CPF scheme a complete failure, PAP unable to address issues

PAP fears transparency because it will expose failed policies and schemes, eg CPF scheme.

Basic information such as the number of Singaporean CPF members who meet the Minimum/Retirement Sum at 55 has been concealed because the figures are deeply embarrassing.

Instead, PAP discloses only “active CPF members” which includes those who pledge their properties.

It’s not difficult to understand why CPF scheme will continue failing Singaporeans, and no amount of tweaks by PAP will help.

In 2003, CPF chairman Moses Lee disclosed in CPF 2002 AR (removed from CPF website): “As at end 2002, only 42.2%, of active members on reaching age 55 were able to meet the Minimum Sum based on the cash component in their Ordinary & Special Accounts (includes members who meet the full Minimum Sum and those who pledge half in property).”

Including inactive members and excluding members who had to pledge their properties, ie CPF members with Minimum Sum (MS) balance in cash, the figure was likely to be lower than 30%.

About a decade later, DPM Tharman attempted to cover up failure with half truth:  “The percentage of active CPF members who meet their Minimum Sum at age 55 has been improving over the years, from 36 per cent in 2007 to 45 per cent in 2011.”

Tharman conveniently used the lowest historical figure to highlight the improvement of 9 percentage points over 4 years when in reality, the improvement was only 2.8% over 9 years.

The percentage of Singaporean members who met the MS balance in cash was likely to be similar to a decade earlier, ie lower than 30%.

For scholars who are used to scoring A+, 30 marks must have been embarrassing.

Hoping to convince Singaporeans, Tharman did some crystal gazing and said that “this will improve with each successive cohort, as educational profiles improve and lifetime incomes rise”.

But didn’t his colleague later advised Singaporeans that improvements in educational profiles might not help at all?  Khaw:

Tharman somehow forgot to account for inflation, much of it resulting from PAP singlehandedly increasing costs, eg electricity and water tariffs, ERP charges, parking fees, etc.

6 years later, NO supporting statistics to show any improvements.

The factors contributing to a failing CPF scheme decades earlier are the same today:
1. A very high percentage of CPF (60% of monthly CPF contribution, up to 100% in the 1970s) used to fund housing.
2. CPF not properly invested but legislated as loans to the government, resulting in very low long-term returns.

The solution is obvious to an idiot.  PAP ministers are not idiots and the introduction of the Minimum Sum scheme in 1987 wasn’t meant to serve CPF members’ needs.

However, PAP can’t reduce the percentage of CPF contributions for housing as this will lead to the bursting of our property bubble.

Neither can CPF not be legislated as cheap loans to the government because billions from CPF returns have been used to supplement state revenue for decades.

Disclosing relevant CPF statistics will prove the failure of CPF scheme, eg the percentage of Singaporean CPF members meeting the MS balance in cash at 55 likely to be less than 40%.

The ball is in PAP’s court to prove the government did not tell half truths to cover up CPF failure.


Phillip Ang

* The author blogs at LikeDatOsoCanMeh.



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14 Responses to “CPF scheme a complete failure, PAP unable to address issues”

  • True facts:

    Once they open the floodgate of FTs all locals will be left jobless like now you can see the situations.

    Time for regime change.

    GD Star Rating
  • Bigger Than Anyone Can Imagine:

    PAP institutions already squandered the reserves.
    CPF monies are taken and they could not meet the repayment.
    The hole is getting bigger and deeper as PAP resorts to conceal the failures rather than to be truthful with their blunders.
    The result is that government spending on needful will have to be curbed or taxes have to be raised to cover any shortfalls for future gamblings.
    Now value of HDB has to be declared as zero and seize once the lease is up.
    Citizens have to fend for their own old age and healthcare.

    Did LKY lied about the HDB being an asset and as a store of value for retirement? Autocratic, proud and greedy a person he might be, but unlikely he would allow himself to be lowered to the level of a sheer dishonorable cheat.
    Some things must have changed along the way without his endorsement.

    As for the reserves, More lies are needed to cover-up previous lies. The problems now have compounded and are not just simply failed policies.
    It could be the biggest keptocracy in history.

    Just take a good look at the half Malay half Indian presidential scam, desparate times calls for desparate measures. if the situation isn’t bad enough, would there be a need for such open fraud?

    Come on sinkies, for once please use your brains.

    GD Star Rating
  • Ong PC:

    All these claims about CPF miss the most important points:

    1) Nobody has ever been denied their payment when they want to collect any amunt of their CPF in excess of the Minimum Sum. CPF is 100% solvent.
    2) CPF can be used to buy property, and hence, property can be used as pledge for 50% of the Minimum Sum. This is perfectly legitimate. Nothing wrong with it. Why exclude people who do this?
    3) CPF is only part of Singaporeans overall savings. Even if most do not meet the Minimum Sum, it does not matter since most Singaporeans have ample cash savings.

