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Pensions for Ministers, Ministers of State, Parliamentary Secretaries

Charlie99

Alfrescian (Inf)
Asset
A lawyer friend (whose name I have with-held) has given me the shocking answer to my query: Do retired ministers receive 50% of their last-drawn pay for life? (scroll down: be sure to read the text in bold especially).

I also attach a copy of the Parliamentary Act so you know I am not making this up.

Some people actually think our ministers only make $40,000 a month, hence are not bothered by our ministers' pay. Some people think it's okay for our ministers to quibble over $30 increase in subsidies to the poor!!

DO MINISTERS RECEIVE 50% OF THEIR LAST-DRAWN PAY FOR LIFE?

You friend is wrong about 50%. It is actually as high as 2/3rds. The Parliamentary Pensions Act provides that "office holders" (which means "Prime Minister, Deputy Prime Minister, Speaker, Senior Minister, Minister, Senior Minister of State, Minister of State, Mayor, Senior Parliamentary Secretary, Parliamentary Secretary or Political Secretary"). If you closed your eyes and threw a stone in Parliament House during a Parliamentary sitting - assuming if, and it is a big if, that everyone attends (which is never the case. Parliamentary sittings are lucky if 50% of MPs attend!) you will hit at least 1 or perhaps 2 with the stone ricocheting PAP chaps entitled to pensions.

Anyhow, back to your question. The Act has a formula for payment of the amount of pension. You start with a numerator of 8 (meaning 8 years of service as office holder) and add 1 for every year of service after that.
You divide this number by a fixed denominator of 27, and you stop when the number hits 2/3rds, which means that anyone who has 18 years service will hit maximum pension. The amount that is due to him FOR LIFE is found at
section 4:
4 (2) The annual amount of pension payable to an office-holding Member shall be -
(a) in respect of every completed year of reckonable service in any office, or where he has served in more than one office in each office, at the rate of one-twenty-seventh (1/27) of his annual salary in that office; and
(b) in respect of any remaining uncompleted year of reckonable service in any office, or where he has served in more than one office in each office, at the rate of one-three-hundred and twenty-fourth (1/324) part of his annual salary for each completed month of reckonable service in that office.
(2A) The annual pension payable to any office-holding Member under subsection (2) shall not exceed two-thirds of the highest annual salary of any office held by him.
(3) Subject to sections 13 and 15, a pension granted under this section shall continue for the life of the person to whom it is payable but shall not be payable in respect of any period during which he is again an office-holding Member; at the end of that period the pension shall again be payable and shall be re-computed with the addition of that period to the period of his former reckonable service as an office-holding Member.
(4) For the purposes of subsections (2) and (2A), "annual salary", in relation to any office, means the annual equivalent of the highest monthly rate of salary (excluding any non-pensionable allowances) received by an office-holding Member during any period of reckonable service as a holder of that office.

Astonishing, isn't it that the pension is payable based on the "Highest annual salary of any office held by him" and "highest monthly rate of salary". So, it doesn't matter that the MP was a low ranking parliamentary secretary for 17 years, and then became a multi-million $ minister for 1 year. His pension will be based on 2/3rds of his salary as a minister, as that is his highest annual salary of any office held by him. So, it also doesn't matter that there are occasional reductions in salary during recessions, since their pension is based on their highest annual salary.

On this basis, SM / PM / MM will get 2/3rd x $3 million for the rest of their lives. I understand that if they are eligible for pension and they are still serving, they get both salary plus pension concurrently. (see section 5).

Or did I forget to tell you that pensions are exempt from income tax? This is stated in the Income Tax Act!

It gets better. The Act says that the pension can be commutated. This means that it is paid in 1 lump sum instead of monthly payments for life.
The lump sum is equivalent to 175.14 months of pension, i.e. 14.6 years of pension. It doesn't matter that the minister asks for it because he has terminal cancer and has 3 months to live. He will get 14.6 years of pension paid to him in 1 go, and it will be tax free. If MM's pension is based on 2.5 million (conservative estimate), his commutated pension is $36.5 million. Can buy a GCB with it, without any bank loan!

This is a real scandal. I was horrified when Goh Chok Tong proposed recently that ministers serve 8 years only, and new ones come in. It means that the pool of multi-million dollar pension earners will get bigger and bigger! It will add to the financial burden of future generations of Singaporeans having to pay for the pensions of people who have already been paid too much during their terms of office.

Who in the private sector is entitled to pension? And yet the ministers, etc are collecting tax free pensions on top of their world's highest salaries.

Now you know why George Yeo is fighting so hard to keep his job as minister.

