Expat Pension

keepitreal · Post by **keepitreal** » Thu, 16 Aug 2007 3:55 am

I just found out from my firm today that they will contribute 14.5% of my annual salary to a private pension scehme. Sounds good, but then i'm told that I need to make an additional contribution of 20% from my salary (capped on 4.5k per month) so works out about $900 per month as I am over that.

I never took this into consideration when I was doing my sums which is a pain and I have asked if i can opt out of the employee contribution and take the what my employer contributres and nothing else but they have said it's either this or nothing!!

Has anyone else got a similar expat pension plan with their firm as this has thrown a spanner into the works for me know and will probably need to start transferring Sterling from savings to cover?

Post by **joop** » Thu, 16 Aug 2007 9:47 am

This is CPF that we're talking about. 14.5% from the employer and 20% from the employee. CPF is actually a social security savings plan and see you through your old age and retirement.

When you contribute to CPF, the contribution has to be one both ends, employer and employee, you can't opt only one party contibutes.

You can read up here at http://mycpf.cpf.gov.sg/CPF/About-Us/Intro/Intro.htm and the beenfits of CPF.

Matney · Post by **Matney** » Thu, 16 Aug 2007 2:27 pm

I am most likely wrong, but isn't this for PR only and not for those on employment passes? I didn't have to do this when I lived and worked in Singapore, neither did my husband. OR does one have to earn over a certain amount for this to kick in, which most likely we did not.

Post by **sundaymorningstaple** » Thu, 16 Aug 2007 2:35 pm

Joop, I don't think so in this case.

keepitreal,

I smell something fishy in Denmark!

As Joop indicated, on the surface it sounds like CPF. And normally I would say if it looks like a dog, barks like a dog and wags it's tail like a dog well........

However, reading your previous posts, I see you are newly arrived to our shores.

Unless you are a Singaporean Citizen or are a Permanent Resident you CANNOT contribute to the CPF (Central Provident Fund) by law (that was stopped for all Employment Pass types in 1995). The figures however are exactly the same as for Citizens even to the Salary Cap of $4500/mo. The rates for PR's is less the 1st year and the 2nd year increases to somewhere in the middle while the 3rd year is the same as the Citizen Rate of 14.5%/20%.

I'm not sure what your employer is doing though. Ask you employer how long it takes to be vested in their scheme. Also ask if you can withdraw the lot when you leave that employer (including interest earned). You've got me curious now. Something smells fishy here.

sms

marciano · Post by **marciano** » Thu, 16 Aug 2007 3:27 pm

He guys,

I'm on EP now and just applyed for PR...so if i get it how much (%) i need to contribute as emplyee to CPF, is it compulsory???

Post by **sundaymorningstaple** » Thu, 16 Aug 2007 6:39 pm

marciano wrote:He guys,

I'm on EP now and just applyed for PR...so if i get it how much (%) i need to contribute as emplyee to CPF, is it compulsory???

If you get PR see below link. Yes it is compulsory - no way out unless your are being only paid directors fees which aren't considered wages.

http://mycpf.cpf.gov.sg/Members/Gen-Inf ... ntriRa.htm

See tables C & D for 1st & 2nd year PR's

sms

keepitreal · Post by **keepitreal** » Fri, 17 Aug 2007 2:56 pm

This is what the memo on the penion says...

The scheme is for employees who are not eligible to participate in the CPF and other pension schemes provide by <Firm>

Monthly Contributions on Ordinary Wages (rates may change based on CPF regulations)

Employer Contribution: 14.5% of monthly salary
Employee Contribution: 20% is deducted from monthly salary
Monthly Salary is capped at SGD 4,500 per month
Note: Please refer to CPF contribute rates for those aged above 50 years old.

Any clearer??

Post by **sundaymorningstaple** » Fri, 17 Aug 2007 6:32 pm

Sounds like they are providing/have created the same type of fund based on the CPF guidelines to equalize the salary between the local force and the expat employees. So I guess the next hurdle is the vestment duration and whether or not you can withdraw when you leave the company or do you have to leave Singapore?

You must be over 50 as the CPF rates for over 50 are 10.5% & 18% for a total of 28.5% as opposed to the 34% total in the first part of their statement.

keepitreal · Post by **keepitreal** » Fri, 17 Aug 2007 10:14 pm

Over 50 ? Give me a break squire, I'm only 30!!!

Post by **sundaymorningstaple** » Fri, 17 Aug 2007 10:18 pm

keepitreal wrote:Over 50 ? Give me a break squire, I'm only 30!!!

sorry about that. I misread the context of the last line. Guess they were just referring to someone that might be over 50 when hired. I though it was written with you in mind and not a blanket text which apparently it is. My apologies.

Post by **Strong Eagle** » Sat, 18 Aug 2007 6:56 am

keepitreal wrote:Over 50 ? Give me a break squire, I'm only 30!!!

Hey! 50 plus is GREAT! Especially when one considers the alternative.

Post by **sundaymorningstaple** » Sat, 18 Aug 2007 8:56 am

Strong Eagle wrote:
keepitreal wrote:Over 50 ? Give me a break squire, I'm only 30!!!
Hey! 50 plus is GREAT! Especially when one considers the alternative.

Unfortunately I'll hit one of the alternatives in 2 weeks!

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