Bill to remove pensions for office-holders, MPs passes

Parliament on Monday passed a bill that removes pensions for government office-holders and Members of Parliament (MPs), putting into effect the recommendations on ministerial salaries which were endorsed in January.

New office-holders appointed on or after 21 May last year, when the new government took office, as well as office-holders who had served less than eight years by that date, will not receive pensions.

Eligible office-holders with eight years or more of service before the same date, and current MPs who were elected before 1 January 1995, have had their pensions frozen since 21 May last year.

They will only be eligible for pensions accrued up to 20 May of that year.

Since May 21 last year, no serving office holder has begun receiving pensions upon turning 55.

These changes also mean that the Central Provident Fund system, which is the basic retirement scheme for Singaporeans, will now be adopted instead.

The House also passed amendments to the Civil List and Pension Act to remove the Parliament’s power to grant pension to a former president. To date, no president has ever been granted a pension by the state.

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