RETIRED CIVIL SERVANTS' PENSION

Mr Thomas Thomas asked the Deputy Prime Minister whether pensions of retired civil servants will be adjusted in the light of the recent public sector salary revision.

BG Lee Hsien Loong: Pensions are calculated based on the pensionable component in an officer's last-drawn salary and the length of his pensionable service. As pensions are given on account of past service, they are not adjusted whenever the salaries of serving officers are revised.

However, the Government does recognise that some of the older pensioners are receiving low pensions relative to the cost of living, and therefore assists them by paying a top-up allowance, called the Singapore Allowance, to supplement the pensions that they receive.

The Singapore Allowance was last revised in August 1997, when it was raised from $130 to $140 per month. Concurrently, the gross pension eligibility ceiling was raised from $900 to $950 per month. Since 1997, the Consumer Price Index has increased by only 2.1%. This year, MTI projects inflation to be only 1-2%. Nonetheless, the Government will review the present quantum and eligibility ceiling for the Singapore Allowance, to determine if another revision is justified.