Govt Should Top Up Annuities: MPs

Source : TODAY, Tuesday, September 18, 2007

THE Government should consider topping up the compulsory annuity scheme during the times when it is enjoying budget surpluses.

The suggestion, made by Nominated Member of Parliament Cham Hui Fong, was among several raised on the first day of debate on the slew of CPF changes in Parliament yesterday. Altogether, 14 MPs spoke yesterday.

“I think this will be a good demonstration of shared responsibility,” said Ms Cham, who is NTUC’s industrial relations director.

Her view was shared by East Coast GRC MP Jessica Tan and Jurong GRC MP Mdm Halimah Yacob.

Mdm Halimah said: “They (Singaporeans) feel it will be more palatable if the Government could contribute something by injecting some funds into the pool. With additional government funding, many Singaporeans feel the payouts after 85 could then be more meaningful, and also, the premium could be affordable.”

From her talks with residents, Mdm Halimah said some felt the compulsory annuity scheme will not benefit the poor and low-income groups as they believe the rich live longer.

West Coast GRC MP Mdm Ho Geok Choo suggested the Government work out a formula for an annuity scheme that will allow a higher rate for lower income groups. She believes this will be a “demonstration” of the Government’s responsibility in looking after the lower strata of society.

Apart from concerns over the annuity scheme, the MPs also touched on jobs for older workers.

Ms Cham felt that simply setting a national target of achieving 65-per-cent employment rate for those in the 55-to-64 age group over the next five to eight years is not enough.

For re-employment to work, checkpoints should be set every year to ensure the scheme is still working.

“If it is not progressing, then new strategies must be put in place when we review the target,” Ms Cham argued.

“It is crucial for us to see results in the next two years.”

The way forward, said Mdm Halimah, is not just with the public sector taking lead, but the government-linked firms, too.

She said: “If the public sector and GLCs do not set a good example, then we will have less moral authority to urge private companies to do so.”