Parliament passes bill to abolish pension scheme for office holders, MPs & President
Parliament today passed a bill to abolish the Parliamentary Pensions Act.
This follows a review of ministerial salaries earlier this year which recommended that the pension scheme be scrapped for office holders and members of parliament
This is in line with the principle of having a transparent wage system, where there are no hidden perks.
Under the Parliamentary Pensions Act, political office holders such as parliamentary secretaries and ministers who have served at least eight years are eligible for a pension.
The pension amount is dependent on the length of service.
The maximum annual pension is about 11 per cent of an office holder's salary prior to retirement.
The idea behind it was to recognise their role in policymaking, and their experience.
The change will now bring the remuneration of office holders and MPs in line with the practice of the Central Provident Fund, as the basic retirement scheme for Singaporeans.
Office-holders appointed on and after May 21, 2011, when the new government took office, will not receive any pension.
Those appointed before May 21 will have their pensions frozen, meaning that they will only be eligible for pension accrued up to May 20, 2011.
The change covers office holders from parliamentary secretaries to the Prime Minister.
MPs elected after January 1, 1995 are already not eligible for pension.
Separately, Parliament also passed the Civil List Pension Amendment Bill which also paves the way for the pension scheme to be scrapped for a former President.
The Constitution provided for a pension for a former President, at a sum to be decided by Parliament.
However, this provision has never been exercised and no President has ever received a state pension.
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