Silver Support Scheme Bill

5.40 pm

Order for Second Reading read.

Mr Lim Swee Say: Mdm Speaker, I beg to move, "That the Bill be now read a Second time."

Mdm Speaker, Prime Minister Lee introduced the Silver Support Scheme in August 2014 during the National Day Rally. The Deputy Prime Minister and Minister for Finance subsequently provided more details of the Scheme in this year's Budget speech. Together with Workfare, Silver Support will be a permanent feature that forms the fourth pillar of our social security system, complementing the other three pillars of home ownership, the CPF system and healthcare assurance.

Page: 66

The Silver Support Scheme aims to mitigate inequalities by supplementing incomes for the bottom 20%-30% of elderly Singaporeans, who have lesser means in their retirement years. Those who qualify for the Scheme will automatically receive a quarterly cash supplement of between $300 and $750.

Since its announcement last year, the Ministry of Manpower has been working closely with the Central Provident Fund (CPF) Board and other partner agencies to prepare for the implementation of the Silver Support Scheme in 2016. The purpose of the Bill is to set out the legislative framework and powers necessary for the implementation and administration of the Scheme.

Mdm Speaker, I shall now highlight the main features of the Bill. First, clause 5 provides for the establishment of the Silver Support Scheme. The Scheme will be administered by the CPF Board on behalf of the Government. As the Scheme's administrator, CPF Board's duties will include developing the necessary systems to automatically assess an elderly person's eligibility for Silver Support and to make payments to the eligible recipients.

Clause 4 allows the Minister to appoint a Commissioner for Silver Support to oversee the proper implementation of the Scheme. The Commissioner's role will also include determining how one can opt out of Silver Support means-testing and reviewing appeal cases.

Clause 6 specifies that the Silver Support Scheme will cover Singaporeans, aged 65 and above, who meet the eligibility criteria, for as long as they require it given their financial circumstances. As mentioned by Deputy Prime Minister Tharman in his Budget speech this year, we will consider several factors, such as lifetime wages, the level of household support and housing type, in order to determine a person's eligibility for Silver Support. The detailed eligibility criteria and other implementation details will be announced closer to the implementation date.

Part 3 of the Bill sets out provisions for the Commissioner and CPF Board to access and use personal and means information from Government databases, for the purpose of administering the Silver Support Scheme. The information required includes basic administrative information, such as residential addresses as well as financial data, such as household income. This access to personal information will enable CPF Board to automatically assess an individual for Silver Support without requiring him to come forward to apply.

I would like to assure Members that the Bill puts in place stringent safeguards to protect the personal information from unintended or inappropriate use.

First, only persons authorised by the Minister for Manpower may access an individual's personal information, for the purpose of administering the Silver Support Scheme. Clause 9 makes it an offence for any person to access, use or disclose such information without proper authorisation. Offenders will face up to a $5,000 fine, or 12 months' imprisonment, or both.

Second, the Bill provides for Singaporeans who do not want CPF Board to access their means information from existing Government databases, give them the right to opt out of the provision of such information. We will also respect any decision made by any individual not to forward share his personal information that resides in existing Government databases with other agencies, including the CPF Board. Opting out would mean that such individuals will not be automatically assessed for Silver Support benefits. However, if they subsequently change their mind, they can come forward at any time to provide their personal information in order to be assessed for Silver Support.

Page: 67

Finally, Part 4 of the Bill provides for the enforcement of the Bill. It will be an offence for anyone who provides false information in order to obtain Silver Support Benefits, or receive a higher quantum than what he is eligible for. It will also be an offence to obstruct an authorised investigator in his investigation of possible false declarations. Furthermore, CPF Board will be empowered to recover any overpaid Silver Support benefits.

Mdm Speaker, let me conclude. Silver Support is a landmark scheme that helps to mitigate inequalities among our elderly Singaporeans. We will need to put in place systems so that approximately 150,000 elderly Singaporeans, who stand to benefit from the Scheme, are able to receive their Silver Support payments smoothly in 2016. This Bill paves the way for the Government to do so, by putting in place the necessary laws for the administration and implementation of the Scheme. Mdm Speaker, I beg to move.

