Thursday, May 08, 2014

Should we take CPF and PAP government to court?

Although this is nothing new nor shocking to us, but this is really unbearable to us: CPF is going to increase the minimum sum again! It seems that this will become a yearly ritual whereby CPF will continue to keep raising the minimum sum without getting consent from us, the depositors and contributors, without the need to go through parliamentary debate or approval nor going for referendum! 

Last time, Singaporeans look forward to life after retirement because they thought they can enjoy and relax life abit with the CPF they have accumulated over their working life but now, PAP GOVT keep shifting the goal poles which in the end, asking them to work beyond their retirement age and most probably will not see their CPF money until they die.... Wake Up Singaporeans!

CPF under PAP government changes rules like nobody business. Now, PAP has given CPF all the power to change the minimum sum as and when they like, without any checks from anybody else! This is a DANGEROUS thing to do, especially when CPF is the custodian of almost ALL Singaporeans' retirement funds. How could such organization allow to change rules, dragging withdrawal of monies by extending retirement age, withdrawal limits, ever increasing Minimum Sum, putting your money into Medisave which you will NEVER SEE these money ever until the day you die, forced you to put into Life Annuity which doesn't really give you a FAIR return and now, may just silently make you put up nomination form that will only transfer your money from your CPF account to your beneficiary's CPF account! What is going on? Is CPF facing huge cashflow problem so much so that it has to come up with ALL SORTS of methods to delay your withdrawal of your hard earned money?

(Just look at this chart. Do you find it strange here? Why would the minimum sum increment percentage suddenly shot up in 2009 from the average 5 to 6 percent to over 10%? 2008 just happened to be minibond bombed and recession! You go figure that out!)

CPF is unlike other Social Security Funds which will be affected by an aging population drastically. Other Social Security Funds depends on the contributions of present working adults to finance the retirement of those retired citizens. Such system will definitely be affected by an inverted bell shape aging demographic trend. CPF is a SELF FINANCED retirement scheme in which, each and everyone of us finance our own retirement by our own savings during our working life. Thus, there is ABSOLUTELY NO REASONS for CPF to face any cashflow problems due to changing aging population at all.

Thus, I am VERY VERY PUZZLED WHY CPF and PAP government are doing all these stunts. Those Singaporeans who tend to squander away their own CPF money when they withdraw lump sum, ARE THE MINORITY and this should not be used as an excuse for CPF to be our baby sitter of our retirement funds! Most Singaporeans are very conservative financially.

When CPF was first founded, it gave a booklet to depositors, proudly declared on the front page, you can withdraw your money at age 55 years old. I am no lawyer but is there any contract signed between depositors and CPF with regards to depositing money into CPF? I remembered I have signed some document when I opened my CPF accounts. Does the contract says CPF can change the rules and delay the withdrawal of our money as and when they like?

If there is a contract signed here, I hope some good lawyers can look into whether CPF has breached their contract obligations. Look, even insurance companies are governed by laws and I believe they cannot suka suka change their rules and delay payment to their clients!

Even if the contract signed gave some power to CPF, but the absurdity of allowing CPF to forever increase the minimum sum and forcing people to buy life annuity without any choice, is really against common sense and thus, common law.

I am seriously hoping that there are good soul lawyers out there who would want to look into the feasibility of bringing CPF and PAP government to court; either sue them for breaching contractual obligation or go straight for judiciary review of the unfetter power given to CPF to lock up OUR MONEY! And I hope Singaporeans at large would agree to donate just a little amount for this lawsuit, which will have enormous implications for you, me and our future generations.

Goh Meng Seng


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