GOVERNMENT PENSIONERS

GOVERNMENT PENSIONERS:

(Cost of living allowance): 23.

Mr Lim Biow Chuan asked the Prime Minister, in light of the rising cost of living especially with respect to food and other daily necessities, whether the Ministry will consider giving a cost of living allowance to all Government pen-

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sioners who have contributed in the past to the growth of the country.

The Minister for Defence (Mr Teo Chee Hean) (for the Prime Minister): Mr Speaker, Sir, a pension is a fixed quantum paid for past services rendered, and is calculated based on an officer's length of pensionable service and pensionable salary as at the eve of retirement. This is provided for under the Pensions Act. Hence, the pension is not subject to change.

Notwithstanding the fixed nature of the pension, since 1974 the Government has given an ex-gratia payment, called the Singapore Allowance, to pensioners with low pensions. This is an additional payment over and above the pensions received. Since its inception, the Singapore Allowance has been adjusted several times. Most recently, as announced during the Budget Speech this year, the Government has with effect from 1st April 2008 increased the Singapore Allowance by $20 from $200 to $220 per month. For those receiving the Singapore Allowance, the gross pension ceiling, comprising the monthly pension plus Singapore Allowance, was also raised from $1,150 to $1,170.

Like other citizens, pensioners are also eligible for national surplus sharing initiatives from the Government. A number of these initiatives have been specially designed to benefit older Singaporeans.

Mr Lim Biow Chuan: Sir, I would like to ask the Minister: in view of the fact that the figure is quite low, and the fact that the cost of food and other daily essentials has gone up by quite a bit, would the Government be more generous to such pensioners and give an ex-gratia payment to the pensioners to provide for the increased cost of living?

Mr Teo Chee Hean: Sir, as I mentioned in my answer, the pension really is a fixed

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quantum which is determined by the length of the pensioner's service plus the salary that the pensioner earned at the time of his retirement. We should not vary this loosely because this is the term which the worker accepted at the time when he took up his service. This is part of his contract. Nevertheless, like all elderly Singaporeans and Singaporeans who may be needy, there are schemes in place in Singapore which help elderly Singaporeans. For example, the latest Growth Dividends are actually skewed towards assisting older Singaporeans, and these include our pensioners.