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The Savings and Employee Retirement (SAVER) Plan was introduced for uniformed officers with effect from 1 Jan 98. It is designed to let uniformed officers retire in a financially secure position so that they can look forward with confidence to a second career outside the SAF. The SAVER replaces the 3 existing schemes of service for uniformed officers, namely the Contract Service, CPF Plus Service and Pensionable Service.
SAVER is a "defined contribution" retirement plan, where MINDEF contributes a certain percentage of your salary into your SAVER accounts. It comprises of 3 accounts, namely the CPF Top-Up Account, the Savings account, and the Retirement Account.
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CPF Top-Up Account
Normally, a private sector employee receives from his employer 20% of his pay into his CPF Account, while an SAF Officer receives 15% (5% less than a private sector employee). The SAF will contribute this difference into your CPF Top-Up Account. Your existing employee CPF contribution remains at only 15%, so you still enjoy a higher take-home pay than a private sector employee. Upon the end of service, the amount (with accrued interest) in your CPF Top-Up Account will be transferred into your CPF account.
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Savings Account
You'll receive contributions from us for your Savings Account during your first 10 years. For the first 6 years, the amount will be approximately 8% of your salary. From the 7th year onwards, this amount decreases until the 11th year when the contribution ceases. This helps build up your savings during the span of your career. The amount you are eligible to withdraw depends on your length of service. For instance, in the 7th year of service, you may withdraw 20% from this Savings Account, and in the 11th year, you may withdraw the entire balance.
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Retirement Account
This account rewards you for completing a full career with us and helps you make a transition to a second career. Our contributions to this account start from your 7th year of service, until you reach age 41. The amount you are eligible to receive from the Retirement Account depends on your age when you leave, with receipt of full amount after age 41.
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Flexible Benefits Scheme (FLEX)
Each year, numerous FLEX credits are given out and various benefits can be purchased by Officers. This benefit system is specially tailored to meet individual needs.
Annual FLEX Credits can be used to purchase:
- Annual Leave
- Hospitalisation Insurance
- Income Protection Insurance
- Life Insurance
- Dental Insurance
- Accident Insurance
- Major Illnesses Insurance
- Vacation Vouchers
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As a New Partnership initiative, the career structure for military Warrant Officers, Specialists and Enlistees (WOSEs) was reconstructed into 2 phases: a 10-years' Specialist phase (Stage 1) and a Warrant Officer phase till age 55 (Stage 2). The Premium Plan was designed to reward serviceman serving within the confines of the new structure, as well as to retain selected individuals with the required qualities for military careers.
The Premium Plan consists of the following acccounts: CPF Top-Up Account, Specialists' Account to Reward Ten-year engagement (START), the Career and Retirement Endowment (CARE) Account and the Employee's Needs and Benefits for Life Expenses (ENABLE) Account.
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CPF Top-Up Account
This account allows you to receive the same rate of Employer's CPF contribution as the private sector.
Every month, the resulting difference between the SAF's and private sector's rates will be deposited into the CPF Top-Up Account. Should you decide to leave the service after six years, the accumulated funds and interest will be transferred to your Ordinary Account with the Central Provident Fund (CPF) Board.
What's more... your Employee's CPF rate is lower than that of your counterpart in the private sector. Meaning you'll have relatively more take-home pay to enjoy than most working people in Singapore.
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The Specialists' Account to Reward Ten-year Engagement (START) Account
This account will give you more money than you've ever thought possible. After 10 years of serving the nation, we'll reward you with a huge cash bonus.
The amount will be 10 times your last drawn salary. And this lump sum payment is yours to keep whether you choose to stay on in the service or move on. It's our way of saying we 'thank you'.
The great thing is, you don't have to wait very long to enjoy the rewards. In fact, after just four years, you can start drawing on part of this bonus. This can be done in multiples of $1,000, up to the limit of $10,000. The money would come in handy as partial down payment for a new home or perhaps, a new car.
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The Career and Retirement Endowment (CARE) Account
At the time when you receive your 10-month cash bonus, you'll get another 10-month bonus. However, the second bonus will be put into the CARE Account to generate a retirement fund for you.
Each month after that, we'll add more money (i.e. 5% of your salary) to your Account. This 5% contribution goes to you on top of your regular pay.
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The Employee's Needs and Benefits for Life Expenses (ENABLE) Account
More good news. In addition to all the above benefits, you'll also receive 6,000 free credits for 10 years of service. Each credit has a cash value of $1.
And the beauty of it is, you don't have to wait 10 years to claim these credits. These credits will be posted into your ENABLE Account for you to use in advance after four short years of service.
When you move into Stage 2, you'll be entitled to another 4,000 credits for every five additional years of service. The credits may be used at the beginning of each five-year period. Any unused credits will automatically be rolled over to the next five-year term.
Alternatively, you're entitled to advance up to 20,000 credits after eight years in the service. You can use these for further studies or as a down payment for a new home.
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Last updated on 21 Apr 2008
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