Given the growing levels of public discussion surrounding the CPF system, the National Solidarity Party has published a paper outlining it’s position on the issue.
The NSP explained that there is “more heat than light” in the current CPF debate and they wish to see a system with greater clarity.
NSP also highlighted that resorting to populist and reactionary ‘tweaks’ will not be able to deliver good results for Singaporeans.
This in mind, NSP set out 6 broad principles and initiatives to guide and reform the CPF system.
They said that “a Principled Approach will help Singaporeans to better rationalise the complexities and to regain trust and belief in the benefits of the CPF Scheme.”
Some of the principles that NSP highlighted in their paper include engaging employers more to be an active part of the system, supplementing retirement income instead of focusing on retirement adequacy, giving members more control of their contribution rates and seeing CPF as more of a tripartite responsibility.
They also suggested that the government should top-up the retirement savings of the poor.
In their paper, NSP also suggested that the Minimum sum scheme be phased out and the contribution rates be reviewed.
Another suggestions was to separate employee and employer contributions. For example, employees contribute to ordinary account while employers contribute to special and medisave accounts.
They also called for a simplification of the CPF system which is currently full of “unnecessary complexities”, giving CPF members peace of mind.