5/31/2012

CPF Minimum Sum raised



CPF members who turn 55 between 1 July 2012 and 30 June 2013 have to set aside a Minimum Sum (MS) of S$139,000, higher than the S131,000 for 2011.



Changes will also be made for contributions to the Medisave Minimum Sum (MMS) to help Singaporeans plan for their long-term healthcare needs. (Did Singaporeans ask anyone to be kaypohed to help them plan for their long term needs by taking away their money? Who is asking for help or who really needs help? The helper or the one he is helping?)



From 1 July (2012), the MMS will be raised to S$38,500, from S$36,000 - an increase of 7 per cent.

Another change is in the Medisave Contribution Ceiling (MCC). It's the maximum balance a member may have in his Medisave Account.



This is set at S$5,000 above MMS and would be increased correspondingly to S$43,500, from S$41,000.

I wrote just before the by election that all the increases would have to be delayed but did not know that they cannot tahan already. Now immediately after the by election, all starts to rush out. Just heard that clearing of rubbish will be raised and now this. How many more are lined up to be announced?

Why so desperate to raise CPF minimum when the reserves is one of the largest in the world? Which Ponzi scheme having problems with the payout? This is surely not looking good with our reserves. When there is so much money in the reserves, why is there a need to resort to such dicey and unpopular move? They should plan, yes, plan with the money in the reserves, not the people’s hard earned money, to help the people especially in Medisave. Put some of the big earnings they are making into the people’s CPF instead of paying millions in salary and bonuses.

What more bad news is going to hit the daft Sinkies? They would not listen and would continue to do what they claimed to be good for the Sinkies, especially when taking money from the Sinkies. They don’t even think there is a need to ask the Sinkies. And they are so generous by taking less and the people should feel grateful and celebrate because of this.

$139,000 plus $38,500 work out to be $177,500 frozen with the later probably untouchable by many. And the amount will keep going up annually for the good of the people of course. I am wondering who is more desperate to get their hands onto this money.

25 comments:

Anonymous said...

When tigers, lions and crocodiles turn maneaters they are hunted and destroyed. Who will destroy the greatest and most insatiated evil maneater in Singapore that is devouring the people's savings. Villagers will unite to hunt and destroy the maneating tigers, lions and crocodiles. But Singaporeans are resigned to their fate of being unable to protect themselves against this most evil and most menacing maneating Pappie tiger.Want to blame who for such vulnerable circumstance when half of the daft population are blind to the poor and and wicked governance of the insensitive Pappie tiger and when opposition parties leaders fail to read the sign and snatch the opportunity to unite as one to put down the menacing Pappie tiger. Unless the opposition parties merge and unite there is hardly any hope for Singaporeans to escape from the maneating Pappie tiger. Come what come may the evil maneating Pappie tiger must be put down and destroyed in 2016.

Southernglory1

Anonymous said...

Still don't believe that the CPF is the biggest PONZI ever?

Saycheese

patriot said...

"Villagers will unite to hunt and destroy the maneating tigers, lions and crocodiles,", unquote.

There is no more villagers in Sinkie Land, all are transformed to automatons. 60% are programmed to the CPU of the Regime, majority of the remaining 40% are waiting for the 60% to change side; likely a futile and hopeless anticipation.

Like it or not, Sinkies have no choice, Schemes such as GRC, CPF, Immigration and whatever the Regime fancies, will be rolled out whenever the Regime wants them.

However, no regime in history is ever-lasting and ours may expires soon due to whatever reason. It maybe man-made or nature-caused.

The more evil a regime, the faster it will be severely punished.

patriot

Matilah_Singapura said...

I keep telling you time and again you won't get "your" money, because the money is not OBJECTIVELY yours.

Nyah nyah nyah nyah nyah!

Got Ponzi?

Chua Chin Leng aka redbean said...

There is no evil regime here. Everyone is so angelic that you can see the halo over his head if you look carefully.

The people are so contented that their hundreds of thousands of dollars be kept from them would not make any difference. They actually love it and asking for more to help themselves with their money.

Think they knew its gone and nothing they can do about it. Let's move on.

Like paying tithes.

Matilah_Singapura said...

