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Committee of Supply Speeches 2018: CPF Highlights2346/News/news-categories-info/cpf-changes<p>The following highlights are from Second Minister for Manpower Josephine Teo’s speech during the FY2018 Committee of Supply Debate in Parliament on 5 March 2018.</p><p> <a href="http://www.mom.gov.sg/cos2018" target="_blank">View Ministry of Manpower’s Committee of Supply highlights 2018.</a></p><h3> Enhancements to CPF Investment Scheme (CPFIS)</h3><p>Three enhancements will be made to better cater CPFIS to members who have the knowledge and time to invest and are prepared to take investment risk.</p><ol type="i"><li> <strong>Introduction of Self-Awareness Questionnaire</strong><br><br>A Self-Awareness Questionnaire (SAQ) will be introduced as part of the process of opening a CPFIS account from 1 October 2018. The SAQ is to help CPF members decide whether CPFIS is suitable for them by providing them with feedback on their level of basic financial knowledge. <br><br> Members can participate in the CPFIS after taking the SAQ, regardless of the results. CPF members who already have a CPFIS account are not required to but are still strongly encouraged to take the SAQ. <br> <br> </li><li> <strong>Removal of sales charge for products offered under CPFIS</strong><br></li><li> <strong>Reduction of maximum wrap fee chargeable on CPFIS investments</strong><br><br></li></ol><p>To give the financial industry adequate time to adjust, the following fee changes will be implemented in two phases:<br></p><p> <img alt="COS2018 Schedule table" src="/Assets/common/PublishingImages/COS2018Table.png" style="width:92.3%;height:auto;" /> </p><p>Sales charge<sup>1</sup> are upfront fees paid to intermediaries (e.g. financial advisors, distributors) upon the purchase of funds i.e. unit trust or Investment-Linked Policies (ILPs). The sales charge will be removed progressively to reduce the cost of investing for CPFIS members. Investors can already purchase unit trusts on online platforms without paying any sales charge.<br></p><p>Similarly, reducing wrap fees lowers the cost of investing which may improve members’ investment returns. Wrap fees cover advisory services and the costs to maintain the wrap account. The cap on wrap fees will be lowered to align closer to fees charged by online investment platforms in the cash market.</p><h3>More information<br></h3><p> <a href="/Assets/common/Documents/SAQ_FAQ.pdf" target="_blank">FAQs on Self-Awareness Questionnaire</a></p><p> <a href="/Assets/common/Documents/Sales_charge_FAQ.pdf" target="_blank">FAQs on removal of sales charge</a></p><p> <a href="/Assets/common/Documents/Wrap_fees_FAQ.pdf" target="_blank">FAQs on reduction of maximum wrap fee</a><br></p><p> <sup>1</sup><em>Sales charge can also be in the form of back-end load which is being paid at the point of redemption of units by investors.</em></p><p> <br></p><h3>Contact information </h3><p>For more information:</p><p>Hotline: 1800-227-1188 (Mondays to Fridays: 8am to 5.30pm)<br>Email: <a href="mailto:member@cpf.gov.sg" target="_blank">member@cpf.gov.sg</a></p>Committee of Supply Speeches 2018: CPF Highlights4/3/2018 4:00:00 PMhttps://null/common/Lists/News/DispForm.aspx?ID=2632
Committee of Supply Speeches 2017: CPF Highlights2332/News/news-categories-info/cpf-changes<p>The following highlights are from Minister for Manpower Mr Lim Swee Say’s speech during the FY2017 Committee of Supply Debate in Parliament on 6 March 2017.</p><p><a href="https://www.mom.gov.sg/cos2017" target="_blank">More information on MOM’s Committee of Supply announcements.</a><br></p><h3> CPF Investment Scheme (CPFIS)</h3><p>The Board will be working on three areas to better serve the interests of CPF members who wish to invest under CPFIS. More details will be announced later in the year.</p><ol type="i"><li>Introduction of a self-assessment tool<br>A self-assessment tool will be introduced to help CPF members determine if CPFIS is suitable for them.<br><br></li><li>Lower the cap on sales charge<br>The cap on sales charge will be lowered to discourage financial intermediaries from proactively selling products to CPF members. The cap may also reduce investment churning which could erode investment returns.<br><br></li><li>Review the types of asset classes offered under CPFIS<br>The types of asset classes offered under CPFIS will be reviewed to see if they are appropriate for growing retirement savings. </li></ol><h3>CPF LIFE Escalating Plan</h3><p>A new CPF LIFE plan with escalating payouts will be introduced in January 2018. The CPF LIFE Escalating Plan gives members the option of starting with a lower initial payout which will escalate at 2% a year. This new plan will be in addition to the two current plans – Standard and Basic. There will be a one year period for members on other CPF LIFE plans to switch to this new plan if they wish. More details will be provided later this year.</p><h3>CPF Retirement Planning Service</h3><p>The CPF Retirement Planning Service offers 1-on-1 sessions for members who are reaching age 55 to better understand the options available to them. The service was previously offered on a pilot basis and members have found it useful. It will be available to all CPF members turning 54 this year to help CPF members make more informed choices about their retirement.</p><p> </p><h3>Contact information </h3><p>For more information:</p><p>Hotline: 1800-227-1188 (Mondays to Fridays: 8am to 5.30pm)<br>Email: <a href="mailto:member@cpf.gov.sg" target="_blank">member@cpf.gov.sg</a></p>Committee of Supply Speeches 2017: CPF Highlights6/3/2017 9:00:00 AMhttps://null/common/Lists/News/DispForm.aspx?ID=2401
CPF Advisory Panel Recommendations Part Two2322/News/news-categories-info/cpf-changes<p>The CPF Advisory Panel was appointed by the Ministry of Manpower in September 2014 to study:</p><ol><li>How the Minimum Sum should be adjusted beyond 2015 in order to meet the objective of delivering a basic monthly retirement payout for life.<br></li><li>How to enable CPF members to withdraw more as a lump sum upon retirement, and the circumstances for their doing so, taking into consideration the impact on retirement adequacy for different groups.<br></li><li>How to provide an option for members who prefer CPF payouts that are initially lower but rise with time to help with increases in the cost of living; and<br></li><li>How to provide more flexibility for members who wish to:<br></li><ol><li>Seek higher returns while balancing the higher investment risks involved, through private investment plans.<br></li><li>Invest in private annuities when they retire as an alternative to CPF LIFE.</li></ol></ol><p> </p><p>The Government has accepted Part Two of the Panel’s recommendations covering the last two terms of reference by introducing:</p><p>- A new CPF Life plan with escalating payouts to address increases in the cost of living.</p><p>- A new Lifetime Retirement Investment Scheme that is simple and low-fee.</p><p> </p><p>The Panel’s recommendations aim to provide additional choices to cater to varying needs in retirement, while maintaining simplicity as a core design principle for the CPF system. The Ministry of Manpower and Central Provident Fund Board will work towards implementing the recommendations under Part Two in stages. Part One of the Panel’s recommendations, which were accepted by the Government in February 2015, have been implemented from January 2016. </p><p> </p><p> <a href="https://services.mom.gov.sg/cpfpanel/" target="_blank">Recommendations at a Glance</a></p><p> <a href="https://services.mom.gov.sg/cpfpanel/media/recommendations/part2/Part%202%20Executive%20Summary.pdf" target="_blank">Executive Summary of Part Two of the Panel’s Report</a> (PDF, 0.3MB)<br></p><p> <a href="https://services.mom.gov.sg/cpfpanel/resources.html" target="_blank">Read the full details of the Panel’s recommendations</a></p>CPF Advisory Panel Recommendations Part Two2/8/2016 4:00:00 PMhttps://null/common/Lists/News/DispForm.aspx?ID=2384
Singapore Budget 2016: Initiatives Relating to CPF2313/News/news-categories-info/cpf-changes<p>Minister for Finance Mr Heng Swee Keat announced the following initiatives relating to CPF during the FY2016 Budget Statement in Parliament on 24 March 2016: </p><ul><li><p> <a href="#1">Introduction of Silver Support Scheme</a></p></li><li><p> <a href="#2">Enhancements to Workfare Scheme</a>​</p></li><li><p> <a href="#3">Increased Medisave Withdrawal Limit for Pre-delivery Expenses under the Medisave Maternity Package (MMP)</a>​</p></li><li><p> <a href="#4">Extension of Special Employment Credit (SEC) until 2019</a>​</p></li></ul><p> </p><p>​<a href="http://www.mom.gov.sg/about-us/budget-highlights-2016" target="_blank">Information issued by Ministry of Manpower.</a></p><p> <a href="http://www.singaporebudget.gov.sg/budget_2016/home.aspx" target="_blank">More details of the Singapore Budget 2016.</a></p><p>     </p><h4> <a name="1"></a><strong>Introduction of Silver Support Scheme</strong></h4><p>The Silver Support Scheme is the latest addition to our social safety nets. It is part of a wider suite of schemes (e.g. healthcare subsidies, GST voucher and Workfare) that the Government has put in place in recent years to support elderly Singaporeans.</p><p>The Silver Support Scheme provides a quarterly cash supplement to the bottom 20% of Singaporeans aged 65 and above. These are individuals who had low incomes through life and who currently have little or no family support.</p><p>Elderly Singaporeans who qualify for Silver Support will automatically receive their cash supplement. There is no need to apply.</p><p>For more information on the Silver Support Scheme, please visit <a href="https://www.silversupport.gov.sg/" target="_blank">www.silversupport.gov.sg</a>.</p><p> </p> <a name="2"></a> <h4> <strong>​Enhancements to Workfare Scheme</strong></h4><p>The Workfare Income Supplement (WIS) Scheme encourages eligible workers to continue working and build up their CPF savings for their retirement, housing and healthcare needs, by supplementing their income and retirement savings through cash payments and CPF contributions.</p><p>The following enhancements will take effect on 1 January 2017:</p><ol><li><p>Qualifying income ceiling increased from $1,900/month to $2,000/month* to take into account changes in income levels</p></li><li><p>Higher WIS payouts of up to $3,600 per year </p></li><li><p>WIS to be paid monthly, for each month of work**, instead of quarterly, to provide more direct reward for work effort </p></li><li><p>Increased WIS payments to CPF Medisave and Special Accounts to boost the healthcare and retirement adequacy of WIS recipients</p></li></ol><p> <sup> <em>* Based on the average monthly income for the months worked in the past 12 months.</em></sup><br><sup><em>** The amount of payout for each month of work will be computed based on income earned in that month. The month’s income should not exceed $2,000. </em></sup></p><p>The first WIS payment under the enhanced Scheme will be made to eligible employees in end March 2017 for work done in January 2017. </p><p>The Workfare Training Support (WTS) Scheme complements WIS by encouraging Singaporean workers to attend training to improve their skills.The following changes will also be made to the WTS scheme: </p><ol><li><p>​Qualifying income ceiling extended from $1,900/month to $2,000/month to align with the increase in the WIS qualifying income ceiling</p></li><li><p>WTS extended to younger Persons with Disabilities (PWDs) to support them in upgrading their skills through training </p></li><li><p>WTS Training Commitment Award (TCA) to be extended to all Singaporean workers aged 35 years old and above, and PWDs aged 13 years old and above, earning up to $2,000 per month </p></li></ol><p>For more information on WIS and WTS, please visit <a href="http://www.workfare.gov.sg/" target="_blank">www.workfare.gov.sg</a>.</p>​ <a name="3"></a> <h4> <strong>Increased Medisave Withdrawal Limit for Pre-delivery Expenses under the Medisave Maternity Package (MMP)</strong></h4><p>The MMP allows CPF members’ Medisave to be used to pay for delivery and pre-delivery medical expenses such as consultations, ultrasounds, tests and medications. </p><p>From 24 March 2016, the Medisave withdrawal limit for pre-delivery medical expenses under the package will increase from $450 to $900. All mothers who deliver on or after 24 March 2016 at both public and private healthcare institutions are eligible for the enhanced withdrawal limit.</p><p><a href="https://www.moh.gov.sg/content/moh_web/home/costs_and_financing/schemes_subsidies/Marriage_and_Parenthood_Schemes.html" target="_blank">More information on the Medisave Maternity Package (MMP).</a></p><p> </p> <a name="4"></a> <h4> <strong>Extension of Special Employment Credit (SEC) until 2019</strong></h4><p>The SEC scheme encourages employers to re-employ older low-wage Singaporeans through the provision of wage-offsets. As part of continued efforts to raise the employment rate of older workers, SEC will be extended till 31 December 2019 with the following key changes:</p><ol><li><p>Qualifying age of 55</p></li><li><p>Age-tiered payments of up to 3%, 5% and 8% of wages for those aged 55-59, 60-64 and 65 and above respectively</p></li><li><p>Wage-offset of up to 16% of wages for employers hiring Persons with Disabilities (PWDs) aged 13 and above. There will be no tiering of wage-offsets by age band for eligible PWDs</p></li></ol><p>The changes are applicable to Assessment Year 2017 to 2019.</p><p>For more information on the SEC scheme, please visit <a href="http://www.sec.gov.sg/" target="_blank">www.sec.gov.sg</a>. </p><p>    </p><p>     </p><h3> <strong>Contact information</strong></h3><h4>On Silver Support Scheme</h4><p>Hotline: 1800-222-6622 (Mondays to Fridays: 8am to 5.30pm)<br>Email: <a href="mailto:contactus@silversupport.gov.sg" target="_blank">contactus@silversupport.gov.sg</a></p><p> </p><h4>​​​On WIS</h4><p>Hotline: 1800-222-6622 (Mondays to Fridays: 8am to 5.30pm)<br>Email: <a href="mailto:member@cpf.gov.sg" target="_blank">member@cpf.gov.sg</a></p><p> </p><h4>​​​On WTS</h4><p>Hotline: 1800-5368-3333 (Mondays to Fridays: 8.30am to 5.30pm; Saturdays: 8.30am to 1pm)<br>Email: <a href="mailto:wda_enquiry@wda.gov.sg">wda_enquiry@wda.gov.sg</a></p><p> </p><h4>​​On MMP</h4><p>Hotline: 1800-227-1188 (Mondays to Fridays: 8am to 5.30pm)<br>Email: <a href="mailto:member@cpf.gov.sg" target="_blank">member@cpf.gov.sg</a><br> </p><h4>On SEC</h4><p>Hotline: 1800-222-2888 (Mondays to Fridays: 8am to 5.30pm)<br>Email: <a href="mailto:sec@mom.gov.sg" target="_blank">sec@mom.gov.sg</a></p>Singapore Budget 2016: Initiatives Relating to CPF24/3/2016 10:30:00 AMhttps://null/common/Lists/News/DispForm.aspx?ID=2366
