Parliament passes new CPF Life plan with aim of celebrating
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Celebrating greater longevity with CPF Life is the aim of changes to the CPF Act passed by Parliament on Monday to ensure members have an income for the rest of their lives.
But several MPs expressed concern over those who have less than S$40,000 in accounts to fully benefit from the scheme.
It started with 12 different plans for CPF Life and now it's down to just four - Life Plus Plan, Life Basic Plan, Life Income Plan and Life Balanced Plan.
Members with at least S$40,000 in their Retirement Account will be automatically included, while those with lower cash balances can opt-in.
LIFE Plus Plan offers higher monthly income but leaves behind less for beneficiaries.
For the LIFE Basic Plan, members accept a lower monthly income for higher bequest amount.
The LIFE Income Plan offers the highest monthly income but members would leave nothing behind when they pass away.
The default plan is the LIFE Balanced Plan which will provide a balance between a level of retirement income and some bequest amount if they pass away early.
Manpower Minister Gan Kim Yong, said: "Over the years our CPF policies have evolved to better address our changing needs and they will continue to evolve.
CPF Life is our unique response to address the challenges of our ageing population and it marks an important milestone in the evolution of the CPF."
This was a major concern for trade unionist Halimah Yacob as the number of Singaporeans working part time or on contract work has increased.
She said: "Our low-wage workers are the ones who need such a scheme the most as they are not likely to have discretionary savings or other assets. I would like to ask the Minister to study this issue carefully, so that we can have a truly inclusive CPF Life scheme."
In her maiden speech in Parliament, Nominated MP Pauline Straughan, suggested programmes for the vulnerable poor.
She said: "As we move towards a more comprehensive coverage for Singaporeans, it is even more critical for us to ensure that no group is omitted from the lifelong income fund. If we failed to do so, we may inadvertently entrench social inequality."
The CPF Board estimates that at least 70 per cent of members turning 55-years- old in 2013, will have at least S$40,000 in their retirement accounts.
Mr Gan said: "There is no minimum balance required to participate in CPF Life. All members, regardless of their CPF balances, can opt-in into the scheme.
“However, members with a very low balance may not be in a position to maximise the benefits from CPF Life."
For them, schemes like Workfare will come in handy where older, low-wage workers receive an income supplement, of which a portion is credited into the recipient's CPF to shore up his retirement savings.
Changes to the CPF Act also address the issue of members who are mentally incapacitated.
Currently, under the Mental Capacity Act, a court ruling cannot affect a CPF nomination.
So, rules dealing with nominations will also be amended to allow the courts to do this, in the best interest of the member. - CNA/vm
http://www.channelnewsasia.com/stories/singaporelocalnews/view/443586/1/.html -
crap la, it is all about earning our money.
few months back saw lim boon heng on tv saying that if we buy from govt it is cheaper.
damn it, never stop earning money out of us, damn it PAP! KNN!
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Every policy that comes out from Parliament these days is all about dollars and cents only.
Really.
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Celebrating greater longevity with CPF Life is the aim of changes to the CPF Act passed by Parliament
What sorting of fucking reason is that?
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Originally posted by Ah Chia:
What sorting of fucking reason is that?
Mee siam mai hum.
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wei ask then to come out a better policy la... i think the current gov dont take care of the low income group de... just ask the rich to keep donating..
after donating then you got NKF, Chinese Monk/ Priest maka money...
why donate.. that the gov job...
BTW if dont have 40K ask them top up more money lor... or ask hdb sell their flat cheaper
dam hdb blood sucker lor. -
and they serious to make buying of this crap compulsory?
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Originally posted by charlize:
Every policy that comes out from Parliament these days is all about dollars and cents only.
Really.
Even by their usual standards this is bad. A celebration? OMG -
they love to be stuffed with money, suffocate by money and then die eventually!
shit, think they can bring $$ to the other world.
Damn it !!!
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I think what they meant is celebrations don't come cheap.
So show them the money and they "celebrate" for you.
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I thought quite a large proportion of Singaporeans were against it?
They just let the matter cool down 1-2 years then continue implementing it again.
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celebration??
demise of lky = celebration
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Originally posted by deepak.c:
I thought quite a large proportion of Singaporeans were against it?
They just let the matter cool down 1-2 years then continue implementing it again.
all this while they are working on it quietly.
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Putting aside the issue dollar and cent of money going into the govt's piggy, can anyone explain what this policy will achieve, in term of bringing benefit to the retiree?
It simply locks up your CPF into your old age - playing with the contrasting factors of longer longevity or higher inheritance.
In my opinion, this is a mediocre policy. It doesn't seem to relieve or alleviate the problem of poor people living longer and longer.Woe to those who are long on the scale of longevity but short on the scale of fund. These are the very people who needs the help most but this policy doesn't address their needs.
Instead, this policy is targeting the very group that doesn't need it and won't be bother its existence. -
Just another way of not paying the retirees.
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Originally posted by Chew Bakar:
Just another way of not paying the retirees.
They lost so much money in the last investment debacle, don't think they still have much funds left to pay retirees, that's why came up with this proposal.
But I want to be fair also, need to see the payouts from the annuity first before criticizing them.
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Originally posted by Chew Bakar:
Just another way of not paying the retirees.
greedy , greedy than pigs. Money all to themselves. Everything is money money money. No money, they cannot breathe, sure die! -
Originally posted by deepak.c:
They lost so much money in the last investment debacle, don't think they still have much funds left to pay retirees, that's why came up with this proposal.
But I want to be fair also, need to see the payouts from the annuity first before criticizing them.
They are not celebrating life, they are clebrating the non commitment to retirees.
"Just like the old horse Napoleon sold to the slaughter house."
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not sure whether people who have already purchased deferred annuities can opt-out or not
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Originally posted by Bangulzai:
not sure whether people who have already purchased deferred annuities can opt-out or not
I believe as long as you have bought something for retirement they don't bother you.
All they are doing is to make sure when in old age, singaporeans will not be a burden to them and thus they no need look after the old.
They shirking responsiblility. Shitty govt we have! They are worse than beasts.
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thanks :-)
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Originally posted by Bangulzai:
thanks :-)
Pie ke qi!My neighbour bought her own and told me she will not need to buy when it is implemented.
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the article above did not state explicitly whether one can opt-out. it oni talks about automatically included and opt-in. when time comes, u ask her whether she could opt-out or not
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Originally posted by Bangulzai:
the article above did not state explicitly whether one can opt-out. it oni talks about automatically included and opt-in. when time comes, u ask her whether she could opt-out or not
two years back, they have already said it is compulsory to buy. -
i suppose that means ur neighbour haf opted out i tink?