Civil servants and pension scheme

Quote from Diary of a Singaporean Mind


In 1996, 103 veteran civil servants sued the govt[Link]. When they signed up to join civil service, they did so under a pension scheme left behind by the British govt. In 1973, the PAP govt persuaded them to sign up for a new scheme called CPF. They were told this scheme was better because they would take home more pay every month and they would be better off in the long run. When they switched to this "better" CPF scheme, they would have to give up their medical benefits and pensions.There were many civil servants put under pressure in the 80s and 90s to switch to the CPF scheme. I remember the Straits Times had article after article on the benefits of switching to the CPF scheme including calculation to show how much these civil servants will benefit from the switch. 


The man pushing for the civil servants to convert from the old scheme was Lee Hsien Loong. 2-3 decades later many of these civil servants who gave up their pensions realized they are worse off due the the inadequacy of CPF and escalating healthcare cost. They sued the govt and lost...then they appealed and lost again. When they made the wrong choice and believed what was presented to them, they committed an irreversible mistake which they regretted the rest of their lives. The pension scheme and medical benefits that these low ranking civil servants gave up was retained for top civil servants whose salaries also rose much faster than the average civil servant.


In a few weeks all of us have to make an important decision. We are shown numbers and calculations on how the foreign influx has created jobs for Singaporeans, how HDB remains affordable and massive upgrading carrots dangled to sway you to vote for them. Just remember what happened to those veteran civil servants who believed what they were told.