China's economy -- contracting.

And now, India

The big killer is inflation. Caused by printing more fiat money, and given a velocity boost by FRB (fractional reserve banking).

e.g. say print money 10%. FRB -- reserve ratio 1:10. Like magic...now you have an increase in funds of 90-100%. Magic! Instant wealth. No need to work!

Got gold?

Chua Chin Leng aka redbean said...

How long can the ponzi game last? Europe is imploding like dominoes. This Domino Theory that failed to materialised in Asia is going to work extremely well in Europe and sweep across the world like a plague.

Many unproductive jobs will be lost, like those in the banking and finance industry and the banksters with all the big mortgages will be the new subprime in the financial centres.

I think it will start with Sin when the stock market industry collapses. 6 months to a year I think. Frightening but it is happening.

Veritas said...

At this rate of minimum sum hike of 6++% a year, 30 years later when you retire, your minimum sum is fucking SGD$815, 000. Forget about CPF, those monies are forget idiots like Tony Tan and Ho Ching to gamble in Wall Street so that they get orgasm everyday.


Assuming you start work now at 25 years old earning and your salary stagnant (as per PAP's design) for next 30 years, you will need to SGD$2264 inside your ordinary account each month.

That is to say, even you max out CPF every month having more than 5k salary, you would not be able to draw a single cent from CPF when you retire.

FUCK Chee Bye PAP.

Anonymous said...

Too late to regret!

Those 60% who voted for them continuosly have no cause to complain. They deserve what is coming to them.

The fear is that, even with a change in Government, the CPF may be just an empty shell with no money left. Just like some of the pension funds in the US and Europe.

Then, Singaporeans will have no tears to cry with.

Padaly said...

First they came for the Communists And I did not speak out Because I was not a Communist Then they came for the Socialists And I did not speak out Because I was not a Socialist Then they came for the trade unionists And I did not speak out Because I was not a trade unionist Then they came for the Jews And I did not speak out Because I was not a Jew Then they came for my CPF And there was no one left
To speak out for me.
My heart bleeds ….

Martin Niemöller

Anonymous said...

There's something abt the CPF LIFE annuity mthly payout after age 62, that I think most Singaporeans are not aware of.

Its bad enough that you are forced to have such a huge amt of yr monies locked in yr CPF at age 55, and are able to access only a pathetic mthly payment thru CFP LIFE annuity plan at retirement age (currently is 62 of age), but do you know that :

1. In mid 2009 there was an amendent to the CPF Act that allows the CPF to STOP paying you any payout at all (ZERO dollar), in the event that the Fund (the Lifelong Income Fund) is insolvent ?

This means that the Govt has the legal rights NOT to pay you the mthly payout fm the CPF Life Plan which you had used you Minimun Sum to buy at age 55, if the Fund goes bust/bankrupt. This fund fm the CPF is a cheap source of fund for the GIC and TH to avail themselves with in their investments/speculations. As such, it is not at all that impossible for the Fund to be mismanaged and goes bust - as can be seen from recent history the many worldwide established institutions that were bankrupted by either rouged investments 'experts' or just plain crooked ones.

Here's the Act :-
================================

" Establishment of Lifelong Income Fund

27N.—(1) The Board shall establish and maintain a fund to be known as the Lifelong Income Fund, into which shall be paid all premiums collected under section 27L, and out of which shall be met all payments to be made by the Board under this Part (including any costs and expenses incurred by the Board in establishing and maintaining the Scheme).
(2) The Lifelong Income Fund shall be controlled and administered by the Board.
(3) The moneys in the Lifelong Income Fund may be invested by the Board in accordance with the standard investment power of statutory bodies as defined in section 33A of the Interpretation Act (Cap. 1).
(4) Where a member is not entitled to any amount paid to him, or into his account in the Fund, under or purportedly under section 27K(6) or 27L(5), the Board may recover that amount —
(a)
from any money standing to his credit in the Fund; or
(b)
on his death, notwithstanding section 24(3A), from —
(i)
his estate;
(ii)
the moneys payable out of the Fund on his death; or
(iii)
any person to whom any moneys referred to in sub-paragraph (ii) have been paid.
(5) Subsection (4) is without prejudice to any other right of action which the Board may have under any written law or rule of law.
(6) Any money recovered by the Board under subsection (4) shall be refunded to the Lifelong Income Fund.
(7) Notwithstanding anything in this Part or the relevant regulations, the Board shall not make any payment under this Part unless the Lifelong Income Fund is solvent. "
================================

The last clause is the one in question. Its like saying ".....I take your money to gamble. If I win, you get yr capital back (thats all), but if I lose all of it and goes broke, I dun have to pay you anything " UNBELIEVABLE !!!

