Bye Bye Cpf

[matrix0405 0]

Workers should be allowed to draw down their Central Provident Fund (CPF) savings at the age of 60.

That was the stand of the Workers’ Party (WP) who said that the CPF drawdown age should not also be linked to the retirement age.

On Tuesday, the two MPs from the WP, Mr Low Thia Khiang (Hougang) and Non-Constituency MP Sylvia Lim raised concerns about workers who are not re-employed after turning 62 years old, yet cannot draw on their CPF savings until they turn 65.

According to The Straits Times, while the drawdown age is currently set at 62, the government had earlier announced that it would be raised to 63 next year, 64 in 2015 and 65 in 2018.

In addition, the government will give incentives to those who voluntarily defer their CPF drawdowns.

Speaking during the debate on the Retirement and Re-Employment Act in parliament, Mr Low criticised the new law as “half-cooked”.

He argued that Singaporeans could be left “hanging in the air” – without a job at the age of 62, yet unable to tap their CPF savings.

Ms Lim weighed in, charging that the new law will subject older workers to a “stressful re-employment process” at 62.

She highlighted that the new law applies to those who are already employed when they turn 62, and does not assist those who are unemployed to seek a job at that age.

If the government wants to delay CPF drawdowns till 65, Ms Lim said that “it should at least correspondingly provide for a more seamless transition of employment from 62 to 65”.

Under the new legislation, employers are required to offer re-employment to workers who turn 62.

If they are unable to do so, the worker needs to be compensated with an Employment Assistance Payment to tide him over as he seeks another job.

However, People’s Action Party MP Heng Chee How (Jalan Besar GRC), rebutted the WP’s call to allow drawdowns at the age of 60, calling it unhelpful.

“It would be like saying, you have a bank account. I have no idea how you are going to add money there, but I know you have to spend, so don’t listen to these guys when they tell you how to add more money into your account; just listen to me and go and draw whatever you have and start spending.”

Mr Heng, who is also the deputy secretary-general in the labour movement added that as Singaporeans have longer life spans, there would be a need to provide them with more resources.

Ms Lim later asked Manpower Minister Gan Kim Yong on the possibility to allow drawdowns to start earlier so long as payments could be stretched out over a longer period.

In his response, Mr Gan said it would mean that people would have less to survive on every month. “The better solution is to continue to add on to their savings,” he said.

“That is why Workfare has a CPF component to help to top up. If the worker continues to work, he will be able to accumulate more savings. If he starts his drawdown later, his savings will allow him to last longer.”

Mr Gan also pointed out that the unemployment rate for older resident workers – those 50 and above – remains very low. It was 3.3 per cent in June last year.

Rather than redesign the CPF scheme to cater to this minority, Mr Gan said that it would be better to deal with them on a case-by-case basis and encourage them to look for work.

He added that if they face difficulties coping, they could still be supported by programmes such as the ComCare Fund.

[muffin 2]

One advice - never rely on cpf for your retirement, it is confirmed not enough

[eiffel76 1]

神也是他们，鬼也是他们。

[therat 18]

官字两个mouth

PS: my hanyupinyin suck

[bepgof 20]

Mouth = kou = 口, better learn chinese and the chinese input methods asap, many angmohs who know the trend already migrated into oriental with their children......

What WP said is true(SA). OA, SA, MA are all "hard earned" money by individuals, ought to be returned to the rightful owner in "due time", not keep increasing the "time". Only those affected by the policy could feel the "pain", the young ones now feel no pain, but 终有一天 will be their turn. If the money there not for "retirement" then, they are for purchasing property? Further study?(Only full time, part time not allowed - this policy makes me angry)

The more "delay" of withdrawal, the more ppl would suspect PAP's intention on the usage of the money, or what have happened to the money, loss in investment? Mismanage? Don't tell me kena like Japan's pension scheme "loophole" happened years ago - senior citizens's acount registration went "missing", " mismatched" when these ppls were due to draw money....

