Budget 2014: Pioneer Generation to benefit ‘for the rest of their lives’

SINGAPORE — Feverishly discussed for months, details of the much anticipated Pioneer Generation Package were released today (Feb 21), with Deputy Prime Minister Tharman Shanmugaratnam announcing a range of healthcare support for Singapore’s pioneers in his Budget Speech.

The package, catering to those born in 1949 or earlier, and who became a Citizen before 1987, will cost the Government S$9 billion.

The Government will establish an S$8 billion Pioneer Generation Fund to meet the cost of the package over time.

In total, about 450,000 Singaporeans will benefit, and the Government will establish a panel to assess appeals of those who marginally miss out on the precise criteria on a case-by-case basis.

MEDISAVE, MEDISHIELD LIFE BENEFITS

As part of the package, all pioneers will receive Medisave top-ups of S$200 to S$800 yearly for life.

Those born between 1945 and 1949 will receive S$200 a year, while those born in 1934 and earlier will receive S$800 a year. Payouts will be made from August.

They will also get subsidies for their MediShield premiums. The Government’s intent is to fully cover premiums for the MediShield Life insurance scheme for the group who will be aged 80 and above this year. Others will also get help with payment for premiums.

The MediShield Life subsidies will be implemented at the end of next year when MediShield Life is rolled out.

HELP WITH OUTPATIENT BILLS

For outpatient care, pioneers will receive a 50 per cent discount off the net bill for subsidised services at Specialist Outpatient Clinics. This means that 75 to 85 per cent of their net bills will be covered by subsidies.

All pioneers will be included under the a scheme that subsidises visits to participating general practitioners, known as the Community Health Assist Scheme (CHAS).

Pioneers with disabilities, or their caregivers, will receive cash assistance of S$1,200 a year.

The subsidies for Specialist Outpatient Clinics and polyclinic services will be implemented in September, while the additional CHAS benefits will be implemented in January next year.

The Pioneer Generation Fund assures pioneers that Singapore “will honour our commitment to them, regardless of future economic circumstances”, said Mr Tharman.

CPF CONTRIBUTION RATES RAISED FOR OLDER SINGAPOREANS

Meanwhile, for working Singaporeans above 50, Central Provident Fund contribution rates will be raised.

Those above 50 to age 55 will see a 1.5 percentage point increase in contribution rates – 1 percentage point will come from employers and 0.5 percentage point will come from the employees.

Those above 55 to age 65 will see a 0.5 percentage point increase in contributions from employers.

The changes will mean that a 50-year-old worker earning a wage of S$3,000 will have S$6,500 more in his retirement savings at 65.

This will begin from January next year.

Other initiatives announced include the enhancement of parent relief and handicapped parent relief by up to S$3,000, with individuals who stay with their elderly dependants enjoying a higher relief quantum.

More Budget 2014 announcements here.