Summary of Social Security and Private Employee Benefits SINGAPORE

Transcription

1 Private Employee Benefits SINGAPORE 2014

2 Your Local Link to IGP in SINGAPORE: Aviva Aviva entered the Singapore market in July 2001 through the acquisition of the former Insurance Corporation of Singapore. Since then, Aviva provides 43 million customers with insurance, savings and investment products. It is the largest insurer in the United Kingdom and one of Europe s leading providers of life and general insurance. Aviva is one of the biggest providers of employee benefits and healthcare in Singapore. This includes protecting Singapore Armed Forces servicemen since Aviva has more than three decades of experience in developing customized solutions for corporate clients and offers a comprehensive array of life and health insurance products to suit every individual and business need. With its years of underwriting experience and dedicated staff, Aviva is able to provide customers with new products and services such as flexible benefit plans. It has also expanded its offerings to include unit trusts via Navigator, a single electronic platform that aggregates and tracks customers investment portfolios. Aviva s other product innovations include pay protection riders, accelerated benefit options for major illnesses, global medical and general insurance products such as automobile, home and travel insurance. Aviva can also provide insurance products that are customized to meet the needs of small and medium-sized businesses, as well as organizations with offices around the world. Aviva's successful Bancassurance business via its partnership with DBS Bank commands more than a 50 percent share of the regular savings market. In addition, Aviva is one of the leaders in the Third-Party Financial Advisory (FA) market. Aviva Ltd. has been an IGP Network Partner since Key Products Life Group Term Life Group Critical Illness Rider My Protector IdealCI Protector Global Protection My LifeChoice SAF Group Term Life Insurance Public Officer Group Insurance Scheme Savings MyFlexSaver Global Savings Plan My Wealth Plan MyEduPlan Investment Navigator LifetimeFlexi Disability Eldershield & MyCare/MyCare Plus IdealIncome Group Disability Income Insurance 2014 International Group Program 1

3 Your Local Link to IGP in SINGAPORE: Aviva Medical Group Dental Group Hospital and Surgical Group Major Medical Group Maternity Group PreferredCare Plus - a comprehensive managed health program MyShield/MyShield Plus Retirement My Retirement Retirement 101 Other Flexible Benefit Plans MyBenefits Plus - employee benefits package for small and medium-sized businesses My Global Benefits Group Personal Accident Motor Insurance Travel Insurance Home Insurance Aviva Ltd. is located on the internet at: (Information is available in English.) 2014 International Group Program 2

4 Customary Private Employee Benefit Plans Social Security Central Provident Fund (CPF): Contributions: Employees: 20% of monthly wages Employers: 16% of monthly wages Benefits: Lump-sum benefit equal to total contributions plus interest payable on member's death, permanent incapacity, permanent emigration, or attainment of age 55 (subject to CPF Minimum Sum Scheme and Medisave Required Amount). Other Benefits: CPF Investment Scheme CPF Life Dependants' Protection Scheme Education Scheme ElderShield Home Protection Scheme Medifund Medisave Medishield / Medishield Plus Minimum Sum Scheme Minimum Sum Plus Scheme Non-Residential Properties Scheme Public Housing Scheme Residential Properties Scheme Private Medical Insurance Scheme (PMIS) Supplementary Retirement Scheme Medical Benefits: Medical services are provided directly to patients in Government restructured hospitals; for all Singapore residents and Permanent residents (excluding foreigners) at a subsidized rate in certain classes of wards International Group Program 3

5 Customary Private Employee Benefit Plans Supplementary Retirement Scheme (SRS): The SRS is a voluntary retirement scheme, complementing the Central Provident Fund (CPF). Participants can contribute a varying amount to SRS (subject to a cap) at their own discretion. The contributions may be used to purchase various investment instruments. The SRS offers attractive tax benefits. Contributions to SRS are eligible for tax relief, investment returns are accumulated tax-free (with the exception of Singapore dividends), and only 50% of the withdrawals from SRS are taxable at retirement. Work Injury Compensation Act (WICA): WICA replaces the Workmen s Compensation Act effective April 1, It provides a simple, low cost and no-fault system that benefits both employees and employers. Employees can receive compensation quickly without having to prove fault, and employers liability can be capped. Eligibility: Mandatory Manual workers of all industries and non-manual workers with monthly earnings of less than SGD 1,600. Non-Mandatory Non-manual workers with monthly earnings of above SGD 1,600. Nonetheless, employers will be required to pay compensation in the event of a valid claim, even if they do not buy insurance. Exceptions to the above include: self-employed persons, independent contractors, members of Singapore Armed Forces, Officers of the Singapore Policy Force, Singapore Civil Defense Force, Central Narcotics Bureau, Singapore Prison Service and domestic servants. Contribution: Borne by the employer through compulsory insurance. Benefits: Medical Expenses Medical Leave Wages Permanent Incapacity Death Benefits 2014 International Group Program 4

6 Customary Private Employee Benefit Plans Private Employee Benefits General: Employee benefit plans are generally not mandatory, except for the Foreign Workers Scheme whereby companies have to provide a minimum cover of SGD 15,000 per year for hospitalization expenses. Group Life Insurance Plans: The common basis used is 12, 24 or 36 times monthly salary. This plan provides death and total & permanent disablement benefits with premiums usually being borne by the employer. Group Personal Accident Plans: The common basis used is 12, 24 or 36 times monthly salary. Benefits include accidental death and major and minor dismemberment with premiums usually being borne by the employer. Group Disability Income Plans: The benefit provided is up to 75% of basic monthly salary. Benefits are payable after a deferred period of three to twelve months, while the benefit period may be two years, five years, or up to retirement age. Group Medical Insurance Plans: Benefits provided for different employees are usually based on category of employee, or number of years of service. Typical benefits provided range from SGD 230 Room and Board (designed to cover government restructured hospitals four-bed room) to SGD 620 Room and Board (designed to cover private hospitals' one-bed room). Expenses incurred for out-patient treatment for kidney dialysis and cancer is also covered. Major Medical ensures adequate cover for prolonged hospitalization or hospitalization overseas. Group Major Medical Plans: Benefits provided are for coverage of eligible expenses not covered under the Basic Medical Plan. The range of benefits is from a minimum of SGD 10,000 to SGD 100,000 per policy year and SGD 30,000 to SGD 300,000 per lifetime. There is a coinsurance of 20% and deductibles per disability. Group Critical Illness Plans: The common basis used is 50% to 100% accelerating on Group Life sum assured. It can be on an additional basis as well. The plan insures against 30 dread diseases. Group Maternity Plans: Group maternity plans are not commonly provided. Group Dental Benefit: This is more commonly provided by employers on a self-insured basis. Benefits range from SGD 100 to SGD 250 per employee per year International Group Program 5