Silver Support at a glance.

Friday, 6 Mar 20q5

THE STRAITS TIMES
TOP OF THE NEWS

Silver Support 'aims to mitigate inequality'

Published on Mar 6, 2015 2:13 AM



Silver Support and its future funding needs have been built into Singapore's fiscal planning, said Mr Tharman Shanmugaratnam. -- ST PHOTO: KEVIN LIM 


By Charissa Yong

THE main aim of the Silver Support Scheme that gives low-income seniors cash payouts for life is to temper inequality in Singapore, said Deputy Prime Minister and Finance Minister Tharman Shanmugaratnam yesterday.

The permanent scheme will benefit about 150,000 and be rolled out early next year.

In his wrap-up of the three- day Budget debate, Mr Tharman laid out the six policy initiatives underpinning a new social compact the Government has been putting in place in the past seven to eight years.

One of them is the introduction of redistributive schemes that reduce inequality. These include the Silver Support Scheme and Workfare programme, which boosts the income of low-wage workers.

Together, they are a key pillar of Singapore's social security system, said Mr Tharman.

"I have to emphasise again that (Silver Support) is not about tackling absolute poverty. It is about mitigating inequality," he added.

Many among the bottom 30 per cent of the elderly have other income sources, such as personal savings and money from relatives.

Also, there are other dedicated ways to help the most needy Singaporeans, he said, citing the network of Social Service Offices and the Public Assistance scheme. What sets the Silver Support and Workfare schemes apart is that they aim to supplement incomes to mitigate inequalities. Hence, they will stay permanent even as living standards rise, he said.

Addressing concerns from MPs such as Mr Ang Wei Neng (Jurong GRC) and Mr Liang Eng Hwa (Holland-Bukit Timah GRC) on their sustainability, Mr Tharman said Silver Support and its future funding needs have been built into Singapore's fiscal planning.

It will be funded out of the annual Budgets. This is unlike the Pioneer Generation Package, which is fully paid for from the revenues collected during this term of government, he added.

charyong@sph.com.sg

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Wednesday, 4 March 2015

THE STRAITS TIMES
THE BIG STORY

(2)  Silver Support Scheme "should leave no one behind", say MPs.

Published on Mar 4, 2015 12:37 PM



Details on eligibility to the new Silver Support Scheme which gives lifetime payouts to the elderly poor, have yet to be announced. -- ST PHOTO: LIM SIN THAI 

By Walter Sim

Who should qualify for the new Silver Support Scheme, which gives lifetime cash payouts to the elderly poor, was a question that cropped up repeatedly in Parliament yesterday.

At least 10 MPs spoke about the scheme during the Budget debate, with most praising it as an important addition to Singapore's social support network even as they pressed for more details on the programme.

About 150,000 seniors are expected to benefit from the initiative, which was fleshed out in last month's Budget speech.

The scheme will support the poorest 30 per cent of Singaporeans aged 65 and above, and will cost an estimated $350 million in the first full year of implementation.

Details of eligibility for the scheme, which will be rolled out next year, have yet to be announced.

So far, the Government has said only that several factors, such as lifetime wages, housing type and the level of family support, will be considered.

But MPs yesterday called for case-by-case appeals to be allowed so that no one will be left behind.

Ms Tin Pei Ling (Marine Parade GRC) said elderly folk who are asset-rich but cash-poor should also be considered for inclusion in the scheme. These include people who are not well-off but live in landed homes they inherited.

"Expecting or asking them to sell their homes to generate cash is (an) extremely sensitive (issue)," she noted.

Non-Constituency MP Gerald Giam from the Workers' Party highlighted the plight of needy seniors whose children are financially unable to provide support, or who are estranged from their children.

MPs such as Mr Hri Kumar Nair (Bishan-Toa Payoh GRC) and Ms Foo Mee Har (West Coast GRC) also urged the Government to help people understand how the eligibility criteria are established.

Mr Nair said he had reservations over whether these criteria are easy to understand and apply. He added: "I am concerned that it will cause deep resentment in those who miss out."

Those who qualify for the Silver Support Scheme will be automatically enrolled into the scheme, and receive quarterly payouts of between $300 and $750. This would amount to between $100 and $250 each month.

