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CPF issue: Retirement scheme fair and one of world's safest: DPM Tharman

Published on Jul 8, 2014 3:45 PM
 
Madam Tan Kim Hing, 66, a housekeeping attendant at Royal Plaza on Scotts. The Central Provident Fund (CPF) scheme may not provide the highest returns, but the returns are fair, and it is also one of the safest retirement funds in the world, said Deputy Prime Minister Tharman Shanmugaratnam in Parliament on Tuesday, July 8, 2014. -- PHOTO: ST FILE

SINGAPORE - The Central Provident Fund (CPF) scheme may not provide the highest returns, but the returns are fair, and also one of the safest in the world, said Deputy Prime Minister Tharman Shanmugaratnam in Parliament on Tuesday.

This is because CPF interest rates are pegged to comparable investments in the market, and are also guaranteed by the Government, he said, in a statement that explained how CPF monies are invested and why the interest rates are set where they are.

The questions had been asked by four MPs.

"The CPF is not a perfect retirement savings scheme, but it is among the better regarded internationally," he said.

 
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