Professor Lim Pin, 71 , and his commitee members - ranging from unionists to bankers - were appointed after the August 2007 announcement of the CPF changes, which included the controversial longevity insurance plan.
Professor Lim personally believes that annuities are a good idea. Annuities are "a much needed piece that fills in the gap" for when people live beyond 85. However, the committee tasked with designing the national annuity scheme is finding itself in a thicket of questions.
How will they come up with a one-size-fits-all annuity plan for the 1.5 million active CPF members, of varying income and needs ? To be affordable for all yet not have to dole out miserable payouts. The questions about inflation and returning capital, are some of the issues need to be considered. To resolve a problem that will rear its head 20 or 30 years later, when long lives are not matched by adequate income.
The implication of the scheme also has its social impact. If imagine a situation where out of our active 1.5 million members - just 10% will, in the future, run out of money and not have any family support. That 150,000 members will strain what we have now, and which the committee felt that they have to fix it now.
Is really an issue of concerned, will follow-up on this again for updating.