2. Do you also know that the CPF has the discretion to lower (NEVER raise) your mthly payout according to the interest rate and mortality rate at the prevailing time ? They say it is to prevent the Fund from going insolvent.

In private insurance policy, we buy becoz we dun wanna take the risk and lets the insurance companies bear it for us while we pay them our premiums. In CPF, we pay the premiums and then they come out with some law to throw the risk back at us to bear it ourselves ! SUPER UNBELIEVABLE !!!

Anonymous said...

...Oooopppsss...sori abt the multi-postings. 1st time posting here, not sure how to post comment in proper manner yet.

Chua Chin Leng aka redbean said...

Hi Anon, no problem. Just deleted some repetitions.

How can anyone paid so much mismanaged our life savings? No one is asking them to take high and unnecessary risks with our hardearned money.

They got the cheek to pass such an amendment and claim that they should be rewarded with out of this world salaries.

When power got into their heads, they think they owned the people and their money as well. They need not ask the people what to do with their money and take whatever they want and do whatever they want.

Anonymous said...

Wonder how many of you guys here have read the blog of Christopher Balding, an American economic professor based in China.

He had raised some very valid (and frightening) points regarding the actual reserves that Sg has as of today.

From his calculations taken from Statistics fm the govt records itself and the Budget papers of the last 2 years, it seems that all the surpluses figures that we have been hearing fm the govt do not match up at all, in term of assets, revenues and expenditures.

Seems that either there had been some serious flaws with the govt accounting method, OR that theres a HUGE chunk of unexplained asset which is missing and un-accounted for. This 'missing' amt is in the region of 500 BILLION dollars.

Even if the accounting method used by both parties - the govt & Balding - is slightly different, there is still an astonishing sum which does not tally up.

No one knows for certain exactly how much reserves and investments that the GIC and TH has, and as such how much exactly it has lost over the years.

For an institution that hold such tremendous reserves of a country (which came from the blood and sweat of the people), there's totally no transparency and accountability at all. How deep a hole that they may have dug themselves in thru all the failed investments, is only privvy to the very very few. This is a receipt for disaster when so much power has been given to so few, without the rest of the world knowing what is exactly going on.

History has shown that it is very possible for just a few, or even ONE person, to bring a well-established institution to its knee, when absolute unquestionable power has been put in the hands of a selected few with no accountability whatsoever.

So, to tie up with the above posting abt our CPF (mainly the Lifelong Income Find) going bust, is that too impossible a scenario to happen at all, the Fund being one of the ready source available for them ?

If the other 60% says it will never happen, then pray tell, why the need for the govt to pass a Bill in law to exempt themselves from paying the monies that they had 'guaranteed' us, in the event that the Fund goes bust ?

Whichever way one looks at it, they are only protecting and enriching themselves, while creating the access to cheap and easy fund from the people's monies in the guise of taking care of their retirement needs.

For those who still have 20, 30 or even 40 years to go before they hit retirement age (at whatever the age that it may be in the prevailing time) , do you that that nothing will ever happen in that long period of time to make the Fund in the CPF becomes insolvent ? Which would then ,of course, give the govt the right to activate this Bill of law to protect themselves from the demand of all the CPF members ?

Knowing what the monies in the Fund is being used for (they call it investments, I call it speculation or plain gambling, thats all), I rate the chance for it to go broke as VERY possible.

I would rather have my $139K (the present MS), tucked below my pillow rather than put it in a lose-lose gambling odd venture in this scheme that we call CPF Life.

