retire early wait till 65 to gets your CPF

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Concerns over CPF drawdown age
Workers' Party MPs say those not re-employed at 62 left in limbo till 65
By Tessa Wong

THE Workers' Party (WP) yesterday raised concerns about workers who are not re-employed after turning 62 years old, yet cannot draw on their Central Provident Fund (CPF) savings until they turn 65.

The two MPs from the WP, Mr Low Thia Khiang (Hougang) and Non-Constituency MP Sylvia Lim, returned to a suggestion the party first made in 2007, that the CPF drawdown age should not be linked to the retirement age, and that workers should be allowed to draw down their CPF savings at the age of 60.

The drawdown age is currently 62. The Government had earlier announced that it would be raised to 63 next year, 64 in 2015, and 65 in 2018. The Government will give incentives to those who voluntarily defer their CPF drawdowns.

Speaking during the debate on the Retirement and Re-Employment Act yesterday, Mr Low criticised the new law as 'half-cooked'.

It could result in Singaporeans 'hanging in the air' - without a job at the age of 62, yet unable to tap their CPF savings, he argued.

Ms Lim weighed in, charging that the new law will subject older workers to a 'stressful re-employment process' at 62.

She also argued that the new law does not help those who are unemployed find work at that age, as it applies only to those who are already employed when they turn 62.

Hence, she said, if the Government wants to delay CPF drawdowns till 65, 'it should at least correspondingly provide for a more seamless transition of employment from 62 to 65'.

The new law requires employers to offer to re-employ workers who turn 62. If they cannot, they need to compensate the worker with an Employment Assistance Payment to tide him over as he finds another job.

People's Action Party MP Heng Chee How (Jalan Besar GRC), who is also a deputy secretary-general in the labour movement, rebutted the WP's call to allow drawdowns at the age of 60, calling it unhelpful.

He said: 'It would be like saying, You have a bank account. I have no idea how you are going to add money there, but I know you have to spend, so don't listen to these guys when they tell you how to add more money into your account; just listen to me and go and draw whatever you have and start spending.'

Mr Heng added that as Singaporeans are living longer, there would be a need for more resources to provide for them.

Ms Lim later asked Manpower Minister Gan Kim Yong why it would not be possible to allow drawdowns to start earlier so long as payments could be stretched out over a longer period.

Mr Gan said this would mean people would have less to survive on every month.

'The better solution is to continue to add on to their savings,' he said. 'That is why Workfare has a CPF component to help to top up. If the worker continues to work, he will be able to accumulate more savings. If he starts his drawdown later, his savings will allow him to last longer.'

Mr Gan also pointed out that the unemployment rate for older resident workers - those 50 and above - remains very low. It was 3.3 per cent in June last year.

He said that rather than redesign the CPF scheme to cater to this minority, it would be better to deal with them on a case-by-case basis and encourage them to look for work.

If they face difficulties coping, they could still be supported by programmes such as the ComCare Fund, he said.

[email protected]

Work option for retiring staff starts next year
By Kor Kian Beng

FROM next January, workers who turn 62 must be offered an option to work for another three years, if they want to.

That is official, after Parliament yesterday passed the Retirement and Re-employment Act.

Singapore is now the second country in the world - after Japan - to legislate re-employment, and the first to spell out eligibility criteria, a dispute-resolution mechanism and penalties for errant employers.

To qualify for re-employment, workers must be medically fit and have at least satisfactory work performance. The onus is on employers to prove that a worker is not eligible for re-employment.

In Parliament yesterday, Manpower Minister Gan Kim Yong urged employers to put in place systems to provide fair evaluation of workers' performance and medical fitness.

But employers can offer workers different jobs and employment terms, provided these are reasonable.

The aim is to grant bosses and workers flexibility. Employers may have to redeploy older workers while older employees may wish to work and earn less.

'Re-employment allows both parties to consult each other and work out mutually agreeable arrangements,' Mr Gan said.

That flexibility is a key advantage of a re-employment law over the raising of the statutory retirement age. It means employers can retain older workers without having an 'undue burden' imposed on them, Mr Gan said, and keep their companies competitive.