    Using inability to meet Minimum Sum to justify Singaporeans don’t have enough for retirement is false. Most Singaporeans have other liquid assets.

    GD Star Rating
  • Cb:

    Pigs representative aka total paKar alrdy tell and concur by Pinky & Botak : cPeeF not pupils $$$
    Laulan arseEnlargementSteam to $0 @99

    GD Star Rating
  • LIONS:

    Seriously,the P$P govt is totally irresponsible.Scheming to take what little is left of our CPF is simply immoral n shows a greedy n inconsiderate leadership.

    The current govt is creating a bigly national problem by their policies.
    Many sg families are already broken down.

    But,lee ah long cares not n still grin n grin

    Time for change!

    GD Star Rating
  • clown pap and S$m gang:

    when citizens’ money is abused in gic temasick, at least with their returns local born citizens do not need to pay GST. then, at least fair deal.

    but even with massive unauthorized borrowing of citizens’ money, yet all clown pap and S$m gang can do is to raise test balloon to raise GST to 9%. WTF.

    NOW 3.3m local is a fact. and the number of local born out of 3.3m without job without income clown pap and S$m gang surely know down to the last number.

    YET clown pap and S$m gang have chose to raise GST instead of doing other things. where is the heart? where is the care and concern? NONE.

    clown pap and S$m gang forget, paying each other S$m yearly of course no problem with 9% GST or 90% GST. but the local born without job without income 1% GST is squeezing blood out of stone. and the clown pap Ljs and clown pap Cbs are talking 9%. truly WTF.

    right at the time when clown pap and S$m gang raised test balloon on 9% GST, pap PA paid IBs no end saying 9% helps Singapore in that tourists pay more taxes. truly this is WTF of all WTFs. 1st, isn’t there a refund for tourists? so what are pap PA paid IBs talking? 2nd, which tourist shops in Singapore 9% when it is free of taxes elsewhere? even us locals buy in JB just to avoid current 7% GST, especially on prescription medicine.

    clown pap and S$m gang dying from their own pile of lies. good riddance.

    GD Star Rating
  • oxygen:

    CPF AS A MEANS OF RETIREMENT SAVING is a MONUMENTAL FAILURE.How can property value be pledge of retirement funding adequacy when it values diminishing towards zero at lease expiry?

    GD Star Rating
  • HarderTruths:

    You miss the point.
    The goal of CPF was never meant as an old age pension scheme for $G fools.

    It was (and is) a way to get unlimited finances for government investments and also guaranteeing government debts to ensure the continued millionaire lifestyles of pappies and civil servants (who are no better than their masters)

    I think the pappy goal has been very successful. Anything else as a goal does not matter and never will.

    GD Star Rating
  • Oh no no no:

    That pic ,100% eeewww effect!

    GD Star Rating
  • I can not see:

    Need to wash my eyes out with soap….hard to unsee that doctored pic…hehehe!

    GD Star Rating
  • Jman:

    CPF may have its shortcomings.

    But this sort of sweeping statement that it is a complete failure is nonsense and is not helpful.

    The title torpedoes any kind of credibility that the article may have sought, and doesn’t even warrant a read.

    GD Star Rating
  • oxygen:

    IMPRISONMENT OF ANY PART OF CPF AFTER 55 is theft of private property in law. How can that not be a complete failure from the perspective of peasant labor?

    GD Star Rating
  • did clown pap and gang lie?:

    CPF may have its shortcomings.

    But this sort of sweeping statement that it is a complete failure is nonsense and is not helpful.

    The title torpedoes any kind of credibility that the article may have sought, and doesn’t even warrant a read.

    actually CPF has no shortcomings.

    rather it is the lies clown pap and S$m gang give out when they abused CPF.

    abuse means using without permission (they did not ask and we did not approve the abuse of OUR money), and after using without fair compensation (2.5% and 4.0% are not fair compensation for such a long loan).

    GD Star Rating
  • UniQ:

    Actually the GRAND PLAN is still pretty active to wipe out Sinkies CPFs. You guys still sleeping or just plain ignorant ?

    How not to suck clean Sinkies CPF ?
    We’re in debts right now and cannot afford to pay.
    If this isn’t the truth, tell me the desperation of price inflation over such short period, PLUS the failing of Blue Chip stocks like Hyfugs/City Dev/etc ? losses in ST Engrg and Keppel ? What about those that are not to published in local MSM ?
    Listen, the above are advertised losses, how about unadvertised losses ? Ask them or do a search on our GLCs investments in Panama ? UK ? Africa ? China ? where are the Hundreds of Million$, if not Billion$ ?
    Does anyone account for it or Sinkies are just too generous that Sinkies would just part with their blood $$ to the gahmen and their cronies (by the way earns Million$ of tax dollars) as easily as they spent them or rather took from them every end of the month without remorse or repentant nor accountabilities ?

    Sinkies chose their way of life, now suck it up.
    More will suffer when this bubble burst……..

    GD Star Rating
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