Ex-gratia Payments for Government Pensioners

Asst Prof Tan Kheng Boon Eugene asked the Prime Minister in light of the rapid increase in the cost of living in the last five years, whether the Government will make regular and more substantive ex-gratia payments to Government pensioners, especially those with low pensions.

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Mr Teo Chee Hean (for the Prime Minister): The pension paid to a pensioner is based on the officer's length of service and his pensionable salary at the eve of retirement. The pension is a fixed quantum and is tax-exempt.

To help pensioners in the lower pensions group cope with inflation, the Government in 1974 introduced an ex-gratia allowance called the Singapore Allowance (SA) over and above the pensions paid to pensioners residing in Singapore, subject to a gross monthly pension ceiling. The current SA quantum and gross monthly pension ceiling is $260 per month and $1,190 respectively.

Since 1974, there have been 11 revisions to the SA with the last four revisions made between 2007 and 2011. In the latest revision made on 1 April 2011, the SA quantum was revised by $20 to $260 and the gross monthly pension ceiling (that is, SA and basic pension) revised by $20 to $1,190.

The Government will continue to carry out regular reviews of the gross pension ceiling and revise it when necessary.

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