10.9% Bonus For ERS & NSS28 Feb 2007
Holders of Economic Restructuring Shares (ERS) and New Singapore Shares (NSS) will receive 10.9% of bonus shares. This is 3% above the real GDP growth rate of 7.9% for 2006. The bonus shares will be paid on 1 March 2007.
HIGHER NSS & ERS BONUS RATE
2. The NSS & ERS bonus rates are set at real GDP growth rate plus 3%, subject to a minimum of 3%. Singaporeans who have not exchanged their NSS for cash can expect to receive up to $251 worth of bonus shares, while those who have not exchanged their ERS for cash can expect to receive up to $184 worth of bonus shares in 2007.
NSS CLOSES IN 2007 - BENEFICIARIES DO NOT HAVE TO DO ANYTHING TO RECEIVE THEIR NSS PAYMENT
3. The NSS was given out in 2001 to give citizens a stake in Singapore's growth and prosperity, with more for lower income Singaporeans. Each share is worth S$1, and bonus shares were to be paid on the 1st of March every year from 2002 to 2007. The final dividend payment will be made this year on 1 March 2007, after which all remaining shares will automatically be exchanged for cash.
4. About 700,000 Singaporeans have yet to fully exchange their NSS for cash. CPFB will send a letter to these Singaporeans on 10 March 2007 to inform them how they can get their NSS payment. Most of these beneficiaries do not need to do anything as they would have received their Progress Package payment in their bank accounts last year or had encashed part of their NSS through their bank accounts previously. Their NSS payments will be automatically paid into their bank accounts by 15 April 2007.
5. The remaining Singaporeans will get a cheque by 15 April 2007. However, if they prefer to have their NSS paid into a bank account, they can provide their bank account details by 1 April 2007 at www.nss.gov.sg or return a completed form (available at all Community Centres/Clubs, Community Development Councils and CPF Service Centres) to the CPFB. (See Annex for key dates.)
FINAL BONUS SHARE PAYMENT FOR ERS IN 2008
6. The ERS was a major part of the FY2002 GST offset package to help offset the increase in Goods and Services Tax (GST) from 3% to 5%. It was given out in three lots. Eligible Singaporeans received their first, second and third lots in 2003, 2004 and 2005 respectively. Those who have remaining ERS shares are encouraged to hold on to their shares in order to receive the bonus shares to be paid in 2007 and 2008. The ERS scheme will close after the final payment of bonus shares in 2008.
7. Members can check their ERS and NSS balance and bonus shares at the website www.ers-nss.org.sg. For any queries, they can call 1800-8-677-677 (1800-8-NSS-NSS) or email email@example.com.
MINISTRY OF FINANCE