官字两个mouth

PS: my hanyupinyin suck

Edited February 6, 2011 by bepgof

[therat 18]

My chinese is ok one.

My ex-colleague from china say me.. a singaporean who don't look like singaporean.

English horrible.

Chinese good until scare them.

Don't eat chilli.

Don't eat durian.

A retired chinese teacher thought that I'm from chinese school. Wah liao.. I where got so old.

Just that My hanyupinying. CMI

I agree with you on the CPF "delay"

Coffee talk is.. for his wife shopping allowance.

She touch what, die what.

[gimz63251073 0]

those who are young now are likely not to complain about minimum sum when they are at retirement age.

Simple reason: Not much left after paying for subsidised housing anyway!

[bepgof 20]

Many have voiced up this issue over & over, years after year, and gov turns a dead ear.

OA withdrawal rule will be phased out in 1 january 2013.

SA withdrawal with be increased from 62 to 65, and more to come.

Minimum sum amout keeps increasing, until all "Money" in get "stuck" in cpf.

Medisave account ?

Gov should let the citizens vote if to PHASE OUT OA withdrawal rule, to INCREASE minimum sum year by year, to INCREASE SA withdrawal age ! Not just read and pass the Bill in parliament! Temasek Holding should ask all cpf holders if they want were to park their money with Temasek Holding willingly or not! http://business.asiaone.com/Business/News/...731-158244.html

From 1 January 2011 those reach 55, can withdraw ONLY 20% from their OA.

Further reduce to 10% from 1 January 2012.

From 1 January 2013, withdrawal rule phase out liao. Can withdraw only $5k for buying candy.

It takes Egyptians 30 years to build up the "dissatifyiers" to say "ENOUGH !" and acted. Would not be long to be our turn here if gov still turns a deaf ear to the voices.

Edited February 18, 2011 by bepgof

[therat 18]

Quote from CPF

To ensure that you have enough savings for your healthcare needs during retirement, you will need to set aside the Medisave Minimum Sum when you qualify for CPF withdrawal. The prevailing Medisave Minimum Sum is $34,500. Adjustments will be made on 1 July every year, to ensure that you have enough savings to meet your hospitalisation expenses.

Since 1 July 2010, the Medisave Contribution Ceiling is $39,500

[therat 18]

http://ask-us.cpf.gov.sg/hybrid/Themes/CPF...&SourceId=0

Q: What is the difference between Medisave Contribution Ceiling, Medisave Minimum Sum and Medisave Required Amount?

A:

Medisave Contribution Ceiling is the maximum amount that you are required to contribute and maintain in your Medisave Account. Since 1 July 2010, the Medisave Contribution Ceiling is $39,500 and any Medisave contributions in excess of the Medisave Contribution Ceiling will be transferred from the Medisave Account to the Special Account for members aged below 55, and to the Retirement Account for members aged 55 and above, who do not meet the CPF Minimum Sum. For those who have set aside the full CPF Minimum Sum, the excess CPF contribution will be transferred from the Medisave Account to the Ordinary Account.

The Medisave Minimum Sum is the amount you need to retain in your Medisave Account whenever you make a withdrawal of CPF savings (e.g. at age 55, 56, etc). The Medisave Minimum Sum will ensure that you set aside enough savings to meet your future healthcare expenses. The amount from 1 July 2010 is $34,500 and is adjusted every July of the year. Any amount in excess of the prevailing Medisave Minimum Sum can be withdrawn.

The Medisave Required Amount is the amount that you are required to have in your Medisave Account after meeting the CPF Minimum Sum. If you do not have at least the prevailing Medisave Required Amount, you are required to make a top-up to your Medisave Account with part of the balances from your Ordinary/Special Account(s) to meet the prevailing Medisave Required Amount before you can withdraw the savings in your Ordinary/ Special Account(s).

For more information on Medisave Minimum Sum and Medisave Required Amount, please click here.

