CPF should set up jobless insurance scheme to help retrenched members

With more uncertainty in the global economy, the Central Provident Fund (CPF) Board should explore the possibility of having a jobless insurance scheme for retrenched Singaporeans, to assist them during the hard times.

I propose a contribution of 1 per cent each from members and their employers towards such a scheme. With at least a continuous contribution of one year or more, they can get a monthly cash payout — pegged to a percentage of their last-drawn salary — for the next 12 months if they are retrenched.

The payout can be capped at S$1,000 and stopped once the CPF member finds a new job.

The cash would come in handy in meeting the member’s basic needs, while he or she looks for a new job.