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 After receiving a generous bonus due to stellar GDP growth, he decides to put back the amount withdrawn.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?
See? Even she does not believe in the CPF ‘accrued interest’ crap.