PG Medisave top-up: Not spending any money?

Piggy bank in the hands of the doctor.Piggy bank in the hands of the doctor.

How much of our returns derived from our CPF funds are kept by the Government?

I refer to the article “$180 million in Medisave top-ups for Pioneer Generation in 2018” (Straits Times, Jun 11).

It states that “A total of $180 million will be disbursed under this scheme for the year, the Ministry of Finance said on Monday (June 11).

The amount of Pioneer Generation Medisave top-up for each pioneer ranges from $200 to $800 annually for life, and is part of the Pioneer Generation Package which thanks pioneers for their contributions to the country.”

Since the Government keeps an undisclosed portion of the annual returns derived from our CPF funds, in excess of the interest rates paid on our CPF accounts – does it mean that from a cashflow perspective – we may not be spending any money at all?

Leong Sze Hian

About the Author

Leong Sze Hian has served as the 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), Hotel Mumbai (associate producer), invited to speak more than 200 times in about 40 countries, CIFA advisory board member, founding advisor to the Financial Planning Associations of 2 countries. He has 3 Masters, 2 Bachelors degrees and 13 professional  qualifications.