Parliament debate to focus on CPF changes

MPs say compulsory annuity is perceived in negative light

CHANGES to the Central Provident Fund (CPF) system will be the main topic of debate in Parliament from Monday when Manpower Minister Ng Eng Hen gives details of proposed changes.

Wide-ranging amendments to the Penal Code, which governs most criminal offences here, will also be tabled at the sitting, as will a proposed piece of legislation on preventing terrorist bombings.

As these two sets of amendments are only being introduced, or in parliamentary parlance, going through their 'first reading', they will be debated at a later date.

Changes to CPF to prepare for a greying population were first outlined by Prime Minister Lee Hsien Loong in his National Day Rally speech last month.

The CPF measures are meant to ensure people have enough for old age even as lifespans grow longer.

Among other things, CPF members will get higher returns of up to one percentage point more on their savings.

The draw-down age for the Minimum Sum will also be postponed from 62 to 63 in 2012, and gradually raised to 65 by 2018.

The Minimum Sum is the amount members must keep in their Retirement Account after withdrawing their CPF at age 55.CPF members now get a monthly payout from the Minimum Sum at age 62, for up to 20 years.

But the change likely to attract intense scrutiny is some form of compulsory annuity for members now below 50.

MPs say the annuity is perceived negatively at dialogues with residents.

Mr Charles Chong (Pasir Ris-Punggol GRC) said: 'Nobody thinks they are going to live beyond 85. Usually, whatever money goes to the next of kin, so it's hard to say the money goes to others.

'Others also ask, where is the government involvement here? It's getting half the people to subsidise the other half. The minister has to fill in all the blanks,' he added.

On Monday, three MPs will ask the Prime Minister for an update on the public sector's efforts to re-employ older workers beyond the retirement age of 62.

MPs have also tabled questions on the impact of the sub-prime mortgage crisis in the United States on Singapore's economy, banks and property market.

Opposition MP Low Thia Khiang (Hougang) will ask Defence Minister Teo Chee Hean how Dave Teo Ming, an army corporal, managed to slip out of Mandai Hill Camp with arms and ammunition earlier this month. The army corporal was arrested in Orchard Road on Sept 3 after a 20-hour manhunt, and his case is before the courts.

Changes to the Penal Code are likely to include more teeth to deal with crimes committed online and increased sentences for various offences. A draft of the proposed changes was released for the public to give its views last November.

Seven Bills will also be up for debate at the sitting.

They include changes to the Land Titles (Strata) Act to make collective property sales more transparent, and changes to the Building Control Act to improve the quality of construction and safety standards at worksites.