Dear Mr. Tan,
After reading your letter to "ToDay", I started to worry whether NTUC Income can really pay a higher and better special bonus. I felt so because you said that Mr Lim Boon Heng and Mr Matthias Yeo "reaffirmed that Income would observe its social purpose ..... and give a good deal to the policyholders. They said that the management will need some time to find the appropriate measures to achieve these goals."
Does it mean they have yet to work out a complete and properly thought through plan and just proceed to revise and cut the annual bonus? This is not the way a big and reputable organization works! Especially they are taking care of money saved for retirement or raining day?
What will happen if they can't fulfill what they claim at the end of the day? Just say sorry and forget their "social purpose" and the promises? Your comments please.
CH
REPLY
In making the change, Income has made sure that the special bonus will compensate for the cut in annual bonus. They have now given adequate assurance on the payment of the speical bonus.
More time is needed to address the other issue, which was raised by me. Income has agreed to ensure that the bonuses are "fair and consistent with the experience of the fund". If this can be achieved, it will be good news for the policyholders. It will probably allow the past bonus cuts to be restored and more to be paid, consistent with the good investment yield.
A lot of policyholders trusted their insurance companies that they will deliver in the years to come. But in the past many failed. So trust is akin to taking risk. The question is do you want to take risk or to take more risk when you are comfortable with the risk. For existing policyholders they may have to adjust their risk tolerance otherwise they will be disappointed because more is at stake. A large chunk of terminal bonus is at stake. Promise and assurance is one thing whether you can is another.
ReplyDeleteYou have to keep your fingers crossed from now on and it will be like a toto unsure of how many winners even when you win the first prize. You could be the only winner or you could be one of the 10 winners. Don't be happy. It will be a pleasant surprise or a disappointment.
My endownment policy has been changing hands under different insurance companies since 1992.
ReplyDeletePlease take a look at various bonus declared per $1000 sum assurred:
1992-96 $46 ICS(DBS Group)
1997 $36 ICS(DBS Group)
2000 $24 ICS(DBS Group)
2002 $16 ICS(CGU)
2003-04 $11 AVIVA
2005-07 $16 AVIVA
Who were the head?
2000-? Phil Simmons
2003-2007? Keith Perkins
???!!!
Q. When was the last round of "bonus cut" of Singapore worker?
ReplyDeleteA. "In 1985...a 15% point reduction in the employers' contribution rate to the CPF, coupled with a two-year wage restraint..."
(Source: http://www.mas.gov.sg/resource/eco_research/eco_education/explorer/explorer3.pdf )
Both worker and reitree who are policyholder had done their national service during 1985-87 recession.
I hope they don't suffered another round of "bonus cut" for whatever bonus structure will be adopted by NTUC INCOME new management.
Much ado about nothing, that is what Obama will find out on November 4th.
ReplyDeleteHis call for change will fall on deaf ears. Actually his call for change is a call for a change to a black president. Not that it will not happen. US is not ready for a minority president . History is against him too. John McCain will be another republican President. The places US is engaged will continue to be engaged. If not, it will be sending a wrong signal and it will be detrimental to the rest of the world.