Never mind that my 139K will not earn a single cent of interest. Never mind that it will shrink in the years to come due to inflation. At least I will have the peace of mind knowing that all my years of hard-earned money will still be there for me to use, instead of entrusting it to a die-hard gambler with the fore-warned knowledge that I will not smell a cent of it in my later years should he lost all of it for me. If it wasnt a mandatory Law for us, we (or anyone else in this world) would be sick in the head to participate in a scam....ermm I mean scheme, like this.

No siree......thank you very much for yr 'concern' of my retirement age and all.....but no thanks, k. Just return us whatever that's owed to us when we hit 55, and we will consider that YOU would have already done your part for us. Not asking any more or less from YOU.....but just that, you know.

Anonymous said...

Interestingly, the Christopher Balding's blog has been suspended already.........

Anonymous said...

The gullible 60% and the diehards just do not want to know and pray and hope that nothing will happen to their money.

Anonymous said...

They already foresee that the CPF could be insolvent and already passed the bill to protect their backside.

Anonymous said...

If the CPF fund even stood a 0.00000001 % of going insolvent, then thats so much more the reason why it sudnt be made mandatory by Law. It should be an opt-in thing for those who are willing to take that risk. Then should it goes broke, no one can then blame any one at all coz its their own choice to join the scheme.

But as it is now, all Singaporeans are being forced to take this "unwelcome" risk with their hard-earned monies and just to get peanuts too at their retirement age of being paid a paltry sum ever mth, with the very real threat of losing it all hanging over their heads.

It is in my opinion, that not many Singaporeans know abt this unfair clause in the CPF Act. Not even the die-hard 60%, coz I cant just imagine for the life of me, who would willingly support policies like this when they know that there is a very high likelihood for them to lose all that they have worked for in their life - no matter what their political inclination are.

On the other hand, if they do know abt this clause already and still think that this CPF policy is something really benevolent coming out of the govt......then we are ALL DONE FOR, my fellow Singaporeans.

Cant really blame the person who is sucking you dry, when in yr death throes you are still saying, " Thank you very much Sir. U are so wonderful to bleed me dry. Please stick that knife a bit deeper into me" , can you ?

Chua Chin Leng aka redbean said...

Sinkies are so dull and daft that they did not even want to think about their hardearned money for fear of know how perilous it is. They deserved to be scammed if that day comes.

And the govt is never benevolent as far as CPF is concerned as it is the people's money not handouts from the govt. The irony is that the govt is the real beneficiary and should be thankful to the people for being allowed to use the people's money.

Unfortunately the govt has taken the people and their money for granted. They really think that the money is there for them to do as they please.

Anonymous said...

I was an ex pro PAP supporter all my working life.

We are not totally blind to recognise the good that a govt is doing for the country and especially for the people too. We give credits when it is due.

But I stopped being a supporter roughly abt 10 years back when the idea of a Singapore Inc was first being broached then.

Theres really no way to run a country as if you are running a company - a profit-making company, that is.

The priority of the 2 concepts are as far apart as the North and South Poles.

If a govt runs a country like a profit generating company, the aim and objective of that govt will invariably be more focused on revenues than anything else. Thats a given. Welfare for the good of the general masses will have to take a back seat, for sure. There's just no 2 ways to go about doing it - like they say, you cant have yr cake and eat it too.

True enough.

Witnessed the last decade or so, all policies that came out from this current govt almost all goes to show just one thing - i.e. to generate even more revenues thats all.

Well, some may argue that it is good for a country to be "rich" and have lots in its reserves. That , of course, generally is correct.

But then again, isnt it the aim for all that when a country prosper, so too shall its citizens ? What use is it then for the common man in the street, to be living in a "wealthy and rich" country when the daily survival is a struggle for him ?

With all the big fat reserves, generated from revenues in term of all kind of taxes on its own people, that it has, has this govt really share its wealth with the people and makes their lives a little better ? Did they make use of all those "profits" to help subsidize for BASIC ESSENTIALS services that its common people needs, eg. Public Transport, Health care, Education, Public Housing etc etc ?

The word "subsidy" is nothing but a dirty word in their dictionary, it seems.

If profits are not used for the benefits of the people, then why do we want a govt to run our country like a profit making company for ?

