GMT : Tue, 06 Dec 2016, 01:40

CPF members should not continue to live in denial, PAP has full control over our CPF

CPF is not your money, or is it your money?” is an important question which most CPF members are afraid to ask. Because the truth hurts and so it’s better to just ignore the elephant in the room.

Last year, wheelchair-bound NMP Chia Yong Yong, who was more qualified to speak up on issues affecting disabled citizens, broached the subject and gave Singaporeans a lecture on our moral obligations when spending our CPF. She was lambasted and described as “clueless” and “a stupid NMP”.

But Chia is actually right about her uncertainty of CPF ownership although her arguments were silly at best. And she’s a lawyer. Truth be said, our CPF does not belong to members because it has already been “ring fenced” through legislation for GIC to ‘invest’ in foreign assets.

If PAP could forfeit our CPF, it would. And members should not be surprised if CPF interest rate is reduced in the near future.

When there was insufficient funds for CPF members to withdraw at 55 – especially baby boomers – CPF withdrawal age was raised to 62 and subsequently 65. As if that wasn’t bad enough, members will be paid in installments till our last breath. So, is CPF our own money when the PAP decides on when our CPF should be returned to us?

CPF members also do not have any option on the management of our retirement funds: $300 billion goes into GIC and a low rate of return is fixed by PAP. Is our CPF ours when PAP makes every important decisions with regard to our retirement savings?

The truth hurts.

CPF Board arbitrarily came up with the Minimum Sum Scheme (recently changed to Retirement Sum) where, members are currently required to set aside $161,000 at 55.

But when members have accumulated $161,000 in our CPF in our brick and mortar HDB flats, $161,000 suddenly loses 50% in value and is considered only $80,500. $80,500 suddenly vanished into thin air, no pakai. CPF members are then forced to set aside an additional $80,500 in the Retirement Account for GIC to speculate until we die.

Under PAP, CPF monetary values are flexible, not absolute figures. $161,000 = $161,000 or when PAP needs our money, $161,000 = $80,500. Got logic or not?

More pain ahead.

CPF savings is like a super long-term bank FD but earning a subpar interest rate. If I withdraw my Maybank FD prematurely for my children’s education, I forgo the interest earned at most and there’s no need to pay back any interest on the principal amount. But when it comes to CPF withdrawal under the Education Scheme, members are considered to be taking a loan from themselves and are required to pay themselves interest!

Own self can lend money to own self meh?

Strangely, this rule on paying back principal plus accrued interest does not apply when it comes to investing with our CPF. Why the double standard?

Losing one’s retirement funds in a lousy investment is fine but CPF members must pay back principal plus accrued interest for using our CPF to fund our children’s education?

On the surface, our CPF is invested in government bonds paying a fixed interest rate but the reality is $300 billion end up being invested in risky and speculative foreign assets. No CPF member would have invested 100% of our retirement savings in such a reckless manner (exchange rate and political risks). Is our CPF our money when we cannot prevent our savings from being recklessly invested?

And of course there’s no such a thing as the government (represents Singaporeans) guaranteeing Singaporean CPF members. This is common sense.

Although NMP Chia’s arguments were silly, CPF members would be sillier if we continue to live in denial and await another Roy/Hong Lim Park protest to reclaim back what is ours.

CPF members also can’t depend on our elected co-driver Workers’ Party who has been repeatedly slapped by the driver. And now, CPF members by a silly NMP.

If our CPF is our money, why is it at PAP’s disposal? CPF members should not continue to pretend CPF is our money because the reality is we have ZERO control over it.

Philip Ang

 

*The author blogs at https://likedatosocanmeh.wordpress.com/

 

 

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19 Responses to “CPF members should not continue to live in denial, PAP has full control over our CPF”

  • Oxymoron:

    CPF = Coerced Paycheck Funnelling

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  • N.Jungne:

    Thanks Phillip, before CPF vanishes completely, we must have the PAPigs disappear before our eyes.

