Administrative
Court, Civil officials of the Office of the National Counter
Corruption Commission , and Civil officials of the Office
of the Auditor General of Thailand.
Negative
Real Interest Rate
Is the rate of return from an investment which is lower
than the inflation rate. This causes the purchasing power
of the principal and the benefits from the investment
upon maturity to be less than the purchasing power of
the principal at the commencement of the investment.
Pay as you go
Is the characteristic of the original pension system,
that is, the government undertakes the burden of paying
each official in a certain amount of money upon retirement
in accordance with the calculation formula which refers
to the last-drawn salary and length of service as the
base and establishes a budget once a year depending on
the calculation of the number of retirees in that particular
year. No money is blocked off in advance in the long term.
Pension
Means the money which is paid to a member on a monthly
basis when the member's membership has terminated. It
is received from the government agency to which the member
belongs.
Pre-reform-compensation
Means the money paid by the state into the Fund as an
additional payment to a member who was already in government
service before 27 March 1997 in accordance with the formula
prescribed. The money is paid into the account of each
member upon application to the Fund on the condition that
the member will receive the money upon leaving the government
service and choosing to receive the pension.
Provident Fund
Is a type of savings which the employees and the employer
must remit into the Fund with the objective of serving
as guarantee and welfare benefits for the employees after
retirement.
Quasi-government
Is a semi-government financial institution with the status
of a state enterprise, such as the Government Savings
Bank, the Government Housing Bank and the Bank for Agriculture
and Agricultural Cooperatives.
Salary
According to Clause 3 of the Government Pension Fund Act
of 1996, salary means the money received under the law
with respect to government officials, including a monthly
academic honorarium, a remuneration for a position of
the risky duties for combat or suppression of offenders
but excluding other additional money.
Savings
Mean the money saved by members with the Fund at the rate
of 3 percent of salary every month. All new government
officials or those transferred as government officials
or those who apply to rejoin government service after
27 March 1997 must put in savings into the Fund. However,
the members who were already in government service prior
to 27 March 1997 have the right to choose whether or not
to put in savings into the Fund.
The
Audit Committee
Is the Committee to provide advice and support and on
behalf of the Board of Directors of the Government Pension
Fund to audit financial data, the internal audit system,
the internal audit process, and to direct and supervise
the operations of Government Pension Fund.
The
Board of Directors of the Government Pension Fund
According to Clause 12 of the Government Pension Fund
Act of 1996, a Board of Directors of the Government Pension
Fund is established comprising 10 ex-officio, 1 representative
of each of 12 categories of members, totalling 12 persons,
3 experts and GPF Secretary General.
The
Government Pension Fund (GPF)
Is a juristic person and a type of fund which was established
by the state to promote long term savings for government
officials. One of the main objectives is to have the Fund
as a source of mobilization of contractual savings. It
encourages government officials to save for their lives
after retirement and it aims to be a fund with an important
role in the mobilization of money to strengthen national
financial stability and economy.
The
Investment Committee
Is the Committee to provide advice on the prescription
of criteria, the selection of financial institutes to
manage the monies of the Fund, including monitoring and
looking after the operations of the financial institutes
assigned to manage the monies of the Fund, as well as
reporting on the results of investment operations and
presenting its opinions to the Board of Directors.
The Legal Committee
Is the Committee to perform the work in the area of law
to ensure that everything is in good order by considering
and vetting draft laws, regulations, rules and announcements
which are within the authority and duties of the Board
of Directors of the Government Pension Fund and presenting
its opinions and observations to the Board of Directors
on the issuance of or amendments to or revocation of laws,
regulations, rules and announcements concerned.
The Member Relations Committee
Is the Committee to act as the central medium between
the Fund and the members as well as to strengthen members'
knowledge and understanding, disseminate information,
news and reports on the progress of the Fund's operations,
as well as to listen to members' opinions and problems
and also to propose recommendations to the Board of Directors
on the provision of other welfare benefits and privileges
to members.
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