15 October 2018, PAYOUTS UNDER CPF RETIREMENT SUM SCHEME –
In the 2018 Budget Debate, the topic of CPF contributions for older workers were raised for debate. It was reported that the current rates for such older workers were set in 1988 and were never reviewed. During the debate:
- It was suggested that the progressively decreasing contribution rates allow private companies to remain competitive. It was further suggested in the debate that workers are paid on job value rather than on the basis of seniority.
- There was a suggestion that the 13 month bonus be made mandatory. This would have the apparent effect of raising wages by 8.3%.
- Further it is suggested that employers pay full cost of non-chronic outpatient treatment at polyclinics or company-appointed clinics.
Months later, the CPF board apparently had clarified that payouts under the CPF Retirement Sum Scheme are by default at age 70, but on an opt-in basis could be set at age 65.
Keywords: CPF Retirement Sum Scheme, Central Provident Fund, Debate 1028, Contribution, 13th months, non-chronic outpatient, polyclinic