CPF members are given the impression that because our reserves are commingled, PAP doesn’t know the returns made from investing CPF monies.
According to MOF (Q29)**:
– “..even after deducting all the Government’s liabilities (including CPF monies)”
– “ the remaining assets produce significant returns”
Since the government knows the “significant returns” produced by the “remaining [net] assets”, it should therefore also have the figures pertaining to the returns of CPF monies and SGS.
The image below offers a clearer explanation.
How does the government know that “the remaining [net] assets produce significant returns” if SSGS (CPF) and SGS are not held in separate accounts?
That “The NIRC of about S$8 billion is drawn from returns on assets in excess of the liabilities..” means they were not drawn from the returns produced by SSGS (CPF) and SGS. This further confirms the government has maintained different sets of accounts and knows the exact returns of each one.
Some clarification is needed. Or perhaps there’s a typo?