Committee of Supply Speeches 2015: CPF Highlights 2255/News/news-categories-info/cpf-changes<h3> <strong>FY2015 Committee of Supply Debate in Parliament</strong><br></h3><p> <a href="#MOM">​Read highlights from the Ministry of Manpower.</a><br></p><p> <a href="#MOH">Read highlights from the Minist​ry of Health.</a></p><p> ​​<br> </p><h3> <a name="MOM"></a> <strong>​​Highlights fr​​om the Ministry of Manpower</strong></h3><p> <span style="line-height:1.6;">Here are the CPF highlights from Minister for Manpower Mr Tan Chuan-Jin’s speech during the FY2015 Committee of Supply Debate in Parliament on 9 March 2015:</span></p><ul><li>​​​​<a href="#1">Clearer choices for desi​red​ payouts in retirement​​​</a><br></li><li>​​​<a href="#2">Greater flexibility for spousal transfers​</a><br></li><li>​​<a href="#3">Flexibility to withdraw up to 20% of Retirement Account balances from ​Payout Eligibility Age</a></li><li> <a href="#4">Flexibility to defer payout start age for higher payouts</a></li><li>​​​<a href="#5">Choosing of CPF LIFE Plan at the payout start age</a> <sup style="color:#ff0000;">New!</sup></li><li> <a href="#6">Guided one-to-one ret​irement planning service for CPF members approaching 55</a> <sup style="color:#ff0000;">New!</sup></li></ul>​​ <p>​ </p><p> <a href="http://www.mom.gov.sg/about-us/committee-of-supply-highlights-2015" target="_blank">More details on the Committee of Supply Speeches for Ministry of Manpower.</a></p><p> <a href="http://www.mom.gov.sg/~/media/mom/documents/budget2015/cos-in-brief-2015.pdf" target="_blank">Summary of Committee of Supply Highlights relating to the Ministry of Manpower.</a> (PDF, 0.3MB)</p><p> <a href="/Members/News/news-categories-info/cpf-changes/2237">CPF enhancements announced in the FY2015 Budget Statement.</a></p><p> <a href="http://www.singaporebudget.gov.sg/budget_2015/BudgetSpeech.aspx" target="_blank">More details on the Singapore Budget 2015.</a></p><p>View the <a href="/Assets/common/Documents/CPFChanges/CPF_PressAdSummaryEnglish.pdf" target="_blank">press advertisements summarising the Budget and Committee of Supply announcements</a>:<br></p><p> </p> <a href="/Assets/common/Documents/CPFChanges/CPF_PressAdSummaryEnglish.pdf" target="_blank"><img src="/Assets/common/PublishingImages/CPFChanges/PressAd_Summary.jpg" border="0" alt="Press advertisement summarising the Budget and Committee of Supply announcements = English" style="width:22.2%;height:auto;" /></a><br><a href="/Assets/common/Documents/CPFChanges/CPF_PressAdSummaryEnglish.pdf" target="_blank">English</a> (PDF, 1.5MB), <a href="/Assets/common/Documents/CPFChanges/CPF_PressAdSummaryChinese.pdf" target="_blank">Chinese</a> (PDF, 1.6MB), <a href="/Assets/common/Documents/CPFChanges/CPF_PressAdSummaryMalay.pdf" target="_blank">Malay</a> (PDF, 1.5MB), <a href="/Assets/common/Documents/CPFChanges/CPF_PressAdSummaryTamil.pdf" target="_blank">Tamil</a> (PDF, 1.5MB) <p> <br></p><h3> <a name="1"></a>​<strong>Clearer choices for desired pa​youts in r​etirement​​</strong></h3><p>Members turning 55 from 2016 can choose from a range of payout options at 65 to better suit their needs.<br></p><table class="cpf-table cpf-form-table " width="100%"><thead><tr><th> <br> </th><th><p> ​ Your monthly payout for life* from 65 </p></th><th colspan="1"><p>​Retirement ​Account Savings required at age 55</p></th></tr></thead><tbody><tr><td>If you own a property and have sufficient charge/pledge on the property.</td><td>$660 - $720</td><td colspan="1">​<strong>Basic Retirement Sum (BRS)<br></strong>($80,500 in 2016)</td></tr><tr><td>If you do not own a property or choose not to pledge your property.<br></td><td>$1,220 - ​$1,320</td><td colspan="1"> <strong>Full Retirement Sum (FRS)</strong><br>($161,000 in 2016)​<br><br>The FRS is 2 × BRS​<br></td></tr><tr><td>If you wish to put more savings in CPF LIFE.<br></td><td>$1,770 - $1,920</td><td colspan="1">​​<strong>Enhanced Retirement Sum (ERS)<br></strong> <p>($241,500 in 2016)</p><p>The ERS is 3 × BRS.</p></td></tr></tbody></table><p> <em></em> <em style="line-height:1.6;">​*Payouts are estimates based on CPF LIFE Standard Plan parameters in 2016.<br><br></em></p><h4>Know your options ahead of time</h4><p>For each new cohort, payouts need to be higher to account for long term inflation and rising standards of living. Correspondingly, the Basic Retirement Sum to be set aside has to increase. For members turning 55 from 2017 to 2020, the Basic Retirement Sum will increase by 3% for each successive cohort.</p><table class="cpf-table cpf-form-table " style="width:100%;"><thead><tr><th style="width:50%;"></th><th style="width:50%;"> <strong>Basic Retirement Sum</strong>             </th></tr></thead><tbody><tr><td style="width:50%;">Age 55 in 2016<br></td><td style="width:50%;"> <span>$80</span><span>,500</span></td></tr><tr><td style="width:50%;">Age 55 in 2017</td><td style="width:50%;"> <span>$83,000</span>​</td></tr><tr><td style="width:50%;">Age 55 in 2018</td><td style="width:50%;"> <span>$85,500</span></td></tr><tr><td style="width:50%;">Age 55 in 2019</td><td style="width:50%;"> <span>$88,000</span></td></tr><tr><td rowspan="1" style="width:50%;">​Age 55 in 2020</td><td rowspan="1" style="width:50%;">​<span>$90,500</span></td></tr></tbody></table><p>​​​This was part of the <a href="http://www.cpfpanel.sg/" target="_blank">CPF Advisory Panel's recommendations</a>.</p><p> </p><h3> <a name="2"></a>​<strong>Greater flexibility for spousal tran​sfers</strong></h3><div><p>There will be more flexibility for members to transfer their CPF balances above the Basic Retirement Sum to their spouse. Currently, the giver has to meet the Full Retirement Sum before any transfer can be done.</p><p>Both members and their spouses would benefit from the <a href="/Members/AboutUs/about-us-info/cpf-interest-rates">extra interest</a> that will be paid on the balances in their respective CPF accounts.</p><p>Every CPF member would also have an assured source of retirement payouts for life by having their own CPF LIFE plan.</p><p>This was part of the <a href="http://www.cpfpanel.sg/" target="_blank">CPF Advisory Panel's recommendations</a>.</p><p> </p><h3> <a name="3"></a><strong>​Flexibility to withdraw up t​o ​​​20% of Retirement Account balances from Payout Eligibility Age</strong></h3><p>Members who turned 55 from 2013 onwards will have the option of withdrawing up to 20% of their Retirement Account savings from their Payout Eligibility Age (includes the first $5,000 withdrawn at 55).</p><p>This was part of the <a href="http://www.cpfpanel.sg/" target="_blank">CPF Advisory Panel's recommendations</a>.</p><p>The ​<strong>Payout Eligibility Age</strong> (previously known as Draw Down Age) is the age where members are eligible to start receiving their monthly payouts for retirement. It will remain the same as the current Draw Down Age.<br></p><table class="cpf-table cpf-form-table " style="width:100%;"><thead><tr><th style="width:50%;"> <strong>Yea​r of Birth</strong> </th><th style="width:50%;"> <strong>Payout Eligibility Age</strong><br></th></tr></thead><tbody><tr><td style="width:50%;">1943 and before<br></td><td style="width:50%;"> <span>60</span></td></tr><tr><td style="width:50%;">1944 to 1949<br></td><td style="width:50%;"> <span>62</span></td></tr><tr><td style="width:50%;">1950 and 1951<br></td><td style="width:50%;"> <span>63</span></td></tr><tr><td style="width:50%;">1952 and 1953<br></td><td style="width:50%;"> <span>64</span></td></tr><tr><td rowspan="1" style="width:50%;">​1954 and after​</td><td rowspan="1" style="width:50%;">​​65</td></tr></tbody></table><p> </p><h3> <a name="4"></a> <strong>​​​Flexibility to defer p​ayout start age for highe​r payouts</strong></h3><p>Members will have the option of deferring their payout start age up to 70 to enjoy higher payouts. For every year deferred, they can receive a permanently higher monthly CPF LIFE payout of about 6-7%.</p><p>​</p><h3> <a name="5"></a>​​<strong>Choosing of CPF LI​FE plan at the payout start age</strong><sup style="color:#ff0000;"> ​New!​</sup></h3><p>From January 2016, members will only need to choose their CPF LIFE plans at the point when they wish to start payouts from CPF LIFE, instead of making the choice at 55.</p><p> ​</p><h3> <a name="6"></a>​​​<strong>Gui​ded one-to-one retirement p​lanning service for CPF members approaching 55</strong> <sup style="color:#ff0000;">New!​</sup><br></h3><p>A pilot retirement planning service will commence in the second half of 2015 to help members approaching 55 make informed decisions about their CPF savings. This service will be aimed at members approaching 55 and who may need the guidance most, such as those with outstanding housing loans payable by CPF.</p><p>Personalised information will be used to guide members on the creation of a Retirement Account at 55, the implications on their existing CPF obligations such as housing loans, and the options they can consider to enhance their retirement savings and payouts.</p><p>Through the pilot phase, CPF Board will fine-tune the initiative to better serve members. More details on the service will be available after the completion of the pilot in December 2015.​<br></p><p> <br> </p><h3> <strong>​​</strong><a name="MOH"></a><strong>Highlights from the M​inistry of Health​​</strong></h3><p> <span style="line-height:1.6;">Here are the CPF highlights from Minister for Health Mr Gan Kim Yong’s speech during the FY2015 Committee of Supply Debate in Parliament on 12 March 2015:</span></p><ul><li> <a href="#1m">Using M​edisave for ​mo​re chronic​ conditions</a></li><li> <a href="#2m">Removing requirement to top up Medisave Account for CPF withdrawal from 55</a> <sup style="color:#ff0000;">New!</sup></li><li> <font color="#ff0000"></font> <a href="#3m">Introducing Basic Healthcare Sum to replace Medisave Contribution Ceiling</a> <span style="color:#ff0000;"><sup>New!</sup></span></li><li> <a href="#4m">No further increase in the Basic Healthcare Sum from 65</a> <span style="color:#ff0000;"><sup>New!</sup></span></li><li> <a href="#5m">Additional Medisave Withdrawal Limit for Integrated Shield Plans</a>​ <span style="color:#ff0000;"> <sup>New!</sup></span></li></ul>​ <p> </p><p> <a href="https://www.moh.gov.sg/budget2015" target="_blank">More details on the Committee of Supply Speeches for Ministry of Health.</a><br></p><p> <a href="https://www.moh.gov.sg/content/moh_web/home/Publications/educational_resources/2015/moh-budget-initiatives-2015-/_jcr_content/entryContent/download/file.res/MOH%20COS%20Booklet%202015.pdf" target="_blank">Summary of Committee of Supply Highlights relating to the Ministry of Health.</a> (PDF, 1.0MB)<br></p><p> <a href="/Assets/members/Documents/FactsheetonChangestotheMedisaveScheme.pdf" target="_blank">Factsheet on the changes to the Medisave scheme.</a> (PDF, 0.2MB)<br></p><p> </p> <a name="1m"></a> <h3>​​​​​<strong>Usin​g Medisave for mo​re chronic conditions</strong></h3><p>From 1 June 2015, you can use Medisave for outpatient treatment of four more chronic conditions. They are: epilepsy, osteoporosis, psoriasis and rheumatoid arthritis.</p><p>This brings the total number of <a href="https://www.moh.gov.sg/content/moh_web/home/costs_and_financing/schemes_subsidies/medisave/Chronic_Diseases.html" target="_blank">conditions covered by the use of Medisave</a> under the <a href="https://www.moh.gov.sg/content/moh_web/home/policies-and-issues/elderly_healthcare.html" target="_blank">Chronic Disease Management Programme (CDMP)</a> to 19.</p><p>You can use your own Medisave or your immediate family member’s Medisave to pay for such treatment, up to $400 per year per account.</p><p>Read more details from the <a href="/Assets/members/Documents/FAQsChangesChronicDiseasesCoverageunderCDMPandCHAS.pdf" target="_blank">Frequently Asked Questions on using Medisave for more chronic conditions​</a> (PDF, 0.1MB) on this initiative.</p><p> </p><h3> <a name="2m"></a> <strong>​​Removing requirement to top ​up Medisave Account for C​P​F withdrawal from 55</strong> <sup style="color:#ff0000;">New!​​</sup></h3><p>From 1 January 2016, the Medisave Minimum Sum will be removed. A CPF member withdrawing CPF monies from the Ordinary and/or Special Accounts upon reaching age 55 will <strong>no longer be required</strong> to top up his/her Medisave Account. </p><p> <a href="/Members/Schemes/schemes/healthcare/medisave">More details on Medisave</a><br></p><p> </p><h3>​​<a name="3m"></a><strong>Introducing Basic Healthcare Sum to repla​ce Medisav​e​ Contribution Ceiling</strong> <sup style="color:#ff0000;">New!​</sup></h3><p>From 1 January 2016, the Medisave Contribution Ceiling (MCC) will be renamed as the Basic Healthcare Sum (BHS). <br></p><p>The BHS is designed to be enough for a member’s basic, subsidised healthcare needs in old age. Amounts above the BHS will flow to the member’s Special Account (if member is below 55) or Retirement Account (if member is 55 and above) to boost his/her monthly payouts.<br></p><p>As a start, the BHS will be set at <strong>$49,800 on 1 January 2016 for all CPF members.</strong> Between now and January 2016, there will be no increase to the current MCC, which is $48,500 since July​ 2014.</p><p> <a href="/Members/Schemes/schemes/healthcare/medisave">More details on Medisave</a></p><p> </p><h3>​​​​​<a name="4m"></a><strong>No further incr​ease in the ​Basic​ Healthcare S​um fr​om 65</strong> <sup style="color:#ff0000;">New!​</sup></h3><p>Currently, the annual Medisave Minimum Sum adjustments apply to all members regardless of their age.</p><p>The new BHS will continue to be adjusted yearly for members below 65 to keep pace with the growth in Medisave use by the elderly. The BHS will be fixed when the member turns 65. </p><p>Those aged 65 and above in 2016 will have the same fixed BHS of $49,800. </p><p><a href="/Members/Schemes/schemes/healthcare/medisave">More details on Medisave</a></p><p> </p><h3> <a name="5m"></a><strong>​​​Additional Medisave Withdrawa​l​ Limit ​fo​r In​tegrated Shield Plans</strong> <sup style="color:#ff0000;">New!​</sup></h3><p>There will be changes to how much you can use your Medisave to pay for Integrated Shield Plans (IP) premiums, when MediShield Life component replaces MediShield component in the IPs end of this year. ​</p><p>IPs are made up of two parts.</p> <span style="line-height:1.6;"> <ol><li> <span style="line-height:1.6;">A basic MediShield portion run by the CPF Board.</span><br></li><li> <span style="line-height:1.6;">An additional private insurance coverage portion run by private insurers, typically to cover Class A/B1 wards in public hospitals or private hospitals.</span><br></li></ol></span> <div> <span style="line-height:1.6;">Today, MediShield premiums are included as part of IP premiums.</span></div><div> <span style="line-height:1.6;"></span> <span style="line-height:1.6;">Currently, everyone in the same age cohort has the same Medisave Withdrawal Limit (MWL), which is applied to the total IP premium (i.e. MediShield premium and additional private insurance coverage portion).</span></div><div><p>To provide more certainty over what Medisave savings can be used for, the current MWLs will be restructured into two components, effective when MediShield Life is introduced: </p> <span style="line-height:1.6;"> <ol><li> <span style="line-height:1.6;">The net MediShield Life premium payable after taking into account any Additional Premiums and subsidies, can be </span> <strong style="line-height:1.6;">fully covered by Medisave.</strong><br></li><li> <span style="line-height:1.6;">The additional private insurance coverage portion will be subject to </span> <strong style="line-height:1.6;">new withdrawal limits, called Additional Withdrawal Limits (AWLs).</strong></li></ol></span>​<span style="line-height:1.6;">The Ministry of Health will share more details about the new AWLs later this year.</span> <p> <br>  </p><h3> <strong>​​Contact information</strong><br></h3><p>Members of the public may contact the CPF Board for more information.</p><h4> For more inf​ormation</h4><p>Hotline: 1800-227-1188 (Mondays to Fridays: 8am to 5.30pm)<br>Email: <a href="mailto:member@cpf.gov.sg">member@cpf.gov.sg</a><br>Website: <a href="http://www.cpf.gov.sg/">www.cpf.gov.sg</a> </p></div></div>Committee of Supply Speeches 2015: CPF Highlights 12/3/2015 4:00:00 PMhttps://null/common/Lists/News/DispForm.aspx?ID=2255
