|
The CPF Board intends to privatise its Dependants’ Protection Scheme (DPS) and will invite private insurers to submit their proposals in July 2004.
Privatisation of the DPS was recommended by the Economic Review Committee in 2002 as it should generate healthy competition among the private insurers and provide better benefits and services to CPF members.
DPS was introduced in 1989 to provide some financial help to the families of CPF members who have passed away or are no longer able to work for medical reasons. It is an optional insurance scheme which covers CPF members for an insured sum of $44,000 up to age 60. CPF savings may be used to pay DPS premiums. Since 1989, DPS has helped 25,340 CPF members and paid out claims totaling $882 million as at 31 December 2003.
CPF Board would like to assure CPF members that premiums will remain at least the same for the current level of coverage after privatisation. The main features of DPS will also remain. The CPF Board will continue to oversee the DPS policies and work with the appointed insurers to ensure that members’ interests are protected.
The selection criteria of private insurers will include their financial strength, proven operation efficiency and ability to provide good customer service. Successful insurers are expected to begin coverage under the DPS from the first half of 2005. More details on the privatisation will be made available by end of the year.
Members of the public who would like to give feedback can do so via Feedback Unit (www.feedback.gov.sg) or CPF website www.cpf.gov.sg. The consultation period will start from 23 Jun and close on 13 July 2004.
For more information on the current DPS, please refer to the CPF website www.cpf.gov.sg. |