Pioneer Generation Package is Adequately Funded and will be Transparent

Mr Tan Kok Tim asked about the expected drawdown of the Pioneer Generation Fund in his letter “Any forecasts on Pioneer Generation Package drawdown?” (2 Oct).

The Government has estimated the cost of the Pioneer Generation Package to be slightly over $9 billion, based on projections of life expectancies and healthcare needs. Taking into account the interest that will be accumulated, $8 billion should be sufficient to meet the total cost of the Package, including a buffer for inflation.

In the 2014 Budget, the full $8 billion was set aside, so as to assure our Pioneers that the Government’s commitments to them will be met regardless of future economic and budgetary circumstances.

The financial statements of the Pioneer Generation Fund will be presented annually to Parliament. These will provide details on the amounts disbursed and the outstanding balance in the Fund annually.

There is no time limit set for the Fund and we expect it to continue for as long as there are Pioneers still benefitting from the package. When the Fund is eventually closed, the intention is for any remaining monies to be returned to the Consolidated Fund and added to reserves.

Mr Tan also asked whether Pioneers can donate their Medisave top-ups to benefit others who are more needy. We commend those who wish to help those in need. While the Medisave top-ups are meant for Pioneers’ healthcare needs and cannot be donated directly, any Pioneer who wishes to contribute can donate to charitable causes, such as the Singapore50 (SG50) Care and Share movement. (More details can be found at: http://www.comchest.org.sg/careandshare/) The impact of their donations to this movement will be doubled with the matching grants from Government.

Lim Yuin Chien (Mr)
Director, Corporate Communications
Ministry of Finance