PREVENTION OF CORRUPTION (AMENDMENT) BILL

Order for Second Reading read.

The Minister for Home Affairs (Mr Wong Kan Seng) (for the Prime Minister): Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time."

Investigation officers in Corrupt Practices Investigation Bureau (CPIB) have played a key role in combating and curbing corruption in Singapore. The success in this vital task over the years has resulted in a corruption-free public service and has made Singapore attractive to foreign investments.

In recognition of the vital role played by the investigation officers in CPIB, the salary schemes of the junior and senior Corrupt Practices Investigation Officers have been pegged to the junior and senior Police Officer schemes respectively in order to make their salary terms attractive enough to recruit and retain good officers. When the Ministry of Home Affairs Uniformed Services (HUS) implemented a superannuation scheme in the form of an HUS Invest Plan in October 2001, CPIB sought and received approval from the Public Service Division and the Finance Ministry to implement a similar scheme to the CPIB Investigation Officers.

The proposed superannuation scheme for the junior and senior Corrupt Practices Investigation Officers would provide for the following:

(a) Lowering of the current compulsory retirement age from 62 to 55 years for both junior and senior officers; and

(b) Implementing a CPIB Invest Plan to build up a superannuation fund to help them transit out of service earlier than other civil servants.

The rationale for the CPIB Invest Plan for the CPIB officers is similar to that for the Home Affairs Uniformed Officers.

The retirement age for the new CPIB officers has been lowered from 62 to 55 years because they need to be physically fit, agile and alert, especially when dealing with suspects who resist arrests. There are a few desk-bound officers in CPIB to which the older investigating officers could be re-deployed.

Exemption under the Retirement Age Act has already been obtained from 1st November 2001 to provide for the new CPIB officers to retire at the age of 55. Serving officers can choose to opt into the new superannuation scheme with the lowering of the compulsory retirement age. The CPIB Invest Plan under the superannuation scheme will have to be implemented with retrospective effect from 1st November 2001, in tandem with the effective date of the lowering of the retirement age.

The mechanism of the CPIB Invest Plan is also similar to that of the HUS Invest Plan. Apart from the full CPF contributions, CPIB will, under the CPIB Invest Plan, contribute an amount based on the percentage of the officer's monthly salary into a Retirement Account kept for the officer, which is 6% monthly for both junior and senior CPIB officers starting from the 7th year of service.

In addition, junior officers will receive retention payments in a separate Retention Account. The retention payments will be credited into the officer's Retention Account on satisfactory completion of each year of service during the officer's first 10 years of service. The payment is one month of salary for each year of service during the first six years. In the 7th to the 10th year, this payment increases to 1.5 months of salary for each completed year of service.

The funds in the officers' Retirement and Retention Accounts will be pooled to form an invest fund known as the CPIB Invest Fund. The CPIB Invest Fund will be managed by professional fund managers. Based on returns from investments, dividends will be credited into the individual accounts of the officers.

The accumulated amounts in the CPIB Invest Accounts can be withdrawn by the officers progressively. If the officer resigns prematurely, CPIB will retain part of the amount in the officer's account. The officer can only withdraw the full amount in his account if he serves the full career with CPIB when he retires at the age of 55. CPIB expects the progressive withdrawal feature of the CPIB Invest Plan to enhance retention, thus helping to attract good quality officers to join and remain with CPIB for a full career.

As it would not be cost effective for CPIB to set up a special machinery to manage the CPIB Invest Fund because of the small approved establishment of 62, the Home Affairs Ministry has acceded to CPIB's request to pool the CPIB Invest Fund with the HUS Invest Fund for management by the HUS Board of Trustees. The Director, CPIB, would be made a member of the Board of Trustees to oversee the interest of the CPIB officers. This would require consequential amendments to the Home Affairs Uniformed Services Superannuation Act 2001 and associated Regulations.

At the same time, the Home Affairs Ministry is taking the opportunity to amend the Home Affairs Uniformed Services Superannuation Act 2001 to offer the HUS Invest Plan to junior intelligence officers recruited from outside the Home Team. Previously, the HUS Invest Plan was only available to intelligence officers who were already the HUS Invest Plan members in their respective Home Team Departments before they were appointed as intelligence officers. The proposed amendments give similar terms to what is available for officers appointed to other Home Team Departments, that is, the HUS Invest Plan can also be offered to intelligence officers recruited from other departments in the civil service, or from the open market.

Sir, the Bill will provide for the following:

(a) The legislative framework under the Prevention of Corruption Act for CPIB to implement the CPIB Invest Plan;

(b) Amendment of the Home Affairs Uniformed Services Superannuation Act 2001 to provide for the management of the CPIB Invest Fund;

(c) Amendment of the Pension Fund Act to allow for the accrued pension benefits of the CPIB pensionable officers who have opted for the CPIB Invest Plan to be transferred from the Pension Fund to the CPIB Invest Fund;

(d) Amendment of the Home Affairs Uniformed Services Superannuation Act 2001 to offer the HUS Invest Plan to junior intelligence officers recruited from outside the Home Team.

Sir, I beg to move.

Question put, and agreed to.

Bill accordingly read a Second time and committed to a Committee of the whole House.

The House immediately resolved itself into a Committee on the Bill. - [Mr Wong Kan Seng].

Bill considered in Committee; reported without amendment; read a Third time and passed.