The committee formed to look at the compulsory annuity will study various avenues of designing the insurance scheme. This is according to NTUC Assistant Secretary-General Seng Han Thong, who's a member of the newly-formed National Longevity Insurance Committee.
Mr Seng added that the 18-member panel also recognises the need for the insurance scheme to be flexible.
"We must ensure there is work for them to carry on their work life beyond 62. We also have to make this longevity insurance scheme simple and easy to understand so the buy in will be easier."
Mr Seng was speaking to reporters on the sidelines of an event at ITE College East. He said he's speaking as one of the committee members and not as a spokesman for the committee. Mr Seng added that there are many good ideas and the committee will participate in focus groups discussions and consult experts.
The Committee's Report is expected to be ready within six months. The Manpower Ministry said the committee needs to look at a scheme that can provide basic and affordable plans for CPF members. The scheme must also be flexible for members so that they can choose from a range of plans to meet their needs.
The scheme also needs to apply to CPF members who are currently 50 and below but it must allow others to opt-in.
Another requirement is that the scheme must leverage on the CPF system to keep basic premiums affordable. This is also to allow members to use a small part of their Retirement Account to buy the longevity insurance when they turn 55.
The 18-member committee is made up of unionists, academics, grassroots leaders and representatives from the private and public sectors. CNA/vm
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