Singapore Budget 2015 : CPF Enhancements2237/News/news-categories-info/cpf-changes<p>Deputy Prime Minister and Minister for Finance Tharman Shanmugaratnam announced the following enhancements relating to CPF during the FY2015 Budget Statement in Parliament on 23 February 2015:</p><ul><li><p> <a href="#1">Enhancing CPF Savings</a></p></li><li><p> <a href="#2">Providing Greater Support in Retirement</a>​</p></li></ul><p> </p>​​ <p> <a href="http://www.mom.gov.sg/about-us/budget-highlights-2015" target="_blank">Information issued by Ministry of Manpower</a></p><p> <a href="http://www.singaporebudget.gov.sg/budget_2015/BudgetSpeech.aspx" target="_blank">More details of Singapore Budget 2015</a><br></p><p> <br>  </p><h3> <a name="1"></a> <strong>Enhancing CPF Savings</strong></h3><h4> <strong>Higher CPF Salary Ceiling</strong></h4><p>To keep pace with income growth over the years, the CPF Salary Ceiling (i.e. <a href="/Members/Schemes/schemes/other-matters/cpf-contribution-for-employees/detailstab/Item1498" target="_blank">Ordinary Wage Ceiling</a>) will be raised from $5,000 to $6,000 with effect from 1 January 2016.</p> <br> <h4> <strong>​Increase in CPF Contribution Rates for Older Workers</strong></h4><p>The CPF contribution rates for workers aged above 50 years to 65 years will increase according to the schedule shown in the table below. ​</p> <br> <h4> <strong>​Increase in CPF contribution rates for older workers from 1 January 2016​</strong></h4><table class="cpf-table cpf-form-table" width="100%"><thead style="text-align:center;"><tr valign="middle" bgcolor="#e8e8e8"><th rowspan="2"> <strong>Employee's age (years)</strong></th><th colspan="3" style="text-align:center;"> <strong>Increase in contribution rates (% of wages)</strong></th></tr><tr valign="middle" bgcolor="#e8e8e8"><th style="text-align:center;">​​ <strong>Contribu​tion by employer</strong></th><th style="text-align:center;"> <strong>Contribu​tion by employee</strong></th><th style="text-align:center;"> <strong>T​otal</strong></th></tr></thead><tbody><tr align="center" valign="middle"><td>​Above 50 to 55</td><td width="25%">+1</td><td width="25%">+1</td><td width="25%">+2</td></tr><tr align="center" valign="middle"><td>Above 55 to 60</td><td>+1</td><td>-</td><td>+1</td></tr><tr align="center" valign="middle"><td>Above 60 to 65</td><td>+0.5<br></td><td>-</td><td>+0.5​</td></tr></tbody></table><p> The increase in employer contribution rates will be allocated to the Special Account. The increase in employee contribution rates will be allocated to the Ordinary Account.<br></p><p>The increase will apply to all wages earned from 1 January 2016. Please refer to the <a href="https://www.cpf.gov.sg/Employers/EmployerGuides/employer-guides/paying-cpf-contributions/cpf-contribution-and-allocation-rates" target="_blank">CPF contribution rates</a> and <a href="https://www.cpf.gov.sg/Employers/EmployerGuides/employer-guides/paying-cpf-contributions/cpf-contribution-and-allocation-rates/otherstab#Others"> CPF Contribution Rate Booklets</a> from 1 January 2016.</p><p> <a href="/Assets/common/Documents/FAQs_IncreaseinSalaryCeilingandCPFConRateChanges.pdf" target="_blank">Frequently Asked Questions on increase in CPF contribution rates for older workers</a> (PDF, 0.3MB)</p><p> </p>​ <h4> <strong>Enhancement and Extension of the Temporary Employment Credit (TEC)</strong></h4><p>The TEC will be enhanced in 2015 and extended to 2017 to help employers adjust to cost increases associated with the increase in CPF salary ceiling and the employer CPF contribution rates for older workers. </p><p>In 2015, employers will receive an offset of 1% of wages for Singaporean and Permanent Resident workers up to the CPF salary ceiling of $5,000. * </p><p>In 2016, employers will receive an offset of 1% of wages for Singaporean and Permanent Resident workers up to the CPF salary ceiling of $6,000.</p><p>In 2017, employers will receive an offset of 0.5% of wages for Singaporean and Permanent Resident workers up to the CPF salary ceiling of $6,000.</p><p>TEC payments will be made based on employees’ income paid in the respective year.</p><p> <em>* This includes the 0.5% offset of wages that was announced at Budget 2014 as a one-year assistance to employers to cope with wage costs arising from the increase in CPF contribution rates to the Medisave Account.</em></p><p> </p>​​ <h4> <strong>Enhancements to the Special Employment Credit (SEC)</strong></h4><p>To promote voluntary re-employment of older workers, employers who hire Singaporean workers aged 65 and above earning up to $4,000 a month will receive an additional offset of up to 3% of wages in 2015.</p><p>Taken together with the existing SEC incentives, employers who employ such older workers would get up to 11.5% in wage offset in 2015.</p><p> <a href="http://www.mom.gov.sg/~/media/mom/documents/budget2015/factsheet-on-tec-sec.pdf?la=en" target="_blank">Factsheet on Temporary Employment Credit (TEC) and Special Employment Credit (SEC)</a> (PDF, 0.2MB)<br></p><p> <br> </p><h3> <a name="2"></a> <strong>Providing Greater Support in Retirement</strong> </h3><h4> <strong>​​Extra 1% Interest on First $30,000 of Balances from Age 55</strong></h4><p>To make the CPF system more progressive, the Government will provide an additional 1% Extra Interest on the first $30,000 of CPF balances from the age of 55 with effect from 1 January 2016. This is on top of the existing 1% Extra Interest provided on the first $60,000 of CPF balances.</p><p> <a href="http://www.mom.gov.sg/~/media/mom/documents/budget2015/factsheet-on-cpf-changes.pdf?la=en" target="_blank">Factsheet on the Extra Interest.</a> (PDF, 0.1MB) </p><p> <a href="/Members/FAQ/schemes/other-matters/others#faq2192078">Information on Impact of Extra Interest</a><br></p> <br> <h4>​<strong>Silver Support Scheme</strong></h4><p>The new Silver Support Scheme will provide an income supplement of $300 to $750 per quarter to 20-30% of elderly Singaporeans with lesser means in their retirement years. Eligibility will take into consideration:​</p><ol><li>A person’s lifetime wages, reflected by the total CPF contributions accumulated by a person over the years;</li><li>The flat type he lives in - Silver Support will be extended to those who are staying in 5-room HDB flats or smaller; and</li><li>A person’s household income</li></ol><p>​<br>The eligibility asses​sment will be done automatically and there is no need for any application. This will be implemented around the first quarter of 2016. More details will be provided closer to implementation.</p><p> <a href="http://www.mom.gov.sg/~/media/mom/documents/budget2015/factsheet-on-sss.pdf?la=en" target="_blank">Factsheet on the Silver Support Scheme.</a> (PDF, 38KB)<br></p><p> <br>  </p><h3> <strong>Contact information</strong></h3><p>Members of the public may contact the CPF Board for more information.</p><p>​</p><h4>On CPF Salary Ceiling and Contribution Rates</h4><p>Hotline: 1800-227-1188 (Mondays to Fridays: 8am to 5.30pm)<br>Email: <a href="mailto:employer@cpf.gov.sg">employer@cpf.gov.sg<br></a>Website: <a href="http://www.cpf.gov.sg/">www.cpf.gov.sg</a> </p><h4>On​ TEC</h4><p>Hotline: 1800-222-2888 (Mondays to Fridays: 8am to 5.30pm)<br>Email: <a href="mailto:employer@cpf.gov.sg">employer@cpf.gov.sg</a>​</p><h4>​​​On SEC</h4><p>Hotline: 1800-222-2888 (Mondays to Fridays: 8am to 5.30pm)<br>Email: <a href="mailto:employer@cpf.gov.sg">employer@cpf.gov.sg<br></a>Website: <a href="http://www.sec.gov.sg/" target="_blank">www.sec.gov.sg</a>​</p><h4>​​On CPF Interest Rates</h4><p>Hotline: 1800-227-1188 (Mondays to Fridays: 8am to 5.30pm)<br>Email: <a href="mailto:member@cpf.gov.sg">member@cpf.gov.sg</a><br>Website: <a href="http://www.cpf.gov.sg/">www.cpf.gov.sg</a></p>Singapore Budget 2015 : CPF Enhancements23/2/2015 9:30:00 AMhttps://null/common/Lists/News/DispForm.aspx?ID=2237
CPF Advisory Panel Recommendations2254/News/news-categories-info/cpf-changes<p>The CPF Advisory Panel was appointed by the Ministry of Manpower in September 2014. The CPF Advisory Panel will study these areas:</p><ol><li>How the Minimum Sum should be adjusted beyond 2015 in order to meet the objective of delivering a basic monthly retirement payout for life.<br></li><li>How to enable CPF members to withdraw more as a lump sum upon retirement, and the circumstances for their doing so, taking into consideration the impact on retirement adequacy for different groups.<br></li><li>How to provide an option for members who prefer CPF payouts that are initially lower but rise with time to help with increases in the cost of living; and<br></li><li>How to provide more flexibility for members who wish to: <br></li><ol><li>Seek higher returns while balancing the higher investment risks involved, through private investment plans<br></li><li>Invest in private annuities when they retire as an alternative to CPF LIFE.</li></ol></ol><p> </p><p> <a href="http://www.mom.gov.sg/~/media/mom/documents/employment-practices/cpf-advisory-panel/cpf-advisory-panel-report-executive-summary.pdf" target="_blank">Executive Summary of the Panel’s Report</a> (PDF, 0.3MB)<br></p><p> <a href="https://services.mom.gov.sg/cpfpanel/" target="_blank">Read the full details of the Panel’s recommendations</a></p><p> <a href="http://www.mom.gov.sg/~/media/mom/documents/employment-practices/cpf-advisory-panel/cpf-advisory-panel-infographics.pdf" target="_blank">Recommendations at a Glance</a> (PDF, 0.3MB)</p><p> <span class="blackhighlight"><strong>Press Advertisements:</strong></span></p><p> <a href="/Assets/common/Documents/CPFChanges/YourCPF_MoreFlexibilityMoreOptionsEnglish.pdf" target="_blank">Your CPF: More Flexibility, More Options</a> (PDF, 2.7MB)</p> <p> <a href="/Assets/common/Documents/CPFChanges/YourCPF_MoreFlexibilityMoreOptionsEnglish.pdf" target="_blank"><img alt="Press Advertisement - Your CPF: More Flexibility, More Options" src="/Assets/common/PublishingImages/CAP_PressAd.jpg" border="0" style="width:44.9%;height:auto;" /></a><br></p><p> <a href="/Assets/common/Documents/CPFChanges/YourCPF_MoreFlexibilityMoreOptionsChinese.pdf" target="_blank">Chinese</a> (PDF, 4.0MB), <a href="/Assets/common/Documents/CPFChanges/YourCPF_MoreFlexibilityMoreOptionsMalay.pdf" target="_blank">Malay</a> (PDF, 2.8MB), <a href="/Assets/common/Documents/CPFChanges/YourCPF_MoreFlexibilityMoreOptionsTamil.pdf" target="_blank">Tamil</a> (PDF, 2.9MB) </p>CPF Advisory Panel Recommendations16/2/2015 4:00:00 PMhttps://null/common/Lists/News/DispForm.aspx?ID=2254
Singapore Budget 2014: Initiatives Relating to CPF2261/News/news-categories-info/cpf-changes<p>Deputy Prime Minister and Minister for Finance Tharman Shanmugaratnam announced the following initiatives relating to CPF during the FY2014 Budget Statement in Parliament on 21 February 2014:</p><ul><li> <a href="#1">Increase in ​Medisave Contribution Rates</a></li><li> <a href="#2">Increase in CPF Contribution Rates for Older Workers</a>​</li><li> <a href="#3">Enhancement to Special Employment Credit (SEC)</a></li><li> <a href="#4">Temporary Employment Credit (TEC)</a><br></li></ul><p><br> </p><h3> <a name="1"></a><strong>Increase in Medisave Co​​ntribution Rates</strong></h3><p>To help Singaporeans to save more for healthcare needs, the Government will increase the employer contribution rates to the Medisave Account (MA) by 1 percentage point. The increase will apply to wages earned from 1 January 2015.</p><p>Medisave contribution rates will also be raised by 1 percentage point for self-employed persons with annual net trade income of $18,000 and above, to align with the increase for employees. The 1 percentage point increase will apply to income earned from 1 January 2015.</p><p> <a href="/Employers/EmployerGuides/employer-guides/paying-cpf-contributions/cpf-contribution-and-allocation-rates/otherstab#Others">CPF contribution rates from 1 January 2015</a><br></p><p> <a href="/Assets/members/Documents/Budget2014CPFconrate.pdf" target="_blank">Frequently Asked Questions on increase in Medisave contribution rates</a> (PDF, 0.3MB)<br></p><p> <br> </p><h3> <a name="2"></a><strong>Increase in CPF Contribution Rates for Older Workers</strong></h3><p>The CPF contribution rates for workers aged above 50 years to 65 years will be increased according to the schedule shown in Table 1 below. This will be on top of the 1 percentage point <a href="#1">increase in MA contribution rates</a>.</p><p> </p><div align="center"> <strong></strong> <h4> <strong></strong><strong>Increase in CPF contribution rates for older workers from 1 January 2015​</strong></h4><h4> <strong> </strong> <br></h4><table class="cpf-table cpf-form-table" width="100%"><thead style="text-align:center;"><tr valign="middle" bgcolor="#e8e8e8"><th rowspan="2"> Employee's age (years)</th><th colspan="3" style="text-align:center;"> Increase in contribution rates (% of wages)</th></tr><tr valign="middle" bgcolor="#e8e8e8"><th style="text-align:center;">​​ Contribu​tion by employer</th><th style="text-align:center;"> Contribu​tion by employee</th><th style="text-align:center;"> T​otal</th></tr></thead><tbody><tr align="center" valign="middle"><td>​Above 50 to 55</td><td width="25%">+1</td><td width="25%">+0.5</td><td width="25%">+1.5</td></tr><tr align="center" valign="middle"><td>Above 55 to 60</td><td>+1</td><td>-</td><td>+0.5</td></tr><tr align="center" valign="middle"><td>Above 60 to 65</td><td>+0.5</td><td>-</td><td>+0.5​</td></tr></tbody></table> <strong> </strong> <br></div><p>​The increase in <strong>employer</strong> contribution rates will be allocated to the Special Account. The increase in <strong>employee </strong>contribution rates will be allocated to the Ordinary Account.</p><p> <a href="/Employers/EmployerGuides/employer-guides/paying-cpf-contributions/cpf-contribution-and-allocation-rates/otherstab#Others">CPF contribution rates from 1 January 2015.</a></p><p> <a href="/Assets/members/Documents/Budget2014CPFconrate.pdf" target="_blank">Frequently Asked Questions on increase in CPF contribution rates for older workers</a> (PDF, 0.3MB)<br></p><p> </p><h3> <br> <a name="3"></a><strong>Enhancements to the Special Employment Credit (SEC)</strong></h3><p>The SEC will be enhanced for one year to provide employers who hire Singaporean workers aged above 50 earning up to $4,000 a month with an additional offset of up to 0.5 percent of wages.</p><p>With the enhancement, employers who hire older Singaporean workers between 1 January 2015 and 31 December 2015 will receive an SEC of up to 8.5 percent of a worker’s monthly wage.</p><p>For more information on SEC, please refer to <a href="http://www.sec.gov.sg/" target="_blank">www.sec.gov.sg</a>.</p><p> </p><h3> <br> <a name="4"></a><strong>Temporary Employment Credit (TEC)</strong></h3><p>To alleviate the rise in business costs with the increase in Medisave contribution rates, employers will receive a one-year offset of 0.5% of wages for Singaporean and Permanent Resident workers up to the CPF salary ceiling of $5,000.</p><p>TEC payments will be made based on employees’ incomes paid in 2015. More details will be made available at a later date.</p><p> <a href="/Assets/members/Documents/Budget2014TEC.pdf" target="_blank">Frequently Asked Questions on Temporary Employment Credit (TEC)</a> (PDF, 0.1MB)<br></p><p> <br> </p><h3> <strong>Contact information</strong></h3><p>Members of the public may contact the CPF Board for more information.</p><h4>On CPF contribution rates</h4><p>Hotline: 1800-227-1188 (Mondays to Fridays: 8am to 5.30pm)<br>Email: <a href="mailto:employer@cpf.gov.sg" target="_blank">employer@cpf.gov.sg<br></a>Website: <a href="http://www.cpf.gov.sg/" target="_blank">www.cpf.gov.sg</a></p><p> </p><h4>On Medisave contribution rates for self-employed persons</h4><p>Hotline: 1800-227-1188 (Mondays to Fridays: 8am to 5.30pm)<br>Email: <a href="mailto:member@cpf.gov.sg" target="_blank">member@cpf.gov.sg​<br></a>Website: <a href="http://www.cpf.gov.sg/" target="_blank">www.cpf.gov.sg</a></p><p> </p><h4>On SEC</h4><p>Hotline: 1800-222-2888 (Mondays to Fridays: 8am to 5.30pm)<br>Email: <a href="mailto:employer@cpf.gov.sg">employer@cpf.gov.sg<br></a>Website: <a href="http://www.sec.gov.sg/">www.sec.gov.sg</a></p><p> </p><h4>On TEC</h4><p>Hotline: 1800-222-2888 (Mondays to Fridays: 8am to 5.30pm)<br>Email: <a href="mailto:employer@cpf.gov.sg" target="_blank">employer@cpf.gov.sg </a>​<br></p>Singapore Budget 2014: Initiatives Relating to CPF20/2/2014 4:00:00 PMhttps://null/common/Lists/News/DispForm.aspx?ID=2261
