Committee of Supply 2024 debate, Day 4: Hazel Poa on CPF returns

In Parliament on Monday (Mar 4), NCMP Hazel Poa urged the Government to be transparent about the returns it earns on investing CPF savings and to find a way to give this back to CPF members. She suggested setting up two options - one for risk-free returns and another incorporating some risk such as being pegged to GIC’s annual investment returns or other investment options. This could serve younger CPF members, with the proportion of savings allocated to the higher-risk option being adjusted downwards with age. Ms Poa said CPF returns could also be raised through the Lifetime Retirement Investment Scheme, which was recommended by a panel and accepted by the Government in 2016 but still not implemented. She also brought up the impending closure of the CPF Special Account. She asked whether, if the move is not about saving interest monies, could the Government channel any interest savings towards paying higher interest for CPF members with low balances. Ms Poa also asked if the MediSave annual withdrawal limit could be adjusted every year in line with healthcare inflation, just like the Basic Retirement Sum is adjusted yearly.