Why do we need a govt ,whose basic duty is to take care of its people, but in reality is 'washing its hands off' from ALL basic essentials services that the citizens need and privatising them instead. They have even transformed whats rightfully the obligations of a govt to its people, to something like themselves - profit-making entities. The list goes on......

All Singaporeans by and large are patriots at heart. We love this small little red dot of ours. Yes.

We (thats my generation) are grateful for the pioneers of the Old Guards who had helped built Singapore to what it is today. Their policies at times may be abit harsh but we can see that it is generally good for us and it REALLY have helped improved our daily lives back then. The welfare for the people in those policies back then were REAL and SUBSTANTIAL. And thats why we gave them our whole-hearted support all those years.

But comes the newer and younger batch of politicians that have nothing but the $$$ in their sight, whatever strong support we have for the Party soon dies a natural death.

The problem or risk of having a govt which boasts of having top-calibre brilliant people in their ranks is,they may view the people beneath them as "not so bright". And as such they may think that whatever they do will be for the good of them. Pushed this thinking too far and you reach a stage where the ruling party will be totally OUT OF TOUCH with its own people. Disconnected and unable to empathise with the people at the ground level anymore.

That, in a nutshell, is why you had lost my vote. Simple as that. No need to set up think-tanks or panel of committee to analyse why your margin had been dropping election after election. Help you save some cost to boost your profit margin even higher - not that it is of any good to people like me AT ALL though.

Matilah_Singapura said...

IMO, Balding is incorrect about insolvency. Your Great Leaders will never allow that to happen, or again IMO if it does, they won't tell you :-)

What will happen, and is happening, is that they'll make it increasingly difficult for you to redeem "your" money.

So you might as well let go right now, get on with your life and go out and make a success of yourself because living well is the best revenge.

Got independence?

Anonymous said...

" IMO, Balding is incorrect about insolvency....."

Wow, am I glad that in yr opinion Balding is wrong abt the insolvency ! Can sleep better in the night then.

But then again, "in yr opinion" , which part of his calculations and figures were incorrect. Pray tell and share please. No point in making simple general statement like that without stating your own reasons and justifications, is it not ?

" Your Great Leaders will never allow that to happen..."

Really ? On what basis are you so sure that they will never let that happen? Again, pls enlighten us, if you can. The mere fact that the Fund is being used for 'investments' is indicative that THEY have already allow that to happen, which explain why the need for them to come out with a clause in the CPF Act to protect their collective behinds should the Fund becomes insolvent. If not, why bother introducing that clause, no ?

"...or again IMO if it does, they won't tell you..."

I'm glad to hear that you too think now that the scenario of the Fund becoming insolvent is a possibility, and not like what u had said earlier that they will never allow it to happen.

But whether they tell us or not (which OF COZ they will probably NOT ), doesnt make it any better or any right. The issue of the post is to illustrate that this CPF Life annuity thingy is not made with the interests of the people at heart.

"..What will happen, and is happening, is that they'll make it increasingly difficult for you to redeem "your" money..."

Yes, totally agree with you on that one, of course. It is pretty obvious to everyone thats exactly what they are doing now.

"..So you might as well let go right now, get on with your life and go out and make a success of yourself because living well is the best revenge...."

Oh yes, making a success of oneself and living well is a MUST in whatever situation we find ourselves in. Thats an irrelevant reminder indeed, unworthy of being highlighted. :)

Folks who post here to discuss certain wrongs thats been thrusted into their lives by the govt, do not necessarily means that they "cant let go and cant get on with their lives", u know. Its call voicing their own opinions on matters that affect their lives. Or in another word, the 'freedom of speech' or 'having their say'.

Got a gag order or something ?

Matilah_Singapura said...

@anon 1012:

You've got one thing right: it is "my opinion". I don't make truth claims, and I prefer generalisations than specifics.

I don't have a "gag order", and even if I did, lie hell I'm going to reveal it ;-)

Got emigration?

Anonymous said...

Opinions which are not truthful by its own admission and are shrouded with generalisation and nothing else, are deceptive at best. At worst, it serves to mislead the masses and, inevitably, is a waste of everyone's time.

Got substance ? :)

Matilah_Singapura said...

Got cheem?