At the same time, employers should exercise 'fairness' in making adjustments to the employment terms, including wages, medical and leave benefits, of re-employed workers, Mr Gan said.

Employers who are not able to re-employ eligible workers have to give them a one-time Employment Assistance Payment to tide them over a job hunt.

The new law, first proposed in 2007, extends the working life of Singaporeans at a time when life expectancy is on the rise, from 68 in 1970 to 81 in 2009. It will help workers save more for old age and remain active.

Most of the 14 MPs who joined in the debate on the Bill threw their support behind it. Two Workers' Party MPs criticised it for failing to guarantee workers jobs until age 65, when they can draw down their Central Provident Fund savings.

Among those who supported the law, Madam Ho Geok Choo (West Coast GRC) and Nominated MP Paulin Tay Straughan called for more public education on the benefits of re-employment. Madam Halimah Yacob (Jurong GRC) and Dr Fatimah Lateef (Marine Parade GRC) said small and medium-sized enterprises would need more help to implement it.

The law requires employers to engage workers early. Minister of State Heng Chee How (Jalan Besar GRC) asked if the Manpower Ministry (MOM) could help workers who turn 62 next January by ensuring that employers start consultations by June this year.

They can approach his ministry for help, Mr Gan said. The law was passed early to give employers and workers time to get ready, he added.

Singapore National Employers Federation executive director Koh Juan Kiat said the Government, labour movement and employers will roll out a programme to help more companies implement re-employment policies. MOM is also conducting a review of a list of 26 workers' groups exempted from the Retirement Age Act and as a result, not covered by the new re-employment law.

Mr Gan hinted that a few groups, such as civil servants in the Economist Service, and hospital doctors and dentists on fixed-term contracts, could be removed from the list by next year.

Working till 65

A JOB UNTIL AGE 65

From Jan 1 next year, employers must offer eligible staff who reach the statutory retirement age of 62 re-employment for three years, until they are 65. To be eligible, employees must be medically fit and have satisfactory performance.

WAGES AND BENEFITS

Employers can adjust wages and benefits but such adjustments must be based on reasonable factors, such as productivity, performance and whether the worker is on a seniority-based wage system.

PAYOUT IF NO JOB

# Employers unable to find jobs for eligible workers have to provide a one-time Employment Assistance Payment (EAP) to tide them over while they are job-hunting.

# The EAP should be based on three months of the employee's gross monthly salary, with a minimum payment of $4,500 and a maximum of $10,000.

DISPUTE RESOLUTION

# If employers and employees have disputes over re-employment, they can go to the Ministry of Manpower (MOM) for mediation and adjudication.

# Employees can appeal to MOM for unfair denial of re-employment, or lodge complaints with the Commissioner of Labour if the re-employment or EAP offer is unreasonable.

 

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MPs ask how rehiring law will be enforced
By Tessa Wong

MOST of the 14 MPs who joined in the debate on the re-employment law supported it, but raised concerns about its implementation.

One worry was that employers would find ways to deem workers ineligible for re-employment. Madam Halimah Yacob (Jurong GRC), Mr Ang Mong Seng (Hong Kah GRC) and Non-Constituency MP Sylvia Lim asked how medical fitness, a criterion for re-employment, would be determined.

Manpower Minister Gan Kim Yong said, in response, that the onus would be on the employer to prove that a worker is unfit for re-employment past age 62.

He explained that a medically fit employee is one whose health would not affect his job performance.

The second criterion for re-employment is that the worker must have an at least satisfactory level of performance. Madam Halimah, Ms Lim and Mr Hri Kumar Nair (Bishan-Toa Payoh GRC) asked how job performance would be assessed.

Mr Gan defined 'satisfactory' as the minimum level of performance any employee is expected to maintain in discharging his duties. The assessment could be based on more than one year's performance.

His ministry would continue to encourage employers to introduce proper appraisal systems. Employees who feel that they have been unfairly assessed for re-employment may approach the ministry for assistance, he added.

The new law states that employers who cannot rehire their older workers must pay them an Employment Assistance Payment (EAP). Some MPs expressed concern that employers would use the EAP as a way out to avoid re-employing their older workers.

