LOWER CPF RATES HELP OLDER STAFF

THE lower employer CPF contribution rates for workers aged 50 to 55 has helped more of them find and keep jobs, said Manpower Minister Ng Eng Hen yesterday.

The employment rate of workers in this age group rose from 68.3 per cent in 2002 to 74.6 per cent last year.

Dr Ng cited these figures in response to Nominated MP Kalyani Mehta, who asked that the employer CPF contribution rate for older workers be raised.

The current rate for workers aged 50 to 55 is six percentage points lower than for younger workers.

ProfessorMehta said she found the practice 'discriminatory', but Dr Ng assured her that it was intended to help older workers stay employable.

SCRAP RETIREMENT AGE, SAYS MP AGAIN

DR ONG Seh Hong (Marine Parade GRC) renewed his call yesterday for the retirement age to be scrapped.

He has argued several times before that setting the retirement age at 62 acts as a barrier to active ageing.

A psychiatrist by training, he said he has noticed a trend of rapid deterioration once a person retires.

'Minister Mentor has said if having reached the age of 62, we decide to stop working and to enjoy life, we would be making the biggest mistake of our life,' he said, adding that working longer provides benefits such as more savings and a happier, more active life.

DON'T REWARD OLD AGE WITH LESS PAY

THE practice of cutting salaries of workers who turn 60 should be discouraged, said Dr Lim Wee Kiak.

Such a move will not entice older workers to stay in their jobs, the Sembawang GRC MP said yesterday.

The eye surgeon cited the example of his clinic assistant who will turn 60 soon. She was told by the hospital that her salary would be revised from $1,666 a month to $1,502, while the rest of her employment terms remained unchanged.

Bosses have been allowed to cut older employees' pay by up to 10 per cent since 1999 as part of cost-containing measures during the downturn then.

Dr Lim said he was not sure how many employers continue to do this today, but urged the public sector to refrain from the practice so as to set an example for the private sector.

'Reducing the pay without reduction of workload or working hours of the older workers will be deemed as taking advantage of these workers,' he said.