jordan pulse -
It is expected that social security assets will reach about (15) billion dinars by the end of the current year 2023, increasing from what they were at the end of 2022 by about (1.2) billion dinars, with a growth rate of approximately 8%.
The government's guarantee debts, including bonds and loans, constitute about 60% of these assets.
In order to have a strategic distribution of assets that meets the future obligations of the Guarantee Institution towards workers, retirees and beneficiaries, we must work more seriously to develop the return on investment in a way that is commensurate with the requirements of the institution’s actuarial studies, as well as committing to an acceptable level of risk in accordance with the investment policy of the Guarantee Money Investment Fund.
For example, the net income achieved by the Investment Fund during the year 2022, amounting to (684) million dinars, constitutes a nominal return not exceeding (5%), while actuarial studies for guarantees require a return ranging between 8-9%, and from here the two studies assume The last two actuaries, the ninth and tenth, are that the fund’s assets during the year 2030 will reach (28) billion dinars, that is, about twice the current assets, which is almost impossible in light of the current weak return and the non-optimal distribution of the fund’s investment portfolios. Therefore, the Fund, represented by its executive management and investment board, must develop traditional investment methods, redistribute its investment portfolios, and innovate new, higher-return investments.
It is worth noting that the total guarantee assets are equivalent to about (42%) of the Kingdom’s gross domestic product of (35) billion dinars.
Journalist and jurist/ Musa Al-Subaihi