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Re-employment a better approach, says Gan
By Cassandra Chew
MANPOWER Minister Gan Kim Yong yesterday dismissed suggestions by the Workers' Party (WP) and the Singapore Democratic Party (SDP) to change Singapore's retirement-related policies.
On Saturday, the WP proposed in its manifesto to raise the retirement age from 62 to 65, while the SDP called for the Central Provident Fund (CPF) minimum sum scheme to be abolished.
Asked by reporters for his comments on the sidelines of a community event, Mr Gan said the Government's re-employment approach is better than raising the retirement age, because it gives workers and employers the flexibility to adjust the terms of employment, such as job scope and wages, if they want to.
The new Retirement and Re-employment Act, which requires employers to give eligible workers the option to continue working beyond their statutory retirement age of 62, will come into effect in January next year.
'Some workers may want to reduce their responsibilities to spend more time with their families, some may want to have a change of job, some companies need to also promote the younger employees to leadership positions,' he added.
Mr Gan also rejected the SDP's call to abolish the CPF minimum sum scheme, which he said was put in place to ensure that the majority of Singaporeans would have sufficient savings when they retire.
He explained that this was to ensure that they proved they had adequate funds for retirement, saying: 'I don't think it is wise to abolish the minimum sum.'
Rather, the Government should look at how it can continue to help Singaporeans save more for their retirement, Mr Gan added.
For instance, it has increased employers' contribution rate by 0.5 percentage point and raised the salary ceiling for more employees to qualify for CPF contributions.
As for WP's suggestion to raise the cash component of Workfare payable to low-income Singaporeans aged 35 and above, he said the Government is already keeping the payouts in pace with inflation.
Last year, the Government raised the income ceiling for eligible workers from $1,500 to $1,700, following a review, he noted.
In addition, the Workfare Special Bonus announced in this year's Budget will be paid out to employees fully in cash, rather than the usual part cash, part CPF.
It is also the first time the self-employed, whose Workfare payouts usually go directly to their CPF accounts, will receive a part of their Workfare payout in cash, he pointed out.
Mr Gan was guest of honour at a community event hosted by Hong Kah GRC MP Alvin Yeo. Also present were fellow GRC MP Zaqy Mohamad and two new faces, Ms Low Yen Ling and Mr Alex Yam.
The five are expected to represent the People's Action Party (PAP) in the newly formed Chua Chu Kang GRC at the next elections.
Party sources said Mr Yam will be introduced as a new PAP candidate today.
By Cassandra Chew
MANPOWER Minister Gan Kim Yong yesterday dismissed suggestions by the Workers' Party (WP) and the Singapore Democratic Party (SDP) to change Singapore's retirement-related policies.
On Saturday, the WP proposed in its manifesto to raise the retirement age from 62 to 65, while the SDP called for the Central Provident Fund (CPF) minimum sum scheme to be abolished.
Asked by reporters for his comments on the sidelines of a community event, Mr Gan said the Government's re-employment approach is better than raising the retirement age, because it gives workers and employers the flexibility to adjust the terms of employment, such as job scope and wages, if they want to.
The new Retirement and Re-employment Act, which requires employers to give eligible workers the option to continue working beyond their statutory retirement age of 62, will come into effect in January next year.
'Some workers may want to reduce their responsibilities to spend more time with their families, some may want to have a change of job, some companies need to also promote the younger employees to leadership positions,' he added.
Mr Gan also rejected the SDP's call to abolish the CPF minimum sum scheme, which he said was put in place to ensure that the majority of Singaporeans would have sufficient savings when they retire.
He explained that this was to ensure that they proved they had adequate funds for retirement, saying: 'I don't think it is wise to abolish the minimum sum.'
Rather, the Government should look at how it can continue to help Singaporeans save more for their retirement, Mr Gan added.
For instance, it has increased employers' contribution rate by 0.5 percentage point and raised the salary ceiling for more employees to qualify for CPF contributions.
As for WP's suggestion to raise the cash component of Workfare payable to low-income Singaporeans aged 35 and above, he said the Government is already keeping the payouts in pace with inflation.
Last year, the Government raised the income ceiling for eligible workers from $1,500 to $1,700, following a review, he noted.
In addition, the Workfare Special Bonus announced in this year's Budget will be paid out to employees fully in cash, rather than the usual part cash, part CPF.
It is also the first time the self-employed, whose Workfare payouts usually go directly to their CPF accounts, will receive a part of their Workfare payout in cash, he pointed out.
Mr Gan was guest of honour at a community event hosted by Hong Kah GRC MP Alvin Yeo. Also present were fellow GRC MP Zaqy Mohamad and two new faces, Ms Low Yen Ling and Mr Alex Yam.
The five are expected to represent the People's Action Party (PAP) in the newly formed Chua Chu Kang GRC at the next elections.
Party sources said Mr Yam will be introduced as a new PAP candidate today.
