Sunday, July 26, 2009

Guaranteed monthly amount is not feasible

CPF Life payouts are for life although the law does not provide for it, assured Manpower Minister Gan Kim Yong. But premiums and payouts are at the Government's discretion. A guaranteed monthly amount is not feasible and that it would be adjusted regularly to ensure the fund's solvency.

Does that sound right to you? Two things here.

1. Payouts are for life but not written in law. That means, they can simply say 'thank you for your money' and stop paying you in the future when the fund runs out.

2. The payout can be any amount and just have to suck your thumb if it's peanuts (not Mrs Goh's version of peanuts, mind you)

So do you have a choice to opt out? Sorry. Law says you are in if you have over $40k in your CPF which means they'll take your money and will assure you the above.

And compare this with the one reported by CNA where this crucial information are excluded. Strange? Not not all coming from a state's times.

Previously, the scam scheme forfeits the balance payout if you kick the bucket earlier than than the period covered. After strong objections from the ground, they change to this risk-free (to them) plan.

I am so blessed to be a Singaporean!

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