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11-06-2014, 08:50 AM
An honorable member of the Coffee Shop Has Just Posted the Following:
There is too much noise that is stiffling the real issue of the CPF from coming to the fore. Let's be clear that the CPF issue are as follows -
1) Huge discrepancy between what the government earns from CPF investments and what citizens receive. The simple question here is who is the government investing for if not for the citizens?
2) CPF has been depleted even prior to retirement through home purchases and healthcare costs. Why is HDB priced at market value and not at costs and why have all ministers in charge of HDB refused to answer to the question of how much it costs to build a HDB flat.
3) Original CPF promise was changed unilaterally and disadvantaged a large number of citizens. Related to this is the government's calculation of life expectancy which seems to be skewed.
4) There is a lack of transparency on the flow of funds related to the CPF, GIC and Temasek. Till today, either state secrets are said to be at play or any information given out is either contradictory or lacks insight.
5) Related to (4) is the lack of transparency surrounding GIC and Temasek and this includes salaries and bonuses to management and directors - why is there a lack of transparency and is there a more efficient way to manage the funds?
6) Exactly how does the import of foreign workers help to alleviate the need to support an ageing population? If the government has set aside each ciizen's CPF infusion then there should be no issue when it's time to repay, in full, each citizen's CPF savings. And since a small proportion of foreign workers contribute to CPF how does that actually help the pool AND why do we even need to pool the funds if each gets what they are due, based on what they put in and based on the interest returns? The only real need to pool and revert to a pension fund system is if withdrawals are expected to be higher than input+interest. So, what's really been missing from the original CPF equation?
And we've not even touched on CPF withdrawals from ex-citizens and PRs who have relinquished their status with respect to Singapore. This is a huge ticking time bomb as we should expect larger withdrawals in the following years due to the larger pool of PRs we currently have and if we take the same historical percentage that will relinquish their status here.
These points should always be covered in all articles and editorials covering the CPF issue.
Click here to view the whole thread at www.sammyboy.com (http://singsupplies.com/showthread.php?183813-The-REAL-issue-with-the-CPF&goto=newpost).
There is too much noise that is stiffling the real issue of the CPF from coming to the fore. Let's be clear that the CPF issue are as follows -
1) Huge discrepancy between what the government earns from CPF investments and what citizens receive. The simple question here is who is the government investing for if not for the citizens?
2) CPF has been depleted even prior to retirement through home purchases and healthcare costs. Why is HDB priced at market value and not at costs and why have all ministers in charge of HDB refused to answer to the question of how much it costs to build a HDB flat.
3) Original CPF promise was changed unilaterally and disadvantaged a large number of citizens. Related to this is the government's calculation of life expectancy which seems to be skewed.
4) There is a lack of transparency on the flow of funds related to the CPF, GIC and Temasek. Till today, either state secrets are said to be at play or any information given out is either contradictory or lacks insight.
5) Related to (4) is the lack of transparency surrounding GIC and Temasek and this includes salaries and bonuses to management and directors - why is there a lack of transparency and is there a more efficient way to manage the funds?
6) Exactly how does the import of foreign workers help to alleviate the need to support an ageing population? If the government has set aside each ciizen's CPF infusion then there should be no issue when it's time to repay, in full, each citizen's CPF savings. And since a small proportion of foreign workers contribute to CPF how does that actually help the pool AND why do we even need to pool the funds if each gets what they are due, based on what they put in and based on the interest returns? The only real need to pool and revert to a pension fund system is if withdrawals are expected to be higher than input+interest. So, what's really been missing from the original CPF equation?
And we've not even touched on CPF withdrawals from ex-citizens and PRs who have relinquished their status with respect to Singapore. This is a huge ticking time bomb as we should expect larger withdrawals in the following years due to the larger pool of PRs we currently have and if we take the same historical percentage that will relinquish their status here.
These points should always be covered in all articles and editorials covering the CPF issue.
Click here to view the whole thread at www.sammyboy.com (http://singsupplies.com/showthread.php?183813-The-REAL-issue-with-the-CPF&goto=newpost).