Tan See Leng on age limit for Dependants' Protection Scheme
The government regularly reviews the Dependants' Protection Scheme (DPS) to ensure that it remains relevant to members. It raised the maximum age coverage from 60 to 65 in 2021. It seeks to strike a balance between providing insurance protection for members’ dependents for a longer period and ensuring the adequacy of members' retirement savings. As of 2024, 94,500 or 33 per cent of CPF members aged 65 to 67 are in employment. Raising the maximum coverage age beyond 65 would result in higher premiums due to higher mortality rates after age 65 and would reduce members’ savings for retirement. Manpower Minister Tan See Leng, who said this in reply to an MP’s questions in parliament on Wednesday (Oct 15), pointed out that the DPS lapse rates have held quite steady and low at less than 0.2 per cent in the past three years.
The government regularly reviews the Dependants' Protection Scheme (DPS) to ensure that it remains relevant to members. It raised the maximum age coverage from 60 to 65 in 2021. It seeks to strike a balance between providing insurance protection for members’ dependents for a longer period and ensuring the adequacy of members' retirement savings. As of 2024, 94,500 or 33 per cent of CPF members aged 65 to 67 are in employment. Raising the maximum coverage age beyond 65 would result in higher premiums due to higher mortality rates after age 65 and would reduce members’ savings for retirement. Manpower Minister Tan See Leng, who said this in reply to an MP’s questions in parliament on Wednesday (Oct 15), pointed out that the DPS lapse rates have held quite steady and low at less than 0.2 per cent in the past three years.
