The effect of being an insured person under Section 39 of the Social Security Act, in the case of Old-age pension benefits

Abstract

   This academic article examines the impact on individuals formerly insured under Section 33 of the Social Security Act B.E. 2533 (1990), who had contributed for at least twelve months before losing their insured status due to termination of employment. If such individuals re-enroll as insured persons under Section 39 within six months following the cessation of their insured status, their pension benefits may be adversely affected. Specifically, for those who contributed under Section 33 for no less than 180 months, the amount of the old-age pension is reduced due to differences in the average wage base used for contribution calculations prior to the loss of insured status. Furthermore, the contribution periods under Sections 33 and 39 are aggregated when calculating pension entitlements.

   The study suggests that, to protect the rights of insured persons under Section 39 and prevent reductions in pension benefits accrued under Section 33, amendments to the Social Security Act B.E. 2533 and related subordinate legislation are necessary. Such amendments should provide insured persons with the option to calculate old-age benefits without aggregating the contribution periods under Sections 33 and 39.