ERS...why $50 top up?
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Why must 128,000 Singaporeans miss out on ERS just because they failed to top up their CPF account with $50? After all, the ERS is meant to offset the GST hike.
What is the rationale for requiring a top-up of $50 in one's CPF account to qualify for Economic Restructuring Shares?
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Dun ask me... ask OCBC...
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tot is ask "CPF"?Originally posted by J-reeee:Dun ask me... ask OCBC...
or rather....jit tao go ask PAP -
Haha the advertisement like that say mah..
but quite bo liao rite.... they ji tao give $35o.oo lah...Originally posted by FireIce:tot is ask "CPF"?
or rather....jit tao go ask PAP -
Why pple, without asking, just put $50 inside in order to get the ERS? Why so troublesome?
The ERS was given to Singaporeans to help them tide over the GST increase. However, the way in which one qualifies for the shares is somewhat puzzling.
One has first to put $50 into one's CPF account before one can lay one's hands on the ERS, not an easy task for some Singaporeans.
However, it is those who are unable to meet this 'minimal' requirement who might need the ERS more.
It was not until the press shed light on the problem did I realise how severe it was.
Much time and energy have been expended by grassroots leaders all over Singapore who went knocking on the doors of the less informed.
Member of Parliament Yeo Cheow Tong was reported to have donated $50 to a young couple who could not afford to top up. But there were many others whom our good MP could not help.
People who were not Internet-savvy or familiar with ATMs had to queue up for hours to top up their CPF account.
All these are a terrible waste of human resources. So, what is the rationale for the requirement to top up $50? Would it be the same if it was a $1 top-up? Then, for that matter, why do we need to top up at all?
LIM WAH FONG -
Give with the “Right Hand” and take back with the “Left Hand”.
At first sight, the ERS seems to be very attractive.
You put in $50 into the CPF, and can collect back $400 in ERS that can be converted into CASH.
However, is this $400 enough to offset the extra ONE PERCENT increase to the GSTÂ…?
On the average, we spend $10 a day (lunch and dinner) on meals, at least another $5 on MRT and Feeder Service, another $5 on miscellaneous items – making it a total of $20 per day, or $600 per month, or $7,200 a year on essentials..
We would spend approximately $1,000 per year on garments, shoes, haircut, movies, and some “big ticket items”.
Rental will cost at least $600 per month or $7,200 a year; even if one does not rent a room but live with oneÂ’s parents, contributions to the familyÂ’s expenses will be at least $600 per month too..
This is about what a single person will be spending on oneself – a total of $15,400 per year.
At FOUR Percent GST levied on this total of $15,400 a year, we will be paying $616.
By giving an average of $400 in ERS with the “Right Hand”, the “Left hand” would have already taken an initial $50 PLUS a further $616 in annual GST collection.
With the initial ERS money in the pocket, it is more likely to encourage consumer spending; and like the “Keynesian Economic Theory of Consumption” to stimulate the economy.
This release of the ERS is to let the money work like a catalyst to lubricate the economic wheel, and get consumerism to kick start the economy.
Another Pump Priming method with political benefits.
Spend, spend, and spendÂ… but just be careful that you do not spend more then you can afford.
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The incredible thing about this whole exercise of raising the GST by ONE PERCENTAGE POINT is that no one has bothered with the fact that it is an increase of 33.333%.
Some Singaporeans could not figure out the significance behind this calculation, and simply accept that ONE PERCENTAGE POINT increase is acceptable, as it is ONLY ONE PERCENTÂ…!!
Now that the ERS is being issued, this increase of the 3% GST by 33.333% has been further “sweetened out” of the minds of everyone.
No one seems to think that the ERS compensation for the increase of the GST will be insufficient.
It is amazing that the Government’s budget will suffer a serious “UN-BALANCE”, if the GST is not raised, and yet the amount of money being returned to Singaporeans through the ERS is not insignificant either - and further more, this exercise will be carried out for the next THREE YEARS...!!!
So what is the purpose of giving out with the “Right Hand” and taking back from the “Left Hand”…?
Is there truly a need to raise GSTÂ…?
Is there a crisis in balancing the National BudgetÂ…? -
The idea of getting people to put $50 in first is to ensure that the accounts that are recieving the ERS are still active and owned by living people, many CPF accounts that are not active exist and it would be a waste of money for the gov't to top up such accounts as well.
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____________________________________________________Originally posted by laser51088:The idea of getting people to put $50 in first is to ensure that the accounts that are recieving the ERS are still active and owned by living people, many CPF accounts that are not active exist and it would be a waste of money for the gov't to top up such accounts as well.
Dead people should not have any accounts, CPF or otherwise.
All living people will have a CPF account, except for those whom we have learnt recently that the uneducated and uninformed have no clue about the ERS, and some do not even have a CPF account.
These are the ones that the ERS should benefit.