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Members prefer simplified CPF LIFE Scheme

  • The Straits Times (30 December 2013): Members prefer simplified CPF LIFE Scheme
  • The Straits Times (21 December 2013): Reinstate original CPF Life plan

Members prefer simplified CPF LIFE Scheme
- The Straits Times, 30 December 2013

  1. We refer to Ms Tan Lee Noi’s letter (“Reinstate original CPF Life plan”, 21 December).
  2. Ms Tan suggested reinstating the CPF LIFE Income Plan. The decision to simplify CPF LIFE from the earlier four plans to the current two was a carefully considered one, which took into account CPF members’ preference for a simpler scheme.
  3. Ms Tan also said that the Income Plan should be retained, as there was a growing number of singles with no dependants. However, more important than having a low take-up rate is the fact that the Income Plan does not have a bequest feature. This means that if a member passes away after joining CPF LIFE, his next-of-kin will not be able to get the savings back from the Income Plan after the member’s death, even if the member had not started receiving any payouts.
  4. While some members may not have planned to leave a bequest at the time they join CPF LIFE, their circumstances may change, as evident from those who signed up for the original Income plan. Some may marry, or become personally grateful to a caregiver. In such instances, the member may then wish to leave a bequest for his loved ones, but find that he is unable to do so under the Income Plan. The current two plans offered provides the bequest feature.
  5. We thank Ms Tan for her feedback.

Reinstate original CPF Life plan
- The Straits Times, 21 December 2013

Of the four original CPF Life plans, only two remain now. One of the original options, the Income Plan, was scrapped because of the low take-up rate. But with the growing number of singles and people with no dependants, this option should be retained. After all, there is a default option for those who are undecided.