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  • LIONS:

    CPF is OUR MONEY.
    IT IS NOT our MONEY becos the PAP squnaders it away?

    if not,why they are come out with so many schmeful ways to CONfiscate OUR MONEY then?

    which minister can prove that the govt did not squander OUR CPF MONEY AWAY?

    the BEST PROOF IS TO RETRUN OUR CPF MONEY back to us,ya???

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  • 鸟龍的人:

    哎哟!!!
    她是个律师呀???在印度考到???

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  • daylight robbery:

    Daylight robbery no less.
    Confisicating ppls money without conscent…then just make up laws to justify n hold on to it.
    If this is a 3rd world place ,yes…we can say corruption or mismanagement..
    But they keep telling us sg is 1st world..n our ministers must b well paid or else corruption will take root n they are the best brains in d land….and all that jazz.
    Classic case of prata flipping n flopping n more.
    What Roy wrote n spoke out is all true…thats why ‘meesiam mai hum’ sued him… to shut him up.
    No balls PM!
    The miws are certainly not the best brains in the land. The best n bestest have all left long long ago.!
    Thats why we are left with these leftovers.

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  • Reply to Philip Ang:

    “And of course there’s no such a thing as the government (represents Singaporeans) guaranteeing Singaporean CPF members. This is common sense.”

    PAP can guarantee Singaporeans their CPF because it’s like a Ponzi scheme. They will keep importing new citizens to top up the amount. As long as no everyone is withdrawing all their money at the same time, there is no issue even if they lose 100% of the money, with the millions of new citizens imported, the monthly inflow of money already exceeds the outflow.

    Also GLC monopolies can easily squeeze more money out of Singaporeans through price hikes to make up for their overseas investment losses.

    This is a perfect system, Heads they win, Tails they win.

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  • Lie Hijack Loot:

    Why u think they just completed their island wide imaginary terrorist exercise with thousands from the army n police?
    Any protests or riots caused by people who have lost all their life savings will be considered terrorists.
    Wake the fiack up!!!!!

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  • opposition dude:

    The gong 70% don’t seem to mind that CPF is PAP’s money and not Singaporeans leh.

    It will take a herculean effort to change the rules since billions have been lost. The only problem, as always, lies with the damn kiasees election after election.

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  • Ho Lee Seet:

    Daft Singaporeans still gong gong laughed at other countries for having [email protected] leaders and govt officials when we’ve ‘licensed’, don’t need to go under tables and can act boldly in the broad daylight ones.

    If I’m being forced to part with my salary every month, not only my money, my employer’s too, but now, someone in the parliament told us those money that I and my employer put into ‘my’ CPF account is not my money, can anyone tell me what crime should I call that?

    I’m not supposed to complain. I’m not supposed to use my ‘savings’ in any way I want. I’m not supposed to ask for them. I’ve no say. I’ve no control. Those people who have forced me to part with my money are instead in full control of my CPF. So, mine and my employer’s monies are going to end up as fortunes of the [email protected] people? No more my money?! Really? Holee sh!t, kanasai!

    With a ‘license’, some people have geniusly transformed our CPF, initially a Central Provident Fund into a [email protected] People’s Fortunes? Where on earth can I seek justice?

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  • georgia tong:

    govt sure treat CPF as their money. Look at the terms used. For medical bill, the term use by hospitals etc is can ‘claim’ medisave. Medisave is CPF saving, it is not Medishield which is an insurance. The correct word should be can ‘use’ medisave. They like to use the term ‘claim’ for everything to give the impression it is ‘free’. Medishield deductible is sky high, most of the time use our own money. Keep paying premium whole life, when in need, never able to claim from it. T

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  • daylight robbery:

    Lie Hijack Loot:
    Why u think they just completed their island wide imaginary terrorist exercise with thousands from the army n police?
    Any protests or riots caused by people who have lost all their life savings will be considered terrorists.
    Wake the fiack up!!!!!

    Lie Hijack Loot:
    Why u think they just completed their island wide imaginary terrorist exercise with thousands from the army n police?
    Any protests or riots caused by people who have lost all their life savings will be considered terrorists.
    Wake the fiack up!!!!!

