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Singapore man sues Ministry of Social Development

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NZ Lawyer | 20 Jan 2016, 11:59 a.m. Agree 0
In a court case over pension benefits, a Singaporean man has sued for discrimination while seeking to have Prime Minister John Key as a defendant
  • James Jesudhass | 27 Jan 2016, 02:22 a.m. Agree 0
    This mail is in respond to your article I read in your papers. As a Singaporean, I am entitled to recuperate my saving which I have deposited in the early years of employment in Singapore into a special saving plan (Central Provident Fund Board).The purpose of this compulsory saving scheme is to ensure that there is some money available in my retirement years which Singapore Government deem it to be 63 years of age.

    The bulk of my CPF contributions is deducted from my salary by my employer hence I defer my spending by getting less take-home-pay. These deductions are clearly employees' (my) money. The other contributions are from my employer meant it for me "the employee". Employers calculate their business cost and take into account the full amount paid to employees. If they pay higher employers' CPF contributions, they adjust the salaries so that the total amount paid out reflects their business costs. These contributions are placed with the Government for saving keeping in a fund called “Central Provident Fund Board"

    From the employee point of view, employers' contributions are part of their total pay package, which they expect to be able to use it for housing, medical or for their children education. Employers' contributions into the CPF are, therefore, treated by both parties as payments to the employee, and not a gratuitous "co-payment" or pension paid out by the ruling Government.

    At 63 years of age I can choose to take my money saved with the CPF on a monthly basis (recent law change do not allow total amount saved to be withdrawn in total). Your CPF amount can also be a deferred payment, (deposits) will incur higher pay out interest if kept in CPF account. Some Singaporean have only $10,000 of life time saving and some may have a million dollars in their CPF account due to higher wages and both will or can draw out their saving with CPF until their money kept with CPF runs out so how can it be a pension given by the government. When the member dies is balance money with the CPF will be given to his next of kin.

    I hope this email explain the situation.
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