Tussle over the Baby Package

Though I will not enjoy the benefits of Marriage and Parenthood Package, I cannot help but sympathize with parents who had their bundles of joy just before 17 Aug, especially if their babies were born on 15 or 16 Aug. I wonder how do the parents feel. Below is the story from both opposing sides:

Taken from a letter that appeared in the Straits Times Forum:

Backdate bonus perks to January this year
"WE REFER to the Government's change in qualifying date for the Baby Bonus and other incentive measures under the enhanced marriage and parenthood package yesterday ('Baby perks start now').

While we understand that the change is to allow expectant mothers who will have babies between Aug 17 and Jan 1 to enjoy the benefits, we would like to strongly highlight that this change in policy is unfair.

Many families who had first-borns between January and July this year, like ourselves, will not get to enjoy the benefits at all. Raising and educating a child in Singapore is an arduous task and we believe the Government understands that. However, with this change in policy, the total sum of incentives we lose out on can amount to some $7,000.

We would not enjoy the baby bonus of $3,000 plus $3,000 (dollar for dollar matching by the Government through the child development account) and the additional $1,000 increase.

For any low income family, this $7,000 makes a lot of difference. This disparity will seem even more jarring in years to come as our babies will eventually attend school together with those who would have enjoyed the $7,000 incentive.

Shouldn't these babies also enjoy the same benefits as their peers? Why should there be any disparity within the same cohort?

We therefore appeal to the Government to backdate the qualifying period to Jan 1 this year to allow all families with babies born this year to enjoy the same incentives.

We believe many families who are affected by this policy are currently appealing through various channels and we hope the government will consider this proposal."

What is the government's response?

Mr Wong, who is in charge of population matters, pointed out that back in 2004, the government had sent a clear signal months earlier that changes were afoot.

In December 2003, Lim Hng Kiang, then chairman of the Marriage and Parenthood Committee, had indicated that changes to the 2001 Marriage and Parenthood Package were on the cards and that couples should start planning for babies.

In February 2004, then Deputy Prime Minister Lee Hsien Loong said the new package would be completed before National Day.

Because of that, all administrative measures and adjustments were made between February and August that year.

Even then, legislation for the additional four weeks of maternity leave was only
completed two months later, on 1 October 2004, after the law was amended.

For this year, Mr Wong said, the first indication of a review came last month.

Details were released after the Prime Minister's National Day Rally this month for the measures to kick in next year, as the government needed time to effect the various legislative and administrative changes.

"Unlike in 2004, we could not set up the systems earlier as the measures were still being finalised up until the end of July 2008," said Mr Wong.

Mr Wong added that the government has tried to be as inclusive as possible.

And due to the strong appeal from parents-to-be, whose babies were due before 1 January next year, the government brought forward the qualifying date for the enhanced package to August 17, the date of the announcement by the Prime Minister.

Mr Wong said: "At any point in time when we make a decision to say this is the date, there will always be people who fall outside that date. That is unfortunate and I can understand their disappointment but we need to have a cut-off date somewhere, otherwise it will never end."

He urged Singaporean couples to see the package in totality as all things considered, parents will still receive significant support under the revised package.

Mr Wong said: "So, don't just look at what they don't get. I think they should look at what they will get but more importantly, look at the baby, look at their own children and enjoy their children!"

For parents whose babies were born before 17 August 2008, they would still be
eligible for the enhancements to the tax reliefs, childcare and infant care subsidies, and childcare and infant care leave.

What they will miss out is an additional $1,000 of baby bonus for the first two children, a co-payment of $6,000 for the first child, and an additional four weeks of maternity leave.

Mr Wong added that the set of financial incentives is not the magic bullet to solve Singapore's low Total Fertility Rate problem.

Success also depends on support from employers and Singaporeans themselves wanting to marry and have babies.

(*Source: Channelnewsasia*)