ERS: Senior Citizens Do Not Have To Put In $50 First

Senior citizens can now qualify for the next two lots of their Economic Restructuring Shares (ERS) without having to first put $50 into their CPF Accounts. All they need to do is to sign a form to encash $100 of their ERS on 1 January 2004 and authorise the CPF Board to deposit the $100 into their CPF Accounts. $50 of this will qualify them for the second lot of the ERS in 2004, and the other $50 will qualify them for the third lot of ERS in 2005. They must return the form to the CPF Board by 30 November 2003 to receive their ERS on 1 January 2004, or 31 December 2003 to receive their ERS on 1 February 2004.

2. This special arrangement is only for Singaporeans who are at least 62 years old on 31 December 2003. All other Singaporeans who are at least 21 years old on 31 December 2003 must deposit at least $50 in their CPF Accounts in 2003 to qualify for the second lot of the ERS. More detailed information will be sent to all households from tomorrow onwards.

3. Also from tomorrow, the CPF Board will send individual letters to Singaporeans who have not yet qualified for their ERS because they have not put at least $50 into their CPF Account this year. If they put in their $50 between January and November 2003, they will get their ERS on 1 January 2004. If they put in their $50 in December 2003, they will get their ERS on 1 February 2004. The $50 contribution can be made through the ERS website (www.ers.org.sg) if they have a DBS/POSB or UOB Internet banking account. The contribution can also be made by NETS at any Singapore Post office or Self-Automated Machine (SAM), or by Cash at any Singapore Post office.

4. The ERS is part of an offset package which is more than sufficient to cover the additional GST that most households would have to pay, for at least 5 years (examples can be found in the Annex). The ERS comes in three lots. Eligible Singaporeans received their first lot in January/February 2003. The second lot will be given out in January/February 2004, and the third lot will come in January/February 2005.

5. No one should miss out on the ERS. Singaporeans should remind their family members, relatives and friends to top-up, or even top-up on behalf of their family members. Grassroots leaders will be paying visits to those living in 1- and 2-room HDB flats who have not yet topped up by the end of November 2003. For more information on the ERS, please visit the ERS website or call the ERS Hotline at 1800-5-377-377 (1800-5-ERS-ERS). More details on the ERS can be found in the ERS information booklet.

Annex: Examples of Impact of ERS & Offset Package (2003 - 2007)

MINISTRY OF FINANCE