PENSIONS (EXPATRIATE OFFICERS) BILL

Order for Second Reading read.

4.15 p.m.

The Minister for Finance (Mr Hon Sui Sen): Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time."

In 1970, the British Government announced that it would assume responsibility for the cost of preindependence expatriate pensions paid to retired expatriates who had served the governments of its various territories. To implement this decision, the British Government passed legislation which enabled the British Government to assume full responsibility for the administration and payment of pensions to expatriate officers who had served in the civil service of its former colonies.

In discussions held between officials of the Singapore Government and the British Government, agreement was reached for the latter to assume full responsibility for the following payments:-

(a) the cost of expatriate pensions payable to retired officers covered by the Public Officers' Agreement, Singapore, 1 964, in respect of their service prior to 29th January, 1957, the date on which the Singapore Public Service Commission was established;

(b) the cost of expatriate pensions for service after 29th January, 1957 on the Singapore Government paying the British Government a capital sum in full settlement, the amount of which is to be actuarially determined and mutually agreed upon by the two Governments;

(c) the whole cost of pension payments under the Widows' and Orphans' Pensions Scheme for the widows and orphans of deceased expatriate officers and assisting the surviving expatriates who are still under the scheme.

About 1 .380 pensioners are involved and the estimated gross saving to Singapore on expatriate pensions would be in the region of £860,000. This amount would be reduced by about £260,000 representing Singapore's cost of liquidating the pension liability for pensions of officers with service after 29th January, 1957. There will also be a small abatement on account of income tax deductible from the pensions by Singapore. In respect of the expatriate widows' and orphans' pensions, the Singapore Government would save about £66,000 annually.

The Public Officers' Pension (Singapore) Agreement 1976 has been signed between the Government of Singapore and the Government of the United Kingdom of Great Britain and Northern Ireland detailing the arrangements for the takeover of expatriate pensions liability by the latter from 1st April, 1973. The passing of the Pensions (Expatriate Officers) Bill will give effect to the Public Officers' Pension (Singapore) Agreement 1976 under which responsibility for the payment of pensions, including widows' and orphans' pensions, to certain expatriate officers and their dependants will be relinquished by the Singapore Government and taken over by the Government of the United Kingdom.

Sir, I beg to move.

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 arm the Bill .-[Mr Hon Sui Sen]

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