How can CPF funds got “bankruptcy risk”?


I refer to the Special Needs Trust Company’s reply “Public Trustee’s involvement invaluable to SNTC” (Straits Times Forum, Apr 7) to Madusoodanan Janardanan Pillai’s letter “Have CPF Board manage SNTC funds, instead of Public Trustee’s Office” (Apr 4).

It states that “Putting aside whether the Central Provident Fund Board has the proper mandate to manage funds for persons with special needs, I would like to highlight that the Public Trustee’s fees are substantially lower than those of any commercial fund manager.”

As to “In addition, the Public Trustee’s involvement provides parents with the confidence that their funds will be properly managed and are free from bankruptcy risk” – are we saying that funds with the CPF Board are subject to “bankrupt

cy risk”?

 The reply also does not answer the question asked – “The management fees levied by the Public Trustee is between 2 per cent and 6 per cent of the amount put into the trust.

This gives the perception of a negative return in real terms, considering the low interest earned and inflation.”

Leong Sze Hian

About the Author

Leong Sze Hian has served as president of 4 professional bodies, honorary consul of 2 countries, an alumnus of Harvard University, authored 4 books, quoted over 1500 times in the media , has been a radio talkshow host, a newspaper daily columnist, Wharton Fellow, SEACeM Fellow, columnist for theonlinecitizen and Malaysiakini, executive producer of Ilo Ilo (40 international awards), invited to speak more than 200 times in over 30 countries, CIFA advisory board member, founding advisor to the Financial Planning Associations of Indonesia and Brunei. He has 3 Masters, 2 Bachelors degrees and 13 professional  qualifications.