MOF Welcomes Feedback On Supplementary Retirement Scheme

The FY2000 Budget Statement included the announcement that the Government will introduce a Supplementary Retirement Scheme (SRS), which will allow Singaporeans to contribute voluntarily over and above their CPF savings. The SRS will be implemented by next year.

The announcement indicated the key features of the SRS. First, contributions to SRS will be accorded tax deductions at the time of contribution, with tax being payable only when the savings are withdrawn. Second, participants will have considerable flexibility in investing their savings as this is a supplementary scheme. Third, the voluntary SRS contributions can only be made by employees, subject to a percentage cap based on their salary. Employers shall not contribute; the SRS will not be an additional cost to business.

It was also indicated that as the SRS is a complex scheme, details of the scheme will take time to work out, and that views from the private sector will be sought on the implementation aspects. To-date, following selected feedback sessions, MOF has produced a consultation document outlining the broad features of the scheme. Members of the public are invited to view the document at the MOF website: (http://www.gov.sg/mof/) to give their feedback and suggestions.

All comments on the SRS are welcome and should be sent as soon as possible, and in any case no later than 15 June 2000 to:

Mr Fong Yong Kian
Director (Taxation)
Ministry of Finance
100 High Street,
#06-03 The Treasury,
Singapore 179434.

OR

E-mailed to MOF through the website

MINISTRY OF FINANCE