The Government Pension Fund Strategic Plans (2021 - 2023) had been developed under three strategic frameworks including Sustainable Pension Fund Model, National Strategy (2018-2037) and the GPF Missions stated in Government Pension Fund Act B.E. 2539 (AD 1996)
Framework 1: Sustainable Pension Fund Model
Sustainable Pension Fund Model was adapted from Mercer Global Pension Index. Mercer has used this index to rate and rank pension fund worldwide. Criteria to score comprise of:
Adequacy (Weight 40%) : The distinguish emphasizing weight reflects the importance of “Adequacy,” which the pension fund should pay high attention as it is the fiduciary duty toward members. Therefore, GPF strategic plans had been developed with fully intention to “maximize saving contribution” for members by efficiently investing and effective communicating to stimulate members to understand the importance of saving by contribute more and choose to invest in the suitable investment plans.
(Weight 35%) : “Sustainability”
can be considered in two implications:
- First implication means sustainability of money in the fund. The fund should have money left until the last member withdraw it from the fund.
- Second implication means the awareness of fund management to build “social capital’ parallel with “investment returns.” As the pension fund is the institutional investor playing the role of asset owner so it has high bargaining power in investment value chain. The pension fund then could influentially drive organizations to do business with responsibility toward environment, society, governance and human rights, while the fund is able to generate investment returns in parallel.
Integrity (Weight 25%) : “Integrity” means the pension fund must hold the governance principles by issuing relevant guideline and having compliance system. It should hold on the segregation of duty so as the check and balance. All principles must be written in form of paper and be integrated in investment process and organizational management.
Framework 2: National Strategy (2018-2037)
The national strategy is employed as the country’s goal for sustainable national development in accordance with the principle of good governance. It is a framework for formulating consistent and integrated plans in a congruous drive to achieve the setting goals within 20 years (2018 -2037). Fully aware of the essence of the national strategy and the mission of GPF, this GPF strategic plan then had been developed in line with the key indicator of ‘Social equality and equity’ describing under clause 4.1.1 as to promote and stimulate all group of people to save and invest for long term benefit, which will increase their capability to be self - reliance in term of economy.
Framework 3: The GPF missions in Government Pension Fund Act B.E. 2539 (AD 1996)
SGPF missions are:
- To provide an assurance to government officials with regard to payment of gratuity and pension upon the termination of their official service.
- To encourage regular savings amongst members.
- To provide welfare programs and other benefits to members.