http://todayinsingapore.wordpress.com/2009/07/21/your-cpf-is-it-really-secure/
Your CPF: Is It Really Secure?
By todayinsingapore
Manpower Minister Gan Kim Yong assured Singaporeans they will receive a monthly payout from the Central Provident Fund (CPF) Life annuity scheme for the rest of their lives, but he could not guarantee the amount paid. Strange, because anyone can purchase an annuity from a private company and they will guarantee the monthly payment over a period for which the premium is paid. As the aim of the CPF Life scheme is to provide the elderly poor with a secure retirement income, a flustered Member of Parliament (MP) Ho Geok Choo had to ask, "Where is the security when payouts are not guaranteed?"
The explanation from MP for Jurong GRC Halimah Yacob shades some light, "One cannot be certain what will happen years down the road if we have a different government in power and how they will treat their obligations to Singaporeans." In a twist on Goh Chok Tong's threat to turn constituencies into slums if they vote for the wrong political party, it is not difficult to infer that she is saying the citizens' CPF savings are being held as ransom to ensure the perpetuity of her political masters.
One thing's for certain, the way her political party has been treating their obligations to Singaporeans has been pretty shabby.
Thanks to one octogenarian's stubborn ideas about a welfare state, Singapore introduced CPF in 1955 as a compulsory savings scheme so that all workers have to fend for themselves in their retirement years. Under the scheme, a part of the workers' monthly income is set aside, accumulating till retirement age when the savings can be withdrawn. Or so they promised.
And since the state does not provide for health care needs, Medisave was introduced to tap into CPF savings for hospitalization expenses for themselves and their dependents.
In 1984 Howe Yoon Chong jeopardised his Minister for Health post with his then controversial proposal to raise the age for the withdrawal of CPF, but his successors seem to be emboldened to do worse. New laws were passed to postpone the age for withdrawal of the CPF funds from 55 to 62, and then 65.
Despite having attained the eligible age for withdrawal, a stipulated sum was still retained by the CPF board under the CPF Minimum Sum Scheme. CPF members were encouraged to participate in government annuity scheme CPF Life or buy approved life annuities with their Minimum Sum to give them a guaranteed income for life. Alternatively, they may place their savings with approved banks or continue to keep it with the CPF Board.
The latest law, passed without a whimper, legislates that from 2013, those who turn 55 and have more than $40,000 in their Retirement Account will be automatically included in CPF Life. No mention is made if provision is available to opt out of this scheme.
How true the words ring, "Repression is a bit like making love. The first time you have pangs of conscience, a bit of guilt. The second time you get more brazen, and you dig your heels in …"
Your CPF: Is It Really Secure?
By todayinsingapore
Manpower Minister Gan Kim Yong assured Singaporeans they will receive a monthly payout from the Central Provident Fund (CPF) Life annuity scheme for the rest of their lives, but he could not guarantee the amount paid. Strange, because anyone can purchase an annuity from a private company and they will guarantee the monthly payment over a period for which the premium is paid. As the aim of the CPF Life scheme is to provide the elderly poor with a secure retirement income, a flustered Member of Parliament (MP) Ho Geok Choo had to ask, "Where is the security when payouts are not guaranteed?"
The explanation from MP for Jurong GRC Halimah Yacob shades some light, "One cannot be certain what will happen years down the road if we have a different government in power and how they will treat their obligations to Singaporeans." In a twist on Goh Chok Tong's threat to turn constituencies into slums if they vote for the wrong political party, it is not difficult to infer that she is saying the citizens' CPF savings are being held as ransom to ensure the perpetuity of her political masters.
One thing's for certain, the way her political party has been treating their obligations to Singaporeans has been pretty shabby.
Thanks to one octogenarian's stubborn ideas about a welfare state, Singapore introduced CPF in 1955 as a compulsory savings scheme so that all workers have to fend for themselves in their retirement years. Under the scheme, a part of the workers' monthly income is set aside, accumulating till retirement age when the savings can be withdrawn. Or so they promised.
And since the state does not provide for health care needs, Medisave was introduced to tap into CPF savings for hospitalization expenses for themselves and their dependents.
In 1984 Howe Yoon Chong jeopardised his Minister for Health post with his then controversial proposal to raise the age for the withdrawal of CPF, but his successors seem to be emboldened to do worse. New laws were passed to postpone the age for withdrawal of the CPF funds from 55 to 62, and then 65.
Despite having attained the eligible age for withdrawal, a stipulated sum was still retained by the CPF board under the CPF Minimum Sum Scheme. CPF members were encouraged to participate in government annuity scheme CPF Life or buy approved life annuities with their Minimum Sum to give them a guaranteed income for life. Alternatively, they may place their savings with approved banks or continue to keep it with the CPF Board.
The latest law, passed without a whimper, legislates that from 2013, those who turn 55 and have more than $40,000 in their Retirement Account will be automatically included in CPF Life. No mention is made if provision is available to opt out of this scheme.
How true the words ring, "Repression is a bit like making love. The first time you have pangs of conscience, a bit of guilt. The second time you get more brazen, and you dig your heels in …"