Incidentally, all Admin Service officers, Senior Police & Military Officers and High Court Judges are still entitled to pensions in the same manner.
 

Charlie99

Alfrescian (Inf)
Asset
Requested version was 05 May 2011; Closest available version is 03 Oct 2002; Generated on 05 May 2011 20:09:03(GMT+8).
Front Page [ Jump to: Front Page / Arrangement of Provisions / Actual Provisions ]
PARLIAMENTARY PENSIONS ACT
(CHAPTER 219)
History Act 24 of 1978 -> 1985 Ed. Cap.
219
-> (30th April
1996)
-> REVISED
EDITION 1996
An Act to provide for the grant of pensions and gratuities in respect of service as Members of Parliament and as
holders of ministerial and other offices and for purposes connected therewith.
[1st September 1978]
Arrangement of Provisions [ Jump to: Front Page / Arrangement of Provisions / Actual Provisions]
PART I
PRELIMINARY
1 Short title.
2 Interpretation.
PART II
PENSIONS AND GRATUITIES FOR MEMBERS, MINISTERS AND OTHER OFFICE-HOLDERS
2A Future and Nominated Members’ eligibility for pension.
3 Pensions in respect of service as Members.
4 Pensions in respect of service as Prime Minister, Deputy Prime Minister, Speaker, Ministers and
other office-holders.
5 Pensions for serving office-holders after attaining 55 years of age.
6 Service in office, if less than 8 years, to be counted as additional service for Member’s pension.
7 Commutation of pensions.
8 Payment of pensions.
9 Pension granted to person ceasing to be Member or office-holder on medical grounds.
10 Gratuity payable on death of Member in certain circumstances.
11 Pension and gratuity granted on incapacity or death of former Member.
PART III
MISCELLANEOUS
12 Pension or gratuity not to be assignable.
13 Pension or gratuity not of right and may be reduced or withheld by President upon conviction for
corruption.
14 Restoration of whole or part of pension or gratuity at discretion of President.
15 Pension and gratuity to cease on bankruptcy.
16 Pensions and gratuities to be paid out of Pension Fund.
17 Regulations.
18 Saving.
LEGISLATION HISTORY
Actual Provisions [ Jump to: Front Page / Arrangement of Provisions/ Actual Provisions ]
PARLIAMENTARY PENSIONS ACT
(CHAPTER 219)
An Act to provide for the grant of pensions and gratuities in respect of service as Members of Parliament and as
holders of ministerial and other offices and for purposes connected therewith.
[1st September 1978]
PART I
PRELIMINARY
Short title.
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1.This Act may be cited as the Parliamentary Pensions Act.
Interpretation.
2.—(1) In this Act, unless the context otherwise requires—
"elected Member”, “non-constituency Member” and “nominated Member" shall have the same meanings
as in Article 39 (1) (a), (b) and (c) of the Constitution, respectively;
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"future Member" means a person —
(a) who becomes, by election or appointment, a Member at any time after 1st January 1995
without previously having been, before or after that date, a Member or an office-holding Member;
(b) who, having been a Member before 1st January 1995 but not being a Member on that date,
becomes, by election or appointment, a Member at any time after that date; or
(c) who, being an elected Member on 1st January 1995, becomes —
(i) a non-constituency Member or nominated Member at any time after 1st January 1995
with or without a break in his service as a Member; or
(ii) an elected Member at any time after 1st January 1995 with a break in his service as a
Member after that date,
and for the purposes of paragraph (c), a Member’s service shall be deemed not broken but continuous if,
following the dissolution of Parliament or his seat therein becoming vacant under the provisions of
the Constitution, he is elected as a Member at the ensuing general election or the ensuing by-election to
fill that vacancy;
"Mayor" means a Mayor appointed under rules made under the People’s Association Act (Cap. 227);
"Member" means a Member of Parliament;
"office" means the office of Prime Minister, Deputy Prime Minister, Speaker, Senior Minister, Minister,
Senior Minister of State, Minister of State, Mayor, Senior Parliamentary Secretary, Parliamentary
Secretary or Political Secretary;
"office-holding Member" means a Member who holds or has held any office and includes a Speaker who is
not an elected Member of Parliament;
"prescribed commutation factor” and “prescribed discount rate" mean, respectively, such factor and rate
as the President shall prescribe for the purposes of this Act;
"reckonable service" , in relation to service as a Member, means service on and after 3rd June 1959 in
Parliament as a Member of Parliament; and in relation to service in any office, means service on and after
3rd June 1959 in that office.
(2) The reference to service in Parliament in the definition of “reckonable service” in subsection (1) shall be read
as including a reference to service in the Legislative Assembly on and after 3rd June 1959 and before 9th August
1965.
(3) Where a Speaker is not, or has not been, an elected Member of Parliament for any period, “salary” shall, for
that period, mean the salary payable to him in respect of his service as Speaker.
(4) Notwithstanding any other provision of this Act, where for any period a person who is eligible for any pension
or other benefit under this Act voluntarily refrains from receiving the whole or any part of any salary due to him
in respect of the office held by him, then, in calculating his pension or benefit he shall, for such period, be
deemed to have received the full salary to which he was entitled as holder of that office.
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Charlie99

