CORPORATISATION OF STATUTORY BOARDS

CORPORATISATION OF STATUTORY BOARDS

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(Entitlement to CPF Annual Allowance): **

1.

Mdm Halimah Yacob asked the Prime Minister whether the Public Service Division will review its position not to make any ex-gratia payment to civil servants who lost their CPF Annual Allowance when they were transferred to the statutory boards upon the corporatisation of such boards prior to April 2000.

Mr Teo Chee Hean: Civil servants who transferred to statutory boards have no entitlement to the annual allowance. Such employees enjoy full CPF contributions during their time of employment.

In 2000, Government decided to give statutory boards the flexibility to pay an ex-gratia payment to civil servants upon transfer to the statutory boards. Government decided not to apply this decision retroactively as it would create an undesirable precedent for other policies to be applied retroactively as well.

Over the years, the Public Service Division (PSD) has received numerous appeals related to this issue. The PSD conducted another review of its position recently following a further appeal from the unions. As conveyed to the unions in December 2007, Government is not able to accede to this appeal. Government's earlier position still stands.