THE chronically sick and those who have already bought annuities could be exempted from the Government's compulsory annuity scheme, Minister in the Prime Minister's Office Lim Boon Heng said on Sunday.

A committee set up by the Manpower Ministry to look into the scheme could make an exception for the first group as such individuals are not expected to live for long, he explained.

As for the second group, he said that they would not need to be covered twice.

His comments came after some Singaporeans called on the Government to consider making proposed compulsory annuities an opt-in scheme instead.

Mr Lim, who is overseeing ageing issues and is deputy chairman of the People's Association, was speaking to reporters on the sidelines of a four-hour Community Development Council seminar.

It was attended by some 200 grassroots leaders, businessmen and members of voluntary welfare groups.

Mr Alvin Lim, the chief executive officer of Bizlink, which helps to source jobs for the disabled, asked if the Government would consider exempting the disabled from the annuity scheme.

Prime Minister Lee Hsien Loong announced last month that all Central Provident Fund members aged below 50 would have to buy an annuity at age 55 using a small portion of their CPF Minimum Sum.

The annuity will give them a monthly payout of $250 to $300 once their Minimum Sum runs out when they reach the age of 85. This is meant to cover members' needs when they outlive their CPF savings.

But Mr Alvin Lim noted at a dialogue with Mr Lim yesterday that people with disabilities tend to have shorter lifespans. Most were also shunned by insurers.

Minister Lim assured that views like these would be taken into account by the committee, and said that there was already flexibility in the CPF scheme.

Read the full report in today's The Straits Times.

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