Alfrescian (Inf)
Asset
PART II
PENSIONS AND GRATUITIES FOR MEMBERS, MINISTERS AND OTHER OFFICE-HOLDERS
Future and Nominated Members’ eligibility for pension.
2A.—(1) Unless otherwise expressly provided, a future Member shall not be eligible for any pension or gratuity
under the provisions of this Act in respect of his reckonable service as a future Member, including any period
which may be counted as such service by virtue of section 6.
(2) For the avoidance of doubt —
(a) a future Member who holds any office shall remain eligible for a pension under the provisions of
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this Act in respect of his reckonable service in that office; and
(b) a person who, on the date immediately before he becomes a future Member, has the minimum period
of reckonable service as a Member to be eligible for a pension under section 3 (including any period of
reckonable service which may be counted by virtue of section 6), shall remain eligible for a pension
under the provisions of this Act in respect of his reckonable service as a Member as of that date.
(3) Any person who on 1st January 1995 is a nominated Member shall not be eligible for a pension under the
provisions of this Act in respect of his service as a Member on or after that date.
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Pensions in respect of service as Members.
3.—(1) Subject to the provisions of this Act, a person who, after 1st September 1978, ceases at any time to be a
Member may be granted a pension under this section if he has not less than 9 years’ reckonable service as a
Member (whether continuously or not) and has attained the age of 50 years.
(2) The annual amount of pension payable to a Member shall be —
(a) in respect of every completed year of reckonable service, at the rate of one-thirtieth (1/30) of his
annual salary; and
(b) in respect of any remaining uncompleted year of reckonable service, at the rate of one-three-hundred
and sixtieth (1/360) part of his annual salary for each completed month of reckonable service.
(2A) The annual pension payable to any Member under subsection (2) shall not exceed two-thirds of his annual
salary.
(3) Subject to sections 13 and 15, a pension under this section shall continue for the life of the person to whom it
is payable but shall not be payable in respect of any period during which he is again a Member or is a candidate
for election to Parliament; at the end of that period the pension shall again be payable and shall be re-computed
under subsection (2) with the addition of any further period of reckonable service to the period of his former
reckonable service as a Member.
(4) For the purposes of subsections (2) and (2A), “annual salary” means the annual equivalent of the highest
monthly rate of salary (excluding any non-pensionable allowances) received by a Member during any period of
his service as a Member.
(5) For the purposes of subsection (3), a person who ceases to be a Member in consequence of the dissolution of
Parliament shall be treated as a candidate for election from the date of the dissolution if he seeks re-election at
the next general election.
Pensions in respect of service as Prime Minister, Deputy Prime Minister, Speaker, Ministers and
other office-holders.
4.—(1) Subject to the provisions of this Act, a person may be granted a pension under this section, in addition to
any pension that may be granted to him under section 3, in respect of his reckonable service in any office if,
after 1st September 1978, he ceases at any time to hold office and has —
(a) not less than 8 years’ reckonable service as an office-holding Member (whether continuously or
not); and
(b) attained the age of 50 years.
(2) The annual amount of pension payable to an office-holding Member shall be —
(a) in respect of every completed year of reckonable service in any office, or where he has served in
more than one office in each office, at the rate of one-twenty-seventh (1/27) of his annual salary in that
office; and
(b) in respect of any remaining uncompleted year of reckonable service in any office, or where he has
served in more than one office in each office, at the rate of one-three-hundred and twenty-fourth (1/324)
part of his annual salary for each completed month of reckonable service in that office.
(2A) The annual pension payable to any office-holding Member under subsection (2) shall not exceed two-thirds
