CENTRAL PROVIDENT FUND (Topping up for ERS)

CENTRAL PROVIDENT FUND:

(Topping up for ERS) * 4. *Dr Amy Khor Lean Suan asked the Deputy Prime Minister and Minister for Finance (a) how many Singaporeans have not topped up their CPF for the ERS as at 31st December 2003 and (b) whether his Ministry will consider making some concessions for those who have missed the deadline for the top up, if they have good reasons.

Mr Lee Hsien Loong: Mr Speaker, Sir, 84,867 Singaporeans have not qualified for the second lot of ERS. This compares with 97,970 Singaporeans who did not qualify for the first lot of ERS last year.

The CPF Board and the Ministry of Finance will consider appeal cases from Singaporeans who have missed the deadline for the top up on a case-by-case basis, taking into account the reasons why they missed the top up.

Dr Amy Khor Lean Suan (Hong Kah): Sir, I would like to ask the Deputy Prime Minister that given the significant numbers of Singaporeans who have not topped up their CPF this year as well as last year - 80,000 and 90,000 respectively - whether the Ministry has actually done any analysis to see if a significantly similar group of people were the ones who did not top up for the two years, and whether they know the causes for this, so that the help of the grassroots, for instance, could be enlisted much earlier in an effort to reduce the number.

Another question I would like to ask the Deputy Prime Minister and Minister for Finance is whether the Ministry also works closely with the grassroots who have been asked to assist in helping those who have not topped up to top up on the information that they gather. For instance, in my constituency, we found

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that there was a man who was supposed to be 106 years old. When we went there, he had actually passed away eight years ago. Could such information be gleaned to update the records?

Mr Lee Hsien Loong: Mr Speaker, Sir, we try very hard to make sure that everybody knows that they have to top up $50 before 31st December 2003. We have worked with the grassroots. We have sent out lists of the people who have not contributed to all the Advisers, so that they can do something about it. We have put out information, posters at public places, newspaper advertisements, publicity on radio and TV, individual reminder letters. Grassroots have visited homes. It is quite hard to give money away in Singapore! Despite that, 87,000 have not topped up. It is slightly less than last year. I do not know whether the profile is the same or not. I would imagine that it is about the same profile.

Last year, after we gave a 3-month extension for the 1- and 2-roomers and welfare homes, the Advisers made a tremendous effort with the grassroots leaders. They went around to a lot of the homes. They found that many of the people had actually moved without telling us that they had moved. You know it yourself. I think if people have moved house and we do not know where they are, it is not really our business to look for them to give them the money. It is their business to let us know where they are so that we can help them.

This year, I do not think we should extend the deadline. But if anybody has any case with a plausible reason, we will look at it very sympathetically.

Ms Irene Ng Phek Hoong (Tampines): Sir, can I ask the DPM whether he would consider relooking the need for a top up given the fact that it has been proven to be a major exercise just to get people to top up, especially the groups who are

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illiterate, low educated and low skilled? The grassroots leaders have been going around and we found that it has been a major exercise. Perhaps we should re-examine this.

Mr Lee Hsien Loong: Mr Speaker, Sir, our basic philosophy is that you ought to do something to deserve something. Nevertheless, we have, this time, made some adjustments to the top-up requirement to make it easier, particularly for the older folks for whom it might be a burden. So, for Singaporeans aged 62 and above, they can qualify for the ERS simply by signing on a form and returning to the CPF Board. They do not even have to put any money in. And this form will authorise the Board to change $100 of their second lot of ERS into cash on the day the cash is issued and put it into their CPF account. When you cash in your second lot of ERS, you put some amount of money in, qualify for the second lot as well as for the third lot. So, if you are above 62, effectively, all you have to do is to sign on the dotted line and you can get your shares, and you do not have to come up with any cash upfront. I think it is not unreasonable to ask people to sign on the dotted line.

For other Singaporeans, what we have offered them is that when they exchange their second lot of ERS and take the cash out, which I think about 300,000 have already applied to do, then they can ask to put $50 of their ERS back in and that will count as their contribution for the third tranche. I think we have made it as easy as we can make it, short of giving it to you even without you doing anything. If we gave it to people even without their doing anything, then we would be in danger of giving it to more people, like Dr Amy Khor pointed out, who may be 106 years old on paper but, in fact, passed away some years ago. When the grassroots leaders went around last year,

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they found a lot of people who had passed away and we did not know, because they may have passed away overseas. There is no death certificate here, and no report was made. The reason they did not report is that their partner, wife or housemate is still living and it is convenient for HDB to have two names on its record. So, I think it is good to ask for a signature. Then we know the person is still there.

Dr Amy Khor Lean Suan: Sir, given the experience of the last two exercises, could the Ministry work early with the grassroots to update the records, especially for those people where we have got information about their passing away or because they are illiterate and simply cannot understand or fill up the forms, so that there will not be a last minute rush to try and get these people to sign up before the deadline?

Mr Lee Hsien Loong: Mr Speaker, Sir, for those who have passed away, I do not think there will be a last minute rush! For the rest, we will see what we can do.

Mdm Halimah Yacob (Jurong): Sir, can I ask the DPM what assistance is being rendered to those who are in prison and DRCs? I have a couple of residents who have come to see me on this, because they are not able to do the topping up either because they said that information did not reach them or for whatever other reasons. What help is rendered to those in DRCs and prisons?

Mr Lee Hsien Loong: Mr Speaker, Sir, I will look into this problem. I was not aware that there was a difficulty. Usually, the families are there. The families can do it on their behalf. But if there are specific problems, I will look into it and see whether something more is necessary.

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