White Skunk:-The world's safest retirement fund. Can see cannot touch

[Leepotism]

CPF issue: Retirement scheme fair and one of world's safest: DPM Tharman





Madam Tan Kim Hing, 66, a housekeeping attendant at Royal Plaza on Scotts. The Central Provident Fund (CPF) scheme may not provide the highest returns, but the returns are fair, and it is also one of the safest retirement funds in the world, said Deputy Prime Minister Tharman Shanmugaratnam in Parliament on Tuesday, July 8, 2014.







BY THAM YUEN-C

SINGAPORE - The Central Provident Fund (CPF) scheme may not provide the highest returns, but the returns are fair, and it is also one of the safest retirement funds in the world, said Deputy Prime Minister Tharman Shanmugaratnam in Parliament on Tuesday.

This is because CPF interest rates are pegged to comparable investments in the market, and are also guaranteed by the Government, he said, in a statement that explained how CPF monies are invested and why the interest rates are set where they are.

The questions had been asked by four MPs.

"The CPF is not a perfect retirement savings scheme, but it is among the better regarded internationally," he said.

 

[Leepotism]

Risk on GIC investments are wholly borne by the Government, said Deputy Prime Minister and Finance Minister Tharman Shanmugaratnam in Parliament.

File photo of DPM Tharman Shanmugarat


SINGAPORE: Deputy Prime Minister Tharman Shanmugaratnam, speaking in Parliament on Tuesday (July 8), reiterated that CPF members’ investments are guaranteed, regardless of the returns on investments made by GIC, the Government's investment arm.

He also clarified that Temasek Holdings does not manage any CPF monies.

"CPF members bear no investment risk at all in their CPF balances. Their monies are safe, and the returns they have been promised are guaranteed," he said in response to questions from Members of Parliament. "Neither does the CPF Board bear any risk, regardless of whether GIC’s investments earn or lose money in any particular year. The risk is wholly borne by the Government, on its own balance sheet."

HOW CPF MONIES ARE INVESTED

Mr Tharman said that the CPF Board invests CPF members’ monies in Special Singapore Government Securities (SSGS), issued specially by the Government to the Board. The payout from the SSGS is pegged to the interest rates that the the Board is committed to pay its members.

"The Government guarantees these SSGS bonds, so that the CPF Board faces no risk of being unable to meet its obligations to its members. This is a solid guarantee, from a triple-A credit-rated government. The triple-A credit rating reflects Singapore’s very strong financial position, with the Government’s assets comfortably exceeding its liabilities," said Mr Tharman, who is also Minister of Finance.

SSGS proceeds are then pooled them with the rest of the Government’s funds, such as proceeds from the tradable Singapore Government Securities (SGS), any government surpluses as well as the proceeds from land sales. These comingled funds are first deposited with Monetary Authority of Singapore as Government deposits, which the MAS then converts into foreign assets through the foreign exchange market.
A major portion of these assets - those of a longer term nature - are transferred over to be managed by GIC.

GIC 'A FUND MANAGER'
"The GIC does not in fact manage SSGS monies on their own, separate from the Government’s other assets," Mr Tharman said. "GIC is fund manager for the Government, not owner of the assets and liabilities.
It seeks to achieve the Government’s mandate of achieving good long-term returns, without regard to the sources of the funds that the Government places with it – for example, whether they are proceeds from SGS, SSGS or government surpluses."

Over the past 20 years, there were eight years in which GIC's investment returns were below what the Government pays on SSGS. However, the Government has a "substantial buffer of net assets" which ensures it can meet its obligations, said Mr Tharman. As a result, "no extraordinary measures" have been necessary to enable the Government to meet its SSGS obligations in the years when GIC’s returns fall short.

"The Government has been absorbing that volatility, and protecting CPF members," he added. "Our CPF system is hence sustainable, so long as the Government continues to run prudent budgets, and invest the reserves wisely."

 

[GaoFar]

Your monies that are hold with another entity is not considered safe, there is a risk called counter party risk

 

[Leongsam]

Even if there was no CPF, retirement funds should never be spent.

I have not touched my retirement fund for the last 25 years. I've withdrawn only the yield and not a cent of the principal.

I intend to follow the same philosophy for the next 25 years.

If everyone was as prudent and as intelligent as I am, the PAP would not have to come up with the minimum sum rule. Unfortunately, most people are just too damned dumb to manage their own savings.

 

[johnny333]

Even if there was no CPF, retirement funds should never be spent.

I have not touched my retirement fund for the last 25 years. I've withdrawn only the yield and not a cent of the principal.

I intend to follow the same philosophy for the next 25 years.

If everyone was as prudent and as intelligent as I am, the PAP would not have to come up with the minimum sum rule. Unfortunately, most people are just too damned dumb to manage their own savings.

I also don't have to touch my principal, which are invested in equities. I make do with the dividens from my investments.

Unfortunately at this time I have to write off whatever I have in my CPF:( I'm one of those who believes that "my" CPF is gone.

 

[Leongsam]

I also don't have to touch my principal, which are invested in equities. I make do with the dividens from my investments.

Unfortunately at this time I have to write off whatever I have in my CPF:( I'm one of those who believes that "my" CPF is gone.

I've invested most of my CPF in private property in SG. The yield has been fantastic as rentals are sky high.

 

[Leepotism]

Your monies that are hold with another entity is not considered safe, there is a risk called counter party risk

The only safe money is those inside your pocket. A bird in hand is worth two in the bush.

 

[Leongsam]

The only safe money is those inside your pocket. A bird in hand is worth two in the bush.

Money in your pocket is useless because the yield while it is there is a big fat zilch.

 

[Equalisation]

This is getting infuriating to say the least !

Stop throwing so many smokescreens !

Give us back all OUR hard-earned CPF money at age 55 NOWWWW !!!

For ordinary people like us, It is OUR blood money from decades of toiling !:oIo:

 

[GoldenDragon]

Money in your pocket is useless because the yield while it is there is a big fat zilch.

Money in own pocket is safer than used by a 'shehe' who habitually loses it.

 

[KuanTi01]

The only safe money is those inside your pocket. A bird in hand is worth two in the bush.

Inside your own pocket, you have real ownership of the money. It is safe and warm. In the hands of the PAP's CPF, it is yours in name only. Cannot anyhow touch. Want to touch must also ask permission. Knn.