of the highest annual salary of any office held by him.
(3) Subject to sections 13 and 15, a pension granted under this section shall continue for the life of the person to
whom it is payable but shall not be payable in respect of any period during which he is again an office-holding
Member; at the end of that period the pension shall again be payable and shall be re-computed with the addition
of that period to the period of his former reckonable service as an office-holding Member.
(4) For the purposes of subsections (2) and (2A), “annual salary”, in relation to any office, means the annual
equivalent of the highest monthly rate of salary (excluding any non-pensionable allowances) received by an
office-holding Member during any period of reckonable service as a holder of that office.
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(5) Where the monthly rate of salary applicable to any office previously held by an office-holding Member is
increased during any continuous period of reckonable service while he is an office-holding Member but holding
another office, he shall be deemed to have received such increased rate during his period of reckonable service
as a holder of that office.
Pensions for serving office-holders after attaining 55 years of age.
5.—(1) Where an office-holding Member has —
(a) not less than 8 years’ reckonable service as an office-holding Member (whether continuously or not);
(b) attained the age of 55 years; and
(c) not previously been granted a pension under section 4,
he may be granted a pension under that section notwithstanding the fact that he has not ceased to hold office.
(2) Subject to sections 13 and 15, a pension granted under section 4 to an office-holding Member by virtue
of this section shall continue for the life of the person to whom it is payable and shall, when he ceases to hold
office, be re-computed under subsection (2) of that section with the addition of his further period of reckonable
service as an office-holding Member to the period of reckonable service which has been used in computing
his pension.
(3) Where a person has been granted a pension under section 4 after ceasing to hold office and —
(a) becomes an office-holding Member again after having attained the age of 55 years; or
(b) becomes an office-holding Member again before attaining the age of 55 years, on his attaining that
age,
the pension shall, notwithstanding subsection (3) of that section, continue to be payable to him and shall, at the
end of his further period as an office-holding Member, be re-computed with the addition of that further period to
the period of his former reckonable service as an office-holding Member.
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Service in office, if less than 8 years, to be counted as additional service for Member’s pension.
6.—(1) This section shall apply to a Member (other than a future Member) who has served as an office-holding
Member for any period which is less than the minimum period of reckonable service specified in section 4 to be
eligible for a pension under that section.
(2) The period of service of a Member to whom this section applies shall, for the purposes of determining his
eligibility and of computing the amount of the pension payable to him under section 3 (1) and (2), be deemed to
be increased by such period as may be determined in accordance with the following provisions:
(a) for every year of reckonable service as Prime Minister, Deputy Prime Minister, Speaker, Senior
Minister or Minister there shall be added to his period of service one and one-half years (1&half:wink: of
reckonable service as a Member;
(b) for every year of reckonable service as Senior Minister of State or Minister of State there shall
be added to his period of service one year of reckonable service as a Member;
(c) for every year of reckonable service as a Mayor, Senior Parliamentary Secretary, Parliamentary
Secretary or Political Secretary there shall be added to his period of service two-thirds (&frac23:wink: of a
year of reckonable service as a Member;
(d) for any fraction of a year of reckonable service in any office there shall be added to his period of
service a proportionate part of the appropriate period of reckonable service as a Member.
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Charlie99

