Picture : MP for Jalan Besar GRC, Ms Denise PhuaMore than ten Members of Parliament have spoken up in support of the CPF changes on Monday, and have also suggested ways to improve the policies.
Most of them focused on the compulsory annuity scheme and the re-employment of older workers.
Financial independence for those who live beyond the age of 85 is the key objective of the compulsory annuity scheme.
But how this will be implemented got many Singaporeans talking.
MPs said some have become suspicious of the intention behind the scheme.
Halimah Yacob, MP of Jurong GRC, said: "They fear that the government is transferring its responsibility of taking care of the poor and needy to Singaporeans. The government has explained that this longevity insurance is a form of risk pooling.
"This is well and good, but Singaporeans are asking why is it that they have to carry all the risks themselves and what is the government's contribution to this risk pooling – in other words, where is the social risk pooling element? They feel that it would be more palatable if the government could contribute something by injecting some funds into the pool."
Denise Phua, MP of Jalan Besar GRC, said: "There are rumours that the government is running out of money; that the whole CPF exercise is leaving the people to fend for themselves and so forth.
"And questions of where the additional GST revenues have gone to need to be addressed. Many of these perceptions may be untrue, but perceptions are realities and must be addressed and crucial dialogues, not monologues, must take place."
On helping Singaporeans to work beyond the age of 62, one MP suggested that the government help two groups of citizens – the lower-income Singaporeans and the housewives or ad-hoc employees.
Dr Ahmad Magad, MP of Pasir Ris-Punggol GRC, said: "One measure that could be considered is to extend an M or mother bonus in the CPF accounts of mothers who are working part-time.
"This will encourage more women to join the workforce, pave the way for contributions to be made to their CPF savings, and still leave them sufficient time to tend to their children and household chores."
As women tend to leave their jobs early to have children, many do not have enough CPF savings.
Cham Hui Fong, Nominated Member of Parliament, said: "I'd also suggest that we make it mandatory for the husbands to top up their wives' CPFs... at least to pay for the basic longevity insurance if the husband has met his minimum sum scheme."
Another suggestion is to create a National Pension Plan.
Inderjit Singh, MP of Ang Mo Kio GRC, said: "If we decide to create this national scheme through the annuity system, contributions through CPF could start much earlier than the age of 55.
"It should be broad-based, so that even young people can contribute to it. The asset base will therefore be broader and there will be more time for it to be accumulated, which will result in a higher payout for all.
"The amount of the contributions can then be set at a lower, more affordable sum and every Singaporean will benefit from it in their later years."
Many MPs said they are glad the government is not waiting out on the issue of retirement savings. But they urged the policy makers to hear the people's concerns and address them first before deciding on the final outcome.
More MPs are expected to speak on the changes to the CPF in Parliament over the next few days. - CNA/so
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