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Govt still needs another year of feedback just to know how to tweak CPF?

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We refer to the article “Advisory body to look into possible enhancements to CPF appointed” (Channel NewsAsia, Sep 10).

It states that “The panel will convene from mid-September and the study should be completed in a year. Initial recommendations will be provided by early 2015, MOM said.”

Our comments on all the areas listed are as follows:-

1)The Government should stop making so much money from the people’s CPF, as no other Government does so – The Government does not spend any money on CPF

2) Being transparent on CPF Life’ actuarial assumptions, computations and projections may enable the monthly life annuity to be indexed for inflation – The real return on our CPF is the lowest of national pension funds in the world

3) Giving the actual historical average returns derived from investing our CPF, may enable all Singaporeans to have more CPF to withdraw at 55 – The real rate of return on the Ordinary Account was negative the last 10 years

4) GIC managed CPF funds – return from inception is more than 6%

5) Giving GIC’s historical average return to CPF members may enable more people to meet the minimum sums – currently only about 1 in 8 Singaporeans at 55 can meet the Minimum Sums in cash

6) HDB is the most expensive public housing in the world

7) Gradually reducing the land cost charged to the price of HDB flats – 60% of the price of HDB flats are allocated to land costs

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8) The Government does not spend any money on HDB

9) MediShield surplus in the last 5 years alone is $2.3 billion

10) The Government from a cashflow perspective, does not spend any money on healthcare

11) Our public healthcare spending as a percentage of GDP is the lowest in the world

12)  Our public share of total healthcare spending is the lowest among developed countries

13) Spend more to help particularly the lower-income by accumulating less surpluses which arguably were much derived originally, and still currently from our CPF – Our Budget surplus using IMF fiscal reporting guidelines was $36.1 billion against the Budget surplus of $3.9 billion

S Y Lee and Leong Sze Hian

P.S. Come with your family and friends to the 4th Return Our CPF protest on 27 September 4 pm at Speakers’ Corner https://www.facebook.com/events/516436478486589/

 

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