Asian government abolishes parliamentary pensions

The Singapore parliament has passed a bill to abolish the Parliamentary Pensions Act. Under the act, political office holders who have served at least eight years are eligible for a pension.

The move came after a review of ministerial salaries, which recommended that the pension plans be scrapped for office holders and Members of Parliament (MPs).

This is in line with the country’s principle of having a transparent wage system, where there are no hidden perks.

The change will bring the remuneration of office holders and MPs in line with the Central Provident Fund savings scheme.

Office holders appointed on and after May 21, 2011, when the new government took office, will not receive any pension. Those appointed before that date will have their pensions frozen and be eligible only for pensions accrued up to May 20, 2011.
The change affects all office holders, from parliamentary secretaries all the way to the prime minister.

MPs who supported the bill said that being a politician cannot be seen as a job or a career promotion.

Holland-Bukit Timah GRC MP Christopher de Souza told the Singapore News, “I believe most, if not all, of us present at today’s debate would agree with me that political office is both a calling and a passion. Those who want to serve must have that sense of duty and, beyond that, passion to the nation, as well as a desire to contribute to the public good of Singapore.”

Parliament also passed the Civil List Pension Amendment Bill, which paves the way for the pension scheme to be scrapped for former presidents.

The Constitution has provided for a pension to be given to a former president, at a sum to be decided by Parliament. However, this provision has never been exercised, and no president has ever received a state pension.