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SINGAPORE: The Ministry of Manpower announced refinements to the Workfare payment to be received by low wage workers.
And from 2013, CPF members turning 55 and with at least S$40,000 in their Retirement Accounts will be automatically included into CPF LIFE.
37-year-old Zarina Ahmad's been unable to find permanent employment for some time due to her low educational qualifications.
But with the help of the North West CDC, she's found a job with Dunkin' Donuts, and at the same time improved her literacy skills.
As a result, she's benefited from a S$900 payout from Workfare which was useful for her children's educational needs.
She said: "Come forward, ask the CDC to help you find for you a job and don't be afraid. It is good for you to try. It helps your family and finances."
Mr Gan noted that since 2007, the government has given out over S$300 million in the Workfare Income Supplement every year to about 300,000 Singaporeans.
Currently, the government makes a provisional payment in the middle of the year based on work done in the first six months.
Mr Gan added: "However, once we assess the worker's overall eligibility at the end of the year, he may qualify for lower WIS, or none at all, resulting in a need for us to recover the excess WIS payments. This is not ideal. Henceforth, the first six-month period will be assessed independently from the end-of-year annual assessment. "
This meant that Workfare recipients will be able to keep the mid-year payment they received regardless of their income in the second half of the year.
On suggestions by some MPs that the Workfare income supplement be paid out quarterly and to calls to shorten the work criteria, Mr Gan stressed that Workfare's meant to encourage regular work.
Hence, requiring at least three months of work for every six-month period and making two WIS payments a year were more appropriate.
Turning to CPF LIFE, Mr Gan said about 37,000 people have so far come on board, committing a total of S$1.7 billion.
More than S$120 million top-ups were made into members' Retirement Accounts to raise their LIFE monthly income.
Refinements have also been made to the CPF Investment Scheme.
Currently, monies in excess of S$30,000 in the Special Account can be invested under CPF Investment Scheme.
Given the higher interest rate on the Special Account and the volatility of returns, the minister felt that CPF Board should take a more conservative approach.
Hence this threshold will be raised to S$40,000 with effect from July.
So members can only invest Special Account monies in excess of S$40,000. - CNA/vm
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