The panel will study, among others, how Minimum Sum can be adjusted beyond 2015, how members can withdraw more as a lump sum.
SEPTEMBER 10, 2014
SINGAPORE — The Central Provident Fund (CPF) Advisory Panel to study possible enhancements to the CPF system has been formed, announced the Ministry of Manpower (MOM) in a press release today (Sept 10).
The panel will convene from mid-September and the study should be completed in a year. Initial recommendations will be provided by early next year, the MOM said.
“The Government has been studying further enhancements to some key aspects of the CPF system to make it more flexible to meet the needs of more Singaporeans and provide additional options in retirement,” the ministry said, adding the panel will “study these possible enhancements further, including the benefits and trade-offs involved”.
Specifically, the panel will look into:
• How the Minimum Sum should be adjusted beyond 2015, in order to meet the objective of delivering a basic monthly retirement payout for life.
• How to enable CPF members to withdraw more as a lump sum upon retirement, and the circumstances for their doing so, taking into consideration the impact on retirement adequacy for different groups.
• How to provide an option for members who prefer CPF payouts that are initially lower but rise with time to help with increases in the cost of living.
• How to provide more flexibility for members who wish to
- Seek higher returns while balancing the higher investment risks involved, through private investment plans.
- Invest in private annuities when they retire as an alternative to CPF LIFE.
The panel will be chaired by Professor Tan Chorh Chuan, President of the National University of Singapore (NUS). The 13-member body also includes academics, financial industry practitioners, and community representatives from the unions, social sector and grassroots, “to provide a broad diversity of views on the enhancements under consideration”, said the MOM.
Members of the public who wish to provide feedback to the Panel can email their views to firstname.lastname@example.org, it added.
MEMBERS OF THE CPF ADVISORY PANEL
Professor Tan Chorh Chuan, Chairman of the CPF Advisory Panel, President of NUS
Professor Joseph Cherian, Practice Professor of Finance, NUS Business School
Ms Sylvia Choo, Director, NTUC Women’s Development Secretariat
Ms Malathis Das, President, Singapore Council of Women’s Organisations
Mrs Hauw Soo Hoon, Operating Partner, iGlobe Partners
Professor Benedict Koh, Associate Dean, SMU Lee Kong Chian School of Business
Mr Terry Lee, President, Singapore Insurance Employee’s Union
Mr Muhammad Faizal bin Othman, Vice-Chairman of Taman Jurong Citizens’ Consultative Committee
Mr Ng Cher Yan, Chairman of the Braddell Heights Citizens’ Consultative Committee
Mr Colin Pakshong, Independent Actuarial Consultant
Mr Saktiandi Supaat, Head of FX Research, Global Markets, Maybank
Dr Tan Bee Wan, Executive Chairman of Integrative Learning Corporation and ACE (Active, Contributive and Engaged) Seniors
Mr Christopher Tan, Chief Executive Officer, Providend