LIFE ASSURANCE IN CPF SCHEME (Introduction)

Mr Hwang Soo Jin asked the Minister for labour whether, in view of the recent increase in the rates of central Provident Fund contributions, he will instruct the CPF Board to consider introducing an element of Life Assurance into the CPF scheme to give protection to (i) depositors with family responsibilities who are in the earlier years of their working life and whose deposits are consequently insignificant; and (ii) depositors with outstanding housing-loan commitments, so that in the unfortunate event of their premature deaths their families will not be left unprovided and in debt.

The Minister for Labour (Mr Ong Pang Boon): Mr Speaker, Sir, the hon. Member for Jalan Kayu might like to know that the Central Provident Fund Board is already looking into the question of introducing a life assurance element into the CPF savings scheme. Coverage of this life assurance is expected to cater primarily for CPF members who die in the early years of their working life and whose CPF savings are insignificant. The extent of protection to be given under this life assurance is being examined.