==================

Wow pian.. I never know Medisave also so complex

[joey8 2]

Many have voiced up this issue over & over, years after year, and gov turns a dead ear.

OA withdrawal rule will be phased out in 1 january 2013.

SA withdrawal with be increased from 62 to 65, and more to come.

Minimum sum amout keeps increasing, until all "Money" in get "stuck" in cpf.

Medisave account ?

Gov should let the citizens vote if to PHASE OUT OA withdrawal rule, to INCREASE minimum sum year by year, to INCREASE SA withdrawal age ! Not just read and pass the Bill in parliament! Temasek Holding should ask all cpf holders if they want were to park their money with Temasek Holding willingly or not! http://business.asiaone.com/Business/News/...731-158244.html

From 1 January 2011 those reach 55, can withdraw ONLY 20% from their OA.

Further reduce to 10% from 1 January 2012.

From 1 January 2013, withdrawal rule phase out liao. Can withdraw only $5k for buying candy.

It takes Egyptians 30 years to build up the "dissatifyiers" to say "ENOUGH !" and acted. Would be long to be our turn here if gov still turns a deaf ear to the voices.

I think I can say bye bye to my cpf liao. I have $69K and yet the last time I checked with CPF, I could only withdraw $5K when I reach 55 years old. So little, only 5K, and also

I have very little medisave in my cpf account, so probably my 5K will go to fund my insufficient medisave account. Very sad, leh.

[bepgof 20]

On one hand set higher & higher bars preventing rightful owners to withdraw hard-earned $ (for retirement ???, retirement's a very personal thing, why should gov get involved?). But must admit that the 2.5% & 4% monthly-rest interests are very tokong. Tokong is one thing, $ eventually cannot be enjoyed while alive, what's for?

Edited February 18, 2011 by bepgof

[matrix0405 0]

On one hand set higher & higher bars preventing rightful owners to withdraw hard-earned $ (for retirement ???, retirement's a very personal thing, why should gov get involved?). But must admit that the 2.5% & 4% monthly-rest interests are very tokong. Tokong is one thing, $ eventually cannot be enjoyed while alive, what's for?

Agreed, compared with FD its tokong. But compared with inflation rate it is not so tokong. Throw in time-value-of money, u put in $1K today , if you live to withdraw 40 years later, the $1k is like $100.

[matrix0405 0]

EPF declares 5.8% dividend

PETALING JAYA: The Employees Provident Fund (EPF) has declared a dividend of 5.8% for 2010, up from 5.65% declared the year before.

It will pay out a total of RM21.61bil to members, an increase from the 2009 dividend payout of RM19.37bil.

EPF declared that the rate, which was approved by the Finance Minister, was the “highest dividend payout amount ever”.

EPF’s total investment assets stood at RM440.52bil as at Dec 31 last year while its gross investment income was RM24.06bil.

“The dividend rate underscores an impressive year in which gross investment income reached a historical high of RM24.06bil, reflecting a 39.76% increase over the RM17.22bil recorded in 2009,” EPF chairman Tan Sri Samsudin Osman said in a statement yesterday.

Samsudin said last year’s investment income was especially driven by the per­formance of equity investments boosted by improved financial and economic conditions.

“The dividend amount paid out is derived after deducting net impairment allowance on financial assets, investment expenses, operating expenditure and statutory charges as well as dividend on withdrawals,” he said.

Equities, the statement said, was EPF’s largest investment income contributor at 45.45% or RM10.94bil, followed by loans and bonds, Malaysian Government Securities, money market instruments and property and miscellaneous income.

According to the statement, two-thirds of EPF’s total investment assets last year remained in low risk fixed-income instruments with stable streams of income.

“As a retirement fund, our primary objective is the preservation of capital while adding value to members’ retirement savings.

Members may check their EPF account statement for the crediting of the 2010 dividend via EPF Kiosks, counters or i-Akaun, from today.