[Public Service Annoucement] Changes to the Retirement Act

November 25, 2011 at 11:23 am | Posted in But Seriously | Leave a comment

Disclaimer: As a PSA, I thought I’d share what I understand about the changes to the Retirement Act. This is my understanding, go read the Act yourself.

The new Retirement and Re-employment Act will come into effect on 1 Jan 2012, amending the old Retirement Act.

Note:

  • If you turn 62 before 1 Jan 2012, then the re-employment rules will not be applicable to you (laws are not usually retroactively applied/ it has got to do with how good laws do not apply backwards or something like that/ I hated jurisprudence so go ask someone else)
  • Current specified age is 62, can change

Presumption: you are medically fit for re-employment and your work is satisfactory, employer will have to prove that you are not capable of re-employment

So what are the changes?

  • Employer is obliged to re-employ you after you hit 62 (specified age) until you turn 65 (but this upper limit can changed by Manpower Minister)
  • Employer is deemed to comply if they let you keep working without a new contract of service
  • However, the employer can also enter a new contract of service, to vary the terms of the previous contract. Variations based on several factors including, your productivity, performance, duties, responsibilities and wage.
  • Also, if you enter the new contract, the previous contract is disregarded
  • If employer cannot reasonably re-employ you, then they have to give you employment assistance payments (EAP) to help you until you can find employment with another employer.
  • However, if you tell your employer you that you want to retire at 62, then he has no obligation to give you EAP

What does this all mean?

  • You’ll be working until 65 if you choose, otherwise you can enjoy retirement at 62
  • Your employer has to show that you “cannot make it” if they don’t want to re-employ you at 62
  • If your employer really cannot keep you on (downsizing, job too demanding for a 62 year old, etc) then they have to give you EAP, but you have to look for a new job (I don’t know how EAP will be calculated).

Leave a Comment »

RSS feed for comments on this post. TrackBack URI

Leave a Reply

Your email address will not be published. Required fields are marked *

*

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

- Singapore Blogs For Free | Singapore Blogs - | Theme: Pool by Borja Fernandez.
Entries and comments feeds.