The PAP government has recently disclosed a shocking liability: $13.2 billion Pension Fund. (Statement of Assets and Liabilities)
This is an increase of $1.85 billion over FY2015.
PAP should clarify the need for an additional $1.85 billion because the pension scheme for civil servants was phased out 32 years ago for the majority of civil servants in 1986.
Since the average pay in the civil service in 1985 was about $1000, give or take, (lower than private sector) and the number of pensioners dwindling, a couple of billion dollars should suffice.
It appears that the bulk of the Pension Fund has been set aside for the benefit of ministers, MPs, office holders and top civil servants.
Pension liabilities are known knowns, as confirmed by the PMO in 2007:
A dwindling number of pensioners after 32 years coupled with many who had been encouraged to switch to full CPF scheme, the number of pensioners is likely to be only in the thousands.
From 2004 to 2011, balance in the Pension Fund was in fact decreasing – as it should – until 2011 when it suddenly shot up by $1.6 billion the following year.*
By 2016, the balance stood at $3 billion above the 2011 figure. Something is not quite right.
Were recent cost increases and the planned 2% GST rate hike linked in any way to the $3 billion Pension Fund increase?
32 years after scrapping the pension scheme for majority of civil servants, pension liabilities should not be $13.2 billion in FY2016.
Setting aside billions for ministers, office holders, MPs and top civil servants has confirmed a bloated government.
If all the above isn’t true, the PAP should be able to clarify.
*Figures from individual “statement of assets and liabilities” under “Revenue and Expenditure estimates” @ “Budget Archives“.