Alfrescian (Inf)
Asset
Commutation of pensions.
7.—(1) Subject to the provisions of this Act, a person to whom a pension is granted under this Act may, at his
option exercisable in accordance with this section, be paid —
(a) in the case of a future Member who becomes an office-holding Member —
(i) a full pension under section 4 without any gratuity; or
(ii) a commuted pension gratuity without any pension,
in respect of his reckonable service as a holder of any office;
(b) in the case of a future Member who remains eligible for a pension under section 2A (2) (b), or a
Member (including an office-holding Member) who is not a future Member —
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(i) a full pension under section 3 or 4 without any gratuity;
(ii) a reduced pension at the rate of two-thirds (&frac23:wink: of the full pension together with a
gratuity equal to twelve and one-half (12 &half:wink: times the annual value of one-third (&frac13:wink: of
the full pension; or
(iii) a commuted pension gratuity without any pension,
in respect of his reckonable service as a Member (other than as a future Member) or as a holder of any
office, as the case may be; or
(c) in the case of a person who has been granted a pension under section 4 after ceasing to hold office
and who becomes an office-holding Member again —
(i) a full pension under section 4 without any gratuity; or
(ii) a commuted pension gratuity without any pension,
in respect of his further service as an office-holding Member.
(2) The option referred to in subsection (1) shall be exercisable —
(a) separately in respect of reckonable service as a Member and as a holder of any office; and
(b) not later than 30 days after the date when the person becomes eligible for the grant of a pension
under this Act, except that if the person has not exercised an option within such time, the President may,
if it appears in the circumstances equitable to do so, allow the person to exercise the option at any time
prior to the date of payment of a pension or gratuity to him,
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(2A) Where a person fails to exercise the option in accordance with this section, he shall be deemed to
have opted to receive a commuted pension gratuity without any pension in respect of his reckonable service as
a Member or as a holder of an office or both, as the case may be.
(3) Such option, once exercised by a person in respect of his reckonable service as a Member or as a holder of
any office, as the case may be, shall not be revoked so far as concerns any pension or gratuity so granted to
him under this Act in respect of such period of service prior to the exercise of the option.
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(4) Subject to this section, the commuted pension gratuity referred to in subsection (1) shall be a capital sum
ascertained by multiplying the prescribed commutation factor by the amount of such pension that the person
concerned is eligible for under this Act.
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(5) Where any pension granted to a person under this Act is required to be re-computed by adding his
further service as a Member or as a holder of any office to any period of reckonable service previously used in
computing his pension, the commuted pension gratuity shall be reduced by such amount of pension or gratuity
already received by him in respect of the period of reckonable service previously used in computing his pension.
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(6) Any commuted pension gratuity to be granted to a person shall be computed in accordance with the
provisions of this Act in force at the date when the person becomes eligible for the grant of a pension under this
Act, and shall be paid in the prescribed manner.
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(7) This section shall not apply to any person who before 1st January 1995 has been granted and paid a
pension or gratuity under the provisions of this Act as in force before that date.
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(8) Where the person is, on 1st January 1995, an office-holding Member who —
(a) has already been granted a pension in respect of any period of his reckonable service in an office; and
(b) on his ceasing to hold office, will be eligible to have his pension re-computed with the addition of his
further period of reckonable service as an office-holding Member,
this section shall remain applicable to such person but only in respect of that further period of reckonable service
as an office-holding Member.
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Charlie99

