CPF: The “unanswered” questions remain?

July 23, 2014

We refer to the full page coverage in the Straits Times of 23 July, on the Institute of Policy Studies (IPS) CPF Forum on 22 July.

A great deal has been said in recent months about our CPF system, and at the IPS forum as well.

However, the following questions remain unanswered:

1)What is the GIC’s returns from inception, since we now know that CPF funds have always been managed by the GIC?

2)What is the average weighted interest on all CPF accounts, yearly, since the extra 1% on the first $60,000 was only effected on 1 January 2008?

3)What is the average weighted interest on the Ordinary and Special Accounts (excluding the Medisave Account) since Medisave cannot be used as retirement funds?

4)What is the cumulative excess returns (GIC’s rate minus CPF average weighted interest)  in absolute dollars that CPF members have lost over the years?

5)What is the percentage of all Singaporeans (active and inactive CPF members, self-employed) who reached age 55 last year, who were able to meet the combined CPF and Medisave Minimum Sums of $198,500, since both minimum sums must now (effective 1 January 2013) be met before CPF members can withdraw the excess in their accounts?

S Y Lee and Leong Sze Hian

P.S. Come with your family and friends to the 3rd Return Our CPF – HDB protest on 23 August 4 pm to 6.30 pm at Speakers’ Corner https://www.facebook.com/events/648543138548193/

 

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About the Author

Leong
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.