New officers at the Singapore Armed Forces (SAF) will get an average of a 40 per cent increase in their savings and employee retirement benefits.

The review, announced in a Sep. 6 statement, will see the benefits plan enhanced to provide officers with greater financial assurance upon their retirement from the SAF.

Introduced in 1998, the plan was conceptualised to address officers' shorter military careers in the SAF.

The enhanced plan will kick in on Jul. 1, 2025.

The changes

The changes include more regular cash bonus payments at their early career milestones, and a transition to full CPF contributions.

Currently, officers are on a reduced CPF contribution arrangement, where the Ministry of Defence (MINDEF) tops up the difference.

In addition, the contribution duration and rate to officers' retirement accounts will be raised, allowing retiring officers to better support their transition to their next career.

Altogether, the changes will see officers accumulate about three years of their last-drawn annual salaries at the time of retirement, said MINDEF.

These will "better meet the life-cycle needs of officers and provide them greater financial assurance for career transition upon their retirement from the SAF", it added.

Top image from MINDEF/Facebook