Alfrescian (Inf)
Asset
Payment of pensions.
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8.Pensions under this Act may be paid monthly at the end of each month in which the pensions fall due or at
such other intervals as the President may determine either generally or in the circumstances of any
particular case.
Pension granted to person ceasing to be Member or office-holder on medical grounds.
9.—(1) Where after 1st September 1978 a person ceases at any time to be a Member or to hold office by reason
of ill-health and the President is satisfied that on account of such ill-health that person has become incapable of
performing the duties of a Member or of his office, he may be granted a pension or gratuity in accordance with
this section.
(2) In the case of a person who ceases to be a Member and —
(a) who has the minimum period of reckonable service to be eligible for a pension under section 3, he
may be granted a pension in accordance with that section notwithstanding the fact that he has not
attained the age of 50 years;
(b) who does not have the minimum period of reckonable service to be eligible for a pension under
section 3, he may be granted a gratuity to be computed —
(i) at the rate of 10% of his annual salary as defined in section 3 (4) for each completed year of
reckonable service as a Member (including any period of reckonable service which may be counted
by virtue of section 6); and
(ii) at the rate of 10% of one-twelfth (1/12) of such annual salary for any completed month
remaining after the last completed year of reckonable service.
(3) In the case of a person who ceases to hold office and who has the minimum period of reckonable service to
be eligible for a pension under section 4, he may be granted a pension in accordance with that section
notwithstanding the fact that he has not attained the age of 50 years.
(4) A person to whom a pension may be granted under this section may, at his option, be paid in lieu of that
pension a commuted pension gratuity which shall be ascertained by multiplying the prescribed commutation
factor by the amount of such pension that may be granted to him in accordance with this section.
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Gratuity payable on death of Member in certain circumstances.
10.—(1) Where after 1st September 1978 a Member dies while serving as a Member or a Member, having opted
under section 7 to receive a full pension without any gratuity, dies within one year of his pension taking effect
there may be paid to such of his dependants as the President may think fit or, if there are no dependants, to his
legal personal representatives a gratuity in accordance with this section.
(2) In the case of a Member who had never held any office the gratuity shall be an amount equal either to his
annual salary as defined in section 3 (4) or the commuted pension gratuity which might have been granted to
him under section 7 (4) (as modified by this section), whichever is the greater, less any sums already received
by him by way of pension and gratuity under this Act during his lifetime.
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(3) In the case of a Member who had previously held office but was not holding office at the time of his
death, the gratuity shall be an amount equal either to his annual salary as defined in section 3 (4) or the
commuted pension gratuity which might have been granted to him under section 7 (4) (as modified by this
section) in respect of both his reckonable service as a Member and as a holder of any office, whichever is the
greater, less any sums already received by him by way of pension and gratuity under this Act during his
lifetime.
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(4) In the case of a Member holding office at the time of his death, the gratuity shall be an amount equal either
to the aggregate of his annual salary as defined in sections 3 (4) and 4 (4) or the commuted pension gratuity
which might have been granted to him under section 7 (4) (as modified by this section) in respect of both his
reckonable service as a Member and as a holder of any office, whichever is the greater, less any sums already
received by him by way of pension and gratuity under this Act during his lifetime.
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(5) In the case of a future Member, the gratuity shall be —
(a) where the Member never held any office — an amount equal to either his annual salary as defined in
section 3 (4) less the amount specified in subsection (5A) or the commuted pension gratuity which might
have been granted to him under section 7 (4) (as modified by this section) in respect of his
reckonable service as a Member before he became a future Member, whichever is the greater;
(b) where the Member had previously held office but was not holding office at the time of his death —
an amount equal to either his annual salary as defined in section 3 (4) less the amount specified in
subsection (5A) or the commuted pension gratuity which might have been granted to him under section 7
(4) (as modified by this section) in respect of both his reckonable service as a Member before he became
a future Member and as a holder of any office, whichever is the greater; or
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(c) where the Member held office at the time of his death — an amount equal to either his annual salary
as defined in section 4 (4) or the commuted pension gratuity which might have been granted to him under
section 7 (4) (as modified by this section) in respect of both his reckonable service as a Member before he
became a future Member and as a holder of any office, whichever is the greater,
less any sums already received by him by way of pension or gratuity under this Act during his lifetime.
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(5A) The annual salary referred to in subsection (5) (a) or (b) shall be reduced by an amount which shall be the
difference between the total amount paid by the Government to the Central Provident Fund on account of the
person with respect to his period of reckonable service as a future Member, and the total amount payable by the
Government to that Fund on account of the person with respect to that same period of service if the person had
been eligible for a pension under this Act.
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(5B) Any reference in subsection (5A) to the total amount paid or payable by the Government to the
Central Provident Fund in respect of any person shall not include reference to any amount thereof which is
recoverable from the person’s salary pursuant to the Central Provident Fund Act or any regulations made
thereunder.
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Cap. 36.
(5C) For the purposes of this section, in determining the commuted pension gratuity which might have
been granted to a Member under section 7 (4) —
(a) he shall be deemed to be eligible for the grant of a pension under section 3 or 4 notwithstanding
the fact that he has less than the minimum number of years of reckonable service as required by those
sections or the fact that he had not attained the age of 50 years; and
(b) in the case of a Member who dies before attaining the age of 50 years, the commuted pension
gratuity ascertained in accordance with section 7 (4) and this section shall be discounted at the prescribed
discount rate in respect of each year or part thereof falling between the date he would have attained the
age of 50 years had he not died and the date of his death (both dates inclusive).
13/95.
(6) No gratuity paid under this section shall be subject to estate duty under the Estate Duty Act.
Cap. 96.
13/95.
 

