This document discusses a clause in Singapore's Central Provident Fund (CPF) law that allows the CPF Board to stop monthly payouts from the Lifelong Income Fund unless it remains solvent. There is concern that this clause contradicts assurances from the Manpower Minister that payouts will be guaranteed for life. Additionally, no other country has ever had to stop pension payouts due to insolvency. The document questions why CPF payouts would be treated differently from insurance annuities, which are contractually guaranteed regardless of fund solvency. It argues people may not feel their retirement is secure given this legal provision.
This document discusses a clause in Singapore's Central Provident Fund (CPF) law that allows the CPF Board to stop monthly payouts from the Lifelong Income Fund unless it remains solvent. There is concern that this clause contradicts assurances from the Manpower Minister that payouts will be guaranteed for life. Additionally, no other country has ever had to stop pension payouts due to insolvency. The document questions why CPF payouts would be treated differently from insurance annuities, which are contractually guaranteed regardless of fund solvency. It argues people may not feel their retirement is secure given this legal provision.
This document discusses a clause in Singapore's Central Provident Fund (CPF) law that allows the CPF Board to stop monthly payouts from the Lifelong Income Fund unless it remains solvent. There is concern that this clause contradicts assurances from the Manpower Minister that payouts will be guaranteed for life. Additionally, no other country has ever had to stop pension payouts due to insolvency. The document questions why CPF payouts would be treated differently from insurance annuities, which are contractually guaranteed regardless of fund solvency. It argues people may not feel their retirement is secure given this legal provision.
Forum Welcome to Sam's Alfresco Coffee Shop The Courtyard Caf This CPF Clause Should Set Off Alarm If Government Guarantee CPFLife Payout If you want to contribute to the continued success of this forum, you can now do so here. Thread: This CPF Clause Should Set Off Alarm If Government Guarantee CPFLife Payout Log Out Settings My Profile Notifications: 1 Welcome, revealer Chat Room What's New? Rep Sys FAQ (Rev8) Subscribe New Posts Private Messages FAQ Calendar Community Forum Actions Quick Links Advanced Search + Reply to Thread Results 1 to 19 of 19 View First Unread Thread Tools Search Thread Rate This Thread Display 31-05-2014, 10:48 AM Join Date: Posts: Feb 2009 1,075 My Reputation Points: 1633 / Power: 9
This CPF Clause Should Set Off Alarm If Government Guarantee CPFLife Payout Source: Singapore Statutes Online #1 Alfrescian (Inf) xingguy Forum This CPF Clause Should Set Off Alarm If Government Guarantee CPFLife Payout http://www.sammyboy.com/showthread.php?182923-This-CPF-Clause-Should-Set-Off-Alarm-If-Government-Guarantee-CPFLife-Payout[6/06/2014 11:47:56 a.m.] Excerpt from The Online Citizen July 29 2009 Since Manpower Minister Gan Kim Yong has given his assurance in Parliament that the monthly payouts will be paid for life despite the provision in the new law which allows the CPF Board to stop CPFLife payments unless the Lifelong Income Fund is solvent then why have this provision in the first place? Years down the road, the law will prevail, regardless of what the minister said in a past Parliamentary debate. Moreover, as the minister cannot make changes at will but must base his decisions on sound actuarial principles to ensure that fund solvency will not be compromised, is this not somewhat self- contradictory? This CPF Clause Should Set Off Alarm If Government Guarantee CPFLife Payout http://www.sammyboy.com/showthread.php?182923-This-CPF-Clause-Should-Set-Off-Alarm-If-Government-Guarantee-CPFLife-Payout[6/06/2014 11:47:56 a.m.] As how then can the fund become insolvent and thus stop payouts? I understand that historically, no country in the world has ever had to stop pension payouts due to fund insolvency. Even insurance companies annuity contracts are contractually backed by the full faith and credit, and assets of the insurance company, and are not subject to the solvency of the pooled annuity fund. So, why is CPFLife so different? ~.~.~.~.~.~.~.~.~.~.~.~.~.~.~.~.~.~.~.~.~.~.~.~.~. ~.~.~.~.~.~.~.~.~.~.~.~.~.~.~.~. I freed thousands of slaves. I could have freed thousands more, if they had known they were slaves. Harriet Tubman
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Re: This CPF Clause Should Set Off Alarm If Government Guarantee CPFLife Payout #2 Alfrescian (Inf) xingguy Originally Posted by xingguy *** Image removed *** Excerpt from The Online Citizen July 29 2009 Since Manpower Minister Gan Kim Yong has given his assurance in Parliament that the monthly payouts will be paid for life despite the provision in the new law which allows the CPF Board to stop CPFLife payments unless the Lifelong Income Fund is solvent then why have this provision in the first place? Years down the road, the law will prevail, regardless of what the minister said in a past Parliamentary debate. Moreover, as the minister cannot make changes at will but must base his decisions on sound actuarial principles to ensure that fund solvency will not be compromised, is this not somewhat self-contradictory? As how then can the fund become insolvent and thus stop payouts? I understand that historically, no country in the world has ever had to stop pension payouts due to fund insolvency. This CPF Clause Should Set Off Alarm If Government Guarantee CPFLife Payout http://www.sammyboy.com/showthread.php?182923-This-CPF-Clause-Should-Set-Off-Alarm-If-Government-Guarantee-CPFLife-Payout[6/06/2014 11:47:56 a.m.] ............................... ~.~.~.~.~.~.~.~.~.~.~.~.~.~.~.~.~.~.~.~.~.~.~.~.~. ~.~.~.~.~.~.~.~.~.~.~.~.~.~.~.~. I freed thousands of slaves. I could have freed thousands more, if they had known they were slaves. Harriet Tubman Even insurance companies annuity contracts are contractually backed by the full faith and credit, and assets of the insurance company, and are not subject to the solvency of the pooled annuity fund. So, why is CPFLife so different?
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Re: This CPF Clause Should Set Off Alarm If Government Guarantee CPFLife Payout CPFLife is compulsory!! Do you feel safe when there is such a clause ""the Board shall not make any payment under this Part unless the Lifelong Income Fund is solvent"? Remember, even Lehman Bros, a 150 year old bank, also claims nothing is wrong before it collapse. ~.~.~.~.~.~.~.~.~.~.~.~.~.~.~.~.~.~.~.~.~.~.~.~.~. ~.~.~.~.~.~.~.~.~.~.~.~.~.~.~.~. I freed thousands of slaves. I could have freed thousands more, if they had known they were slaves. #3 Alfrescian (Inf) xingguy