Govt to allow more to work beyond 62
Polytechnic and university lecturers, doctors and dentists working in hospitals on fixed-term contracts as well as pilots will be able to work until the age of 62 and beyond come the start of next year.
This after the government cut the list of categories of jobs that are exempted from the new Retirement and Re-employment Act, which takes effect on 1 January 2012.
The current mandatory retirement age for Singapore employees is 62. But given rising costs of living and increase in average lifespans, workers and unionists have over the years called for revisions to this exemption list, which was first drawn up in 1993 alongside the introduction of the Retirement Age Act. This was especially so for those whose work is not physically demanding.
A spokesman for the Ministry of Manpower (MOM) says the over-riding aim of shortening the list is to let more people work longer.
At present, for example, Singapore Airlines pilots have to retire at the age of 60 with the company re-hiring those who qualify for re-employment for two years beyond that.
“We reviewed the list with a view to streamline the exempted categories, so as to enable more employees to enjoy re-employment opportunities,” said a spokesperson for the ministry.
The MOM says that the shortened list puts an extra 15,000 workers under the rule, although around 50,000 others will remain on the list.
The latter group includes cabin crew, foreigners on work passes, and public officers in stat boards and uniformed services such as police, civil defence and armed forces.
Employees who were recruited at age 55 or older also are exempt from the Re-employment act, although if they have served for at least three years by the time they have turned 62, their employers are obligated to offer re-employment.
In light of the government’s move to encourage Singapore’s ageing population to work longer, its review of this list started as early as two years ago, with the MOM consulting employer groups and unions on it.
“What is good is that the law now provides for pilots to be employed till 62, and not leave it to the company’s discretion,” said President of the Airline Pilots Association Singapore P James, who welcomed the news. “It also makes the company obliged to offer re-employment beyond age 62.”
The Singapore Airlines Staff Union (SIASU), which represents more than 7,000 air stewards and stewardesses, had also appealed to the MOM earlier this year to remove cabin crew from the revised exemption list.
The MOM spokesperson, however, said that cabin crew remain on the list because their job requires them to “perform safety procedures to help passengers during emergencies to meet the high standards required for safety in the aircraft”.
Workers on existing retirement benefit or pension schemes were also still excluded from the act, such as those in the petrochemical and banking industries.
If they were not, leaving their companies earlier than their stipulated agreed-upon retirement ages, their retirement packages would be voided.
NTUC's assistant secretary-general Cham Hui Fong praised in particular the changes that affect workers on approved retirement benefits schemes, because their employers will have to offer them re-employment when they reach the retirement age agreed on in their contracts.
"This is a real win-win situation," she said. "Companies can continue to ride on the experience of the re-employed workers, who can continue working longer."
