SINGAPOREANS will receive monthly payouts from the Central Provident Fund (CPF) Life annuity scheme for the rest of their lives although the law does not provide for it, assured Manpower Minister Gan Kim Yong.
Under amendments to the CPF Act passed yesterday, CPF members will receive a steady stream of retirement income. But premiums and payouts are at the Government's discretion and will vary with factors such as interest rates.
Two Members of Parliament, Madam Halimah Yacob (Jurong GRC) and Madam Ho Geok Choo (West Coast GRC), expressed concerns over the variability of premiums and payouts, as well as the solvency of the Lifelong Income Fund, which holds the money and is run by the CPF Board.
In response, Mr Gan said that a guaranteed monthly amount is not feasible and that it would be adjusted regularly to ensure the fund's solvency.
He added: "CPF Life members can rest assured that they will receive payouts for as long as they live."
Singaporeans aged 55 or older can apply for the scheme in September, ahead of its starting date in 2013.
Those with less than $40,000 in their Retirement Account - which automatically qualifies members for the scheme - can opt in, supported by other government schemes to boost retirement savings.
From next month, CPF members below 55 can also receive top-ups from family members and employers.
