WORKERS with less than $40,000 in their CPF retirement accounts when they turn 55 will be exempted from the new CPF Life scheme, as their balances are not enough for payouts to last a lifetime.

A quarter of the first cohort to be covered - that is, those who turn 50 this year - will fall into this category.

But they can choose to opt into the scheme, and will get help to do so, said the committee that designed the scheme.

It said there had been public feedback that those with insufficient CPF savings could be helped to join the scheme.

Said National Longevity Insurance Committee chairman Lim Pin on Tuesday: 'We also strongly believe in the value and importance of this scheme that we have made a request for the (Manpower) Minister, the Government... to consider giving some assistance to enable people who do not now have the threshold sum of $40,000 to join the scheme. That will be handled.'

The committee's report said the Government could consider one-off measures to help this group 'in a manner that would not undermine the principles of self-reliance and self-provision'.

Others exempted from the scheme are CPF members who are:

- physically or mentally unable to work

- of unsound mind

- suffering from a medical condition leading to a severely impaired life expectancy

- suffering from a terminal illness or disease

- going to get a pension, annuity or other benefit which gives payouts equivalent to the Life scheme, and which cannot be changed or recovered by CPF if terminated.

The committee noted that those with medical conditions that lead to shortened lifespans or with alternative lifelong pensions are already exempted from setting aside the CPF Minimum Sum.

NTUC assistant secretary-general Seng Han Thong, who is on the committee, said the labour movement would step up its efforts to get casual and contract workers without CPF to sign up so they can benefit from the new scheme.

Is this article useful to you?