20150507 You still believe in the CPF ‘accrued interest’ crap?

The CPF issue will be the hottest potato at the upcoming GE because it has affected hundreds of thousands of ordinary citizens.

With endlesst tweaks by the PAP until it is now unrecognisable from its inception, the PAP has caused citizens to distrust our national pension system. Instead of addressing the biggest issue ie transparency, PAP argues against common sense to defend the indefensible.

The PAP keeps deluding itself by insisting that CPF monies belong to members but at the same time, it is able to shift the withdrawal goal posts to outside the stadium or anywhere it wants. Total lump sum withdrawal has not only been delayed 10 years but decreased to dribs and drabs monthly installments by PAP. If CPF is our money, why are we not even consulted?

Banks pay interest to their customers and companies pay dividends to shareholders. But I paying myself interest for the use of MY money???

When I use MY CPF for investments, I have to bear the opportunity cost of not being able to earn fixed CPF interest rates. If I don’t make good on my investments, I may not be able to enjoy my retirement. If CPF is my money, why should I pay myself interest for taking investment risks?

Say, instead of saving for a rainy day, SAF scholar withdraws $46,500 for a 3-week cooking classes in France. After receiving a generous bonus due to stellar GDP growth, he decides to put back the amount withdrawn. Question: Will the SAF scholar think about putting back accrued interest for using HIS own money?

PAP says that CPF members need to pay back the accrued interest but there’s no such thing as borrowing money from oneself. Accrued interest is to be paid by the borrower to the lender and one is either a borrower or lender, never both at the same time.

(But we know the impossible can happen in Singapore where PAP’s word is law – HDB lessees have been defined as owners despite the fact that no one can own any public property. Buyers sign the Agreement for Lease and it is also stated the agreement is between “lessor” and “lessees”.

PAP’s explanation for the need to pay back accrued interest – “it is only right that if we were to sell our home, we should return what we have borrowed (i.e. the principal amount) plus the interest we would have earned had the money not been taken out from our CPF account (accrued interest). This amount is returned to our own CPF accounts for our future retirement needs.

So what about CPF members who do not have to make good on the accrued interest after making investment losses? No future retirement needs because investment losing money? This whole ‘must pay back accrued interest’ thingy is all crap.

Regardless of the performance of our CPF investments, members should not have been forced to pay back accrued interest.

CPF members no longer have any say over OUR money. It has been converted into state reserves where the PAP does whatever it wants, decides on how much interest to pay us and legislate the payment of ‘accrued interest’ where we pay ourselves interest for borrowing OUR money.

Because of PAP’s legislative power, CPF members will always get the short end of the stick – heads PAP wins, tails CPF members lose.

Paying interest to ourselves for the use of OUR own money is so nonsensical that many have been rendered speechless. What is the opinion of our youngest MP?

PAP’s youngest talent in Parliament

See? Even she does not believe in the CPF ‘accrued interest’ crap.

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8 Responses to 20150507 You still believe in the CPF ‘accrued interest’ crap?

  1. wongcheokwan says:

    Phillip,good article.Let me throw in some Ali Blah Blah.The accrued interest is to protect the growth

    of cpf until maturity.Example…A hdb flat was paid for by John using $10000 cpf and his brother

    using $10000 cash.When the flat was sold later,cpf puts back $10000 plus accrued interest into

    John’s a/c.So he gets more.In my case the accrued interest was waived at 55.

    How much does it cost to mint 20,000 citizen in terms of (1)dilution of reserves (2)education

    subsidy (3) housing subsidy (4) accrued interests ? I have never read any articles from academics

    on this area; only Joseph Chong in ST 2013

    Best wishes.

    • phillip ang says:

      And now, for those who do not meet the MS requirement, maturity is six feet in the ground. 😦

  2. Nope says:

    The near-complete lack of transparency and accountability of CPF and the ever-increasing restrictions is more than enough to make the sane voter to not cross the lightning box at the ballots, but they are so many shortsighted, immoral and selfish pricks in this island who are only interested in protecting their public housing investment built with public money on public land and government handouts paid by taxpayers than the future of the nation.

  3. phillip ang says:

    If we don’t wake up as a nation, we will be done in by PAP’s propaganda. But after 5 decades, it’s not easy to undo the brain damage.

    • Anonymouse says:

      Me: How long is dad staying in the hospital? The medical bills ain’t cheap.
      Mum: Dunno.
      Me: You know in Australia, medical fees are completely covered under their government.
      Mum: But this isn’t Australia! Besides their old have pensions….
      Me: …And you can’t even retrieve your own CPF. Don’t you see anything wrong?
      Mum: *complete loss of words as if I’m speaking a foreign language*

      These people with ZERO political views and logical reasoning are more dangerous than any PAP policy because they are brain dead where it counts.

  4. wongcheokwan says:

    I kena the Selective Enbloc Redevelopment Program.Mum exclaimed “Wha very good .You get

    compensation,subsidy n profit.” Then I explained to her. My 4R flat was acquired but replaced by

    another 4R ; so that evens up.On top I was paid $30K.But my CPFaccrued interest lost was $50K.

    Therefore I lost $20K in interest net.

  5. phillip ang says:

    If PAP doesn’t profit from us, we should be happy leow.
    SERS is to lend support to HDB prices while making money for PAP. HDB could easily construct at least 4 times the number of units – the open car park is history, a 13 storey block becomes 40 storeys plus flats becoming smaller.
    Many Singaporeans still don’t realise we no longer have the same quality of living, ie less space, shared usage of facilities, etc. We are being screwed but we say ‘thank you’ to PAP?

  6. wongcheokwan says:

    There is another accruel too.Those people who deposited money into CPF for 10 years for 2.5

    percent interest should have the right to borrow for 10 years at the same rate.This is meritocratic fair


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