CareShield Life: Investment returns for members – why not for CPF too?


If the investment returns for CareShield Life can be returned to members – why can’t CPF investment returns be the same too? 

I refer to the article “Insurance fund which will be ringfenced for CareShield Life to be set up: Gan Kim Yong” (Channel NewsAsia, Jul 11).

It states that “The Government will set up an insurance fund which will be ringfenced for CareShield Life, a new disability insurance scheme to be launched in 2020, Health Minister Gan Kim Yong said on Tuesday (Jul 10).

The fund will be administered by the Central Provident Fund (CPF) Board, and be audited annually to ensure that all the monies are accounted for he added.”

As to “”All premiums collected for and any returns from investments will remain entirely within the fund and used solely for the benefit of policyholders” he said” – why not do this for MediShield Life and CPF too?
For decades, the Government has been keeping an undisclosed excess of the returns from investing our CPF vis-a-vis the interest paid on our CPF accounts.

Also, Singapore workers contribute up to 10.5 per cent of their wages to Medisave.

This I believe is in a sense, from a cashflow perspective – probably the highest national health insurance contribution (pre-pay basis) in the world.

From a cashflow perspective – the Government  may still not be spending any money on healthcare, as total annual Medisave contributions plus the annual interest on total Medisave accounts’ balances may exceed total annual government spending on healthcare and withdrawals for medical expenses and insurance premiums.

With regard to “The Government will inject S$100 million into the CareShield Life insurance fund.

This is to cover a “significant portion” of the costs of including Singaporeans in the future cohorts with preexisting disabilities, said Senior Minister of State for Health Amy Khor.

The Government will also set up an independent council to provide advice on the administration of the scheme, he said. The council will also regularly review CareShield Life and recommend premiums and payout adjustments to the Government, in accordance with an actuarially sound adjustment framework, he added” – why not make the actuarial reports for CareShield Life, CPF Life and MediShield Life public information?.

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.