Debated in Parliament on 5 Apr 2022.
Mr Gan Thiam Poh asked the Minister for Manpower (a) how many CPF members currently have MediSave contributions in arrears with amounts (i) less than $1,000, (ii) between $1,001 and less than $3,000, (iii) between $3,001 and less than $10,000 and (iv) above $10,000, respectively; and (b) for each respective category, how many of them have met the minimum MediSave savings.
Mr Gan Thiam Poh asked the Minister for Manpower (a) for those with MediSave contributions in arrears, how many appeals have been received to-date to waive the condition of making up-to-date MediSave contributions so as to receive the various grants given by the Government; (b) what is the success rate of these appeals receiving the waiver; and (c) what are the reasons for the unsuccessful cases.
Mr Speaker, with your permission, I will respond to Question Nos 7 and 8 on MediSave arrears together, so that I can give a more holistic reply.
As in Question Nos 7 and 8 on the Order Paper?
Yes.
Please do.
While employers process both employee and employer CPF contributions of their workers, Self-Employed Persons (SEPs) are responsible for making their own MediSave contributions after declaring their income for the year. More than 75% of SEPs are able to meet their MediSave obligations in a timely manner. For the remaining SEPs who are unable to do so, about 50% of them have less than $3,000 in outstanding liabilities. Most SEPs with outstanding MediSave liabilities have not met the Basic Healthcare Sum.
To ensure that SEPs continue to take personal responsibility in saving for their longer-term retirement and healthcare needs, SEPs are required to contribute to their MediSave to qualify for Government schemes, such as Workfare. To enable our lower-income SEPs to benefit from Workfare, SEPs have up to two years to make the required MediSave contributions to qualify. Less than 5% of appeals for Workfare were from SEPs requesting to waive their MediSave contribution requirements.
We recognise this is a difficult period for many people. The Central Provident Fund (CPF) Board has been helping SEPs who are facing difficulties in meeting their MediSave obligations find alternative arrangements, such as by extending their GIRO arrangements to reduce monthly instalments. The Board also considers appeals on a case-by-case basis and exercises flexibilities based on the appellants' needs.
Members who are facing significant income loss and require urgent financial assistance can also apply for support through schemes, such as the COVID-19 Recovery Grant by the Ministry of Social and Family Development (MSF). They can visit their nearest Social Service Office if they need further help.
PAPERCUTS