Teachers attend financial talks

OFFICERS, staff and teachers from colleges and schools in Cluster 1 attended talks on the Employees Trust Fund (TAP) and Supplemental Contributory Pension Schemes (SCP).

The talks are part of a series of financial planning month activities by TAP’s Corporate Communication Department.

Following the recital of the surah al-fatihah, Acting Manager of TAP’s Corporate Communication Department Awg Rosli Hj Haron delivered a briefing on the TAP and SCP schemes.

He touched on the objectives, contribution rate and the benefits of the two schemes. As of February 28, 2010, there were 108,209 registered members. Registered employers totalled 9,612.

TAP was established and began operations in January 1993. Under the TAP Act Chapter 167, citizens and permanent residents of Brunei Darussalam working in the public or private sectors are obliged to contribute five per cent of their basic salary. The employers contribute another five per cent of the employee’s basic salary.
This 10 per cent monthly contribution serves to assist members to have fixed savings for their retirement welfare. Under the scheme, Section 17 of TAP Act Chapter 167, the member’s fund can only be withdrawn under six schemes.

The eligibility of withdrawal are lump sum withdrawal at 55 years of age; pre-retirement withdrawal of 25 per cent of the fund when they attain the age of 50; incapacitation, when members according to the medical board are physically or mentally incapacitated from engaging in any further employment; migration when members are about to leave Brunei Darussalam with no intention to return.

The sixth withdrawal scheme is the building or purchase of a house where, in order to settle a loan for the purchase, one lumpsum payment not exceeding 20 per cent of the purchase price or cost of the building such as a house, or the amount of the loan outstanding on the date of application, provided that the amount withdrawn shall not exceed 45 per cent of the amount in the credit of the fund of the member concerned.

Education offers were briefed on the SCP Scheme, which started its operations January 1 this dear, and established following the titah of His Majesty the Sultan and Yang Di-Pertuan of Negara Brunei Darussalam in conjunction with His Majesty’s 63′ birthday celebration July 15, 2009.

SCP was established with the objective to ensure that members who meet the prescribed requirements will receive a minimum monthly annuity of $150 in addition to the $250 Old Age Pension scheme extended by His Majesty.

Under the SCP Pension Order 2009, the contribution rate is 3.5 per cent from the employee’s salary and employers are required to contribute an additional 3.5 per cent of the employee’s basic salary.

Awg Rosli explained several elements inside the SCP scheme such as minimum and maximum contribution amount: $17.50 and $98 respectively as well as benefits to members namely monthly annuity payment, special SCP and Survivalship benefits.

A financial planning talk by Certified Financial Planner from BICB Capital Dyg Ida Nazrena Hj Bujang provided awareness on managing individual finance.

Participants were given tips on how to start and have one set of financial planning tools to enable them have a good financial planning.

Teachers Norazimah Hj Mohamad and Hjh Zuratul Wahidah Hj Mohd Salleh both agreed having the SCP on top of the existing TAP scheme is another positive move in ensuring the welfare of members particularly after their retirement.

Attending the talk according to Hjh Zuratul Wahidah, who teaches Geography at Lambak Kiri Secondary School, was an opportunity to get in depth knowledge and understanding on SCP.

“We never know if we have saved enough money for the future. At least with schemes such as this there is someone forcing us to save money as sometimes we tend to drift away or can’t accommodate our savings practices,” said Norazimah who teaches Principal of Accounts at Lambak Kiri Secondary School.

Latest by Lyna Mohamad:

number of view: 167