Senior Minister of State Heng Chee How, who is also the Deputy Secretary-General for NTUC, has urged the government to raise CPF contribution rates, as well as raise the retirement and re-employment ages.
Speaking during the Budget debate, he said the measures will help older workers build better adequacies for retirement.
The tripartite partners, comprising the Manpower Ministry, NTUC and the Singapore National Employers Federation, had agreed to raise the statutory retirement age from 62 to 65, and the re-employment age ceiling from 67 to 70 progressively over the coming decade.
This will start with a new retirement age of 63 and re-employment age of 68 from July 2022.
Said Mr Heng:
“The tripartite partners have taken to legislation to ensure older workers have the opportunity to work longer by raising the retirement and re-employment ages. After all, being employed is the best safety net, and companies need workers.”
CPF contribution rates for older workers were set to increase from Jan 1 this year.
However, this was deferred amid the pandemic to Jan 1 next year.
Calling for the raising of CPF contribution rates to proceed without delay, Mr Heng said:
“The labour movement… supported that deferment because we understood that in the depth of that disruption, the most important thing is employment. We didn’t want to put our older workers at an unnecessary greater risk of losing their jobs… We must be careful to keep pace with our original intent and purpose of helping older workers enhance their retirement adequacy, given our longer lifespans…”
Mr Heng urged the government to help employers defray the cost of their enhanced CPF contributions through the CPF Transition Offset.