Review of Payouts to Retirees on Government Pension Schemes Given Rising Cost of Living
Prime Minister's OfficeSpeakers
Summary
This question concerns whether the Government will review pension payouts for retirees to mitigate rising living costs, as raised by Mr Christopher de Souza and Mr Liang Eng Hwa. Minister for Education Chan Chun Sing stated that while pensions are fixed by law, the Singapore Allowance (SA) is revised periodically to help pensioners manage inflation. He noted that in September 2022, the SA was increased to $350 and the gross monthly pension ceiling to $1,280 to provide targeted relief for vulnerable groups. The Government will continue regular reviews of these payouts alongside providing broader support such as GST vouchers, CDC vouchers, and service and conservancy charge rebates. Additionally, eligible pensioners receive MediSave top-ups and healthcare subsidies under the Pioneer Generation and Merdeka Generation Packages to further offset living and medical expenses.
Transcript
3 Mr Christopher de Souza asked the Prime Minister whether pension payouts for retirees on Government pension schemes can be reviewed to take into account the rising cost of living and inflation.
4 Mr Liang Eng Hwa asked the Prime Minister in view of the rising cost of living, whether the Government has plans to review the pension payouts for retirees under the Government pension schemes.
Mr Chan Chun Sing (for the Prime Minister): The pension of a retired pensionable officer is fixed and based on the officer's length of service and pensionable salary as of his eve of retirement, as provided by the Pensions Act.
In 1974, the Government introduced an ex-gratia allowance called the Singapore Allowance (SA) to augment support for officers to cope with high inflation. The Singapore Allowance is over and above the pension paid to pensioners residing in Singapore, subject to a gross monthly pension ceiling.
Since its introduction, SA has been periodically revised over the years. Most recently, it was increased in September 2022 by $30 to $350 and the gross monthly pension ceiling was correspondingly increased by $30 to $1,280. This was announced by MOF in June 2022 as part of the overall support measures to provide targeted and immediate relief for the lower-income and more vulnerable groups. The Government will continue to carry out regular reviews on SA and gross monthly pension ceiling and revise them when necessary.
In addition to SA, like all other Singaporeans, eligible pensioners also receive other forms of support, such as Goods and Services Tax vouchers, Community Development Council vouchers, grocery vouchers, as well as service and conservancy charges rebates. Pensioners who meet the Pioneer and Merdeka Generation criteria are also eligible for MediSave top-ups, outpatient care subsidies and MediShield Life premium subsidies under the Pioneer Generation Package and Merdeka Generation Package.