Major CPF policy shift on the way

(23-02-2015, 08:00 PM)investor101 Wrote:

(23-02-2015, 05:26 PM)egghead Wrote: Budget 2015:

1. CPF contribution ceiling increase from $5k to $6k
2. Up to 6% interest for the first $30k for 55 yo and above people
3. Increase in CPF contribution rate for people 50 yo and above
4. Increase SRS contribution ceiling to $15,300

Cheers!!

I hope you all realize that if wasn't for Roy Ngerng who blew the lid off this matter, we would most likely not have enjoyed this increase in CPF returns.

Thank you Roy!

What did Roy blow anyway? Can help me to recall?

(23-02-2015, 08:00 PM)investor101 Wrote: I hope you all realize that if wasn't for Roy Ngerng who blew the lid off this matter, we would most likely not have enjoyed this increase in CPF returns.

Thank you Roy!

oh please. Roy my ass. This is an election yr. You should expect more goodies like this anyway. In fact i am disappointed that there wasn't much more handouts
Oh well i guess there was a deficit that limits it.

(23-02-2015, 10:59 PM)Jacmar Wrote:

(23-02-2015, 08:00 PM)investor101 Wrote: I hope you all realize that if wasn't for Roy Ngerng who blew the lid off this matter, we would most likely not have enjoyed this increase in CPF returns.

Thank you Roy!

oh please. Roy my ass. This is an election yr. You should expect more goodies like this anyway. In fact i am disappointed that there wasn't much more handouts
Oh well i guess there was a deficit that limits it.

Just curious, is there anywhere to check the budget on defense, civil salary, education, ... maybe has to compared amount to the handouts to get total feel ?

(23-02-2015, 11:09 PM)corydorus Wrote: Just curious, is there anywhere to check the budget on defense, civil salary, education, ... maybe has to compared amount to the handouts to get total feel ?

Refer to the attached file, see chart 2-1 on page 9.

Attachment extracted from:

http://www.singaporebudget.gov.sg/budget...iture.aspx

(23-02-2015, 10:59 PM)Jacmar Wrote: Oh well i guess there was a deficit that limits it.

If you take the 5 years term of current gov(FY11 to FY15), the accumulated surplus is closed to $8 billion. Amazing??

So, despite spending so "much" for this year, there are still 8 billions left over which will be put into reserves when the parliament is dissolved for election.

If we exclude the special transfer, FY15 is only shortfall by 0.7 billion which is small change and most likely, will be covered by revised revenue.

In fact, if you look at it plainly, they are really having a hard time spending the money

Lastly, with 8 billion left, I think there will a one off goodies near NDP.

If we apply the same principles on ourselves to the country, we should not be looking for opportunities to spend our surplus but to put it away for a rainy day and to grow it. The changes to CPF are welcomed. However, I hope it will not herald more hand-outs. It is easy to give but difficult to roll back.

(24-02-2015, 06:45 AM)yeokiwi Wrote:

(23-02-2015, 10:59 PM)Jacmar Wrote: Oh well i guess there was a deficit that limits it.

If you take the 5 years term of current gov(FY11 to FY15), the accumulated surplus is closed to $8 billion. Amazing??

So, despite spending so "much" for this year, there are still 8 billions left over which will be put into reserves when the parliament is dissolved for election.

If we exclude the special transfer, FY15 is only shortfall by 0.7 billion which is small change and most likely, will be covered by revised revenue.

In fact, if you look at it plainly, they are really having a hard time spending the money

Lastly, with 8 billion left, I think there will a one off goodies near NDP.

Thanks Yeo, I really like what you said

The majority of the surplus from the current term, if I am not wrong, is from property stamp duties collected during those property bull years. So it is unlikely to be repeated in the next term. Before the current term ends, I do hope the govt can give back some of these surplus to the people, even though they have given quite a lot already IMO.

The silver support scheme is not finalized so the actual amount is still not known yet. And also the $3B set aside for T5 is grossly insufficient. So I guess the govt will have to use part of the extra for these things.

(23-02-2015, 09:55 PM)NTL Wrote:

(23-02-2015, 08:00 PM)investor101 Wrote:

(23-02-2015, 05:26 PM)egghead Wrote: Budget 2015:

1. CPF contribution ceiling increase from $5k to $6k
2. Up to 6% interest for the first $30k for 55 yo and above people
3. Increase in CPF contribution rate for people 50 yo and above
4. Increase SRS contribution ceiling to $15,300

Cheers!!

I hope you all realize that if wasn't for Roy Ngerng who blew the lid off this matter, we would most likely not have enjoyed this increase in CPF returns.

Thank you Roy!

What did Roy blow anyway? Can help me to recall?

The higher 6% interest is only for the first $30k. Nonetheless i think their timing is really bad that gives credence to Roy's half truths. The Lee Jr govt style is much more accommodative if we compare the styles of the past 2 PM, but politically makes more sense to adjust after a period of time to deter speculation

The other aspect is govt going to put SWF PnL into budget instead of just the dividend IMHO is a very bad move. It will just increase volatility of the budget and increase demand for short term performance as it becomes a revenue generator. If we recall prior to the elected Prez, SWF was separate from the budget even for dividends.

(24-02-2015, 07:35 AM)Caelitus Wrote: If we apply the same principles on ourselves to the country, we should not be looking for opportunities to spend our surplus but to put it away for a rainy day and to grow it. The changes to CPF are welcomed. However, I hope it will not herald more hand-outs. It is easy to give but difficult to roll back.

what is a 'rainy day"? If whole day save and never spend, will be a hoarding miser.
Thats what PAP used to be. Before Aljunied.

Note that all these benefits have a expiry or scaling down over time.

(24-02-2015, 10:06 AM)opmi Wrote:

(24-02-2015, 07:35 AM)Caelitus Wrote: If we apply the same principles on ourselves to the country, we should not be looking for opportunities to spend our surplus but to put it away for a rainy day and to grow it. The changes to CPF are welcomed. However, I hope it will not herald more hand-outs. It is easy to give but difficult to roll back.

what is a 'rainy day"? If whole day save and never spend, will be a hoarding miser.
Thats what PAP used to be. Before Aljunied.

Note that all these benefits have a expiry or scaling down over time.

The last statement is the critical point. If all spending are belong to this categories, than no worry at all