Mr Gan said that the EAP should be used as a last resort. He pointed out that employers 'by and large are responsible', and that most older workers who wanted to continue working have been able to do so.

Employers of certain types of contract workers are not required to offer them re-employment when the workers turn 62. MPs asked if employers could get around the new law by hiring contract workers.

Mr Gan said that only those workers whose contracts are tied to a specific project are excluded from the law. Other workers on fixed-term contracts would be covered by the law as long as their contract is for more than two years, including renewals.

Another concern was that employers might offer unreasonable employment terms, leaving the worker no choice but to turn down the re-employment offer.

Mr Gan said employees unfairly denied re-employment could approach the ministry. If the complaint is found to be justified, the minister could order the employer to offer re-employment or pay compensation.

The amount of compensation may be enhanced, depending on the circumstances, including whether the employer had made reasonable attempts to re-employ the worker.

Another issue brought up was that the Act retains a law that allows a pay cut of 10 per cent when a worker turns 60. Mr Gan stressed that any wage adjustment should be based on reasonable factors, such as performance, productivity and whether the older worker was being paid more than younger ones doing the same job because of a seniority-based wage system.

Besides, the number of establishments that practise automatic salary reduction at 60 is 'small', he added.

Several MPs also asked for help for small and medium-sized enterprises, which might face challenges in implementing the new law.

Mr Gan said that employers could tap on the Advantage Scheme, which allows them to secure a grant of up $400,000 to redesign jobs and improve on their human resource practices.

 

[slohand2]

Governments efforts to extend the retirement age is a poor disguise to defer the draw down age for CPF savings. Look at the multi pronged exercise to withold our monies.
1. Monies withheld upon age 55 is scheduled to go up in increments, in the name of inflation and medical care
2.The draw down age has been moved from 55 (the initial age) to 62 and then progressively to 65
3, In the name of increasing life span, they raised the official retirement age
4. In the meantime, annuities were introduced, with the latest version in the form of CPFLife, which became compulsory when the take up rate was poor.

When the retirement age is official, the draw down age will match the retirement age. If froeign labour is the solution, why stress out the retirees by imposing the late retirement (which is tied to draw down age).

Between the retirement age to the draw down age, there is a gaping hole, but they will close that gap with the convergence of both. Only trouble is where to find the job??

No matter how it is explained, the crux of the issue is that the CPF is made up of OUR monies, and we should not have the CPF board and or government in charge dictate when and how we can withdraw.

 

[tonychat]

Till now, does sinkie know that CPF is a con job? How many are still contributing to CPF, be honest.

 

[Glaringly]

Instead of coming up policies of how to keep employer from firing older workers from as young as years 40, it is debating and talking cock of re-hiring at 62.

Seriously, with the emphasis of cheaper foreigners, how many Singaporean would still be able to keep their job when they hit the salary scale that render them more expensive then FT.

 

[saratogas]

Private sector- once you cannot bring in the sales number you are out!!! I really can't imagine working in my 60s... Health & performance how to keep up with youngsters...

 

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Private sector- once you cannot bring in the sales number you are out!!! I really can't imagine working in my 60s... Health & performance how to keep up with youngsters...

from finance manager to be reemployed as office cleaner lor

 

[tonychat]

Do sinkies know that they are the ones who causes all these shit due to their cowardice against the govt?

 

[soIsee]

Till now, does sinkie know that CPF is a con job? How many are still contributing to CPF, be honest.

The Sinkies know all the policies are by a 'con job.!

But they can't do or change any of it to enable them to get back their own 'simple living rights'!

The re-employment act is nothing but a 'pacifying con job' to make it look as though those aged 62 can retain or find another job!

Who and which employer ,who sets up a business to make profits for themselves want to employ an elderly?

There are millions of ways and reasons NOT to legally re-employ those oldies even after such act has passed.

So what is the difference?

 

[tonychat]

The Sinkies know all the policies are by a 'con job.!

But they can't do or change any of it to enable them to get back their own 'simple living rights'!

The re-employment act is nothing but a 'pacifying con job' to make it look as though those aged 62 can retain or find another job!

Who and which employer ,who sets up a business to make profits for themselves want to employ an elderly?