Singapore Budget 2013: Initiatives Relating to CPF 2263/News/news-categories-info/cpf-changes<p> </p><p>Deputy Prime Minister and Minister for Finance Tharman Shanmugaratnam announced the following initiatives relating to CPF during the FY2013 Budget Statement in Parliament on 25 February 2013:<br></p><ul><li>​<a href="#1">Enhancements to the Workfare Income Supplem​ent (WIS) Scheme</a> </li><li> <a href="#2">Revised CPF Contribution Rates for Low-Wage Workers</a>​ </li></ul> <br> <p> <a href="http://www.singaporebudget.gov.sg/budget_2013/key_initiatives/index.html" target="_blank">More details of Singapore Budget 2013</a></p><h3> <strong></strong> <a name="1"></a> <strong>Enhancements to the Workfare Income Supplement (WIS) Scheme</strong></h3><p>The WIS scheme has been enhanced as follows:</p><p> </p><table border="0" cellspacing="2" cellpadding="1" width="100%"><tbody><tr><td valign="top"> (1) </td><td><p> <strong>Income cap extended to $1,900/month</strong> to benefit more Singaporean workers</p></td></tr><tr><td></td></tr><tr><td valign="top"> (2)</td><td><p> <strong>Higher WIS payouts of up to $3,500/year</strong> to better provide for expenditure needs and enhance retirement savings</p></td></tr><tr><td></td></tr><tr><td valign="top"> (3)</td><td><p> <strong>More WIS to be given out in cash</strong> to help recipients with their immediate expenses (40% of WIS payouts for employees and 10% of WIS payouts for self-employed persons)</p></td></tr><tr><td></td></tr><tr><td valign="top"> (4)</td><td><p> <strong>Increase in WIS payments to CPF Medisave and Special Accounts</strong>, without reducing contributions to the Ordinary Account, to boost the healthcare and retirement savings of older low-wage workers</p></td></tr><tr><td></td></tr><tr><td valign="top"> (5)</td><td> <strong>Additional criteria to improve targeting of WIS</strong> to focus on WIS recipients with limited access to household wealth</td></tr></tbody></table><p> </p><p>The changes will apply to work done from 1 January 2013 onwards.</p><p> </p><p> <a href="/Assets/members/Documents/Budget2013WIS.pdf" target="_blank">Frequently Asked Questions on Workfare Income Supplement (WIS) Scheme</a> (PDF, 0.1MB)</p><p> </p><h3> <a name="2"></a><strong>Revised CPF Contribution Rates for Low-Wage Workers</strong></h3><p>Together with the WIS enhancements, the CPF contribution rates for low-wage workers will be raised to help them save more for retirement and medical needs.</p><p> </p><table border="0" cellspacing="2" cellpadding="1" width="100%"><tbody><tr><td valign="top"> (1) </td><td>The Employer CPF contribution rates for employees aged above 35 years and earning >$50 will follow the existing rates of employees earning ≥$1,500.</td></tr><tr><td></td></tr><tr><td valign="top"> (2)</td><td>The Employee CPF contribution rates for employees earning ≥$750 will also follow the existing rates of those earning ≥$1,500. The rates for employees earning >$500 to <$750 will be phased in. There is no change for employees earning ≤$500 as they are not required to make employee CPF contributions.</td></tr><tr><td></td></tr><tr><td valign="top"></td><td> <a href="/Employers/EmployerGuides/employer-guides/paying-cpf-contributions/cpf-contribution-and-allocation-rates/otherstab#Others">New CPF contribution rates from 1 January 2014.</a></td></tr><tr><td></td></tr><tr><td valign="top"> (3)</td><td>The Medisave contribution rates for Self-Employed Persons (SEPs) earning an annual net trade income (NTI) of >$6,000 to $12,000 will be raised to half of the full Medisave contribution rate relevant to their age group. The contribution rate for SEPs earning a NTI of >$12,000 to $18,000 will be gradually phased-in until it reaches the full Medisave contribution rate at NTI of $18,000. There is no change to the contribution rate for SEPs earning >$18,000.</td></tr></tbody></table><p> </p><p>The changes will apply to work done from 1 January 2014 onwards.</p><p> <a href="/Assets/members/Documents/Budget2013CPFconrate.pdf" target="_blank">Frequently Asked Questions on revised CPF contribution rates for low-wage workers.</a> (PDF, 0.2MB)<br></p><p> </p>​ <h3>​​<strong>More information</strong></h3><p>Members of the public may contact the CPF Board for more information.</p><h4> On WIS scheme</h4><p>Hotline: 1800-222-6622 (Mondays to Fridays: 8am to 5.30pm)<br>Email: <a href="mailto:member@cpf.gov.sg">member@cpf.gov.sg<br></a>Website: <a href="http://www.cpf.gov.sg/">www.cpf.gov.sg</a></p><h4> On CPF contribution rates</h4><p>Hotline: 1800-227-1188 (Mondays to Fridays: 8am to 5.30pm)<br>Email: <a href="mailto:employer@cpf.gov.sg">employer@cpf.gov.sg<br></a>Website: <a href="http://www.cpf.gov.sg/">www.cpf.gov.sg</a></p><h4> On Medisave contribution rates for self-employed persons</h4><p>Hotline: 1800-227-1188 (Mondays to Fridays: 8am to 5.30pm)<br>Email: <a href="mailto:member@cpf.gov.sg">member@cpf.gov.sg<br></a>Website: <a href="http://www.cpf.gov.sg/">www.cpf.gov.sg</a></p>Singapore Budget 2013: Initiatives Relating to CPF 24/2/2013 4:00:00 PMhttps://null/common/Lists/News/DispForm.aspx?ID=2263
New CPF Changes in 2012 2267/News/news-categories-info/cpf-changes<p>The following CPF changes were announced during the Ministry of Manpower’s Committee of Supply speeches on 5 March 2012:</p><ul><li> <a href="#LIFE">A Simpler CPF LIFE</a></li><li> <a href="#RA">Transfer to Retirem​ent Account (RA) at Draw-Down Age (DDA)</a></li><li> <a href="#WIS">More Frequent Workfare Income Supplement (WIS) Payouts</a></li><li> <a href="#Enforcement">Raising Awareness and Stepping Up Enforcement Efforts on CPF Compliance</a></li><li> <a href="#Silver">Silver Housing Bonus and Enhanced Lease Buyback Scheme</a><br></li></ul><p> <br> </p><h3> <a name="LIFE"></a> <strong>A Simpler​ CPF LIFE</strong></h3><p>Singapore has one of the highest life expectancies in the world. For Singaporeans who are aged 65 today, about half of them are expected to live beyond 85, and a third are expected to live beyond 90. Future retirees, including those who will be turning 65 in the next few years are expected to live even longer. A growing proportion of retirees would therefore outlive their CPF savings if they were on the Minimum Sum Scheme. CPF LIFE is therefore a timely and significant enhancement to our retirement adequacy system. It will provide members with an income for life.</p><p>Taking in members’ feedback during the opt-in phase, CPF LIFE will be simplified to make choosing a plan easier for CPF members. Come 2013, members will have a choice between 2 CPF LIFE plans - a new Standard Plan, and the existing Basic Plan.</p><ul><li><p>​The new Standard Plan combines the best features of the two most popular plans (Balanced and Plus Plans), and will be the default CPF LIFE plan. The Standard Plan provides members with higher monthly payouts while preserving flexibility in the use of their Retirement Account (RA) savings for housing prior to age 65. Members also leave a bequest for their beneficiaries under the Standard Plan.<br></p></li><li><p>​The Basic Plan will be retained for members who prefer a higher bequest and lower monthly payouts. This plan also provides flexibility for members who wish to use their RA savings for housing after 65 years old.<br></p></li></ul><p> The simpler CPF LIFE scheme will be effective from 1 January 2013. The majority of members who turn 55 in 2013 will receive their CPF payouts after they reach 65 via CPF LIFE. More information on the new Standard Plan will be released in the third quarter of 2012. Members who turn 55 from 1 January 2013 will receive their customised CPF LIFE packages before they turn 55, and will have sufficient time (six months after their 55th birthday) to choose their preferred CPF LIFE plan, before the default Standard Plan applies. </p><p>Existing CPF LIFE policyholders on any of the 4 current plans can continue to remain on their existing plans. An existing policyholder may also choose to switch to the new Standard Plan before 31 Dec 2013 if he or she finds that it now better meets his or her retirement needs. Existing policyholders will receive customised informational packages from the third quarter of 2012, to help them better understand the differences between their existing plans and the new Standard plan.</p><p> <a href="/Members/News/news-categories-info/news-releases/2027">Joint MOM-CPFB news release</a></p> <a href="/Assets/members/Documents/FAQs_SimplifiedCPFLIFEscheme.pdf" target="_blank">Frequently Asked Questions on CPF LIFE</a> ​​(PDF, 67KB) <p> ​​</p><h3> <a name="RA"></a><strong>​Transfer to Retirement Account (RA) at Draw-Down Age (DDA)</strong> </h3><table border="0" cellspacing="2" cellpadding="1" style="width:100%;"><tbody><tr><td colspan="2"><p>To help increase CPF LIFE payouts for all members as they work longer, members turning 55 from 2013 will see an automatic transfer of their accumulated post-55 contributions from the Ordinary and Special Accounts savings into their Retirement Account (RA)when they reach the draw-down age (DDA, or 65 years), if they have not met the Minimum Sum. This will increase the amount of savings used to join CPF LIFE, hence translating to higher monthly payouts for members. The amount of CPF savings a member can withdraw in cash remains the same, as under existing withdrawal conditions.</p><p> <a href="/Assets/members/Documents/FAQs_TransferatDrawDownAge.pdf" target="_blank">Frequently Asked Questions on Transferring to Retirement Account (RA) at Draw-Down Age (DDA)</a> (PDF, 0.4MB)<br></p><h3> <a name="WIS"></a> <strong>More Frequent​​ Workfare Income Supplement (WIS) Payouts</strong> </h3><p>The Workfare Income Supplement (WIS) Scheme was introduced in 2007 as a key feature of Singapore’s social security system. The objective of WIS is to encourage self-reliance and provide assistance to older low-wage workers who demonstrate their willingness to help themselves through work.</p><p>Enhancements were made to WIS in 2010 to increase the quantum of payouts and enable more workers to benefit. For work done in 2011, 317,000 employees have received $377 million in WIS. Self-employed persons will receive their WIS payouts in May 2012. In total, about 400,000 older low-wage Singaporeans will receive more than $400m in WIS.</p><p>There will be a comprehensive review of WIS in 2013. Ahead of this review, changes will be made to the payment frequency of the WIS scheme in 2012. With these changes, about 440,000 older low-wage Singaporeans are expected to receive more than $450 million for work done in 2012.</p><p> <br> <br></p><h3> <strong>2012 Changes in Payment Frequency</strong></h3><h4> <strong>Quarterly Payouts for Employees</strong></h4><p>At present, employees receive two WIS payouts a year. For example, WIS was paid in September 2011 for work done from January to June 2011, and in March 2012 for work done from January to December 2011.</p><p>From 2012 onwards, WIS payouts will be given more frequently to low-wage employees. It will be paid out quarterly, instead of twice yearly. This will enable WIS payouts to more easily meet their expenses. The payment dates are in ​ <strong>Table 1</strong>.<br></p><p style="text-align:center;">​Table 1: Payment dates for employees to receive WIS<br></p><table class="cpf-table cpf-form-table " width="100%"><thead><tr><th> Period of work </th><th style="text-align:center;"> Jan - Mar </th><th colspan="1" style="text-align:center;">Apr - Jun​</th><th colspan="1" style="text-align:center;">​Jul - Sep</th><th colspan="1" style="text-align:center;">Oct - Dec​</th></tr></thead><tbody><tr><td>Payment date</td><td style="text-align:center;">1 Jun</td><td colspan="1" style="text-align:center;">​1 Sep</td><td colspan="1" style="text-align:center;">​1 Dec</td><td colspan="1" style="text-align:center;"><div>​1 Mar of </div><div>the following year</div></td></tr></tbody></table> ​<span style="line-height:1.6;">Employees will now qualify for WIS in a quarter if they work at least two out of three months in that quarter, and if the average gross monthly income is not more than $1,700 for the period worked. </span> <p> <br></p><p> <br>  </p><h4> <strong>Annual Payouts for Self-Employed Persons (SEPs) ​</strong></h4><p>Unlike employees whose eligibility for WIS is automatically assessed based on their monthly CPF contributions, SEPs are required to declare their net trade income and contribute to Medisave before they receive WIS in their Medisave Account.<br><br>While SEPs were given the option of declaring both their mid-year and full-year income previously, less than 1% of all WIS-eligible SEPs did so. The vast majority of SEPs declared their full-year income and contributed to Medisave to receive WIS once a year. <br>                                                         <br>Hence from 2012, SEPs will be paid WIS once a year based on the declaration of their full-year income. This will be in line with IRAS’s tax filing requirements, and allows a more accurate assessment of the amount of Medisave contributions, so that SEPs will not over or under-contribute to Medisave before they receive WIS. <br><br>Nevertheless, as with employees, an SEP who works at least two months in a three-month period will now receive WIS equivalent to one quarter of the annual WIS. ​​​</p><p> <br> </p><h4> <strong>Summary of Eligibility Criteria</strong> </h4><p>To qualify for WIS for w​ork done in 2012, a worker must meet the following criteria:</p><ol><li><p> Be a Singapore citizen;<br></p></li><li><p> Be aged 35 years and above as at 31 December 2012;</p></li><li><p> Earn an average gross monthly income of not more than $1,700 for the period worked;</p></li><li><p> Work at least two months in a three-month period; and</p></li><li><p> ​​Be staying in a property with an annual value not exceeding $13,000, as assessed on 31 December 2011;</p></li></ol><p> </p><p>​​In addition, self-employed persons will need to declare their 2012 net trade income and make their Medisave contributions by 31 March 2013 to receive WIS on 1 May.