Budget Spent on Pioneer Generation and Merdeka Generation Packages

Mr Liang Eng Hwa asked the Deputy Prime Minister and Minister for Finance (a) how many seniors have benefited from the Pioneer Generation Package and Merdeka Generation Package respectively; (b) how much money has been disbursed so far under each of the packages; (c) whether the funds set aside for both packages are adequate to meet future disbursements; and (d) whether projected surpluses, if any, can be used to enhance the benefits of both packages.

Thank you. Sir, we introduced the Pioneer Generation (PG) Package and the Merdeka Generation (MG) Package in 2014 and 2019 respectively, to honour PG and MG seniors for their contributions in the early years of Singapore's nation-building. About 450,000 PG seniors and 500,000 MG seniors have benefited since the inception of the respective PG and MG packages. As of 30 September 2022, there are about 340,000 PG seniors and 480,000 MG seniors.

We established the PG Fund and MG Fund to set aside monies upfront for these packages. This ensured the Government honours our commitment to PG and MG seniors, regardless of future economic or fiscal circumstances. Eight billion dollars and $6.1 billion were set aside at the inception of the PG Fund and MG Fund respectively. We sized the funds based on the projected lifetime cost, the benefits in the PG and MG packages, after accounting for inflation and interest accrued.

In recent years, we have enhanced the PG and MG benefits, such as the introduction of the Additional Participation Incentives for PG and MG seniors who join CareShield Life by 31 December 2023 and higher annual MediSave top-ups for PG seniors from 2021 onwards. The Government will continue to review holistically our schemes and subsidy framework, and update the key parameters where needed, to ensure the affordability of healthcare for Singaporeans, including our PG and MG seniors. As at 31 March 2022, $3.04 billion from the PG Fund and $0.72 billion from the MG Fund have been disbursed.

MOF and MOH review the sufficiency of the PG Fund and MG Fund every year. As at 31 March 2022, there is a balance of $6.16 billion in the PG Fund and $5.72 billion in the MG Fund. The Government will monitor the situation and, if necessary, we will top up these funds to honour the commitments to our PG and MG seniors.

Sir, this is part of our efforts to prepare Singapore for an ageing society and why the Government needs to ensure we have sufficient fiscal resources to support and care for our seniors.

Mr Speaker, I would like to thank the Senior Minister of State for his answer. It is good to hear that there are 340,000 and 380,000 seniors benefiting from the PG and MG Fund. I have one supplementary question. The Senior Minister of State mentioned that there is a $6.1 billion and $5.72 billion balance in both the PG Fund and MG Fund. Is it possible if some of these excess balances can be diverted or funnelled slightly to support or enhance the Silver Support package because there are some segments of the silver generation or seniors in Singapore that may benefit further from the Silver Support package being enhanced going forward? I thank the Senior Minister of State.

Mr Speaker, I would, first, like to clarify that the number of PG seniors who benefited from the PG package is 450,000 and the number of MG seniors who benefited was 500,000 since the inception of these packages.

Mr Saktiandi Supaat's question about Silver Support, I think this is a different objective from the PG and MG packages which are geared more towards providing for the healthcare and peace of mind of our PG and MG seniors. For Silver Support, instead of being cohort-based, as in we look at the PG and MG, Silver Support is actually a structural scheme that seniors who are younger than PG and MG, when they reach the eligible age, they also can receive Silver Support, if they meet the conditions. And the conditions, as Members are aware, we will look at the housing type, the per capita household income and also the CPF balances at age 55.

So, all these are designed to provide some additional help for seniors who, when they were younger, did not earn enough, did not accumulate enough CPF balances and when they grow old, when they retire, we give them some additional help through Silver Support. So, the objective is different from PG and MG, but we will look at both very carefully. For MG and PG, as I mentioned in my main reply, if it is necessary to top up these funds, the PG Fund and the MG Fund, we will do so to honour our commitments to our PG and MG seniors.

For Silver Support, we have been regularly reviewing the amount and also the criteria to see how we can help our seniors who need this assistance when they retire.