Posted this earlier in the week on my
Facebook.
For your reading purposes,
here's the link to download the circular regarding SCP:
01. What is SCP?
SCP, or Supplemental Contributory Pension as it is formally called, is the newly added
retirement scheme. It was first mentioned and immediately introduced in His Majesty's titah on the eve of His Majesty's birthday. The SCP is supplement to the current on-going TAP (Tabung Amanah Pekerja) retirement scheme.
02. What is the purpose of SCP?
The main objectives of SCP is to ensure that all participants under this new scheme will
receive a fixed monthly income upon reaching the mandatory retirement age of 60 years old.
03. How does SCP work?
Similar to the TAP scheme, participants under this new scheme will contribute every month 3.5% of their basic monthly salary into this fund whereas their employers will contribute another 3.5% into said fund, i.e a total contribution of 7% of the participants' basic monthly salary is made every month.
Upon reaching the mandatory retirement age, the participants will receive a fixed monthly income based on what have been contributed into their fund. How this monthly income is released is yet to be mentioned by the relevant authorities.
04. Who is eligible for SCP?
All citizens and permanent residents of Negara Brunei Darussalam, whether they are working in the public sector, private sector or informal sector. Informal sector refers to those who earn a living through self-employment, eg. farmers, fishermen.
05. How much is the total monthly contribution?
Participants under the SCP scheme will contribute 3.5% of their basic monthly salary. If we are to add to the contributions we make to the TAP scheme, it will be a 8.5% deduction from our monthly salary. It should be noted that SCP and TAP are two separate retirement schemes.
eg. BND500.00/month basic salary. After SCP & TAP deductions (3.5% + 5% = 8.5%), one will in the end receive BND457.50 (BND17.50 for SCP, BND25.00 for TAP)
06. When will SCP take effect?
In accordance with His Majesty's titah, SCP will take effect on 01/01/2010. At the same time, the mandatory retirement age is also increased to 60 years old.
07. What about those who are already under the TAP scheme?
The SCP scheme ideally works for those who started off work at the age of 25years old. The SCP scheme requires its' participants to continuously contribute to the scheme for 35years until they reach the new mandatory retirement age of 60.
For those who are currently under the TAP scheme, the government of His Majesty the Sultan of Brunei will contribute BND30.00 monthly, backdating from the day one has started contributing to the TAP scheme until the date of the SCP scheme's formal inception.
eg. Ali starts work (and at the same time contributing to his TAP scheme) on 25/03/1999. Once the SCP scheme commences, the government of His Majesty the Sultan of Brunei will contribute (along with the 3.5% of Ali's basic monthly salary) BND30.00 per month to Ali's SCP fund backdating from when Ali started working until the day SCP begins, ie. BND30.00 per month starting from 25/03/1999 until 01/01/2010.
08. If one were to retire early, will he or she still be getting the SCP?
Ideally, every participant of SCP has to contribute to the scheme for at least 35years, ie. from a working age of 25years old until the age of 60.
Although not specifically mentioned in the aforementioned circular, it can be assumed if a participant of the SCP scheme were to retire early, ie before the age of 60, he or she can still attain what was already contributed into the SCP but only after reaching the age of 60.
eg. Under the SCP scheme, if Ali were to retire at the age of 57, he would not receive any benefits from said scheme until after he reaches the age of 60 (mandatory retirement age)
