Although the changes are major and complicated, people understand why they are necessary, he said at the NTUC National Delegates Conference yesterday.

And Mr Lee gave the labour movement a pat on the back for helping to get workers' support for the changes, announced in August during the National Day Rally.

The CPF reforms include an extra one percentage point interest on the first $60,000 in the CPF accounts, a delay in the draw-down age of the Minimum Sum, and a new compulsory annuity scheme.

To get people to understand what the Government is trying to do and why, several initiatives were launched.

Said Mr Lee: 'We had to make a special effort to reach out to the public - forums, dialogues, feedback sessions, videos, cartoons, CD-ROMs, all sorts of ways to get the message across, some serious, some not-so-serious. And I think from the reactions so far, the message is getting through.'

The labour movement has been crucial in helping to get workers' support, he added.

Other countries have similar problems but they have not moved, he observed. 'But we have moved, I think, one step faster than others.'

The reason: strong support of the labour movement.

So before the rally, just as before the Budget debate, union leaders were involved in the process, offering advice and helping to shape the policies, said Mr Lee.

Ultimately, the basic message for the CPF changes is 'a simple one', boiling down to three parts, he said.

First, people have to work longer as they are living longer. Higher Workfare Income Supplements for the lower-income group have also encouraged older Singaporeans to find jobs, and companies to hire them, he said.

'It's also possible because we've been educating the employers, and the employers now understand better it is in their interest to employ older workers and treat them fairly.'

Second, helping CPF members earn more on their savings - 'not by taking risks or getting excited on the stock market, but by Government paying more interest'.

Third, drawing down their CPF savings later 'so when you're old, you have something to take care of you'.

To that end, the National Longevity Insurance Committee is working out details of an insurance scheme which will make payouts to Singaporeans from age 85 till they die.

Three union leaders are on the committee: Mr Seng Han Thong, Mr Terry Lee and Mr G. Rajendran. 'They understand the issues and I am sure they will help the committee arrive at good recommendations.'