Enhanced SAVER Plan for SAF Officers

The Ministry of Defence (MINDEF) and the Singapore Armed Forces (SAF) regularly review our career schemes to ensure that they remain attractive and relevant. This is important in attracting, developing and retaining committed and competent personnel for a strong and operationally-ready SAF.

The Savings and Employee Retirement (SAVER) Plan was introduced in 1998 for SAF Officers. To address Officers' shorter military careers with the SAF, the SAVER Plan aims to encourage them to remain in service until their retirement from the SAF and to help them build up a financial reserve for their transition to a second career after their retirement.

Following the conclusion of a recent review, MINDEF and the SAF will be making changes to the SAVER Plan. The key changes, which will take effect on 1 July 2025, are as follows.

a. Under the enhanced SAVER Plan, Officers will receive more regular cash bonus payments at their early career milestones. These will better support their needs, such as marriage and housing, at this life stage.

b. Officers will receive full CPF contributions^[1]that will be paid directly into their CPF accounts. This will enable them to accumulate more CPF funds earlier in their careers to support their housing and healthcare needs.

c. The contribution duration and rate to the Officers' retirement account will be raised. Officers retiring from the SAF will receive an increased sum at retirement to better support their transition to their next career.

Together, these changes to the SAVER Plan will better meet the life-cycle needs of Officers and provide them greater financial assurance for career transition upon their retirement from the SAF. Under the enhanced SAVER Plan, new Officers starting their career with the SAF will experience an average of 40% increase in their SAVER benefits, accumulating about three years of their last drawn annual salaries at retirement.

^[1]Currently, Officers are on a reduced CPF contribution arrangement. MINDEF tops up the difference between the full and reduced employer CPF contribution into an account to ensure they are on par with other employees who receive full employer CPF contributions, subject to the statutory limit set by the CPF Board. The monies in this account will be transferred to the Officers' CPF account when they leave the SAF.