Sunday, January 24, 2010

CPF - a web of complication

Our CPF system is just like our taxi fare structure (with tons of surcharges) - so many 'add on' over the years that it is cumbersome and a web of complication.

It started off years ago simple enough with 2 accounts - Ordinary (OA) and Special (SA). OA we can use for government approved investment..etc and SA is suppose to be 'untouchable' for retirement. Then later SA can also be used for certain approved folks run out of old age money for their daily expenses and healthcare. Medisave (MA) and Retirement (RA) created to patch up the holes. Sigh - this is just the beginning of the complication.

From Medisave - an compulsory insurance scheme, Medishield is added with a number of plans to choose from. Then due to the increase in medical cost, in recent years another insurance scheme, Eldershield is added. Sigh...still not enough...add more...Eldershield upgrade and then supplementary Eldershield Care plan.

More holes to patch up, so now we have another compulsory insurance scheme - CPF Life which is an annunity plan.

In fact I think it is so complicated that even CPF staff have problem grasping all the details of the various plans. Thus if you have any question, you have to address your enquiries to the various different depts in charge of specific plan.

Beauty is simplicity. Complication only creates inefficiency and confusion. I wonder how many more plans they will be adding within the next decade to patch up all the holes due to their shortsightedness in planning.

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