MCYS MEDIA RELEASE NO: 12/2005
DATE OF ISSUE: 10/03/2005
In a move to further introduce greater flexibility into the Baby Bonus scheme, parents of disabled children aged six years and younger will be able to use the Baby Bonus co-savings for early intervention programmes.
Other enhancements to the Baby Bonus scheme include giving parents more flexibility in co-saving for their children, a one-stop service to enable parents to apply for Baby Bonus at the point of birth registration, and allowing parents to use the Baby Bonus to purchase health insurance for their children.
At least 65,000 children could benefit from the enhancements to the Baby Bonus scheme.
Early Intervention Programmes for Young Children with Disabilities
Early intervention centres run specialised programmes that work to mitigate the effects of a disability on the development of a child and prevent the onset of secondary disabilities.
These programmes are aimed at maximising the functionality and potential of a child to enhance his/her chance of being integrated into mainstream schools.
Studies have shown that intervention, at birth or soon after the diagnosis of a disability or other high risk factors which impede the learning ability of a child, can bring about greater developmental gains and reduce the likelihood of developing problems[1].
Early intervention programmes generally cover the following areas:
a) fine and gross motor skills;
b) cognition;
c) communication;
d) social adaptation;
e) self-help skills; and
f) adaptation to and use of assistive equipment.
Examples of early intervention centres include those that are funded by the Ministry of Community Development, Youth and Sports (MCYS):
a) Margaret Drive Special School (Rainbow Centre)
b) Balestier Special School (Rainbow Centre)
c) Asian Women's Welfare Association (AWWA) Early Years Centre
d) Autism Children's Centre (Simei) (Autism Association (Singapore))
e) Autism Children's Centre (Clementi) (Autism Association (Singapore))
f) Spastic Children's Association School (to begin programmes in April 2005)
The use of the Baby Bonus will not, however, be limited to these centres. Other early intervention centres, such as those providing speech or language therapy for children experiencing delays in these areas, would also be able to apply as Approved Institutions for the use of Baby Bonus.
How to apply to be an Approved Institution
Early intervention centres that wish to apply as Approved Institutions under the Baby Bonus scheme will first have to register with the National Council of Social Service (NCSS). They would have to meet certain basic criteria, including clientele-type, the kind of programme they run, composition of staff and the environment of their centre.
NCSS will begin accepting applications from early intervention centres from 15 May 2005. Parents will be able to apply through the centres to start using the Baby Bonus to pay for fees for early intervention programmes from July 2005.
Other Enhancements to the Baby Bonus Scheme
(i) Flexibility for parents to co-save
From July 2005, parents can choose to 'top up' their co-savings in the Children Development Account (CDA) to the maximum of $6,000 for the second child and $12,000 each for the third and fourth child any time within a six-year validity period. The Government will match the co-savings in the following month. This new arrangement will apply to all parents whose children are already on the Baby Bonus scheme, as well as new parents.
Currently, if parents do not co-save enough for the Government to disburse the maximum matching contribution in any previous co-savings period, they cannot 'top up' the shortfall in subsequent periods. With the change, couples will have full flexibility to make good in subsequent years whatever the amount they missed out in earlier years.
Conversely, in good times, couples can put aside more than the previous maximum quantum per period.
See Annex A for details of the current Baby Bonus scheme and Annex B for worked examples of how parents may co-save flexibly to receive the Government's matching contributions.
(ii) One-Stop Service to Register Birth and Apply for Baby Bonus
A one-stop Baby Bonus service will be implemented from December 2005 for parents to apply to receive the cash gift and open a CDA when they register the child's birth.
To make it even more convenient, parents will be deemed to have signed up for the Baby Bonus scheme at the time they register their child's birth as long as they do not opt out.
This one-stop service will involve collaboration between the Ministry of Community Development, Youth and Sports and the Immigration and Checkpoints Authority.
Currently, parents sign up for the Baby Bonus scheme by filling in a form, separately from the point of birth registration, to receive the cash gift. They also need to visit the bank to verify their bank account number for the cash gift as well as a POSB bank branch to open a CDA for the co-savings.
(iii) Health Insurance for Children
Parents will also be able to use the Baby Bonus co-savings to purchase MediShield or MediShield-equivalent health insurance for their children from December 2005. This will give parents greater peace of mind against unexpected financial expenses should their children suffer from serious or prolonged illnesses.
Mothers Can Take Adoption Leave Earlier
Apart from the Baby Bonus enhancements, MCYS has also made changes to the Adoption Leave scheme so that adoptive mothers can take the leave earlier. Adoption Leave is 4 weeks of flexible leave for adoptive mothers to care for newborn adopted children aged 6 months and below, if their employers agree to grant them the leave. The Government will reimburse the employer for the 4 weeks of leave. Self-employed mothers are also eligible.