<br><br>Employees will be assessed for WIS automatically based on their monthly CPF contributions.<br><br>More information on Workfare is available at <a href="http://www.workfare.sg/" target="_blank">www.workfare.sg</a>. </p><p> <a href="/Assets/members/Documents/FAQs_MoreFrequentWISpayouts.pdf" target="_blank">Frequently Asked Questions on Workfare Income Supplement (WIS) Payouts</a> (PDF, 0.5MB)<br></p><p>​<br></p><h3> <a name="Enforcement"></a><strong>Raising Awareness and Stepping Up Enforcement Efforts on CPF Compliance</strong> </h3><p>The Board takes a serious view of employers who fail to pay CPF contributions correctly as required under the law as it affects the retirement adequacy of employees. For older and low-wage employees, it will also result in them losing out on Government assistance such as workfare income supplements (WIS).</p><p>Upon detection of CPF non-compliance, the Board takes action to recover the CPF arrears and may take prosecution action against errant employers as any CPF non-compliance is an offence under the CPF Act.</p><p>As part of its enforcement efforts, the Board conducts audits on various industries to check for any CPF non-compliance. The Board will be intensifying its audits, with a focus on sectors where CPF non-compliance is found to be higher, such as cleaning and security.</p><p>Employees can also play their part by checking their CPF accounts regularly via the CPF website or their Statements of Account to ensure that CPF contributions are paid correctly by their employers. Employees and members of the public can report any CPF non-compliance via the <a href="https://www.cpf.gov.sg/eSvc/Web/FeedbackSubscription/Index">CPF Board’s website</a>, write to the Board or email us at <a href="mailto:employer@cpf.gov.sg">employer@cpf.gov.sg</a>. Employees can also call CPF hotline 1800-227-1188 or visit any <a href="/Members/Contact/visit-us">CPF Service Centre</a> to submit their complaints. The Board will follow-up on all complaints/feedback received. The identities of employees or members of the public will be kept confidential.</p> <a href="/Assets/members/Documents/CPFcompliance_OpsFAQ.pdf" target="_blank">Frequently Asked Questions on CPF Obligations and CPF Compliance</a> (PDF, 0.4MB)<br><br> <h3> <a name="Silver"></a><strong>​Silver Housing Bonus and Enhanced Lease Buyback Scheme</strong> </h3><p>The Silver Housing Bonus and the Enhanced Lease Buyback Scheme are being reviewed. Details will be announced in a few months’ time when the review is completed.<br><br><br></p><h3> <strong>Public Enquiries</strong></h3><h4> CPF LIFE</h4><p>Hotline: 1800-227-1188 (Mondays-Fridays: 8am – 5:30pm)<br><span style="line-height:1.6;">​Email: </span> <a href="mailto:member@cpf.gov.sg" target="_blank" style="line-height:1.6;">member@cpf.gov.sg</a><span style="line-height:1.6;"> </span></p><h4> Transfer to RA at DDA</h4><p> <span style="line-height:20.79px;">Hotline: </span><span style="line-height:20.79px;">1800-227-1188 (Mondays-Fridays: 8am – 5:30pm)</span><br style="line-height:20.79px;"><span style="line-height:1.6;">​Email: </span><a href="mailto:member@cpf.gov.sg" style="line-height:1.6;">member@cpf.gov.sg</a><span style="line-height:1.6;"> </span> </p><h4> WIS Payouts</h4><p> <span style="line-height:20.79px;">Hotline: </span><span style="line-height:20.79px;">1800-227-1188 (Mondays-Fridays: 8am – 5:30pm)</span><br style="line-height:20.79px;"><span style="line-height:1.6;">​Email: </span><a href="mailto:member@cpf.gov.sg" target="_blank" style="line-height:1.6;">member@cpf.gov.sg</a><br><span style="line-height:1.6;">Website: </span><a href="http://www.workfare.sg/">www.workfare.sg</a></p><h4> CPF Compliance</h4><p> <span style="line-height:20.79px;">Hotline: </span><span style="line-height:20.79px;">1800-227-1188 (Mondays-Fridays: 8am – 5:30pm)</span><br style="line-height:20.79px;"><span style="line-height:1.6;">​Email: </span><a href="mailto:employer@cpf.gov.sg" target="_blank" style="line-height:1.6;">member​@cpf.gov.sg</a><span style="line-height:1.6;"> </span></p></td></tr></tbody></table>New CPF Changes in 2012 4/3/2012 4:00:00 PMhttps://null/common/Lists/News/DispForm.aspx?ID=2267
Singapore Budget 2012: Initiatives Relating to CPF2269/News/news-categories-info/cpf-changes<p>Deputy Prime Minister and Minister for Finance Tharman Shanmugaratnam announced the following initiatives relating to CPF during the FY2012 Budget Statement in Parliament on 17 February 2012:</p><ul><li>​<a href="#1">Increase in CPF Contribution Rates for Older Workers</a> </li><li> <a href="#2">Enhancement to Special Employment Credit</a> </li><li> <a href="#3">One-off Medisave Top-up</a> </li><li> <a href="#4">Silver Housing Bonus and Enhanced Lease Buyback Scheme</a> ​<a href="#1"></a></li></ul><p></p><h3> <a name="1"></a>​<br><strong>Increase in CPF Contribution Rates for Older Workers</strong></h3><p>Lower CPF contribution rates for older workers were introduced to help improve the employability of older workers when seniority-based wage structures were prevalent. Since then, older workers have become more employable and progress has been made in reducing ​seniority-based wage rigidities. This positive trend is expected to continue. After consultation with its tripartite partners, the Government has reached a consensus to maintain in the long term the same CPF contribution rates for all workers up till age 55, rather than age 50.</p><p>The changes to CPF contribution rates for older workers will be introduced gradually to moderate the cost impact on employers and to take into account the subdued global economic outlook in the near term. The following increases as shown in the table below will be introduced as a first step with effect from 1 September 2012.</p><h4> <strong><br>Increase in CPF contribution rates </strong><br></h4> Age group: Above 50-55 <table cellspacing="0" class="ms-rteTable-default" style="width:75%;"><tbody><tr class="ms-rteTableEvenRow-default"><td class="ms-rteTableEvenCol-default" rowspan="3" bgcolor="#d2d2d2" style="width:20%;"> <strong>​Percentage point increase in CPF contribution rates</strong><br> ​<br> ​<br><br><br></td><td class="ms-rteTableOddCol-default" bgcolor="#f1f1f1" style="width:15%;">​Employer's rate<br></td><td class="ms-rteTableEvenCol-default" style="width:10%;">​2%<br></td></tr><tr class="ms-rteTableOddRow-default"><td class="ms-rteTableEvenCol-default" rowspan="1" bgcolor="#f1f1f1" style="width:15%;">​Employee's share<br></td><td class="ms-rteTableOddCol-default" rowspan="1" style="width:10%;">​0.5%<br></td></tr><tr class="ms-rteTableEvenRow-default"><td class="ms-rteTableEvenCol-default" rowspan="1" bgcolor="#f1f1f1" style="width:15%;"> <span style="color:#444444;">Total contribution rate​</span></td><td class="ms-rteTableOddCol-default" rowspan="1" style="width:10%;"> <span style="color:#444444;">​2.5%</span><br></td></tr><tr class="ms-rteTableOddRow-default"><td class="ms-rteTableEvenCol-default" rowspan="1" colspan="3" style="width:25%;">​<br></td></tr><tr class="ms-rteTableEvenRow-default"><td class="ms-rteTableEvenCol-default" rowspan="3" bgcolor="#d2d2d2" style="width:20%;"> <strong style="color:#444444;">Allocation of increase</strong><br></td><td class="ms-rteTableOddCol-default" rowspan="1" bgcolor="#f1f1f1" style="width:15%;"> <span style="color:#444444;"> <span>​Ordinary Account</span><br></span></td><td class="ms-rteTableEvenCol-default" rowspan="1" style="width:10%;">​0.5%<br></td></tr><tr class="ms-rteTableOddRow-default"><td class="ms-rteTableEvenCol-default" rowspan="1" bgcolor="#f1f1f1" style="width:15%;"> <font color="#444444">Special Account</font></td><td class="ms-rteTableOddCol-default" rowspan="1" style="width:10%;">​1.5%<br></td></tr><tr class="ms-rteTableFooterRow-default"><td class="ms-rteTableFooterEvenCol-default" rowspan="1" bgcolor="#f1f1f1" style="width:15%;"> <span style="color:#444444;"> <span>​Medisave Account</span><br></span></td><td class="ms-rteTableFooterOddCol-default" rowspan="1" style="width:10%;"> <span style="color:#444444;">​0.5%</span><br></td></tr></tbody></table> <br>Age group: Above 55-60 <table cellspacing="0" class="ms-rteTable-default" style="width:75%;"><tbody><tr class="ms-rteTableEvenRow-default"><td class="ms-rteTableEvenCol-default" rowspan="3" bgcolor="#d2d2d2" style="width:20%;"> <strong>​Percentage point increase in CPF contribution rates</strong><br> ​<br> ​<br><br><br></td><td class="ms-rteTableOddCol-default" bgcolor="#f1f1f1" style="width:15%;">​Employer's rate<br></td><td class="ms-rteTableEvenCol-default" style="width:10%;">​1.5%<br></td></tr><tr class="ms-rteTableOddRow-default"><td class="ms-rteTableEvenCol-default" rowspan="1" bgcolor="#f1f1f1" style="width:15%;">​Employee's share<br></td><td class="ms-rteTableOddCol-default" rowspan="1" style="width:10%;">​0.5%<br></td></tr><tr class="ms-rteTableEvenRow-default"><td class="ms-rteTableEvenCol-default" rowspan="1" bgcolor="#f1f1f1" style="width:15%;"> <span style="color:#444444;">Total contribution rate​</span></td><td class="ms-rteTableOddCol-default" rowspan="1" style="width:10%;"> <span style="color:#444444;">​2%</span><br></td></tr><tr class="ms-rteTableOddRow-default"><td class="ms-rteTableEvenCol-default" rowspan="1" colspan="3" style="width:25%;">​<br></td></tr><tr class="ms-rteTableEvenRow-default"><td class="ms-rteTableEvenCol-default" rowspan="3" bgcolor="#d2d2d2" style="width:20%;"> <span style="color:#444444;">​</span><strong style="color:#444444;">Allocation of increase</strong><br> ​<br> ​<br></td><td class="ms-rteTableOddCol-default" rowspan="1" bgcolor="#f1f1f1" style="width:15%;"> <span style="color:#444444;"> <span>​Ordinary Account</span><br></span></td><td class="ms-rteTableEvenCol-default" rowspan="1" style="width:10%;">​0.5%<br></td></tr><tr class="ms-rteTableOddRow-default"><td class="ms-rteTableEvenCol-default" rowspan="1" bgcolor="#f1f1f1" style="width:15%;"> <font color="#444444">Special Account</font></td><td class="ms-rteTableOddCol-default" rowspan="1" style="width:10%;">​1%<br></td></tr><tr class="ms-rteTableFooterRow-default"><td class="ms-rteTableFooterEvenCol-default" rowspan="1" bgcolor="#f1f1f1" style="width:15%;"> <span style="color:#444444;"> <span>​Medisave Account</span><br></span></td><td class="ms-rteTableFooterOddCol-default" rowspan="1" style="width:10%;"> <span style="color:#444444;">​0.5%</span><br></td></tr></tbody></table> <br>Age group: Above 60-65 <table cellspacing="0" class="ms-rteTable-default" style="width:75%;"><tbody><tr class="ms-rteTableEvenRow-default"><td class="ms-rteTableEvenCol-default" rowspan="3" bgcolor="#d2d2d2" style="width:20%;"> <strong>​Percentage point increase in CPF contribution rates</strong><br> ​<br> ​<br><br><br></td><td class="ms-rteTableOddCol-default" bgcolor="#f1f1f1" style="width:15%;">​Employer's rate<br></td><td class="ms-rteTableEvenCol-default" style="width:10%;">​0.5%<br></td></tr><tr class="ms-rteTableOddRow-default"><td class="ms-rteTableEvenCol-default" rowspan="1" bgcolor="#f1f1f1" style="width:15%;">​Employee's share<br></td><td class="ms-rteTableOddCol-default" rowspan="1" style="width:10%;">​-<br></td></tr><tr class="ms-rteTableEvenRow-default"><td class="ms-rteTableEvenCol-default" rowspan="1" bgcolor="#f1f1f1" style="width:15%;"> <span style="color:#444444;">Total contribution rate​</span></td><td class="ms-rteTableOddCol-default" rowspan="1" style="width:10%;"> <span style="color:#444444;">​0.5%</span><br></td></tr><tr class="ms-rteTableOddRow-default"><td class="ms-rteTableEvenCol-default" rowspan="1" colspan="3" style="width:25%;">​<br></td></tr><tr class="ms-rteTableEvenRow-default"><td class="ms-rteTableEvenCol-default" rowspan="3" bgcolor="#d2d2d2" style="width:20%;"> <span style="color:#444444;">​</span><strong style="color:#444444;">Allocation of increase</strong><br> ​<br> ​<br></td><td class="ms-rteTableOddCol-default" rowspan="1" bgcolor="#f1f1f1" style="width:15%;"> <span style="color:#444444;"><span>​Ordinary Account</span><br></span></td><td class="ms-rteTableEvenCol-default" rowspan="1" style="width:10%;">​-<br></td></tr><tr class="ms-rteTableOddRow-default"><td class="ms-rteTableEvenCol-default" rowspan="1" bgcolor="#f1f1f1" style="width:15%;"> <font color="#444444">Special Account</font></td><td class="ms-rteTableOddCol-default" rowspan="1" style="width:10%;">​0.5%<br></td></tr><tr class="ms-rteTableFooterRow-default"><td class="ms-rteTableFooterEvenCol-default" rowspan="1" bgcolor="#f1f1f1" style="width:15%;"> <span style="color:#444444;"><span>​Medisave Account</span><br></span></td><td class="ms-rteTableFooterOddCol-default" rowspan="1" style="width:10%;"> <span style="color:#444444;">​-</span><br></td></tr></tbody></table> <br> <p> <a href="/Assets/employers/Documents/Item2w_FAQs.pdf" target="_blank">Frequently Asked Questions on Increase in CPF contribution rates.</a> (PDF, 0.2MB)<br></p><p> <a href="/Assets/employers/Documents/CPF%20Contribution%20and%20Allocation%20Rates%20from%201%20Sep%202012.pdf" target="_blank">New CPF contribution rates</a> (PDF, 0.8MB)<br></p><h3> <br> <a name="2"></a>​<strong>Enhancement to Special Employment Credit</strong></h3><p></p><p>The Special Employment Credit (SEC) was introduced as a 2011 Budget Initiative to support employers as well as to raise the employability of older low-wage Singaporeans. It will be enhanced in 2012 to provide employers with continuing support to hire older Singaporean workers.</p><p>With the 2012 enhancements, about 73,000 employers employing 350,000 older Singaporeans are expected to benefit from the SEC. This will cost the Government about $470m per year over the next five years. Employers may qualify for the SEC for workers employed from 1 January 2012 onwards. Payments will be made twice a year, with the first payment of the enhanced SEC to be made in September 2012. </p><p> <a href="http://www.sec.gov.sg/" target="_blank">More details on the Special Employment Credit (SEC)</a></p><p></p><p> <span class="Subtopicheader"></span></p><p></p><h3> <a name="3"></a> <br>​<strong>One-off Medisave Top-up</strong></h3><p>To offset the expected increase in MediShield premiums, all Singapore Citizens insured under MediShield will receive a one-off Medisave top-up. Older Singaporeans will receive a larger top-up as they face higher premiums.</p><p></p><table border="1" cellspacing="0" cellpadding="2" style="width:60%;"><tbody><tr><td style="width:30%;">​ <p align="center"> <span class="blackhighlight">Age as at next Birthday</span></p></td><td style="width:30%;"><p align="center"> <span class="blackhighlight">Medisave Top-up</span></p></td></tr><tr><td style="width:30%;"><p align="center">1-40<br></p></td><td style="width:30%;"><p align="center">$50</p></td></tr><tr><td style="width:30%;"><p align="center">41-50</p></td><td style="width:30%;"><p align="center">$100</p></td></tr><tr><td style="width:30%;"><p align="center">51-60</p></td><td style="width:30%;"><p align="center">$200</p></td></tr><tr><td style="width:30%;"><p align="center">61-75</p></td><td style="width:30%;"><p align="center">$300</p></td></tr><tr><td style="width:30%;"><p align="center">76 and above</p></td><td style="width:30%;"><p align="center">$400</p></td></tr></tbody></table><p></p><p> <a href="/Assets/employers/Documents/item3w_FAQ.pdf" target="_blank">Frequently Asked Questions on One-off Medisave Top-up</a> (PDF, 71KB)<br></p><p></p><h3> <a name="4"></a> <br>​<strong>​Silver Housing Bonus and Enhanced Lease Buyback Scheme</strong></h3><p>MOF has announced the introduction of the Silver Housing Bonus and enhanced Lease Buyback Scheme. More details on the schemes will be announced by the Minister for National Development at the Ministry of National Development’s Committee of Supply speech.</p><p></p>​ <h3> <strong>Public Enquiries</strong></h3><h4> CPF Contribution Rates</h4><p> <span style="line-height:1.6;">Hotline: C<span style="line-height:20.8px;">all the CPF Call Centre at 1800-227-1188 (Mondays-Fridays: 8am – 5:30pm)</span><br>Email: </span> <a href="mailto:employer-accounts@cpf.gov.sg" style="line-height:1.6;">employer-accounts@cpf.gov.sg</a><span style="line-height:1.6;"> </span> <br></p><h4> Self-Employed Persons</h4><p>Hotline: C<span style="line-height:20.8px;">all the CPF Call Centre at 1800-227-1188 (Mondays-Fridays: 8am – 5:30pm).<br></span>Email: <a href="mailto:member@cpf.gov.sg">member@cpf.gov.sg</a></p><h4> Special Employment Credit</h4><p>Hotline: C<span style="line-height:20.8px;">all 1800-2222-888 (Mondays-Fridays: 8am – 5:30pm)<br></span>Email: <a href="mailto:sec@cpf.gov.sg">SEC@cpf.gov.sg</a></p><h4> One-off Medisave Top-Up</h4><p>Hotline: C<span style="line-height:20.8px;">all the CPF Call Centre at 1800-227-1188 (Mondays-Fridays: 8am – 5:30pm)</span><br>Email: <a href="mailto:member@cpf.gov.sg">member@cpf.gov.sg</a></p><p> <br> </p>Singapore Budget 2012: Initiatives Relating to CPF16/2/2012 4:00:00 PMhttps://null/common/Lists/News/DispForm.aspx?ID=2269
