PRIVATISATION OF CPF’S DEPENDANTS’ PROTECTION SCHEME
	News Release by: Central Provident Fund Board 15 March 2005 --
	In June 2004, the CPF Board announced that it intended to privatise its Dependants’ Protection Scheme (DPS)1. CPF Board also assured members then that during the tender exercise, private insurers would be asked to set premiums which should not be higher than prevailing premiums for the same coverage.
	Most of the licensed insurers in Singapore participated in the tender exercise. Great Eastern Life Assurance Company Limited (Great Eastern Life) and NTUC Income Insurance Co-operative Limited (NTUC Income) have been appointed as insurers for the DPS. These 2 insurers have met the conditions spelt out by CPFB in the tender exercise and offered the best terms for members.
	Under private insurers for DPS, all members will enjoy an immediate increase in coverage from the current $44,000 to $46,000 without any increase in premium. In addition, members who are aged 55 or older will enjoy a reduction in premiums from $360 to $260. This reduction replaces the loyalty premium discount2 given when members reach age 55 under the current scheme. These changes simplify the scheme and allow members to enjoy immediate benefits so that they are encouraged to stay insured with DPS after privatisation. The Board will be informing the 1.6 million DPS members of their assigned insurer in June 2005. The insurers will manage DPS from September 2005, and thereafter DPS policies will be administered under the terms of the Insurance Act. This includes payment of claims to family members or beneficiaries appointed by members through wills instead of via CPF nomination. 1 DPS provides financial help to the families of insured CPF members who pass away or become permanently disabled. More than 28,000 families have benefited under DPS since its inception in 1989, receiving a total of $1 billion. Last year, DPS paid out $127.6 million in claims to 2,765 families. 2 The loyalty premium discount is based on the number of years of participation under DPS. The highest discount given today is $60.
	PUBLIC ENQUIRIES
	Members with enquiries can call the CPF hotline at 1800-227-1188 or email Insurance@cpf.gov.sg