There are millions of ways and reasons NOT to legally re-employ those oldies even after such act has passed.

So what is the difference?

That is why i got this post:

Do sinkies know that they are the ones who causes all these shit due to their cowardice against the govt?

Maybe you can answer this as well.

 

[Equalisation]

Later they will slowly extend to age 80 ....

Direction is clear : Work till you die !!:oIo:

 

[HellAngel]

At the rate that I see men are flocking to foreign women and getting cheated, I think the govt should not allow them to draw the money till 70! At least when they die, the money goes to the wife or children. In any case by 70, most men would not have sexual urge therefore less like to stray.

 

[Equalisation]

At the rate that I see men are flocking to foreign women and getting cheated, I think the govt should not allow them to draw the money till 70! At least when they die, the money goes to the wife or children. In any case by 70, most men would not have sexual urge therefore less like to stray.

I beg your pardon.

I am 69 years still boleh naik although take some time !!

 

[tonychat]

At the rate that I see men are flocking to foreign women and getting cheated, I think the govt should not allow them to draw the money till 70! At least when they die, the money goes to the wife or children. In any case by 70, most men would not have sexual urge therefore less like to stray.

Are you a sinkie? Sinkie needs a govt to tell them what to do with their life. You post seems to encourage that.

 

[SIFU]

Till now, does sinkie know that CPF is a con job? How many are still contributing to CPF, be honest.

CB kia tonychat,

i know OKTs like u no $ to contribute to cpf.

btw, your ladyboy wife biz how? heard that she has downgraded to $30- 2 shots- include room and cd. really pathetic lah

 

[Muthukali]

Till now, does sinkie know that CPF is a con job? How many are still contributing to CPF, be honest.

For sinkie, if you are employed, its a must under the law to contribute, if you are self employed, its also a must under the law to contibute to medisave. Either way u are caught. U cant escape. Unless u are willingly to be unemployed.

 

[SIFU]

For sinkie, if you are employed, its a must under the law to contribute, if you are self employed, its also a must under the law to contibute to medisave. Either way u are caught. U cant escape. Unless u are willingly to be unemployed.

muthu,

why u say CB kia tonychat is unemployed

he is a pimp ok. that time he boasted to some newbie here he has a biz empire. damn thickskin lah that idiot.

 

[Muthukali]

muthu,

why u say CB kia tonychat is unemployed

he is a pimp ok. that time he boasted to some newbie here he has a biz empire. damn thickskin lah that idiot.

walau eh, which thread huh?

 

[SIFU]

walau eh, which thread huh?

http://www.singsupplies.com/showthread.php?t=82563&page=2

post no. 23

tonychat
Alfrescian (Inf) Join Date: Jul 2008
Posts: 6,059
My Reputation:Points: 491 / Power: 10


Re: I guarantee next recession by 2012!

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Quote:
Originally Posted by cathylmg
I am just an ordinary folk with an ordinary ambition, I believe those who have intellect, ability and knowledge just like you, should join politic. Forumer bashing is not going to get you anywhere. You should be prepared for the next election, or at least getting ready the minimum deposit to qualify for the registration.

Wishing you good luck in politics.

I am not into politics but someone who is righteous enough to see things clearly and learning about human behavior and nature.

I am more geared toward building a business empire than running for politics.

I just can't help it to see so many people behave in such a stupid way and wasted so much effort in doing things that will not solve their very own problem due to cowardice and ignorant. That is a very sad situation.

The only party i see that is able to solve the problem and kill the source of the problem is the SDP.

CB kia tonychat says he runs biz empire. dun bloody thickskin :p

 

[Faidenk]

Later they will slowly extend to age 80 ....

Direction is clear : Work till you die !!:oIo:

They really don't give a hoot whether you work or not. They are not liable nor responsible for your next bowl of rice. Hopefully you have a good son-in-law.

Working till you die is just a smokescreen, the idea is to hold your CPF in their coffers, forever if possible.

There just aren't enough money in there if every eligible person is allowed to withdraw the CPF. The dwindling population is not producing 'replacements' fast enough to keep up with the withdrawals. The wholesale import of FTs is initiated to make up the numbers. There's simply no other choice.