RETIREES INSURANCE SCHEME

Mrs Yu-Foo Yee Shoon asked the Minister for Labour since the Retirees Insurance Scheme was introduced, how many Central Provident Fund account holders have made use of the Scheme and whether there will be any educational programme to encourage more participation in the Scheme.

The Minister for Labour (Mr Lee Yock Suan): Mr Deputy Speaker, Sir, under the Minimum Sum Scheme, CPF members may place their minimum sum with a bank or with the CPF Board or in an annuity policy. Up to the end of May, 30 members bought annuities with their minimum sums as compared to 154 who put them in their banks, and 1,891 who left them with the CPF Board. Only a small number of CPF members have chosen to buy annuities probably because the concept of annuities is still new to most Singaporeans. More efforts will need to be made to educate the public on the benefits of annuities as an investment for old age.

On its part, the CPF Board has published a guide book on the Minimum Sum Scheme. It includes details of the various approved annuity schemes provided by insurance companies. It is distributed free to members who join the Minimum Sum Scheme at age 55. The staff of the Board have also been drawing the members' attention to the advantages of buying annuities with their minimum sums when they come to the Board to withdraw their CPF savings.

My Ministry will collaborate with insurance companies to further educate the public on the advantages of annuities as a form of investment for their old age savings.