THE labour movement is taking a closer look at the current
practice whereby the Central Provident Fund (CPF) contribution
rates of workers are cut when they reach 50 years old, and cut
further when they turn 65.
The topic is one issue that could be discussed at a dialogue of
some 180 union leaders on Friday.
There have already been informal talks with employers' groups
and the Government on this issue, said National Trades Union
Congress (NTUC) vice-president Cyrille Tan.
The NTUC is seeking more views before deciding on firmer action,
such as calling on the Government to change the law.
Unionists have been calling for a review of older workers' CPF
contribution rates because they are concerned that workers will be
unable to save enough for housing, medical and retirement needs, in
the light of longer life expectancies.
They also believe higher CPF rates would help coax older workers
to continue working, which will be in line with the current push
for bosses to re-hire workers beyond the retirement age.
-- ST