More details on the increase in Employer CPF Contribution Rates and CPF Salary Ceiling2270/News/news-categories-info/cpf-changes<p> <a href="#CPFCON">A) Increase in Employers’ CPF C​ontribution Rate</a> <br><a href="#OW">B) Increase in Ordinary Wage ​(OW) Ceiling</a> <br><a href="#AW">C) Increase in Additional Wage (AW) Ceiling</a> <br><a href="#CPFLIMIT">D) Increase in CPF Annual Limit</a></p><p>* Also known as Ordinary Wage Ceiling<br></p><p></p>   <h3> <a name="CPFCON"></a><strong>A) Increase in Employers’ CPF Contribution Rate​​</strong></h3><p>From 1 September 2011, there is an increase of 0.5 percentage point in the employers’ CPF contribution rate. For employees who are above 35 years old and earning monthly wages of up to $1,500, the higher employer CPF contribution rate will continue to be phased in from 0% at the wage of $50 to the new full rate at the wage of $1,500. The increased contribution will be credited to the employees’ Special Account (including those above 55 years of age).<br></p><p>However, the additional 0.5 percentage point does not apply to graduated employer and employee rates for first or second year Singapore Permanent Residents (SPR) and their employers.</p><p> <a href="/Assets/employers/Documents/CPF%20Contribution%20and%20Allocation%20Rates%20from%201%20Sep%202011.pdf" target="_blank">New contribution and allocation rates</a> (PDF, 0.8MB)<br></p><h3> <a name="OW"></a><strong><br>B) Increase in Ordinary Wage (OW) Ceiling</strong></h3><p>From 1 September 2011, CPF contribution is payable on ordinary wages up to a maximum of $5,000 per month. This affects all employees, including Singapore Citizens and Singapore Permanent Residents.</p><table class="cpf-table cpf-form-table " style="width:100%;"><thead style="text-align:center;"><tr><th colspan="2" style="width:100%;">Ord​inary Wage Ceiling​</th></tr></thead><tbody><tr><td style="width:50%;">Before 1 September 2011</td><td style="width:50%;">From 1 September 2011</td></tr><tr><td style="width:50%;">$4,500</td><td style="width:50%;">$5,000</td></tr></tbody></table>​​​<a name="AW"></a><strong>​<br>​C) Increase in Additional Wage (AW) Ceiling</strong> <table border="0" cellspacing="2" cellpadding="1" width="100%"><tbody><tr><td colspan="2"><p>With the increase in the OW Ceiling from 1 September 2011, the AW Ceiling for 2011 and 2012 are revised as follows:</p><table class="cpf-table cpf-form-table " style="width:100%;"><thead><tr><th style="width:10%;">​No             </th><th style="width:45%;">Scenarios</th><th colspan="1" style="width:45%;">Additional Wage Ceiling​</th></tr></thead><tbody><tr><td style="width:10%;">1​.</td><td style="width:45%;">Employee whose last day of employment is before 1 Sep 2011</td><td colspan="1" style="width:45%;">​<span style="line-height:20.8px;">$76,500</span><sup style="font-size:x-small;">1</sup><span style="line-height:20.8px;"> – Total Ordinary Wages subject to CPF for 2011</span></td></tr><tr><td style="width:10%;">2.</td><td style="width:45%;"><p>Employee whose last day of employment falls within the period from 1 Sep to 31 Dec 2011; OR</p><p>Employee who is still in employment on 31 Dec 2011</p></td><td colspan="1" style="width:45%;">​<span style="line-height:20.8px;">$79,333</span><sup style="font-size:x-small;">2</sup><span style="line-height:20.8px;"> – Total Ordinary Wages subject to CPF for 2011</span></td></tr><tr><td style="width:10%;">3.</td><td style="width:45%;">Employee in employment from 1 Jan 2012</td><td colspan="1" style="width:45%;">​<span style="line-height:20.8px;">$85,000</span><sup style="font-size:x-small;">3</sup><span style="line-height:20.8px;"> – Total Ordinary Wages subject to CPF for 2012</span></td></tr></tbody></table><p> <sup>​1</sup> Equivalent to 17 months x $4,500<br><sup>2 </sup>Equivalent to (8/12 x 17 months x $4,500) + (4/12 x 17 months x $5,000) <br><sup>3</sup> Equivalent to 1​7 months x $5,000</p><p>A copy of the FAQ and examples on the computations of the revised AW Ceiling is attached.</p><ul><li> <a href="/Assets/employers/Documents/FAQonAdditionalWageCeiling.pdf" target="_blank">Frequently Asked Questions on Increase in Additional Wage (AW) Ceiling​</a> (PDF, 74KB)</li><li> <a href="/Assets/employers/Documents/ExamplesonAdditionalWageCeilingComputation.pdf" target="_blank">Examples on the computations of the revised AW Ceiling</a> (PDF, 0.6MB)</li></ul><p> <br> <a href="https://www.cpf.gov.sg/eSvc/Web/Services/CPFAdditionalWageCeiling/IndexEmpl" target="_blank">AW Ceiling Calculator</a><br></p></td></tr></tbody></table>     <h3> <a name="CPFLIMIT"></a><strong>D) Increase in CPF Annual Limit</strong></h3><p>The CPF Annual Limit (mandatory and voluntary contributions) from 2011 has been revised from $27,158 to $30,600.</p>More details on the increase in Employer CPF Contribution Rates and CPF Salary Ceiling31/8/2011 4:00:00 PMhttps://null/common/Lists/News/DispForm.aspx?ID=2270
Committee of Supply Speeches (Ministry of Manpower)2272/News/news-categories-info/cpf-changes<p><a href="http://www.mom.gov.sg/newsroom/speeches/2011/committee-of-supply-speech-1-by-mr-gan-kim-yong-minister-for-manpower-09-march-2011-315pm-parliament" target="_blank">Committee of Supply Speech (MOM): Part 1</a></p><p><a href="http://www.mom.gov.sg/newsroom/speeches/2011/committee-of-supply-speech-2-by-mr-gan-kim-yong-minister-for-manpower-09-march-2011-445pm-parliament" target="_blank">Committee of Supply Speech (MOM): Part 2</a></p><p><a href="http://www.mom.gov.sg/newsroom/speeches/2011/committee-of-supply-speech-3-by-mr-lee-yi-shyan-minister-of-state-for-trade--industry-and-manpower-9-march-2011-5-pm-parliament" target="_blank">Committee of Supply Speech (MOM): Part 3</a></p><p><a href="http://www.mom.gov.sg/newsroom/speeches/2011/committee-of-supply-speech-4-by-mr-hawazi-daipi-senior-parliamentary-secretary-health-and-manpower-09-march-2011-545pm-parliament" target="_blank">Committee of Supply Speech (MOM): Part 4</a><br></p>Committee of Supply Speeches (Ministry of Manpower)8/3/2011 4:00:00 PMhttps://null/common/Lists/News/DispForm.aspx?ID=2272
Singapore Budget 2011: Initiatives Relating to CPF2271/News/news-categories-info/cpf-changes<p>Minister for Finance Tharman Shanmugaratnam announced the following initiatives relating to CPF during the FY2011 Budget Statement in Parliament on 18 February 2011:</p><ul><li><p>​​<a href="#1">Increase in E​mployer CPF Contribution by 0.5 Percentage Point</a> </p></li><li><p> <a href="#2">Increase in CPF Salary Ceiling to $5,000</a> </p></li><li><p> <a href="#3">Workfare Special Bonus</a></p></li><li><p> <a href="#4">Tax Benefits for Voluntary Contributions by Companies to Self-Employed Persons’ Medisave Account</a> </p></li><li><p> <a href="#5">Special Employment Credit</a>​</p></li></ul> <br> <p> <a href="http://www.singaporebudget.gov.sg/budget_2011/budget_speech.html" target="_blank">More details of Singapore Budget 2011​</a></p><p> <a href="/Assets/employers/Documents/Budget2011_MOMPressRelease.pdf" target="_blank">Press release issued by Ministry of Manpower</a> (PDF, 54KB)<br></p> <br> <h3> <a name="1"></a> <strong>Increase in Employer CPF Contribution by 0.5 Percentage Point</strong></h3><p>To help Singaporeans save more for their retirement, the Government will increase the employer CPF contribution rate to the Special Account by 0.5 percentage point. This will restore the total CPF contribution rate to 36%. The 0.5 percentage point increase will take effect from 1 September 2011. (Please see <a href="/Assets/employers/Documents/Budget2011_AnnexA.pdf" target="_blank">Annex A: Details of the new CPF contribution rates by age group</a>. (PDF, 11KB))<br></p><p>This restoration of the employer CPF contribution rate​ follows Prime Minister Lee Hsien Loong’s announcement at the May Day Rally in 2010, on the 1 percentage point increase in employers’ contribution, with 0.5 percentage point to the Medisave Account on 1 Sep 2010 and another 0.5 percentage point to the Special Account on 1 Mar 2011.</p><p>All employees will benefit from the new CPF contribution rate change. Employees aged above 35 who are earning between $50 and $1,500 per month will also see pro-rated increases in their CPF contribution rate. (Please see <a href="/Assets/employers/Documents/Budget2011_AnnexB.pdf" target="_blank">Annex B: Details of the new CPF contribution rates for low wage workers</a>. (PDF, 60KB))</p> <br> <h3> <a name="2"></a> <strong>​​Increase in CPF Salary​ Ceiling to $5,000</strong></h3><p>To keep pace with income growth in recent years, the CPF salary ceiling will be adjusted upwards from $4,500 to $5,000<sup>1</sup>. The change applies to all age groups and will take effect from 1 September 2011.</p><p>All employees will benefit from the 0.5 percentage point increase in employer CPF contribution, while those earning more than $4,500 a month, estimated to be 390,000 members, will benefit from the increase in the CPF salary ceiling.</p><p> </p><p> <sup>1</sup>The last change in the CPF s​alary ceiling was in 2006, when it was lowered from $5,000 to $4,500.</p><h3> <a name="3"></a><strong><br>Workfare Special Bonus (WSB)</strong></h3><p>To ensure that low-wage workers benefit from economic growth, and particularly in view of the strong economic recovery in 2010, the Government will provide a one-off Workfa​re Special Bonus (WSB) over and above the regular Workfare Income Supplement (WIS) payment. The WSB will reward workers for work done in 2010, 2011 and 2012, and will be given out in four equal payments.</p><p> </p><table class="cpf-table cpf-form-table " width="100%"><thead><tr><th> <span style="line-height:20.79px;">Workfare Special Bonus</span> </th><th> <span style="line-height:20.79px;">Qualifying period during which work is done</span> </th><th colspan="1"> <span style="line-height:20.79px;">Payment Date</span>​</th></tr></thead><tbody><tr><td> <span style="line-height:20.79px;">2010</span></td><td> <span style="line-height:20.79px;">Jan-Dec 2010</span></td><td colspan="1">​<span style="line-height:20.79px;">May 2011</span><br style="line-height:20.79px;"><span style="line-height:20.79px;">Dec 2011</span></td></tr><tr><td> <span style="line-height:20.79px;">2011</span></td><td> <span style="line-height:20.79px;">Jan-Dec 2011</span></td><td colspan="1">​<span style="line-height:20.79px;">Dec 2012</span></td></tr><tr><td> <span style="line-height:20.79px;">2012</span>​</td><td> <span style="line-height:20.79px;">Jan-Dec 2012</span></td><td colspan="1">​<span style="line-height:20.79px;">Dec 2013</span></td></tr></tbody></table><p>The WSB will amount to an additional one year’s worth of WIS payments, spread over three years. As with WIS, older workers will receive higher WSB amounts compared to younger workers.</p><p>Employees can receive up to $2,800 WSB. The payments will be made fully in cash. Self-Employed Persons (SEPs) can receive up to $1,868 WSB. The payments will be made half in cash and half into CPF-Medisave.</p><p>The eligibility criteria for WSB are the same as that for WIS:</p><ul><li> ​​<span style="line-height:1.6;">Singapore citizens;</span></li><li> <span style="line-height:1.6;">35 years old and above as at 31 Dec of the work year;</span></li><li> <span style="line-height:1.6;">Worked at least three months in any six consecutive months in a work year to receive half of the payment or at least six months in a work year to receive the full payment;</span> </li><li> <span style="line-height:1.6;"></span><span style="line-height:1.6;">Earn an average monthly income not more than $1,700 in the work year; and</span> </li><li> <span style="line-height:1.6;">Stay in a property with Annual Value of not more than $11,000 assessed as at 31 Dec in the year preceding the work year. The Annual Value threshold will be increased to $13,000 from work year 2011.​</span> </li></ul><p> <br> <a href="http://www.mof.gov.sg/growandshare/index.htm" target="_blank">More information on Workfare Special Bonus</a></p><h3> <a name="4"></a></h3><h3> <br> <strong>​​Tax Benefits for Voluntary Contributions by Companies to Self-Employed Persons’ Medisave Account</strong></h3><p>To increase Self-Employed Persons’ savings to meet their medical needs, tax benefits​ will be given for voluntary contributions made by eligible Companies to the Medisave Accounts of Self-Employed Persons who work with them. Both Self-Employed Persons and the Company will enjoy the tax benefits.</p><p>Such voluntary contributions can help offset the Medisave liabilities of Self-Employed Persons, and help them meet the Medisave Minimum Sum.</p><p>The changes will be implemented for voluntary contributions made from 1 January 2011 and the tax benefits will take effect from Year of Assessment 2012.</p><p>Details are shown in the table below:<br></p><table class="cpf-table cpf-form-table " width="100%"><thead><tr><th> <span style="line-height:20.79px;">Current Treatment</span> </th><th> <span style="line-height:20.79px;">New Treatment</span>​ </th></tr></thead><tbody><tr><td> <span style="line-height:20.79px;">For Self-Employed Persons:</span><br style="line-height:20.79px;"><br style="line-height:20.79px;"><span style="line-height:20.79px;">Medisave contributions made by eligible Companies to the Self-Employed individuals’ CPF accounts may be considered taxable income.</span></td><td> <span style="line-height:20.79px;">Medisave contributions made by eligible Companies to Self-Employed individuals’ Medisave account will now be tax-exempt up to a cap of $1,5001 for each calendar year.</span><br style="line-height:20.79px;"><br style="line-height:20.79px;"><span style="line-height:20.79px;">The limit will remain at $1,500 for Self-Employed Persons with more than one Company.