MINISTERIAL STATEMENT BY MR TEO CHEE HEAN, MINISTER-IN-CHARGE OF THE CIVIL SERVICE, ON CIVIL SERVICE SALARY REVISIONS, AT PARLIAMENT 9 APRIL 2007

April 9, 2007

Ex-Gratia payment

87. The pay revisions outlined above are to ensure that we continue to have a good public service for the future. We should, however, not forget those who have laboured hard to lay the strong foundation for us. One group comprises the former office holders and MPs who were elected between 1959 and 1980 and retired before Dec 1992 and are now drawing a pension. They were among the first generation of leaders who toiled during the early years of independent Singapore and did not have a chance to enjoy the fruits of their labour. Another group is the civil service pensioners who worked with the Government during the turbulent times of the 1950s and 1960s and who retired before Jan 1982. These pensioners served at a time where civil service pay was lagging well behind the private sector. Some did not enjoy the benefits of employers’ CPF contribution while others did not have their wage increase consolidated into their pensionable salaries. We would like to acknowledge these early pioneers and their dedicated service, even as the civil service adjusts its pay level for the current batch of officers.

88. In 1996 and 2000, we made ex-gratia payments to these two groups as a tangible recognition of their contributions during the early years of nation building. This year, we will make another gesture in the form of an ex-gratia payment of the same quantum to these two groups. The payment is estimated to cost $2 mil for 43 retired MPs and office holders. About 2400 civil service pensioners are expected to receive the payment, costing $7.6 mil.

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