Some had called for larger payouts from the proposed longevity insurance scheme. Others said the families of those who die early should get some money back. The good news is, such calls from MPs have not been ruled out. Manpower Minister Ng Eng Hen said: "These options are all possible and could be offered as an additional rider to the basic product."
An annuities committee led by National Wages Council chairman Professor Lim Pin has been set up. It will submit its report to policy-makers within six months.
CPF members will be able to earmark a portion of the minimum sum in their Retirement Account as payments in the first 20 years after the draw-down age, said Dr Ng. So, likewise, they could allocate specific portions for the longevity insurance and its riders.
He added: "Some have asked if it's possible for earlier annuity payouts — say, at 75 years old instead of 85. Others want to reduce their dependence on the longevity insurance and may want to stretch their retirement account to 95.
"I say: Why not?"
He reiterated that the system "should be fair to all". While the CPF Board would administer the scheme, it should be left to the professionals to "determine the risks and the adjusted premiums".
He said: "How long you need to live to, to break even or get more with your premium, should be supplied, so people can choose their plans with full information."
Some MPs had asked that the deferment bonuses for the delayed drawdown age be used towards funding the annuity instead.
Dr Ng's counter was that when putting in place a system for future generations, the Government should "not begin with the philosophy that it should be subsidised".
"The CPF system works and is sustainable because it's based on savings, not tax. Each must save for his own needs," he said.
In like vein, the Government should not start a state pension system, which would "take us many steps backwards", he said. He cited the example of Italy, which spends 14 per cent of its Gross Domestic Product on pensions — the same proportion Singapore uses to run "the whole government".
The argument of dipping into the reserves to fund a pension system was "seductive but short-sighted".
Said Dr Ng: "Surely, the old have contributed to the reserves. Every generation would claim it has built and has a right to the reserves. But our reserves belong to all generations of Singapore, including future generations."
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