DR YIK Keng Yeong ("We have the means to expand aid", Jan 28) was mistaken when he said that "it had been stated that interest from the $8 billion Pioneer Generation Fund would be enough to sustain recurring expenditure for the Pioneer Generation Package".
Both in the Budget Speech last year and in the subsequent parliamentary debate on the Pioneer Generation Fund Bill, it was clearly stated that the benefits to eligible pioneers will be funded from the $8 billion that had been set aside in Budget 2014 and the accumulated interest over time. The entire fund has been estimated to be needed to finance the Pioneer Generation Package in future.
It was also stated that about half the fund will be drawn down in the first 10 years, due to the age profile of the pioneer generation and the higher benefits for older members.
Lim Yuin Chien
Director
Corporate Communications
Ministry of Finance
Both in the Budget Speech last year and in the subsequent parliamentary debate on the Pioneer Generation Fund Bill, it was clearly stated that the benefits to eligible pioneers will be funded from the $8 billion that had been set aside in Budget 2014 and the accumulated interest over time. The entire fund has been estimated to be needed to finance the Pioneer Generation Package in future.
It was also stated that about half the fund will be drawn down in the first 10 years, due to the age profile of the pioneer generation and the higher benefits for older members.
Lim Yuin Chien
Director
Corporate Communications
Ministry of Finance