</span></td></tr><tr><td> <span style="line-height:20.79px;">For Companies:</span><br style="line-height:20.79px;"><br style="line-height:20.79px;"><span style="line-height:20.79px;">Companies who voluntarily contribute to Self-Employed individuals’ CPF accounts are not given tax deductions.</span></td><td> <span style="line-height:20.79px;">Eligible Companies who voluntarily contribute to Self-Employed individuals’ Medisave account will be allowed tax deductions up to $1,500 per Self-Employed for each calendar year.</span><br style="line-height:20.79px;"><br style="line-height:20.79px;"><span style="line-height:20.79px;">For Self-Employed Persons with more than one Company, the $1,500 tax deduction will be apportioned between the Companies in the order in which their contributions were made.</span><br style="line-height:20.79px;"><br style="line-height:20.79px;"><span style="line-height:20.79px;">For members who are both Self-Employed and an Employee, the $1,500 tax deduction will be apportioned between the Company and Employer<sup>2</sup> for eligible top-ups in the order in which their contributions were made.​</span></td></tr></tbody></table>​<sup>​1</sup><span style="line-height:1.6;">I</span><span style="line-height:1.6;">n addition, the Medisave contributions have to be within the CPF Annual Limit of the recipient and Medisave Contribution Ceiling prevailing at the point of contribution.</span> <p> <sup>2</sup><span style="line-height:1.6;">Employers can contribute to their Employee’s Medisave account to obtain tax deductions of up to $1,500 through the Additional Medisave Contribution Scheme.​</span></p><p> </p><h3> <a name="5"></a> <strong> <br>​​Special Employment Credit (information added on 10 March 2011)</strong></h3><p>As part of the 2011 Budget measures to support employers, a one-off Special Employment Credit (SEC) has been introduced. The SEC aims to raise the employability of older low-wage Singaporeans.  It will complement other measures to boost the employment rate for older workers, such as the Workfare Income Supplement (WIS) scheme, lower CPF rates for older workers, the ADVANTAGE! Fund to promote job re-design, and the re-employment legislation that will come into force on 1 Jan 2012.</p><p>About 43,000 employers employing 125,000 older low-wage Singaporeans are expected to benefit from the SEC. This will cost the Government about $100 million over three years. Employers may qualify for the SEC for workers employed from January 2011 onwards. Payments will be made twice a year, with the first payment to be made in September 2011. </p><p> <a href="http://www.sec.gov.sg/" target="_blank">More details on the Special Employment Credit</a></p><p> </p><h3> <strong>​<br>​​Frequently Asked Questions</strong></h3><p> <a href="/Assets/employers/Documents/Budget2011_FAQCPFCon.pdf" target="_blank">Increase in CPF Contribution Rates and CPF Salary Ceiling</a> (PDF, 28KB)</p><p> <a href="/Assets/employers/Documents/Budget2011_FAQWSB.pdf" target="_blank">Workfare Special Bonus</a> (PDF, 15KB)</p><p> <a href="/Assets/employers/Documents/Budget2011_FAQSECon.pdf" target="_blank">Voluntary Medisave Contributions by Companies to Self-Employed Persons</a> (PDF, 0.1MB)<br></p><h3> <strong>​<br>Public Enquiries</strong></h3><p>Queries on Workfare Special Bonus can be addressed to CPF Board via:</p><ul><li><p>Email at <a href="mailto:growandshare@cpf.gov.sg" target="_blank">growandshare@cpf.gov.sg</a><a href="mailto:wis@cpf.gov.sg"></a></p></li><li><p>Hotline number at 1800-2222-888 (or 65 62222 888 if you call from overseas) (Mondays-Fridays: 8am – 6pm)</p></li></ul><p>Questions on Special Employment Credit can be addressed to CPF Board via:</p><ul><li><p>Email at <a href="mailto:sec@cpf.gov.sg" target="_blank">sec@cpf.gov.sg</a><a href="mailto:wis@cpf.gov.sg"></a></p></li><li><p>Hotline number at 1800-2222-888 (Mondays-Fridays: 8am – 6pm)</p></li></ul><p>​For more information on other matters, please contact the CPF Call Centre at 1800-227-1188 (Mondays-Fridays: 8am – 6pm).</p>Singapore Budget 2011: Initiatives Relating to CPF17/2/2011 4:00:00 PMhttps://null/common/Lists/News/DispForm.aspx?ID=2271
Changes to CPF Contribution Rates 2276/News/news-categories-info/cpf-changes<p>To help Singaporeans save more for their medical and retirement needs, the Government will increase the employer CPF contribution rate by 1%. The increase will be done gradually in two steps to moderate the impact on employers. The first 0.5% increase will be implemented on 1 September 2010, and will be made into the Medisave Account (MA). The remaining 0.5% increase will be effected 6 months later on 1 March 2011, and will be made to the Special Account (SA).</p><p> <a href="https://www.cpf.gov.sg/eSvc/Web/Miscellaneous/ContributionCalculator/Index?isFirstAndSecondYear=0&isMember=1">CPF Contribution Calculator</a></p><p> <a href="/Employers/EmployerGuides/employer-guides/paying-cpf-contributions/cpf-contribution-and-allocation-rates#others">CPF Contribution Rate Booklets</a></p><p>The Medisave contribution rates for Self-Employed Persons (SEPs) will correspondingly be increased by 0.5% on 1 September 2010.</p><p> <a href="https://www.cpf.gov.sg/eSvc/Web/Schemes/SelfEmployedMedisaveContribution/SelfEmployedMedisaveContributionLanding">Self-Employed Medisave Contribution Calculator</a>​</p> ​ <h3> <strong>WHO IS AFFECTED BY THE CONTRIBUTION RATE CHANGES?</strong></h3><p>All employees will benefit from the new CPF contribution rate changes. Please refer to <a href="/Assets/employers/Documents/AnnexA_ConRates.pdf" target="_blank">Annex A: Detailed listing of the new contribution rates</a> (PDF, 14KB).<br></p><p>For low wage workers (LWWs) above 35 years old and earning between $50 and $1,500, the employer CPF contribution rate will continue to be phased in. Please refer to <a href="/Assets/common/Documents/CPFChanges/AnnexB_ConRates.pdf" target="_blank">Annex B: New LWW contribution rates</a> (PDF, 68KB).</p><p>The increase in Medisave contribution rates will also apply to SEPs. SEPs earning an annual net trade income of $12,000 or less will continue to pay 1/3 of the full contribution rate relevant to their age group. For SEPs with annual net trade income between $12,000 and $18,000 their Medisave contribution rate will continue to be phased in. Please refer to <a href="/Assets/employers/Documents/AnnexC_ConRates.pdf" target="_blank">Annex C: Details on Medisave contribution rates for SEPs</a> (PDF, 51KB). The Medisave contribution that must be made by SEPs and informal workers with an annual net trade income of $6,000 or less to qualify for the Workfare Income Supplement (WIS) Scheme will also be adjusted accordingly.</p><p>A copy of the Press Release and FAQ is attached.<br>​​<br></p><ul><li><p><a href="/Assets/employers/Documents/PressRelease_ConRatesChanges2010.pdf" target="_blank">Press Release on Contribution Rate Changes</a> (PDF, 62KB)</p></li><li><p><a href="/Assets/employers/Documents/FAQ_restorationCPFConrates.pdf" target="_blank">Frequently Asked Questions on Contribution Rate Changes</a> (PDF, 83KB) </p></li></ul>Changes to CPF Contribution Rates 31/8/2010 4:00:00 PMhttps://null/common/Lists/News/DispForm.aspx?ID=2276
New CPF Changes in 2010 2274/News/news-categories-info/cpf-changes<p>Minister for Manpower Gan Kim Yong announced the following measures in his speech at the Committee of Supply debate on 11 March 2010 as part of the government’s continuing efforts to improve the CPF system. </p><ul><li> <a href="#LIFE">CPF LIFE</a><br></li><li> <a href="#CPFIS-SA">CPF Investment Scheme-Special Account Scheme</a></li><li> <a href="#MSS">Minimum Sum Scheme</a></li><li> <a href="#NOM">CPF Nomination</a></li><li> <a href="#SpecialNeeds">Special Needs Savings Scheme</a></li><li> <a href="#WIS">Workfare Income Supplement Scheme (WIS)</a></li><li> <a href="#Others">Other CPF-Related Changes</a><br><br></li></ul><h3> <a name="LIFE"></a><strong>Facilitating Automatic Inclusion in CPF LIFE</strong></h3><p>From 2013, CPF members born in 1958 or later with at least $40,000 in their Retirement Account (RA) at age 55 will be automatically included in CPF LIFE. Those with less than $40​,000 will not be automatically included at 551. Such members may subsequently have significant RA inflows between 55 and DDA2. To help these members participate in CPF LIFE and enjoy an income for as long as they live, such members will be automatically included at DDA if they have $60,0003 in their RA then.</p><p> <sup>1</sup> However, they could opt to join the scheme if they wish to.</p><p> <sup>2</sup> Age at which members are allowed to withdraw their CPF savings in the form of monthly payouts. The DDA for members who turned 55 from 1999 to 2004 is 62. This has been gradually increased to 65 for those who turned 55 in 2009.</p><p> <sup>3</sup> This is equivalent in value to $40,000 at age 55, compounded at 4% over 10 years.</p> <a href="/Assets/members/Documents/CPFChanges2010CPF_LIFE_FAQs.pdf" target="_blank">Frequently Asked Questions on CPF LIFE</a> (PDF, 7KB) <p> <br> </p><h3> <a name="CPFIS-SA"></a><strong>Raising the Threshold for CPF Investment Scheme-Special Account Investment</strong></h3><p>From 1 July 2010, the first $40,000 of members’ Special Account balances will no longer be allowed to be used for investments. Given the higher risk-free interest rate on the Special Account, it is better to be more conservative than to subject these savings to the uncertainty of CPFIS returns.</p><p>There is no change to the requirement for members to set aside $20,000 in the Ordinary Account before they can invest their Ordinary Account monies.</p><p> <a href="/Assets/members/Documents/CPFChanges2010CPFISSA_FAQs.pdf" target="_blank">Frequently Asked Questions on CPF Investment Scheme-Special Account Investment</a> (PDF, 10KB)<br></p><p> </p><h3> <a name="MSS"></a> <strong>Allowing Payout Adjustments for Minimum Sum Scheme</strong></h3><p>Members can now apply for an upward adjustment in their CPF monthly income provided that their adjusted payouts can last at least 20 years from their Draw Down Age, or at least another 5 years, whichever ends later (See <a href="#Example_MSS">Example of Minimum Sum Payout Adjustment</a>). This will be implemented by July 2010.</p><p>This option is not limited to only MS top-up recipients, but also for older members with large balances in their Retirement Accounts.</p><p> <a href="/Assets/members/Documents/CPFChanges2010MSS_FAQs.pdf" target="_blank">Frequently Asked Questions on Minimum Sum Scheme</a> (PDF, 0.1MB)<br></p><h3> <a name="NOM"></a> <strong>Refining CPF Nomination Rules</strong></h3><p>In response to publi​c feedback from members that they would like to use their CPF monies to better provide for the retirement and healthcare adequacies of their nominees, members will be allowed to transfer their CPF monies to their nominees’ CPF accounts upon their demise.</p><p>The change to the CPF nomination system will be effective from January 2011. More details will be released at a later date.</p><p> <a href="/Assets/members/Documents/CPFChanges2010Nomination_FAQs.pdf" target="_blank">Frequently Asked Questions on CPF Nomination Rules</a>​ (PDF, 9KB)<br></p><h3> <a name="SpecialNeeds"></a> <strong>Special Needs Savings Scheme</strong></h3><p>Ministry of Community Development, Youth & Sports (MCYS) is working with Ministry of Manpower and CPF Board on a new CPF scheme called the Special Needs Savings Scheme.</p><p>Parents would be able to nominate their disabled children to receive monthly disbursements from the parents’ CPF savings after the parents have passed on. Parents can nominate any number of eligible children and determine the level of monthly payouts to be paid, subject to the floor payout of $250, to each child upon the parents’ demise. The disabled who require assistance in at least one activity of daily living4 and children in Special Education schools would be eligible. The details of the scheme will be announced later when implementation details have been finalised.</p><p> <sup>4</sup>There are 6 ADLs: i) washing; ii) dressing; iii) feeding; iv) toileting; v) mobility; and vi) transferring.</p><p> <a href="http://www.sntc.org.sg/Pages/Home.aspx" target="_blank">Special Needs Savings Scheme (administered by <span style="text-decoration:underline;">Special Needs Trust Company</span>)</a>​​<br><br><a name="WIS"></a></p><p> </p><h3> <a name="WIS"></a> <strong>Enhancements to Workfare Income Supplement Scheme (WIS)</strong> </h3><p>The WIS Scheme aims to supplement the wages and CPF savings of Singapore workers aged 35 and above. It will be enhanced and will apply to work done from 1 January 2010.</p><p>The key enhancements are that the WIS qualifying average monthly income will be increased to $1,700, up from $1,500 previously; and the maximum WIS payment will be increased from $2,400 to $2,800 a year.</p><p>Also, the first six-month work period will now be assessed independently of the end-of-year annual assessment. Once a recipient is assessed to be eligible for a mid-year WIS payment, that payment received will be the final amount.</p><p> <a href="/Assets/members/Documents/Factsheet_2010_WISchanges.pdf" target="_blank">WIS Factsheet</a> (PDF, 26KB)</p><p><a href="/Assets/members/Documents/CPFChanges2010WIS_FAQs.pdf" target="_blank">Frequently Asked Questions on Workfare Income Supplement Scheme</a><br></p><h3> <a name="Others"></a><strong><br>Other CPF-Relate​d Changes</strong></h3><h3> <strong>Refinement to the Public Assistance Scheme</strong></h3><p>Presently, needy Singaporeans who are unable to work owing to old age, illness or disability and have no means of subsistence and have little or no family support can seek help under the Public Assistance (PA) scheme.</p><p>From 1 July 2010, CPF members who meet all other PA criteria, but who are receiving a small stream of monthly CPF payouts (i.e. lower than the PA allowance for a 1-person household i.e. $360 per month), under the Minimum Sum Scheme or CPF LIFE, can be considered for the PA scheme.</p><p>The Community Development Councils (CDCs) will assess each applicant’s eligibility based on the PA criteria. If eligible, they will be given a cash grant that takes into account the CPF payouts they are already receiving. Needy Singaporeans may approach their CDCs if they wish to apply for the PA scheme.</p> <a href="https://www.msf.gov.sg/Comcare/Pages/Public-Assistance.aspx" target="_blank">Public Assistance Scheme</a>​ ​<br><br><br> <table border="0" cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td colspan="2"><h4> <a name="Example_MSS"></a> <strong>Example of Min​imum Sum Payout Adjustment:</strong></h4><h4> <strong>Member aged 64 in July 2010​</strong></h4><table class="cpf-table cpf-form-table " style="width:100%;text-align:left;"><thead><tr><td style="width:55%;">​Cohort Draw Down ag​e</td><td colspan="1" style="width:30%;text-align:center;">​6​2​</td></tr><tr><td dir="ltr" style="width:55%;">Retirement Account cash balance  </td><td dir="ltr" colspan="1" style="width:30%;text-align:center;">​$95,000</td></tr><tr><td style="width:55%;">Top-up amount in July 2010<br></td><td colspan="1" style="width:30%;text-align:center;">​$22,000</td></tr><tr><td style="width:55%;">Retirement Account cash balance after top-up</td><td colspan="1" style="width:30%;text-align:center;">​$117,000</td></tr><tr><th colspan="2"> <em>Under Current Top-Up Rules</em> ​​</th></tr><tr><td rowspan="1" style="width:55%;">​Payout</td><td rowspan="1" colspan="1" style="width:30%;text-align:center;">​$537*</td></tr><tr><td rowspan="1" style="width:55%;">​Estimated payout end age​</td><td rowspan="1" colspan="1" style="width:30%;text-align:center;">​96</td></tr><tr><th rowspan="1" colspan="2"> <em>​If Member Opts for Upward Payout Adjustment​ ​</em></th></tr><tr><td rowspan="1" style="width:55%;">​​Re-computed payout</td><td rowspan="1" colspan="1" style="width:30%;text-align:center;">​$7​34</td></tr><tr><td rowspan="1" style="width:55%;">​Increment in payout</td><td rowspan="1" colspan="1" style="width:30%;text-align:center;">​$217</td></tr><tr><td rowspan="1" style="width:55%;">​Estimated payout end age</td><td rowspan="1" colspan="1" style="width:30%;text-align:center;">​8​2</td></tr></thead></table><p>*This is the maximum payout for this member's cohort under current top-up rules</p></td></tr></tbody></table>New CPF Changes in 2010 10/3/2010 4:00:00 PMhttps://null/common/Lists/News/DispForm.aspx?ID=2274