Responding to public feedback, the point of time when adoptive mothers can apply for Adoption Leave has been brought forward (from point of adoption order granted for local adoptions or citizenship acquired for foreign adoptions) to:
- When the Court appoints MCYS as Guardian-Ad-Litem (i.e. temporary Guardian) for a local born child, or
- When the adoptive parents are issued with a Dependant's Pass for a foreign born child. Parents of foreign born children, however, would have to obtain Singapore citizenship for the child within 6 months of the adoption order being granted.
The above changes will allow the adoptive mother to take Adoption Leave very near the start of the adoption process, i.e. within 4 weeks of filing an adoption petition, or applying for a Dependant's Pass. Adoptive mothers will now be able to take Adoption Leave 4 to 7 months earlier than is currently allowed. The changes will take effect immediately.
Enquiries
Members of the public may call the Baby Bonus Hotline at 1-800-253-7707 for enquiries on the above uses of the Baby Bonus co-savings and the Adoption Leave.
For more information on the adoption process, please visit http://fcd.ecitizen.gov.sg/cp_adoptachild.htm or call the Adoption Hotline at 63556388.
Annex A
BABY BONUS SCHEME
The Baby Bonus scheme was first implemented in April 2001 for the second and third child.
In August 2004, the Baby Bonus scheme was enhanced and launched as part of a comprehensive pro-family package to make Singapore a great place for family life.
Under the August 2004 scheme, Baby Bonus was extended to the first and fourth child. The first-tier cash gift would be disbursed in four equal instalments over 18 months, instead of over six years. The second-tier is a co-savings component over 6 years where Government matches parents' co-savings dollar for dollar, up to a maximum of $6,000 for the second child and $12,000 each for the third and fourth child.
For the second-tier co-savings component under the current arrangement, there are annual contribution caps. For example, for a second child, the annual contribution cap (over 6 years) is $1,000 ($6,000 divided by 6). If parents do not co-save to the maximum during the year, the outstanding annual matching contribution will lapse.
Annex B
WORKED EXAMPLES OF FLEXIBLE CO-SAVINGS
Under the enhanced scheme, the 6-year co-savings period starts from the day the Children Development Account (CDA) is opened for a child and ends on the last day of the month before the child's 6th birthday.
Example 1: Maximum matching in one lump-sum
Mr and Mrs Rahim Ali have their second child, Mariam, in July 2005 and open the CDA in August 2005. They deposit $6,000 into the CDA in August 2005.
Under the current arrangement, the Government would have matched only $1,000 in the month after the end of the first co-savings period, and Mariam would have only $7,000 in her CDA at that juncture. The couple would still need to deposit savings in subsequent years to receive Government's matching contributions on an annual basis.
Under the new arrangement, the Government matches the $6,000 deposited by Mr and Mrs Rahim Ali one month later in September 2005. Mariam now has her maximum co-savings of $12,000 in her CDA.
Mariam's parents can use it for her or her older brother's pre-school education in an Approved Institution or to buy MediShield insurance for them.
Example 2: Topping up in instalments in later years
Mr and Mrs Tan had their third child, John, in September 2003 and under the scheme for the third child, they could receive up to a maximum of $12,000 within 6 years from the Government. They opened a CDA for John a few months later, but did not co-save at all as they did not have much to spare.
When John is two, Mrs Tan rejoins the workforce. Now she and her husband can afford to top up for the earlier years. They deposit $4,000 in November 2005.
Under the current arrangement, Mr and Mrs Tan would have forfeited the Government's matching contribution of $4,000 for the first 2 co-savings periods that had lapsed. Mr and Mrs Tan will therefore only be able to enjoy up to a maximum of $8,000 in Government matching contributions.
Under the new arrangement, the Government will match the $4,000 deposited by Mr and Mrs Tan in December 2005. John now has $8,000 in his CDA. If Mr and Mrs Tan continue to deposit any amount into John's CDA any time before John's 6th birthday in September 2009, the Government will match the amounts up to another $8,000.
Example 3: Matching parents' co-savings deposited before July 2005
Mr and Mrs Rajan had their second child, Ravi, in May 2003 and opened the CDA in June 2003. They deposited $1,200 into the CDA in July 2003 (1st co-savings period) and $1,300 in July 2004 (2nd co-savings period). They received Government's matching contribution of $2,000 for the first 2 co-savings periods.
Under the current arrangement, the Government would not have matched the extra $500 deposited and Ravi would only have $4,500 in his CDA. Mr and Mrs Rajan would still need to deposit savings in subsequent years to receive Government's matching contributions on an annual basis.
Under the new arrangement, as Mr and Mrs Rajan had co-saved an extra $500 before July 2005, the Government will match the $500 in August 2005. Ravi will now have a total of $5,000 in his CDA.
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[1] (Cooper, 1981; Garland, Stone, Swanson, and Woodruff, 1981; Maisto and German, 1979; Strain, Young, and Horowitz, 1981). |
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