Any upcoming CPF review?

[reddevil0728]

It's more for those with OW ceiling and large bonus to get contribution in advance instead of at year end

Can also be those high salary no bonus or low bonus

 

[MindMatrix]

but retirement age seems more like an excuse for employers to release the employees without any repurcussions..

e.g. my father when 65 years wanted to continue working, but the company convert him to contract citing retirement age. so no more bonuses n lesser benefits. then after few more years, he still want to continue working but they don't want to renew the contract, citing retirement age again.

Agree fully that some or many employers take the chance to kick out employees when they reach retirement age. But without a legislated retirement age, those employers won't have to wait till 62 or 63, they can push out the employees much earlier.

 

[di_andrei]

But is wrong with with 3rd column

It's not wrong. The ceiling is not changing for now, but it may change in the future:

"There will be no change to the CPF annual salary ceiling at this juncture, said the Ministry of Finance (MOF).​

It added that the annual salary ceiling would be reviewed “periodically” to ensure it continues to cover the “broad majority” of CPF members."​

 

[MindMatrix]

It's not wrong. The ceiling is not changing for now, but it may change in the future:

"There will be no change to the CPF annual salary ceiling at this juncture, said the Ministry of Finance (MOF).​

It added that the annual salary ceiling would be reviewed “periodically” to ensure it continues to cover the “broad majority” of CPF members."​

All these years, the annual salary ceiling was fixed at [17 x monthly salary ceiling]. So the current annual ceiling is 17 x $6k = $102k. All of a sudden, MOF comes up with a new logic, lol.

 

[andyhtc]

CPF Board needs time to update its computer systems for the higher annual ceiling.

It will not be surprising if it is raised over the next few years in phases to match the increase in CPF contribution.

 

[reddevil0728]

It's not wrong. The ceiling is not changing for now, but it may change in the future:

"There will be no change to the CPF annual salary ceiling at this juncture, said the Ministry of Finance (MOF).​

It added that the annual salary ceiling would be reviewed “periodically” to ensure it continues to cover the “broad majority” of CPF members."​

I think if you see the table included. The 102k is appearing to be first row only rather than for all rows

All these years, the annual salary ceiling was fixed at [17 x monthly salary ceiling]. So the current annual ceiling is 17 x $6k = $102k. All of a sudden, MOF comes up with a new logic, lol.

There will be no change to the current CPF annual salary ceiling of $102,000. This will be reviewed periodically to ensure that it continues to cover about 80% of employees.

More of new policy that’s more relevant?

CPF Board needs time to update its computer systems for the higher annual ceiling.

It will not be surprising if it is raised over the next few years in phases to match the increase in CPF contribution.

There will be no change to the current CPF annual salary ceiling of $102,000. This will be reviewed periodically to ensure that it continues to cover about 80% of employees.

 

[Okenba]

All these years, the annual salary ceiling was fixed at [17 x monthly salary ceiling]. So the current annual ceiling is 17 x $6k = $102k. All of a sudden, MOF comes up with a new logic, lol.

I don't understand why there is a need to have both monthly salary ceiling as well as annual salary ceiling.
Why not just have an annual ceiling? Why does it matter whether it comes from monthly or from bonuses?

 

[reddevil0728]

I don't understand why there is a need to have both monthly salary ceiling as well as annual salary ceiling.
Why not just have an annual ceiling? Why does it matter whether it comes from monthly or from bonuses?

So just annual divided by 12 months?

 

[BBCWatcher]

The government evidently made a statement along those lines, that it's inclined over time to set the annual ceiling at 12X the monthly. If it holds the annual ceiling at $102,000 then it'll be very close to 12X the $8,000/month ceiling in 2026. (The gap at that point would be only $6,000 for the year.)

But...we'll see! I'd really like to see what the CPF Board publishes in advance of the first monthly salary ceiling increase that'll happen this September (2023). I'm a little bit puzzled how this'll work when there's a mid-year monthly salary ceiling increase but no annual salary ceiling increase. Some employees will slam against the CPF Annual Limit by December's payroll cycle, so how's that supposed to work? We'll find out soon enough I guess.

IMHO it would've been better (and simpler) to bump the monthly salary ceiling up each January instead of doing it mid-year given that the annual ceiling isn't changing. But that's "water under the bridge" I guess.

 

[havetheveryfun]

Face reality, if an employee is worth keeping, what stupid employer would want to retire the worker at retirement age.

risk n health reasons
cos the industry my father work in require a lot of manual work
if is like office kind of environment then maybe different story

 

[Nicholas92]

Lol it feels to me say like never say.

of course will continue to monitor; continue to review as needed, and change limits to cover broad majority. Rules and limits will evolve to meet the needs of the times.

no current government can promise or guarantee what happens in future.

don’t expect 8k or 102k to be “final” or “permanent”. Especially if you are in your 30s like me; we have a long way to go before turning 55 man.

few months ago I made a prediction it’ll go to 7k but the jump to 8k exceeds expectations lol