Civil servants on MSO scheme to get extra Medisave employer contributions by 2015

SINGAPORE - Civil servants on the Medisave-cum Subsidised Outpatient (MSO) scheme will get 2 per cent of their monthly salary as additional civil service employer's Medisave contributions starting 2015. This is on top of their normal statutory Medisave contributions and is capped at $140 a month.

Low-wage officers will receive more than 2 per cent in additional Medisave contributions. Those earning $2,500 and below will receive a minimum additional Medisave contribution of $50 a month (or about $750 a year).

The MSO scheme was reviewed in consultation with the public sector unions to help civil servants with their inpatient medical needs and to benefit from MediShield Life, the Public Service Division (PSD) said in a statement on Friday.

Currently, officers on the MSO scheme do not get direct inpatient medical benefits. Instead they receive an additional 1 per cent of their monthly salary on top of their normal Medisave contribution. This is capped at $70 a month.

This contribution will go into civil servants' Medisave accounts, and can be used to buy MediShield or portable Medisave-approved insurance plans to cover their inpatient needs. Almost all officers on the MSO scheme now buy such MediShield or Medisave approved insurance plans.

About 85 per cent of the 82,000 civil servants are on the MSO scheme, and 15 per cent are on the older Comprehensive Co-payment scheme (CCS). Civil servants on the CCS will get an additional 1 per cent civil service employer Medisave contribution to help defray premium costs when MediShield Life starts.

The changes will also apply to officers in statutory boards.

Pensioners get help with MediShield Life premiums

Of 32,000 Government pensioners, 40 per cent are on the CCS. They currently receive a 1 per cent additional Medisave contribution and will get another 1 per cent when MediShield Life starts.

The other 60 per cent are on older medical benefits schemes, which already provide better coverage than what MediShield Life will be providing. However, since MediShield Life is compulsory, the Government will pay for the premiums for this group so that these pensioners can benefit from Medshield Life coverage.

PSD will be writing to pensioners with the details by October 2014.

Eligibility for Pioneer Generation Package and MediShield Life Subsidies

All Singaporeans who meet the Pioneer Generation criteria, including retired civil servants, will be eligible for the Pioneer Generation Package, for life. They will also be eligible for MediShield Life subsidies already announced by MOH.

This will be on top of the 1 per cent increase in statutory Medisave contributions for all employees in 2015, already announced at Budget 2014.The $2,500 is the salary ceiling for workmen coverage under the Employment Act.  This assumes 12 months salary and 3 months of additional wages.

ljessica@sph.com.sg