Mr Giam suggested that the money be paid monthly instead of quarterly to allow seniors to better manage their cash flow. He also asked if the sum will increase over time to account for inflation.

In addition, he was concerned that the payouts are "much lower" than the current spending trends of the elderly poor.

Each member of the bottom 20 per cent of retiree households - defined as those comprising solely non-working persons aged 60 and above - now spends $317 a month, Mr Giam noted, citing figures from the Household Expenditure Survey 2012/2013.

Meanwhile, Ms Tin wanted reassurance that retirees who receive payouts under the Silver Support Scheme will not suffer any "reduction or withdrawal of the aid given" in other government programmes.

Amid the calls to widen the coverage and increase the flexibility of the Silver Support Scheme, Nominated MP Randolph Tan was the lone voice in proposing that the scheme's coverage be kept narrow for better impact.

"Giving, say, a few hundred dollars to everyone of a certain demographic group would spread the amounts out too thin," said the SIM University economist. "It is better to give to those who need them in a structured manner."

He added that it was important to develop clear rules about withdrawing support for initial Silver Support recipients who no longer need the aid.

This is to benefit others who need the help, Dr Tan said.

Some MPs also worried about the financial burden that the permanent Silver Support Scheme will place on government spending in the future, given the ageing population. Singapore is expected to be a "super-aged" nation by 2030, when one in five people will be 65 or older.

Dr Chia Shi-Lu (Tanjong Pagar GRC) cautioned: "Given the stark demographic reality of an ageing population, a shrinking tax base and a more sedate pace of economic growth, this would represent an increasing burden for Singapore."

waltsim@sph.com.sg

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(Sunday) 1 March, 2015

THE SUNDAY TIMES
TOP OF THE NEWS

Opposition seeks more help for elderly, middle class

Published on Mar 1, 2015 1:17 AM

By Rachel Chang Assistant Political Editor

Opposition parties and activists welcomed the initiatives in the 2015 Budget but want more to be done for a range of groups, including the elderly and the middle class.

While they lauded measures like the raising of income tax by two percentage points on the rich and the halving of the concessionary maid levy to $60, they urged even bolder action on these fronts.

The Singapore Democratic Party (SDP) said last Wednesday that the 2015 Budget, presented by Deputy Prime Minister and Finance Minister Tharman Shanmugaratnam last Monday, shifted the Government to a "less extreme elitist position".

Noting that it has advocated raising taxes on the rich and more financial help for the elderly poor for many years, the SDP said the Government's move towards such policies shows why Singaporeans should support the opposition.

Among the headline initiatives of Budget 2015 was the Silver Support Scheme, which gives the bottom 20 per cent of those aged 65 and older a basic pension of $600 per quarter on average for the rest of their lives.

The National Solidarity Party (NSP) wants the Silver Support Scheme to be extended to all senior citizens, not just the poorest.

While welcoming the Budget's efforts to prop up the middle class through rebates, waivers and concessions, it said that these one-off measures do not go far enough.

"NSP believes that the need for government handouts would be greatly diminished if substantive measures are taken to effectively lower the cost of living such as reducing the goods and services tax," it said.

The Singapore Justice Party (SJP) is worried about the hike in the Central Provident Fund (CPF) salary ceiling to $6,000 from $5,000.

Mr Tharman said the move was to help Singaporeans save more for retirement.

But it will make hiring Singaporeans more costly for employers, the SJP said, increasing the risk of foreigners getting jobs over locals.

The Democratic Progressive Party argued for wealth redistributive measures to be made permanent, rather than just one-off handouts from Budget to Budget.

It called for a "self-sustaining, self-operating, systemic wealth redistribution set of policies in job creation, minimum wage, affordable public services, etc".

Migrant worker welfare group Humanitarian Organisation for Migration Economics (Home) lauded the pause in raising foreign worker levies.

Mr Tharman had said that would give businesses some breathing space but did not mean any change of policy direction.

The group wants levies to be abolished completely, owing to the danger of employers passing on the higher costs to low-wage foreign workers with little bargaining power.

It also lamented the lack of health-care or cultural initiatives to support the low-wage foreign workforce here which, it noted, formed 20 per cent of the population.

rchang@sph.com.sg