Wednesday, July 22, 2009

Gathering in Hong Lim Park on 22 Aug 09

I confirm that there will be a gathering in Hong Lim Park on 22 Aug 09 from 5 pm to 6.30 pm. We will arrange for the Petition to be signed, for those who have not signed the online Petition. This Petition is addressed to the Prime Minister. We will arrange for a few people to speak on this issue. Please encourage more people to show up for bigger impact.

So far, I am the only speaker. If you are able to speak, please send an email to me at I like to ask the coordinators of the class actions to speak and give an update. You may be able to attract more investors to join the class action.

355 people have signed the online Petition to the Prime Minister on the credit-linked notes. We are now aiming for 1,000 signatures. Please pass the word around.


Anonymous said...

Mr Tan,

My message is not related to the petition to PM by the minibond victims.

I am more concerned about the CPF Life scheme which was recently debated in Parliament. The scheme is compulsory to citizens starting in 2013 and yet the govt is not legally bound to make monthly payments to citizens. The payment in theory can be stopped by the govt if the Scheme cannot be self-sustaining e.g. during time of high interest rate and too many CPF members are drawing monthly payments from the scheme.
Here is an article written by Ng E-Jay on the subject, which makes me thinking and become very concerned.

Could you write something on your blog to advise the people what to do? This CPF Life scheme impacts more citizens than the minibonds. This subject is really worth some open debate and public awareness amongst citizens. Thanks!

Anonymous said...

This is becoming like minibond. When cpflife was promoted to citizens, all rosy things were said and we certainly have the impression that the monthly payout is guaranteed. Now that it becomes law and the government is saying the payout can be zero. Is this not same as minbond? Promising much and selling the roses but giving you the thorns in the end. You are the government and we trusted you. Same as we trusted the FI back then!!!

Anonymous said...

The payouts cannot be zero. The payouts are not fixed, ie, it means they can vary according to the interest rate. Eg. monthly $450 can be $430 or $480. They can vary between a narrow range.It can be higher or lower.

Anonymous said...

Anonymous 10:54 PM,

Read closely the fineprints

Anonymous said...

Even for CPF special, medisave and retirement account, from next year the interest is already not fixed!

It will be pegged to the yield of 10 year treasury bills, which now is only 2.58%. From 4% (all this while) to 2.58%!

If this continues into next year and many more years, you can imagine the impact on our CPF sum as well as CPF LIfe monthly payouts.

It is really a cause for concern because life payouts is meaningless if it is meagre even for those with large sums, let alone for the majority with smaller sums!

Anonymous said...

Yes, the minibond saga is no doubt important and serious, but this CPF Life is even more cruical because it affects an even larger group of our population.

What I dislike is its non-fixed payout (?) and isn't this similar to other insurers' annuity plans in the market?

But we are supposed to trust CPF more than the insurers and can't they deliver a better result/promise in black and white?


Anonymous said...

You can choose to opt out or not to join if you think that CPF cannot manage better than you can.
Yes the interest rate is pegged to the 10 year bond average yield. CPF will pay the interest rate +1% and the lowest it can go is 2.5%+1%=3.5%. This is worst case senerio .
2.5% is the floor rate.
Currently interest rate is low but over long term it should go up to 3.75%.
Remember, gahment can print money and distribute to you.Just ask.

Anonymous said...

Anon 9:12AM

Where got opt out? It is compulsory for those who reach 55 years of age in 2013 with a minimum sum of $40,000 in their CPF accounts.

This unlike commercial annuity contract, which the customer has the option to walk away without buying.

It is totally one-sided. Citizens are compelled to subscribe; the govt has no obligation to pay. Furthermore, the scheme is not transparent. Could it fail in its investments? Have you not seen the investment performance of Temasek and GIC? Govt says investments are long term. What if this happens to the CPF Life scheme? Which old age senior citizen can wait for decades? Very worrying thoughts indeed!

Anonymous said...

To: Anon July 23, 2009 9:12 AM

I think you are wrong! The CPF Life program is compulsory! There is no such thing as "opt out". This was an unprecedented move: the government can use your money to buy the insurance programs that they institute weather you like it or not! No permission is needed from you! No amount of protests would matter - the program is compulsory (or as they put it: automatic)! Someone please correct me if I misunderstood the program. I would be very happy if I am wrong here.

Again, if I understand it correctly, the program keeps your money until you are 85 before you get any payout (monthly). If you were to say that u are sick and u don't think u will live till 75, let alone 85; additionally you are poor and need the money now and not after you are dead. The answer would be "sorry, the program is automatic".

Would anyone benefit from CPF Life? Yes, I think those who are healthy and likely to live beyond 100 yrs old would get a fair return. For those who can only manage up to 85 or even 95, your compulsory contribution is very much appreciated.

Anonymous said...

mr tan,
i salute you for standing up for fellow singaporeans during this dark period of 'u die ur business' govt led by greedy, uncaring, irresponsible politicians.

Anonymous said...

Dear Mr. Tan,

I have heard people talked about CPF Life. Some guessed that it is ok and some don't. The way the government put it is that if your are "eligible" then you will benefit from the program "automatically"! Without the numbers I have no idea under what circumstances that I would benefit from it. I understand that it is a zero-sum program, i.e not subsidized. I suppose if someone "benefit" from it, some others would have to pay for it. It would be great if you can give us an analysis that is understandable by laymen like me.

Thanks a lot for your many enlightening articles.

Best Regards,

Anonymous said...

If you are speaking on 22 Aug, be aware that you, and whoever is speaking, will be monitored through at least 3 CCTVs that were just mounted at Speaker's Corner in Hong Lim Park.

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