Question proposed.

5.45 pm

Mr Zainudin Nordin: Mdm Speaker, we have long debated and discussed not only in this House but outside, on the concerns of the elderly especially when they are in their twilight years. This is the phase in their lives where they are most vulnerable as not only they are no longer working but they are also not in the best of health. And, in some cases, this is also the time when their children would have set up their own families and unable to cope with looking after their aged especially in financial support.

Strengthening the social safety net is always a right thing to do. Life is not perfect where everyone in the family has a successful career and a good-paying job. In Singapore, we are no different. We have families who are more closely-knitted and others who are dispersed and some even dysfunctional. Hence, there are seniors who face challenges to cope with their daily expenses and they do not have strong support network (either family or relatives). Some live alone and if you visit their home you can see very basic items like a foldable metal table, an old flask and maybe a kettle beside a tray with two cups in the living room. The bedroom is as stark with a bed and a cupboard, and the kitchen hardly has any utensils.

Madam, in the early days of our economic development, up to the 1980s, I assume, our economy was driven primarily by manufacturing and manual labour. Our workforce demography was majority blue collars. Back then, the cost of living was low and majority of Singaporean workers and families were able to cope with low wages. But now cost of living has risen, seniors are living longer lives, and they have higher expectations. Some may be in their mid-60s and need more support.

Because they live longer lives, they require more medical attention. They fall sick sometimes, and need to be transported to the clinics or hospital for medical care. They need to pay for medical bills in addition to their daily expenses. Thus, Madam, to put it simply, they need support and some helping hand.

Page: 68

The Silver Support Scheme is a good way to render this support. I am happy that the criteria are broader and, more importantly, they take into account the life earning of workers rather than just their recent income. I would propose that this criterion be applied with more weightage than the housing type of the eligible applicant or even the support when the seniors apply for this scheme.

I would also suggest that 100% or the majority of Silver Support disbursement be given in cash directly into individual senior citizen's bank account instead of the CPF Account. Most eligible senior citizens would benefit from this support directly if it is contributing to the overall resource for their day to day living needs.

Mdm Speaker, I am also concerned. I believe, in the future, the need for more funds for Silver Support is inevitable. We must continue to take care and provide for our elderly so that we promote filial piety not only in words but also in action. I wish we can disburse more for the seniors. So, apart from asking the Government for more, similarly I hope the philanthropists and the well-to-do in Singapore could also work closely in the community to assist our elderly and complement the effort of the Government to support our elderly in their twilight years.

Mdm Speaker, today we will be introducing a new Social Security Scheme. We may end up a burden to our future Government and our future generation, but it is necessary. We must do this and at the same time we should also make sure that there are enough resources in the future, and safeguard and manage the Silver Support Scheme well. Let us make caring for our elderly the hallmark of our society that will be the blueprint of making even our social support network stronger. I support the Silver Support Scheme Bill.

5.50 pm

Assoc Prof Fatimah Lateef (Marine Parade): Madam, it is often said, society is judged by the way it manages its seniors and the needy citizens. The Silver Support Scheme, or the "SSS" as I will call it, represents yet another component of our social safety net. Those eligible have been looking forward to this since its initial announcement and the estimated number of recipients of 150,000 is indeed not small.

I have a few clarifications to make, Madam. First, coordination. Many beneficiaries of the SSS would also be recipients of schemes like ComCare, the Pioneer Generation Disability Assistance and other financial assistance. Will there be some database sharing between the relevant agencies, whilst maintaining confidentiality of course, as required at the same time? This would be useful, and the coordination and oversight for the elderly will then be more systematic and organised. When doing this, of course the Data Protection Act would have to be complied with.

Second, Madam, with regard to some of the schemes that I have mentioned earlier, the elderly or pioneer receives the disbursement on a monthly basis. For the SSS, the proposal is a quarterly pay-out. However, if the coordination that I mentioned earlier in point 1 above can be practically carried out, can the SSS disbursement be meted out on a monthly basis instead. This has been one of the common feedback that I have received from the many seniors that I met during my walks and house visits.

