POLICY ON RETIREMENT AGE

Mr Phey Yew Kok asked the Minister for Labour, in view of the policy of the Government to reduce the need for Singapore to engage guest workers and in view of the effectiveness of the Government's medical health service in lengthening the working life-span of Singaporeans of both sexes, whether he will consider introducing legislation to raise the age of retirement to 60 years for all Singaporeans capable of working for several years beyond the age of 55.

The Minister of State for Labour (Mr Sia Kah Hui) (for the Minister for Labour): Mr Speaker, Sir, the present retirement ages in the Civil Service, with the exception of Police personnel, are 55 years compulsory and 50 years optional for those who joined the Service on or before 1st July, 1956, and 60 years compulsory and 55 years optional for those who joined the Service after 1st July, 1956. Notwithstanding that, officers in the former category have to retire at 55 years. Selected ones may opt to extend their retirement age to 60 years or to accept re- employment for a period of five years after their retirement.

For those working in the private sector, their retirement age is not stipulated under any law.

Although there is a provision in the Central Provident Fund enabling those who have reached the age of 55 years to withdraw their CPF contributions, it does not, however, preclude them from continuing to work after the age of 55 years. In practice, as reflected in most collective agreements, the retirement age in the private sector is 55 years and in some instances 60 years. However, in those firms where the retirement age in the collective agreement is fixed at 55 years, there are also provisions to allow employees to work until 60 years, subject to mutual agreement and medical fitness.

I agree with the Member for Boon Teck that raising the retirement age to 60 years would be a natural development, as people nowadays generally tend to live longer because of better living conditions, improved diet and medical services. It will also be a measure to increase the national supply of manpower. By prolonging the working life- span of individuals, it will enable them to increase their CPF contributions, thus enabling them to retire in more comfortable circumstances. However, I think a non- legislative approach will serve the needs of our industries better than legislating the retirement age at 60 years. Legislation will be counter-productive in that it might force the employer to retain dead-wood employees. On the other hand, the voluntary acceptance of the retirement age at 60 years by employers will allow the worker to retire before the age of 60 years if his productivity has decreased for whatever reasons and will also enable the worker who is still physically and mentally fit and capable of high productivity to carry on even after 60 years. In time, market and social forces will condition the employers to accept the age of 60 years as the retirement age.