The Real Singapore
9 Oct 2013
Referring to the article “CPF scheme among top 10 pension systems in the world” from Straits Times on Oct 8,
http://www.straitstimes.com/breaking-news/singapore/story/cpf-scheme-among-top-10-pension-systems-the-world-20131007
It states that “Singapore’s Central Provident Fund (CPF) scheme has been named one of the top 10 pension schemes in the world, among the likes of countries such as Denmark and Sweden”.
However, Singapore scored the lowest…
http://globalpensionindex.com/2013/melbourne-mercer-global-pension-index-2013-report.pdf
In the Melbourne Mercer Global Pension Index – Singapore scored the lowest amongst the countries in the study, for the following:
What is the proportion of total pension assets invested in growth assets?
Score: 2.5
Comment: 2.5 per cent interest is the lowest in the world?
Do plan members have access to a complaints tribunal which is independent from the pension plan?
Score: 0
Comment: The actuarial studies on the CPF Life scheme have never been made public.
What is the minimum pension, as a percentage of the average wage that a single aged person will receive?
Score: 0.2 (Note: second lowest score – only India, Indonesia and Korea had a lower score of 0 – than Singapore)
Comment: Only an estimated 1 in 8 who turn age 55 are able to meet the CPF Minimum Sum (MS) in cash from their CPF
For defined contribution schemes, are the assets required to fully meet the members’ accounts?
Score: 5.0
Comment: The excess returns on the CPF funds taken and utilised by the Government have never been disclosed, explained or accounted for.
Limitations of a comparative study?
A comparative study using questions designed to measure across 20 countries, may not be able to address the uniqueness of our CPF system.
Government does not spend a single cent?
For example, we believe we are the only country in the study that does not spend a single cent on the CPF system, as all contributions are from the incomes of CPF members.
Lowest number getting Government -funded pension?
The number of people who qualify for the Public Assistance (PA) scheme, at just over 3,000, which has remained constant for many years, is probably the lowest in the study – as a percentage of the citizen population.
Lowest pension amount?
The PA assistance of just over $400 monthly may also be the lowest in the study, on a Purchasing Power Parity (PPP) basis.
Lowest return on pension fund?
The Ordinary Account (OA) interest rate of 2.5 per cent is I believe the lowest in the world, historically.
How can being ranked number 7 in a study of just 20 countries, be described as “among (the) top 10 pension schemes in the world”?
How can we call HDB public housing when the government didn’t spend a single cent and is earning profits from flats?
How can we say healthcare is affordable when our Medisave is paying for healthcare and the government didn’t spend a single cent to take care of us?
How can they claim CPF is a “top 10 pension schemes in the world” by comparing themselves with just 20 countries when it’s our own money and the government didn’t spend a single cent on it?
Written by: Han Hui Hui and Leong Sze Hian