Page: 69

Third, it is also stated that this SSS is a "permanent initiative". Can the Minister please define what this exactly means? Will an elderly who turns 65 in the coming years and meets the eligibility criteria also be able to receive the SSS?

Fourth, the feedback from the elderly is also positive in terms of the automatic enrolment. This saves the trouble for them to get the application forms and to sign up. Moreover, many of them may not be IT-savvy and have to do it the hard copy way if required and thus may be more time consuming. So, that was a welcomed change indeed.

Fifth, for the seniors with dementia and those in long-term care facilities like nursing homes, what will be the procedure for them to receive this if they are eligible and they have been working in their earlier years? Can the next-of-kin receive on their behalf or will there be a need for some form of legal approval or agreement for this to be done?

Sixth, finally, for the elderly who have a private estate address or a landed property address because they are renting a room there or they have no home and are staying in some kind of association, a clan association or a temple with a private registered address, will they be given case-by-case consideration as such persons will likely need the SSS support as well.

Hoping for these clarifications, Madam, I support the Bill.

5.52 pm

Mr Lim Swee Say Mr Lim Swee Say: Mdm Speaker, I would like to thank Mr Zainudin Nordin and Assoc Prof Fatimah Lateef for their support of the Silver Support Scheme Bill.

Silver Support is a permanent scheme. In response to Assoc Prof Fatimah Lateef, this means that it will apply to both the current and future generation of elderly. Those who meet the eligibility criteria will start to receive Silver Support benefits from the age of 65.

Both Members touched on the eligibility criteria. Mr Zainudin suggested giving more weightage to lifetime wages. I would like to reiterate that eligibility will be based on a combination of three factors – lifetime wages, the level of household support an individual has, and the type of housing he or she lives in. As for those on the margin, for example, as highlighted by Assoc Prof Fatimah Lateef, those with a private housing address but actually do require the help. So, these are the marginal cases, while they do not automatically qualify for Silver Support, they can write in to the Commissioner to appeal and we will consider each case on its merits.

Mr Zainudin asked about the payment for this Silver Support. He suggested that the payment be done in cash, rather than into their CPF account. As I have mentioned earlier, Silver Support will be a cash supplement and will be paid into the bank accounts of eligible elderly. For those who have no bank accounts, we will send cheques to their registered addresses. So, in other words, 100% cash.

Page: 70

Assoc Prof Fatimah Lateef and Mr Zainudin asked whether Silver Support could be paid out on a monthly basis. Madam, unlike the other financial assistance schemes like ComCare and the Pioneer Generation (PG) Assistance that do so, Silver Support is an income supplement and is not intended to be a substitute for other sources of retirement income, which would include CPF savings, private savings and family support. As Deputy Prime Minister Tharman put it during the Budget debate, Silver Support supplements incomes in a modest but meaningful way. Other schemes where we have adopted a quarterly payment approach include the Workfare Income Supplement (WIS) scheme, which is also designed to supplement incomes.

Assoc Prof Fatimah Lateef also asked about data sharing and a stronger coordination between agencies that manage other financial assistance schemes such as ComCare, and so on. Madam, this Bill will enable CPF Board to exchange information among relevant agencies, with the safeguards that I mentioned earlier. As part of the implementation approach, we will also look into the Member's suggestion of paying Silver Support benefits to eligible recipients who are unable to directly receive the benefits themselves, through their authorised third parties or next-of-kin.

Mdm Speaker, to sum up, this Bill sets out the necessary legislative framework for us to smoothly implement the Silver Support Scheme next year.

Question put, and agreed to.

Bill accordingly read a Second time and committed to a Committee of the whole House.

The House immediately resolved itself into a Committee on the Bill. – [ Mr Lim Swee Say ].

Bill considered in Committee; reported without amendment; read a Third time and passed.

Page: 70