SHARE OWNERSHIP TOP-UP SCHEME (For full-time National Servicemen and retirees)

Mr Chia Shi Teck asked the Minister for Finance if he will consider (i) extending the $300 Share Ownership Top-Up Scheme to full-time National Servicemen as an endorsement of their service to the nation and (ii) giving the $300 straight into the Central Provident Fund account of retirees as a recognition and reward for their past contribution to the nation.

Dr Richard Hu Tsu Tau: Under the second Share Ownership Top-Up Scheme (SOTUS) announced in February 1994, Singaporeans will qualify for the $300 top-up in their CPF accounts if they contribute at least $750 into their accounts over the qualifying period from 1st March 1994 to 31st August 1995.

Government recognises that full-time National Servicemen are performing compulsory service to the nation. That is why during the first SOTUS in 1993, a loan scheme was arranged for national servicemen who were eligible for the top-up but did not have sufficient contribution in their CPF accounts during the qualifying period to benefit from the $200 top- up. For the second SOTUS exercise, MINDEF will consider providing a similar loan scheme to help such national servicemen.

As for retirees, Government recognises the contributions that they have made to the nation. However, Mr Chia's suggestion of giving the top-up without a matching contribution runs against the fundamental principle of co-payment from citizen CPF members including retirees, to qualify for the top-up. While we appreciate their past contribution, it would be wrong, in principle, to give retirees the $300 without matching contribution, which applies to all.