BOT lodges appeal over ruling on pensions
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The Bank of Thailand is expected to pay compensation of as much as Bt1 billion to former officials this year - if it loses an upcoming appeal case.
The Central Administrative Court ruled late last month in favour of 27 retired central bank officials. The court ordered the Bank of Thailand to pay 10 months’ salary plus 7.5 per cent interest – a combined Bt21.77 million to the former officials, according to an informed source at the central bank.
The officials, who retired from the BOT in 2008, filed legal cases to the court arguing that they were not fully paid correction pensions, as stated in the labour law. The law recognises their right to get compensation of at least 300 days’ pay after working at the bank for 10 years.
The central bank has insisted that it paid proper compensation to the former staff members. And for those who weren’t members of the provident fund, the payout was paid in a lump sum amount, equal to their final month salary times 50 or 55.
Those who were members of a provident fund run by the central bank got monthly compensation after retirement, according to returns of fund investment and their contribution of 12 per cent of their monthly salary, according to the BOT.
The court ruled in favour of the officials. Some of them said they joined the legal fight because they want the central bank to provide welfare to them the same way that state enterprises pay their former staff pensions.
There are also several cases pending in the court, which the central bank looks likely to lose and may be forced to pay labour compensation worth about Bt1 billion a year, one former staff member, who asked not to be named, said.
BOT assistant governor Chanchai Boonritchaisri, said the bank had appealed the cases to the Supreme Administrative Court. The legal wrangle was thus not yet final, he said.