Charlie99

Alfrescian (Inf)
Asset
Pension and gratuity granted on incapacity or death of former Member.
11.—(1) This section shall apply in relation to any person —
(a) who has ceased to be a Member;
(b) who would, had he attained the age of 50 years, be eligible for the grant of a pension under section 3
or 4; and
(c) who has not been granted any pension or gratuity under this Act.
(2) If a person to whom this section applies dies before attaining the age of 50 years, there may be paid to such
of his dependants as the President may think fit or, if there are no dependants, to his legal personal
representatives a gratuity as follows:
(a) the commuted pension gratuity that might have been granted to the person under section 7 (4) on
his attaining the age of 50 years had he not died, from which gratuity there shall be a discount at the
prescribed discount rate in respect of each year or part thereof falling between the date he would have
attained the age of 50 years had he not died and the date of his death (both dates inclusive); or
(b) an amount equal to his annual salary as defined in section 3(4),
whichever is the greater.
13/95.
(3) If the President is satisfied that any person to whom this section applies is physically or
mentally incapacitated so as to be unable to continue in any employment before he has attained the age of 50
years, the person may, at his option, be granted either of the following with effect from the date he so satisfies
the President that he is so physically or mentally incapacitated, notwithstanding the fact that he has not
attained the age of 50 years:
(a) a full pension under section 3 or 4 without any gratuity; or
(b) the commuted pension gratuity that might have been granted to the person under section 7 (4) on
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his attaining the age of 50 years.
13/95.
PART III
MISCELLANEOUS
Pension or gratuity not to be assignable.
12.A pension or gratuity granted under this Act shall not be assignable or transferable, except for the purpose of
satisfying —
(a) a debt due to the Government; or
(b) an order of any court for the payment of periodical sums of money towards the maintenance of the
wife or former wife or minor child, whether legitimate or not, of the person to whom the pension has
been granted.
and shall not be liable to be attached, sequestered or levied upon for or in respect of any debt or claim whatever
except a debt due to the Government.
Pension or gratuity not of right and may be reduced or withheld by President upon conviction for
corruption.
13.—(1) No person shall have an absolute right to compensation for past services or to any pension or gratuity
under this Act.
(2) It shall be lawful for the President to reduce or altogether to withhold any pension or gratuity which has been
granted to a person under this Act, or for which he has become eligible, where such person has been convicted
by any court of an offence (even if only a fine and no term of imprisonment has been imposed) —
(a) under the Prevention of Corruption Act; or
Cap. 241.
(b) involving corruption under any other written law.
(3) The President shall, before exercising any power conferred on him by subsection (2), consider the record of
the proceedings of the court.
Restoration of whole or part of pension or gratuity at discretion of President.
14.Where any pension or gratuity which a person would have been eligible to receive under this Act has been
reduced or altogether withheld under section 13, it shall be lawful for the President, in his discretion, to direct
that all or any part of the pension or gratuity be applied for the benefit of his wife and any child or children, and
after the expiry of any term of imprisonment served by him, also for his benefit, in such proportions and manner
as the President thinks fit.
Pension and gratuity to cease on bankruptcy.
15.—(1) No pension or gratuity which would under this Act be granted to a person shall be so granted if, at the
date he became eligible for the grant of such pension, he has been adjudged a bankrupt or declared insolvent by
judgment of a court of competent jurisdiction in Singapore or elsewhere and has not obtained his discharge from
such adjudication or declaration.
(2) If any person to whom a pension has been granted under this Act is adjudged a bankrupt or is
declared insolvent by judgment of any such court, then such pension shall forthwith cease.
(3) Where a pension or gratuity ceases or is not granted by virtue of this section, it shall be lawful for the
President, from time to time, during the remainder of the life of the person whose pension has ceased or who
would have been eligible to receive the pension, or during such shorter period or periods, either continuously or
otherwise, as the President thinks fit, to direct all or any part of the moneys to which that person would have
been eligible to receive by way of pension or gratuity, had he not become a bankrupt or insolvent, to be paid to
or applied for the maintenance and benefit of all or any (to the exclusion of others) of the following, namely, the
person himself and his wife, child or children, or other dependants in such proportions and manner as the
President thinks proper; and such moneys shall be paid or applied accordingly.
(4) Moneys applied for the discharge of the debts of the person whose pension has ceased or not been
granted shall, for the purposes of subsection (3), be regarded as applied for his benefit.
(5) When a person to whom a pension or gratuity has not been granted, or whose pension has ceased under the
provisions of this section, obtains a full and proper discharge from his bankruptcy or insolvency, his pension or
gratuity or both, as the case may be, shall be restored to him with effect from the date of the discharge.
 

