MOM: Allow More Flexibility To Opt Into Longevity Scheme

Source : The Straits Times, Sep 20, 2007

SIMPLE choices, affordability and flexibility.

These were the key requirements that Manpower Minister Ng Eng Hen said was needed to ensure the smooth implementation of the compulsory National Longevity Insurance scheme, or deferred annuity scheme.

Dr Ng said this at the launch of the new training premises of the HMI Institute of Health Sciences, and the inaugural intake of a new Community Health Care Assistant Course on Thursday.

'So long as we give options for Singaporeans, it will be easier to implement,' he said.

Some of these 'options' Dr Ng raised included allowing those above the age of 50 to opt into the annuity scheme.

Under the scheme, all CPF members below the age of 50 must buy an annuity at age 55 with a small portion of their CPF minimum sum. Those above age 50 are excluded.

The annuity will likely give them a monthly payout of $250 to $300 once their Minimum Sum runs out when they reach 85.

Similarly, Dr Ng said another option to consider was to allow younger folk to buy their longevity insurance earlier, instead of waiting to turn 55.

That way, they can save a little on the premium.

'If I buy the longevity insurance earlier, it'll cost me less, that's the way the sums work. The earlier you buy, the cheaper it is...I think we should allow them (those aged below 55) to opt in as well,' he said.

In the meantime, a committee made up of grassroots leaders, academics, and non-governmental groups has been tasked to design the insurance scheme, and look into such flexible options.

The committee, headed by Professor Lim Pin, who also chairs the National Wages Council and Bioethics Advisory Committee, is expected to deliver its recommendations in 6 months.