1. SEVERANCE PLANS POUCHED.
2. SUMMARY OF ACCOMPANYING OM DATED 6/16/75 IS AS FOLLOWS:
A. PLANS OBTAINED AND REVIEWED. THERE ARE COMPANIES IN SINGAPORE
WHO PAY A GRATUITY, CALLED BY VARIOUS NAMES, TO RETIRING
EMPLOYEES WHO ALSO DRAW LUMP SUM CPF PAYMENT. HOWEVER,
DEFINITE TREND DOES EXIST TO TERMINATE DUAL PAYMENT AS
CPF INCREASES.
B. FOROFF HAS EMBASSY PLAN FOR CPF PARTICIPATION AND REPORTS
THEY ACTIVELY WORKING FOR APPROVAL. EMBASSY NEWEST TARGET
DATE IS AUGUST 1, 1975.
C. EMBASSY PROPOSES TO CONTINUE IN PRESENT PLANS UNTIL BECOMING
MEMBER OF CPF, AT WHICH TIME PLANS WOULD BE REVISED.
REVISION WOULD EXCLUDE ONLY THOSE ELECTING TRANSFER TO
CPF FROM RECEIVING SEVERANCE PAY ON RETIREMENT OR RESIG-
NATION (COPY OF PROPOSED PLAN FORWARDED).
D. YOU WILL NOTE THAT FIGURES SUBMITTED IN REPORT ON LUMP
SUM PAYMENT FOR CPF PARTICIPANTS ARE VERY CONSIDERABLY
HIGHER THAN FIGURES FOR CSR ANNUITANTS. THIS CAN LEAD TO NO
OTHER CONCLUSION BUT THAT WE MUST CONTINUE TO PAY SEVERANCE
PAY TO EMPLOYEES OF LONG STANDING WHO ELECT TO REMAIN UFDER
UNCLASSIFIED
UNCLASSIFIED
PAGE 02 SINGAP 02603 161027Z
CSR AS THEY WILL BE RECEIVING CONSIDERABLY LESS. FYI,
THOSE RECEIVING LUMP SUM CPF PAYMENTS CAN INVEST IT AND
RECEIVE AS MUCH AS DOUBLE THE AMOUNT OF ANNUAL CSR BENEFITS
AND NEVER TOUCH THE CAPITAL.
3. EMBASSY ALSO MOST ANXIOUS TO RESOLVE QUESTION OF SEVERANCE
PAY BUT CANNOT STRESS TO STRONGLY THE ADVERSE EFFECT ON OUR
SINGAPOREAN NATIONAL EMPLOYEES IF ANY DECISION MADE WITHOUT
TAKING INTO CONSIDERATION ALL FACETS OF PROBLEM. NATIONALS
BELIEVE MR. HARRISON "REVERSED AND CONTRADICTED HIS CATEGORICAL
ASSURANCES THAT THERE WOULD BE NO CHANGES MADE IN THEIR FRINGE
BENEFITS AS A RESULT OF HIS SURVEY".
4. EMBASSY URGES DEPARTMENT'S APPROVAL OF PROPOSED PLAN.
GRANT
UNCLASSIFIED
NNN
*** Current Handling Restrictions *** n/a
*** Current Classification *** UNCLASSIFIED
@@@OASYS@@@<CONCATENATED>
UNCLASSIFIED
PAGE 01 SINGAP 02603 161027Z
17
ACTION EA-10
INFO OCT-01 ISO-00 /011 W
--------------------- 053612
P 1600824Z JUN 75V
FM AMEMBASSY SINGAPORE
TO SECSTATE WASHDC PRIORITY 2831
UNCLAS SINGAPORE 2603
E.O. 11652: N/A
TAGS: AFSP
SUBJ: SEVERANCE PAY
REF: STATE 136570
1. SEVERANCE PLANS POUCHED.
2. SUMMARY OF ACCOMPANYING OM DATED 6/16/75 IS AS FOLLOWS:
A. PLANS OBTAINED AND REVIEWED. THERE ARE COMPANIES IN SINGAPORE
WHO PAY A GRATUITY, CALLED BY VARIOUS NAMES, TO RETIRING
EMPLOYEES WHO ALSO DRAW LUMP SUM CPF PAYMENT. HOWEVER,
DEFINITE TREND DOES EXIST TO TERMINATE DUAL PAYMENT AS
CPF INCREASES.
B. FOROFF HAS EMBASSY PLAN FOR CPF PARTICIPATION AND REPORTS
THEY ACTIVELY WORKING FOR APPROVAL. EMBASSY NEWEST TARGET
DATE IS AUGUST 1, 1975.
C. EMBASSY PROPOSES TO CONTINUE IN PRESENT PLANS UNTIL BECOMING
MEMBER OF CPF, AT WHICH TIME PLANS WOULD BE REVISED.
REVISION WOULD EXCLUDE ONLY THOSE ELECTING TRANSFER TO
CPF FROM RECEIVING SEVERANCE PAY ON RETIREMENT OR RESIG-
NATION (COPY OF PROPOSED PLAN FORWARDED).
D. YOU WILL NOTE THAT FIGURES SUBMITTED IN REPORT ON LUMP
SUM PAYMENT FOR CPF PARTICIPANTS ARE VERY CONSIDERABLY
HIGHER THAN FIGURES FOR CSR ANNUITANTS. THIS CAN LEAD TO NO
OTHER CONCLUSION BUT THAT WE MUST CONTINUE TO PAY SEVERANCE
PAY TO EMPLOYEES OF LONG STANDING WHO ELECT TO REMAIN UFDER
UNCLASSIFIED
UNCLASSIFIED
PAGE 02 SINGAP 02603 161027Z
CSR AS THEY WILL BE RECEIVING CONSIDERABLY LESS. FYI,
THOSE RECEIVING LUMP SUM CPF PAYMENTS CAN INVEST IT AND
RECEIVE AS MUCH AS DOUBLE THE AMOUNT OF ANNUAL CSR BENEFITS
AND NEVER TOUCH THE CAPITAL.
3. EMBASSY ALSO MOST ANXIOUS TO RESOLVE QUESTION OF SEVERANCE
PAY BUT CANNOT STRESS TO STRONGLY THE ADVERSE EFFECT ON OUR
SINGAPOREAN NATIONAL EMPLOYEES IF ANY DECISION MADE WITHOUT
TAKING INTO CONSIDERATION ALL FACETS OF PROBLEM. NATIONALS
BELIEVE MR. HARRISON "REVERSED AND CONTRADICTED HIS CATEGORICAL
ASSURANCES THAT THERE WOULD BE NO CHANGES MADE IN THEIR FRINGE
BENEFITS AS A RESULT OF HIS SURVEY".
4. EMBASSY URGES DEPARTMENT'S APPROVAL OF PROPOSED PLAN.
GRANT
UNCLASSIFIED
NNN
*** Current Handling Restrictions *** n/a
*** Current Classification *** UNCLASSIFIED