PENSIONS (AMENDMENT) BILL

3.37 p.m.

Order for Second Reading read.

The Minister for Finance (Dr Goh Keng Swee): Sir, I beg to move, "That the Bill be now read a Second time."

This Bill seeks to amend the Pensions Ordinance, 1956. It provides for pension and other retirement benefits of persons transferred to the service of the Government from the City Council, the Singapore Improvement Trust and the Tan Tock Seng Hospital. The superannuation schemes to which they belonged prior to the transfer generally allowed them to continue membership in their respective schemes. They could also count their service before transfer as service reckonable for pension on their eventual retirement. As matters stand, such a person would be eligible on his retirement for benefits under his own superannuation scheme as well as retirement benefits under the Government pension scheme. This is clearly contrary to the principle of superannuation. It is, therefore, necessary for provision to be made to enable employees transferred from the City Council, the Trust and the Tan Tock Seng Hospital to choose to receive benefits either from their own superannuation scheme or those under the Government pension scheme.

There is also the aspect of death benefits. The Government's pension scheme, as it stands, requires the payment of at least one year's salary in the form of a death gratuity to the dependants of a deceased officer. As on their transfer to the service of the Government, employees of the City Council, the Trust and the Tan Tock Seng Hospital become Government officers, their dependants would be entitled to a death gratuity or one year's salary should they die in harness. The existing provisions for the payment of a death gratuity do not take into consideration death benefits to which a transferred person may be eligible under his own superannuation scheme. If this situation is allowed to continue, then transferred persons would be better off than Government servants who have only the pension scheme to rely on for benefits. For this reason, provision has been made in the Bill for the quantum of death gratuity payable under the Government's pension scheme to be reduced to the extent of contributions paid to the superannuation scheme to which a transferred person belonged by his previous employer and Government.

Sir, I beg to move.

Question put, and agreed to.

Bill accordingly read a Second time.

Committed to the Select Committee to which the Public Utilities Bill has been committed by the Assembly. -[Dr Goh Keng Swee].