Review of payouts for retirees on Government pension schemes given rising cost of living

Written Reply to Parliamentary Question on review of payouts for retirees on Government pension schemes given rising cost of living

Parliamentary Sitting: 20 Oct 2022

Mr Christopher de Souza: To ask 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.

Mr Liang Eng Hwa: To ask 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.

Written Reply by Mr Chan Chun Sing, Minister for Education and Minister-in-charge of the Public Service.

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 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, the 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 the SA and gross monthly pension ceiling and revise them when necessary.

In addition to the 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.