MPs offer ideas to improve CPF

[Drizzt]

the returns of the cpf oa is not low. its a risk free return that is as a short duration bond. if the government stick to that we should be getting less than 0.5%. but they were generous to stick with 2.5%

same as sa. they peg it to the 10 year sgs bond rate. we should be getting 2.9%

Why should it be pegged to a short duration bond? CPF OA money will stay inside there for decades.

The duration for the SA is even longer as most of the money will be transferred to RA upon 55 years old. Shouldn't it be pegged against 30 years bond rate?

wrong in my description. but if you view the benchmark, they meant it to be savings rather than something that grows

From 1 Mar 1986 to 30 June 1999, the formula to compute the calculated rate is 50% fixed deposit rate and 50% savings rate of the average of the big 4 local banks over the preceding relevant 6 months.

From 1 July 1999 to present, the formula to compute the calculated rate is 80% fixed deposit rate and 20% savings rate of the average of the major local banks over the preceding relevant 3 months.

From 1 Jan 2008, savings in the Special, Medisave and Retirement Accounts is pegged to the 12-month average yield of the 10-year Singapore Government Securities (10YSGS) plus 1%

http://mycpf.cpf.gov.sg/NR/rdonlyres/5C7...stRate.pdf