GRATUITIES AND PENSIONS PAID TO MINISTERS AND MPS

Mr J.B. Jeyaretnam asked the Minister for Finance if he will provide the House with a statement showing: (i) the gratuities that were paid to those Members of Parliament who relinquished office as Ministers at the end of last Parliament stating the amount paid in each case; (ii) the pensions that are now drawn by them stating against each Minister the pension drawn by him; (iii) the gratuities that were paid to Members of the last Parliament who did not seek re-election,giving the amount against each Member; and (iv) the pensions that are currently drawn by those Members giving against each Member the pension drawn by him.

Dr Hu Tsu Tau: Gratuities and pensions were paid, in accordance with the Parliamentary Pensions Act, to eligible Members of Parliament who relinquished office as Ministers at the end of the last Parliament and to eligible Members of the last Parliament who did not seek re-election. To be eligible for gratuity and pension benefits as a former Minister, a Member must have completed not less than eight years reckonable service as a Minister and attained the age of 50 years. If he has served less than eight years as a Minister, the period of his service as a Minister will be taken into account when his gratuity and pension benefits as a Member of Parliament are calculated. A former Member of Parliament will be eligible for gratuity and pension benefits if he has completed nine years reckonable service and attained the age of 50 years.

The full annual pension for a former Minister is computed at the rate of 1/324 of his last-drawn annual salary for each completed month of reckonable service. The full annual pension for a former Member of Parliament is calculated at the rate of 1/360 of his annual salary for each completed month of reckonable service. 1/3 of the full annual pension for 12 1/2 years can be commuted into a lump sum gratuity. The remaining 2/3 of the annual pension is paid monthly.

Salaries of Ministers and Allowances for Members of Parliament are matters of public record as are lengths of service of retired Ministers and Members of Parliament. Pensions and gratuity entitlements are therefore calculable by anyone interested in the details.