French Ambassador To Brunei, Louis Le Vert During The Supplemental Contributory Pension Scheme Briefing For Diplomatic Missions Held At The Ministry Of Finance In Berakas Yesterday.

Bandar Seri Begawan - As The January 1 launch date for the Supplemental Contributory Pension (SCP) scheme looms nearer, the Ministry of Finance (MoF) yesterday conducted another briefing, this time, to various diplomatic missions based in Brunei.

More than 50 representatives from embassies and other foreign missions in Brunei attended the talk at the MoF building in Berakas.

Several concerns were raised during a question-and-answer session at the briefing. such as who would be responsible of collecting, filing and managing the SCP contributions, how much an employee would receive each month from the SCP and how the ministry will implement the SCP from January 1. The question of how much the late-payment fines will be was asked by a representative from one of the attending embassies.

The panel replied that the MoF was considering using the same fines levied for late payments to the TAP fund, but had yet to confirm that those figures will be used.

One of the panel members added that complete details of the scheme would be furnished in due course.

Michael D Lampel, a management officer from the US Embassy in Brunei, said, 'Im very impressed... I do think that it is unique. I think that the idea of that they are going to have this survivorship management benefits from the first month is incredible.
I think that they arc also addressing the fact that people get their payouts from 55 years old and maybe sometimes are not the most efficient in managing their funds, and the government realises this.

"So from 60 years old on, instead of $250, they're going to have $400 (a month) per person - in a couple, that's $800 dollars a month, guaranteed for 20 years. So I think it's a great plan," he added.

Lampel also said that the US embassy supports the SCP and is ready to give full cooperation to Brunei government, through the MoF.

"We have actually gone through all of this, we've already got our legal mechanism taken care of and we have the plan in place," Lampel said.

The briefing yesterday, presented by Hjh Muna Diyana Hj Ibrahim, a finance officer from the Investment Division, was part of an ongoing roadshow conducted by the ministry in its aim to inform the public about the SCP, which requires participants and employers to make defined contributions every month.

The SCP was established in conjunction with His Majesty the Sultan and Yang Di-Pertuan Of Brunei Darussalam announced earlier this year that the mandatory retirement age of 60 will come into force on January 1, 2010.

As with the existing Employees' Trust Fund (TAP), all citizens and permanent residents working in the public, private and informal sectors are required to join the SCP scheme, which by law requires them to pay a monthly minimum of 3.5 per cent of their earnings.

The SCP is aimed at ensuring that everyone will be able to retire at the compulsory age of 60 with a minimum pension of $150 a month, in addition to the existing $250 Old Age pension, giving retirees at least $400 a month to live on. -- Courtesy of The Brunei Times

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