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Pr and cpf question

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kookaburrah
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Postby kookaburrah » Thu, 12 Dec 2013 4:37 pm

My company levelled the playing field by adding an amount equivalent to their full CPF contribution from day 1. This is done so that each foreign worker can start putting that sum towards retirement if they wish (they can also spend it on beer, i guess, if they wish)

Once you become a PR and CPF contributions start, this amount of money gets progressively lower in 1st and 2nd years, until it disappears for good in the 3rd year as they'll be contributing the full amount to CPF.

In my naivete, I actually thought this was standard practice, and I'm really surprised to find out it seems to be an aberration.

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x9200
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Postby x9200 » Fri, 13 Dec 2013 8:51 am

Same practice in my company. I had a special bonus corresponding to the CPF payment rates and this bonus was removed after PR was granted. But it is not a small company.
I guess the OP's case is just the case of mutual lack of imagination/experience from the OP and his company and what looks like OP trying to take advantage of the situation. No one should expect the employer to be happy paying something extra and the duty to pay CPF is something intrinsic to PR same way as NS is so the main culprit for the mess created is still the OP. As said by the others, the company has probably no specific procedures in place. They may not have that many cases of this type and what they try to do now is what worked in past with some more reasonable employees.

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PNGMK
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Postby PNGMK » Fri, 13 Dec 2013 9:51 am

When I appleid for PR 20 years ago I told my employer. He told me that I would have to absorb the cost of the CPF as it was money that would be in my pocket anyways. I accepted it and it was fine. It's just a forced saving scheme, not an additional tax. Just suck it up.

Anyways PR's are screwed as other commentators have noticed - there is no minimum wage.

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Postby bubble1286 » Tue, 17 Dec 2013 10:20 pm

This thread makes me wonder if I apply under family scheme without telling me employer, would that still consider "cheating" my employer?

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PNGMK
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Postby PNGMK » Tue, 17 Dec 2013 11:00 pm

bubble1286 wrote:This thread makes me wonder if I apply under family scheme without telling me employer, would that still consider "cheating" my employer?


Not at all, he'll just deduct the CPF from your take home pay and 'cheat' you back.

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sundaymorningstaple
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Postby sundaymorningstaple » Tue, 17 Dec 2013 11:02 pm

If you don't tell him, knowing it's going to cost him more money to keep you? Yeah, I'd say you are trying to cheat your employer. I reckon at the first sign of recession you'd be out the door.

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Postby bubble1286 » Tue, 17 Dec 2013 11:27 pm

I don't get your argument. You earlier said that employer is the one sponsoring work pass hence gives his employee an opportunity to apply PR. However, in my case I *might* get PR with or without his sponsorship. What's the point of telling him? Or is to let him mentally be prepared to pay me "more"?? OR are you telling me to voluntarily accept a pay cut to make my company happy? geez

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Postby Strong Eagle » Wed, 18 Dec 2013 12:06 am

bubble1286 wrote:I don't get your argument. You earlier said that employer is the one sponsoring work pass hence gives his employee an opportunity to apply PR. However, in my case I *might* get PR with or without his sponsorship. What's the point of telling him? Or is to let him mentally be prepared to pay me "more"?? OR are you telling me to voluntarily accept a pay cut to make my company happy? geez


You're not taking pay cut, you are joining a mandatory savings program... you'll get all the money back plus interest.

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Postby Beeroclock » Wed, 18 Dec 2013 11:07 am

+1. I commented the same earlier in this thread, but it definitely seems a lot of people here take the view that cpf is lost money.

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Postby Barnsley » Wed, 18 Dec 2013 11:10 am

Beeroclock wrote:+1. I commented the same earlier in this thread, but it definitely seems a lot of people here take the view that cpf is lost money.


If you read the local folks comment on it also , they feel the same.

If you leave then you can take it with you , if you stay the way the locals talk you can never actually get at it as the Govt keep raising the age where you can access the money you have put in.

They are suspicious the money isnt actually there it seems!
Life is short, paddle harder!!

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Postby Beeroclock » Wed, 18 Dec 2013 11:31 am

Barnsley wrote:
Beeroclock wrote:+1. I commented the same earlier in this thread, but it definitely seems a lot of people here take the view that cpf is lost money.


If you read the local folks comment on it also , they feel the same.

If you leave then you can take it with you , if you stay the way the locals talk you can never actually get at it as the Govt keep raising the age where you can access the money you have put in.

They are suspicious the money isnt actually there it seems!


Hmm and I thought I was a skeptic! Very much doubt that the Govt here would do a Madoff !!

I think it also reflects that most people are very short-term / hand to mouth focused when it comes to their finances. If the money isn't available today then it's not counted. Ironically that's exactly the reason the Govt is wise to have such a forced savings retirement plan, to look after all these people who won't take the time and foresight to look after their own financial future. That's also the explanation why the CPF contributions are for SC/PR and not FW, because the former have a clear intention to retire here. I don't agree with the views the CPF needs to be equalized / level playing field between SC/PR vs FW..... IMHO A lot of the grievances voiced in this area are probably down to people's time horizons and misunderstanding of the basic objective of CPF.

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PNGMK
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Postby PNGMK » Wed, 18 Dec 2013 11:34 am

Barnsley wrote:
Beeroclock wrote:+1. I commented the same earlier in this thread, but it definitely seems a lot of people here take the view that cpf is lost money.


If you read the local folks comment on it also , they feel the same.

If you leave then you can take it with you , if you stay the way the locals talk you can never actually get at it as the Govt keep raising the age where you can access the money you have put in.

They are suspicious the money isnt actually there it seems!


It's a whole topic on it's own but there are valid reasons to think that the GIC and Temasek have lost a LOT of money in the last two decades. While I believe the tightening up of 'cash outflow' in the CPF system is related to demographics, I can understand the locals cynicism.

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PNGMK
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Postby PNGMK » Wed, 18 Dec 2013 11:37 am

bubble1286 wrote:I don't get your argument. You earlier said that employer is the one sponsoring work pass hence gives his employee an opportunity to apply PR. However, in my case I *might* get PR with or without his sponsorship. What's the point of telling him? Or is to let him mentally be prepared to pay me "more"?? OR are you telling me to voluntarily accept a pay cut to make my company happy? geez


You're NOT taking a pay cut. You're just going to be paid part in cash and part in CPF contributions. You clearly think you can scam your employer into an undeserved pay rise and they will see right through this ruse.


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