What is SCP? Part 2
I remembered when I helped launched TAP in 1993, one wisecracker came up to me and asked me 'do you know what TAP stands for?' So I asked him and he said that 'TAP' stands for Tidak Ada Pencen. I thought to myself when I heard that SCP was announced by His Majesty that it won't be long before someone comes up with something interesting. I heard it today, the Brunei wisecracker has done it again, SCP stands for Simpanan Cara Paksaan. I rest my case.
BUT, whether secara paksaan or not, it is good for everyone's future. In fact, everyone's future rely on the SCP. The SCP marked a return to a monthly paid pension after retirement for government civil servants but not only that everyone including those in the private sector also gets the benefit of having monthly paid pensions. What is important to remember is that, when you retire, you get the TAP savings as a lump sum and the SCP savings as your monthly pensions.
I know that there were still a number of questions that people wanted to ask about the scheme and I will try to answer them as much as I can. Remember I am not the expert on this matter but I am just regurgitating what I gather from yesterday's briefing at MOF. MOF briefed the State Legislative Council members, Perm Secs and Heads and Deputy Heads of Government Departments.
A number of people asked the following questions in the comment boxes. My answers are as follows:
Q1. How many years the annuity will cover after the pension? until they passed away? what if they passed away the year after the pension? it's not really clear.. if the person earns more than 2800 per month (ie. $98 per month), how much he/she will earn after the pension? I don't see/know how to calculate them.
Q2. hw does the Scp spread aftr retirement age? Up to 70 yrs of age?
Q3. how is the monthly SCP calculated? is it over a spread of 15 years as per the previous pension scheme?
Q4. until what age do we received our annuity and what will happen if someoen live beyond certain age
Answer:
Technically, the pension is paid monthly for a period of 15 years from the age of 60. But if you are still alive after 15 years, the scheme will continue to pay you.
However if you died before completing 15 years, your wife and children (under 21) will benefit for the remainder of that 15 years.
The amount of annuity to be paid varied depending on three factors. One, is how much you are earning, the more you earn, the higher your annuity. Second, is how long you will be saving, the longer you saved up, the higher your annuity. Third, the amount of return you get from the investment of your savings, the higher the returns SCP can pay you, the higher your annuity. What the government is guaranteeing is no matter what, you will receive a minimum of $150 per month (for those earning $500 a month now and saved for 35 years). It will be a bit difficult to calculate what your actual annuity will be but if you earn more than $500 a month, your annuity will be higher than $150 a month.
Q5. mcmna dgn org bujang nda kwin? What happn to thier survivorship portion.
Answer:
Someone from MOF answered this on the comment box. "Insya Allah, SCP will be provided till the demise of the receiver. For singles, it will based on the probate letter."
Q6. Are there different for those dailypaid workers who retire at 65? wiil their annuity be paid on reaching 60?
Answer:
I don't have an answer to this and hopefully someone from MOF will correct me if I am wrong. However, logically (and based on existing TAP and pension practices), annuity should be paid out at age 60 and if a person continues working, he should be receiving his monthly annuity as well as his pay.
Q7. I may be mistaken but the circular doesnt seem to outline what happens to the 1% survivorship fund if a person DOESN'T die prior to retirement, is it integrated into d mthly SCP?
Answer:
I don't have an answer to this and hopefully someone from MOF will correct me if I am wrong. However, logically that 1% is only activated if you died. Otherwise it will form part of your monthly SCP.
I hope I have been able to cover everything. I know my ex-MOF colleagues will correct me and if that happens, I will give the amended response. If you have any more questions, they can be posted in the comment boxes.
BUT, whether secara paksaan or not, it is good for everyone's future. In fact, everyone's future rely on the SCP. The SCP marked a return to a monthly paid pension after retirement for government civil servants but not only that everyone including those in the private sector also gets the benefit of having monthly paid pensions. What is important to remember is that, when you retire, you get the TAP savings as a lump sum and the SCP savings as your monthly pensions.
I know that there were still a number of questions that people wanted to ask about the scheme and I will try to answer them as much as I can. Remember I am not the expert on this matter but I am just regurgitating what I gather from yesterday's briefing at MOF. MOF briefed the State Legislative Council members, Perm Secs and Heads and Deputy Heads of Government Departments.
A number of people asked the following questions in the comment boxes. My answers are as follows:
Q1. How many years the annuity will cover after the pension? until they passed away? what if they passed away the year after the pension? it's not really clear.. if the person earns more than 2800 per month (ie. $98 per month), how much he/she will earn after the pension? I don't see/know how to calculate them.
Q2. hw does the Scp spread aftr retirement age? Up to 70 yrs of age?
Q3. how is the monthly SCP calculated? is it over a spread of 15 years as per the previous pension scheme?
Q4. until what age do we received our annuity and what will happen if someoen live beyond certain age
Answer:
Technically, the pension is paid monthly for a period of 15 years from the age of 60. But if you are still alive after 15 years, the scheme will continue to pay you.
However if you died before completing 15 years, your wife and children (under 21) will benefit for the remainder of that 15 years.
The amount of annuity to be paid varied depending on three factors. One, is how much you are earning, the more you earn, the higher your annuity. Second, is how long you will be saving, the longer you saved up, the higher your annuity. Third, the amount of return you get from the investment of your savings, the higher the returns SCP can pay you, the higher your annuity. What the government is guaranteeing is no matter what, you will receive a minimum of $150 per month (for those earning $500 a month now and saved for 35 years). It will be a bit difficult to calculate what your actual annuity will be but if you earn more than $500 a month, your annuity will be higher than $150 a month.
Q5. mcmna dgn org bujang nda kwin? What happn to thier survivorship portion.
Answer:
Someone from MOF answered this on the comment box. "Insya Allah, SCP will be provided till the demise of the receiver. For singles, it will based on the probate letter."
Q6. Are there different for those dailypaid workers who retire at 65? wiil their annuity be paid on reaching 60?
Answer:
I don't have an answer to this and hopefully someone from MOF will correct me if I am wrong. However, logically (and based on existing TAP and pension practices), annuity should be paid out at age 60 and if a person continues working, he should be receiving his monthly annuity as well as his pay.
Q7. I may be mistaken but the circular doesnt seem to outline what happens to the 1% survivorship fund if a person DOESN'T die prior to retirement, is it integrated into d mthly SCP?
Answer:
I don't have an answer to this and hopefully someone from MOF will correct me if I am wrong. However, logically that 1% is only activated if you died. Otherwise it will form part of your monthly SCP.
I hope I have been able to cover everything. I know my ex-MOF colleagues will correct me and if that happens, I will give the amended response. If you have any more questions, they can be posted in the comment boxes.
Comments
i was wondering under the survivorship scheme, if the paticipant dies and the benefactor i.e the wife/husband passed away before him/her...will the next benefactor that is the children benefits from the monthly payment eventhough there are already above the age 21?
If you take account inflation, the money in my account is worth a bit less.. considering no dividend was paid.. It does raise the question whether the gamen should at least g'tee TAP a minimum dividend to match inflation. Even if they offer 2%.. difficult to take but i'll swallow it.. Your thoughts please Dear Sir..