Charlie99

Alfrescian (Inf)
Asset
Pensions and gratuities to be paid out of Pension Fund.
16.There shall be charged on and paid out of the Pension Fund established by the Pension Fund Act all sums of
money payable by way of pension or gratuity in accordance with this Act.
8/95.
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Cap. 224A.
Regulations.
17.—(1) The President may make regulations for, or in respect of, all matters which he considers necessary or
expedient for carrying out or giving effect to the purposes and provisions of this Act.
(2) The President may, in making regulations under this section, provide for any Member or class of Members
to opt to be superannuated according to the provident fund scheme applicable to non-pensionable employees of
the Government under the Central Provident Fund Act, and for the terms and conditions of such option.
13/95.
Cap. 36.
(3) Any Member who exercises an option in accordance with the regulations made under subsection (2)
in respect of any period of his reckonable service as a Member shall be deemed to have become a future
Member on the commencement of that period of service.
13/95.
(4) All regulations made under this Act shall be presented to Parliament as soon as possible after publication in
the Gazette.
13/95.
Saving.
18.—(1) Notwithstanding the repeal of the Parliamentary Pensions Act (referred to in this section as the
repealed Act), the provisions of the repealed Act in force immediately before 1st September 1978 shall be
construed and shall have effect as if it had not been repealed by this Act in the case of any person who —
(a) on 1st September 1978 is in receipt of a pension under the repealed Act; or
(b) having ceased to be a Member before 1st September 1978 will become eligible for the grant of a
pension under the repealed Act when he attains the age of 45 years.
(2) The provisions of this Act shall not apply to —
(a) any person referred to in subsection (1) (a) whether or not he is or becomes a Member after 1st
September 1978; or
(b) any person referred to in subsection (1) (b) unless he becomes a Member after 1st September 1978.
(3) If in the case of a Member who on 1st September 1978 has not less than 9 years’ reckonable service and has
attained the age of 45 years, the pension which he is eligible to receive under section 3 on his ceasing to be a
Member, together with any pension which he is eligible to receive under section 4, is less than the amount of
pension which he would have been eligible to receive under the repealed Act in respect of his reckonable
service before that date had he ceased to be a Member on that date, his pension under section 3 may be
increased by the difference between that amount and the pensions which he is eligible to receive under sections
3 and 4.
(4) Subsection (3) shall not apply to a person who may be granted a pension by virtue of sections 9 and 11.
(5) Any person who on 1st September 1978 is eligible to receive a pension under section 10 of the repealed Act
in respect of his reckonable service under that Act if he had ceased to hold public office as defined by that section
may, when he ceases to hold such public office, be granted a pension under the repealed Act in respect of the
period of such reckonable service before that date as if the repealed Act had not been repealed by this Act.
Cap. 51, 1970 Ed.
LEGISLATION HISTORY
(1. Act 24 of 1978 — Parliamentary Pensions Act 1978)
Date of First Reading : 31.1.78 (Bill No. 1/78 published on 4.2.78)
Date of Second and Third Readings : 31.7.78
Date of commencement : 1.9.78
(2. Act 18 of 1982 — Parliamentary Pensions (Amendment) Act 1982)
Date of First Reading : 27.7.82 (Bill No. 10/82 published on 4.8.82)
Date of Second and Third Readings : 31.8.82
Date of commencement : 1.10.82
(3. Act 8 of 1995 — Pension Fund Act 1995
(Consequential amendments made by))
Date of First Reading : 23.1.95 (Bill BNo. 2/95 published on 24.1.95)
Date of Second and Third Readings : 1.3.95
Date of commencement : 1.4.95
(4. Act 13 of 1995 — Parliamentary Pensions (Amendment) Act 1995)
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Date of First Reading : 1.3.95 (Bill No. 7/95 published on 2.3.95)
Date of Second and Third Readings : 23.3.95
Date of commencement : 1.1.95
 

ivebert

Alfrescian
Loyal
Charlie

Can you summarize your main points?

No one is going to read that wall of words
 

BuiKia

Alfrescian (InfP)
Generous Asset
In short, Minister salary is a lot and their penision is as high as 65% of their last drawn pay. Their pension is also tax free.
 

prinzy

Alfrescian
Loyal
Is CST entitled to any pension after serving so many terms of office? Pls bear in mind that he did not resign or retire but voted out. If he does not get anything, this has to apply to the MiWs, PS etc...... By the way, thank you Mr CST. Our hearts are with you always. Take care and God Bless You.
 

streetsmart73

Alfrescian (InfP)
Generous Asset
hi there

1. aiyoh!
2. the bottomline: sheep here suck big time forever.
3. and elite sheep are not just rich but super rich man!
 

Charlie99

Alfrescian (Inf)
Asset
If I have to use three sentences to summarize the pensions of Ministers:
1. after 18 years service, each of the Minister, or Minister of State or Parliamentary Secretary is eligble to receive two-thirds (2/3) of their last drawn monthly salary (for example: regardless whether he or she was a "lowly" parliamentary secretary in the previous 15 years);
2. he or she will receive the pensions tax free; and
3. he or she can ask for a lump sum equivalent to about 14 years worth of pension, even if he or she is aware that he or she will die of cancer in a few months.

Therefore, it is not simply the $2 million or $3 million dollars a year that they pay the Ministers, but the government's huge pension liability. It is perhaps, one of the most generous pension plan which I have heard of, especially payable for life, and the lump sum provision even just before they die, tax free. For example, if MM becomes aware that he has three months to live, due to cancer, he can ask for a lump sum of about $36 million to be paid to him, notwithstanding that he may be in his late 80's.
 
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Charlie99

Alfrescian (Inf)
Asset
I believe that the generous pension plan is for the following Office Holders:
Prime Minister, Deputy Prime Minister, Speaker, Senior Minister, Minister, Senior Minister of State, Minister of State, Mayor, Senior Parliamentary Secretary, Parliamentary Secretary or Political Secretary.
 

Bigfuck

Alfrescian (Inf)
Asset
I believe that the generous pension plan is for the following Office Holders:
Prime Minister, Deputy Prime Minister, Speaker, Senior Minister, Minister, Senior Minister of State, Minister of State, Mayor, Senior Parliamentary Secretary, Parliamentary Secretary or Political Secretary.

Corruption
 
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