    ..yes they’ll use these anti terrorist act against citizens if n when there is a ‘freak election’ result…i.e.only if pap loses.
    If opp loses its not freak result..
    Imo the Ge 2015 results are still a mystery .
    Many had tried to explain but…

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  • Brutal_Truths:

    QUOTE: “CPF members should not continue to pretend CPF is our money because the reality is we have ZERO control over it.”
    Yet the S’pore Propaganda Hoodwinkers (SPH, duh!) continue to publish silly articles in the Shitty Times about S’poreans aiming for $1 million in CPF by age 65! They are greedy at the 4% yield in the SA without understanding that CPF isn’t flexible enough to meet life’s contingencies & the rule changes everytime when TH/GIC comes up with a cropper (sic: bad investments)
    Link: http://www.straitstimes.com/business/invest/1m-in-cpf-by-age-65
    Read the above article & understand how silly S’poreans are being coerced by outright Propaganda into ploughing their hard-earned earnings & savings into the CPF ‘Black hole’. Even the so-called CPF experts (talking heads, I call them) are dishing out stupid advice in this article!
    Truth is that Pension Funds are failing everywhere in the world. ZIRP/NIRP situation are killing Pension Funds with virtually no yield yet Pension are promising positive yields returns to their plan contributors – How silly can one get when you don’t see the picture in front of you!
    Those Pension Funds that placed money into equity investments & higher risk investments (hedged funds, private equity funds) will be getting free haircuts after the markets tanked! Even those that invested in solid real investments like Real Estate & Property will see capital values plummet when the global reset happens. And it is coming soon!
    Don’t contribute excessively to Pension Funds (CPF, for S’poreans) as well as for insurance products – they are failing everywhere! In a ZIRP/NIRP situation, their PONZI SCHEME mechanics will hit a cropper!
    Even in Australia, private medical health insurance companies are rewriting the rule for medical claims causing health insurance premium payers to foot out of pocket for simple medical procedures which should be covered by the plan! Over time, you keep contributing to the plan but literally get nothing out of it – so why don’t you keep the cash instead & save for a rainy day yourself! At the risk of being taken to the cleaners, I dare say that insurance firms are becoming scams!
    Link: http://www.smh.com.au/business/consumer-affairs/private-health-insurance-ombudsman-report-shows-record-complaints-driven-by-medibank-20161017-gs43od.html
    You’ve been warned!

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  • Brutal_Truths:
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  • 苏珊:

    这么,庞大的属目。取財真有道 。

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  • Sinkies Deserve It:

    The sad fact is, most Sinkies are living in denial.

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  • Lee Bee Huay:

    Sinkies Deserve It:
    The sad fact is, most Sinkies are living in denial.

    I beg to be farked. Sorry, i mean, i beg to differ.
    The Fact is most singaporeans are actually very grateful for the high returns they get to profit from the cpf. Most rather die than withdraw it.

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  • William C:

    CPF matter is just talk in the air only. Lxmpar Kong,Lxmpar Song.

    Many above 50 bought cheap HDB. Has plenty in their CPF. They prefer to keep there to earn better interest since they have enough personnal savings in their banks.

    Below 50. All money goes into paying their HDB. What are left in CPF at 55? Nothing to talk about.

    Above 50. Only talk and act angry with their CPF being lockup. If given a choice, most will not want to withdraw.

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  • 杨奶奶与大大奶:

    We the shitTIzen of CUNTry SUNKaPoor whom deprived “decent job decent pay decent education” wish KARMA pay those SOB family & its.member a visit to size those idiot saying “cPEEf not people money”;chee bye: 70%& Puki Bodoh,you all R targeted for the nxt “upturn,downturn”investment,GOOD luck

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  • Hitlery Rottendam Clingon:

    We must invoke the evergreen Excuse that We Boh Bian have to support CPF policies.

    This is because under authoritarianism, the rulers are always right and should not be challenged to ensure political stability which is pre-requisite for economic growth.

    We must sacrifice for the country. This is the privilege we are born with.

    We must not let foreigners have this privilege.

    Boh Bian = your excuse for Every Policy from now till eternity.
    10,000 years!

    We must obey and learn to be led.

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