Background of SAVER Plan

The Savings and Employee Retirement (SAVER) Plan was introduced in 1998 for SAF Officers. It had then replaced the former pension, contract and Central Provident Fund (CPF) Plus schemes. Monies previously used to fund these schemes were channelled to fund the SAVER Plan.

The SAVER Plan takes into account Officers’ shorter military careers with the SAF. It is aimed at encouraging Officers 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.

SAVER Accounts

Under the existing SAVER Plan, MINDEF contributes a certain percentage of an Officer’s salary into three accounts:

1.   Savings Account. Officers receive contributions into their Savings Account in the first 10 years of service to encourage them to stay till then. From their 7th year in service onwards, Officers will be eligible to withdraw an increasing percentage of their Savings Account monies.

2.   CPF Top-Up Account. Officers are on a reduced CPF contribution arrangement. MINDEF tops up the difference between the full and reduced employer CPF contribution into the Officers’ CPF Top-Up 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 the Officer’s CPF Top-Up Account will be transferred to their CPF Account when they leave the SAF.

3.   Retirement Account. Officers receive contributions into their Retirement Account from the 7th year in service onwards until age 42 or 44, depending on their rank and vocation. This is to encourage them to remain in service till retirement and to help them build up a financial reserve for their transition to a second career thereafter. 

The monies in the three accounts are invested by professional fund managers, supervised by a board of trustees, to generate returns.

SAVER Bonus

In addition to contributions into the three above-mentioned accounts, Officers are eligible to receive a cash retention payment called SAVER Bonus.

Key Enhancements to SAVER Plan

Following the conclusion of a recent review, MINDEF and the SAF will be making changes to the SAVER Plan to ensure it remains market competitive and relevant in supporting our military Officers’ life-cycle and career transition needs. The key changes, which will take effect on 1 July 2025, are as follows.

1.   More Regular SAVER Bonus Payments. Officers between the ages of 25 and 34 will receive a SAVER Bonus payment in cash for every three years of service. This will better support their needs, such as marriage and housing, at this life stage. The new SAVER Bonuses will replace the existing Savings Account and existing SAVER Bonus payment.

2.   Full CPF Contribution. Officers will receive full employer and employee CPF contributions, in accordance to the prevailing national CPF contribution rates. This will enable them to accumulate more CPF funds earlier in their careers, to better support their housing and healthcare needs. With the move towards full CPF contribution, the existing CPF Top-Up Account will be phased out.

3.   Increased Retirement Contributions. Contributions into the Retirement Account will commence from the 1st year of service, instead of the 7th year of service, and at an increased rate. The increased contribution duration and rates will help our Officers build up a larger reserve for their career transition upon retirement from the SAF. The existing Retirement Account will be renamed as the SAVER Account.

Together, these changes will better meet the life-cycle needs of SAF 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.