Singapore Budget 2010: Initiatives relating to CPF 2275/News/news-categories-info/cpf-changes<p>Minister for Finance Mr Tharman Shanmugaratnam announced the following initiatives relating to CPF during the FY2010 Budget Statement in Parliament on 22 February 2010:</p><ul><li> <span style="line-height:1.6;">​​​</span><a href="#1" style="line-height:1.6;">Minimum Sum Topping-Up Scheme</a></li><li> <a href="#2">Revisions to the Workfare Income Supplement (WIS) Scheme and Introduction of the Workfare Training Scheme (WTS) </a>​</li> </ul><h3> <a name="1"></a><strong><br>Minimum Sum Top​​ping-Up Scheme​</strong> </h3><p>Currently, taxpayers can enjoy tax relief of up to $7,000 per calendar year if they use cash to top up the Special and Retirement Accounts for their spouse, siblings, parents and grandparents. To qualify for tax relief for cash top-ups made for spouse/siblings, the spouse/siblings must have earned $2,000 or less in the preceding year. </p><p>To recognise taxpayers’ efforts in supporting family members who are genuinely dependant while providing them with the flexibility to do some incidental work, the Government will increase the income criterion for siblings/spouse from $2,000 to $4,000. </p><p>Further, in recognition of the additional resources and attention required in providing care for disabled spouse and siblings, the income criterion will be removed completely for cash top-ups made for disabled spouse and siblings. </p><p>These changes are effective for all cash top-ups made to spouse/siblings in 2010. For cash top-ups made in the year, members can claim tax relief in the following year’s Tax Assessment. </p><p>More details will be announced in March 2010. ​</p> ​ <h3> <a name="2"></a> <strong>Revisions to the Workfare Income Supplement (WIS) Scheme and Introduction of the Workfare Training Scheme (WTS)​</strong></h3><p>As announced by the Government in the 2010 Budget Speech, starting from 2010, the maximum payment for the Workfare Income Supplement (WIS) scheme will be raised by $400 from $2,400 to $2,800 per year to encourage older low-wage workers to remain in employment, while the qualifying income criterion will be extended from an average monthly income of $1,500 to $1,700 to ensure that as low-wage workers upgrade their skills and begin to earn more, their WIS benefits would not decrease too quickly. </p><p>To complement the WIS scheme and support our older low-wage workers in enhancing their skills, the Government has announced a new 3-year Workfare Training Scheme (WTS). The WTS will provide 90% to 95% of funding for absentee payroll and course fee outlay for employers who send their older low-wage workers for training. WIS recipients who go for skills upgrading will receive up to $400 per year of cash grants when they complete the required training. </p><p>For low-skilled workers, who may require a more holistic and structured approach to training, there will be a structured training programme to further lower their barriers to training. </p><p>More details will be announced by the Ministry of Manpower in Parliament in March 2010. ​</p>Singapore Budget 2010: Initiatives relating to CPF 21/2/2010 4:00:00 PMhttps://null/common/Lists/News/DispForm.aspx?ID=2275
New CPF Changes in 2009 2277/News/news-categories-info/cpf-changes<p>Acting Minister for Manpower Gan Kim Yong has announced a series of CPF changes to help Singaporeans better prepare for the challenges faced by an ageing population in the MOM Committee of Supply Speech on 13 February. The key areas of change are as follows:</p><ul><li> <span style="line-height:1.6;">​​</span><a href="#LIFE" style="line-height:1.6;">CPF LIFE</a><br></li><li> <span style="line-height:1.6;">​</span><a href="#MSSTU" style="line-height:1.6;">Minimum Sum Top-Up</a><br></li><li> <a href="#CPFIS" style="line-height:1.6;">CPF Investment Scheme</a><br></li><li>​<a href="#WSP" style="line-height:1.6;">Workfare Special Payment</a><br><br></li></ul><h3> <a name="LIFE"></a><strong>CPF ​LIFE</strong></h3><p>CPF LIFE is a scheme designed to provide CPF members with a monthly income for as long as they live.</p><ul><li><p> ​From September 2009, CPF Board will start inviting members from age 55 and above to opt in with the first group of members receiving their LIFE payouts from January 2010.<br></p></li><li><p>Four LIFE plans will be offered to CPF members, giving a range of trade-offs between providing for oneself and leaving a bequest for one's beneficiaries. The default plan will be the LIFE Balanced Planwhich provides a member with a moderate level of income during retirement, and balances the bequest amount available for his beneficiaries upon his demise.​<br></p></li></ul><p> <a href="/Assets/members/Documents/CPFLIFE_Factsheet.pdf" target="_blank">Factsheet on CPF LIFE</a> (PDF, 46KB)</p><p> <a href="/Assets/members/Documents/CPFLIFE_FAQ.pdf" target="_blank">Frequently Asked Questions on CPF LIFE</a> (PDF, 68KB)</p><p> <a href="https://www.cpf.gov.sg/eSvc/Web/Schemes/LifePayoutEstimator/LifePayoutEstimator">CPF LIFE Payout Estimator</a></p><h3> <a name="MSSTU"></a><strong>​<br>​Minimum Sum Top-Up</strong> </h3><p>To facilitate family support through CPF and encourage members to participate in CPF LIFE, the CPF Minimum Sum (MS) Topping-Up Scheme will be liberalised. <br> </p><ol type="i"><li><p> ​From 1 April 2009, CPF top-up requirements will be lowered to the prevailing Minimum Sum, down from 1.5 times.<br></p></li><li><p>From 20 August 2009, the CPF top-up recipients list will be expanded to include parents/grandparents below age 55.<br></p></li></ol><p> <a href="/Assets/members/Documents/MSSTU_Factsheet.pdf" target="_blank">Factsheet on Minimum Sum Top-Up</a> (PDF, 19KB)</p><p> <a href="/Assets/members/Documents/MSSTU_FAQ.pdf" target="_blank">Frequently Asked Questions on Minimum Sum Top-Up</a> (PDF, 19KB)<br></p><div align="right"><h3 style="text-align:left;"> <a name="CPFIS"></a><strong>CPF Investment Scheme</strong></h3><p dir="ltr" style="text-align:left;"> To lower cost and improve quality of the funds included under CPFIS, the following changes will take place: </p><p dir="ltr" style="text-align:left;"> </p><ol type="i"><li dir="ltr" style="text-align:left;"> <span style="line-height:1.6;">​Fro</span><span style="line-height:1.6;">m 1 May 2009, CPF members must first set aside $30,000 in their Special Account (SA) before they can invest their SA monies under CPFIS. </span></li><li dir="ltr" style="text-align:left;"> <span style="line-height:1.6;"> ​From 1 January 2011, all funds in the CPFIS must meet all admission criteria applicable since 1 February 2006.</span><br></li></ol><p> </p><p style="text-align:left;"> <a href="/Assets/members/Documents/CPFIS_Factsheet.pdf" target="_blank">Factsheet on CPF Investment Scheme Changes</a> (PDF, 12KB)</p><p style="text-align:left;"> <a href="/Assets/members/Documents/CPFIS_Changes_FAQ.pdf" target="_blank">Frequently Asked Questions on CPF Investment Scheme</a> (PDF, 49KB)<br></p></div><h3> <a name="WSP"></a><strong>​Workfare Special Payment</strong> </h3><p>The Workfare Special Payment is a one-off payment to provide additional assistance to older low wage workers during the current economic downturn.</p><li> The Special Payment will be paid entirely in cash and will be assessed based on work done in 2008 and 2009.<br> </li><p> <a href="/Assets/members/Documents/WIS_Factsheet.pdf" target="_blank">Factsheet on Workfare Special Payment</a> (PDF, 52KB)</p><p> <a href="/Assets/members/Documents/WIS_SpecialPayment.pdf" target="_blank">Frequently Asked Questions on Workfare Special Payment</a> (PDF, 47KB)<br></p>New CPF Changes in 2009 12/2/2009 4:00:00 PMhttps://null/common/Lists/News/DispForm.aspx?ID=2277
Singapore Budget 2009: Initiatives relating to CPF 2278/News/news-categories-info/cpf-changes<p>To help Singapore see through the economic downturn, Finance Minister Mr. Tharman Shanmugaratnam announced the $20.5 billion Resilience Package in Parliament on 22 January 2009, with the following initiatives relating to CPF:</p><ul><li>​<a href="#1">Additional GST Credits</a>​​ <br></li><li> <a href="#2">WIS Special Payment</a> </li><li> <a href="#3">Jobs Credit Scheme</a><br></li></ul><p> <br><a href="http://www.singaporebudget.gov.sg/" target="_blank">More details of Singapore Budget 2009.</a><br></p><h3> <a name="1"></a><strong>​Additional GST Credits</strong></h3><p>To give direct assistance to households, the GST Credits that households will be receiving in 2009 will be doub​led. Each household will get an additional payout of GST Credits on 1 March 2009, on top of the one they will receive in July. This is to help households with their immediate needs.</p><p>As before, more GST Credits will be given more to the low-income and the old. For example, a Singaporean retiree (aged 60 or above) living in a four-room HDB flat, will get an additional $400, or a total of $800 in GST Credits and Senior Citizens’ Bonuses in 2009.</p><p> <a href="http://www.mof.gov.sg/gstcredits/Overview.htm" target="_blank">Details of the GST Offset Package</a><br><br></p><p> </p><h3> <strong>​</strong><a name="2"></a><strong>WIS Special Payment</strong></h3><p>There will be a temporary top-up to the <a href="http://www.wis.gov.sg/" target="_blank">Workfare Income Supplement (WIS) Scheme</a>received by low-income workers, known as the WIS Special Payment. This is to supplement the low-income workers’ pay and encourage them to stay at work.</p><p>The WIS Special Payment will provide low-income workers with an additional 50% of the WIS payments that they will receive over the course of this year. As an illustration, a 50-year old employee who has been working throughout 2008 and 2009, earning $1,000 a month, will receive $600 in WIS Special Payment, fully in cash. This will be on top of the $1,200 in WIS that he will receive for this year’s work.</p><p>As this is a special measure for the downturn, the work eligibility criteria of the WIS Special Payment will be relaxed to allow those workers with less regular employment to qualify as well.</p><p> <a href="/Assets/members/Documents/WIS_SpecialPayment.pdf" target="_blank">Details of the WIS Special Payment</a> (PDF, 46KB)<br></p><h3> <strong>​</strong><a name="3"></a><strong>Jobs Credit Scheme</strong></h3><p>The Jobs Credit Scheme was announced in Budget 2009 as a measure to sustain jobs for Singaporeans and Permanent Residents. This was to encourage businesses to preserve jobs as much as possible in during the economic downturn.</p><p>Four quarterly payments of the Jobs Credit have been disbursed so far. The Jobs Credit that an employer received in 2009 was calculated based on 12% of the first $2,500 of the wages for each employee who is on the CPF payroll at the time of disbursement. This has provided an incentive for employers to retain their local workers. For example, for a worker whose wage is $2,500, his employer would have received $900 a quarter, or $300 a month.</p><p>The Government has announce​d that the Jobs Credit Scheme will be extended for half a year with another 2 payments at stepped-down rates in March and June 2010. The Jobs Credit that an employer receives for March and June 2010 will be calculated based on 6% and 3% of the first $2,500 of the wages respectively. This is applicable to each employee who is on the CPF payroll.</p><p>The Jobs Credit Scheme payments are handled by the <a href="http://www.iras.gov.sg/" target="_blank">Inland Revenue Authority of Singapore (IRAS)</a>.</p><p> <a href="https://www.iras.gov.sg/irashome/News-and-Events/Newsroom/Media-Releases-and-Speeches/Media-Releases/2009/Jobs-Credit-Scheme-and-Budget-2009-Tax-Rebates/" target="_blank">Details of the Jobs Credit Scheme</a><br></p>Singapore Budget 2009: Initiatives relating to CPF 21/1/2009 4:00:00 PMhttps://null/common/Lists/News/DispForm.aspx?ID=2278
Changes in CPF Minimum Sum, Medisave Minimum Sum and Medisave Contribution Ceiling from 1 July 20082280/News/news-categories-info/cpf-changes<p style="text-align:center;"> </p><h4> <strong> <em>News Release by:</em></strong><br><strong><em>Central Provident Fund Board</em></strong><br><strong><em>16 June 2008 --</em></strong><br><br></h4><h3> <strong>CPF Minimum Sum</strong></h3><p>The CPF Board announced today that the new CPF Minimum Sum (MS) from 1 July 2008 would be $106,000. The new MS would apply to CPF members who turn 55 from 1 July 08 to 30 June 09. Members who set aside the $106,000 cash savings in their Retirement Account will receive a monthly payout of $910 from age 64 for about 20 years.</p><p>The current MS, which applies to members who turn 55 from 1 July 07 to 30 June 08, is $99,600. The corresponding monthly payout is $790. </p><p>The new MS is in line with the announcements made in August 03 that the CPF MS will be raised gradually to reach $120,000 (in 2003 dollars) in 2013. The increase in MS, which includes an adjustment for inflation, is to ensure that Singaporeans set aside sufficient savings for their retirement.<br><br> </p><h3> <strong>Medisave Minimum Sum and Medisave Contribution Ceiling </strong> </h3><p>From 1 July 08, the new Medisave Minimum Sum (MMS) would be $29,500. Members will have to set aside this amount, or the actual Medisave balance, whichever is lower, in their Medisave Account, when they withdraw their CPF at or after 55 years old. </p><p>The current MMS is $28,500.</p><p>In addition, the Medisave Contribution Ceiling (MCC) would be increased to $34,500 from 1 July 08. This is the maximum balance each member may have in his Medisave Account. Any Medisave contribution in excess of the prevailing MCC will be transferred to the member’s Special Account if he is below age 55. If he is above age 55, the Medisave contribution in excess of the prevailing MCC will be transferred to his Retirement Account if he has a Minimum Sum shortfall.</p><p>The current MCC is $33,500.</p><p>The revisions to MMS and MCC are to ensure that Singaporeans have sufficient savings to meet their hospitalisation expenses, and have been adjusted for inflation.<br><br></p><h3> <strong>Phasing Out 50% Withdrawal Rule</strong></h3><p>Currently, members who are unable to meet the full CPF MS at age 55 are allowed to withdraw the first $5,000 or 50% of their savings in their CPF Accounts1, whichever is higher. Members who are able to meet the full MS will be allowed to withdraw the remaining monies in their CPF Accounts.</p><p>As announced in 2003, from 1 January 09, the percentage for withdrawal will decrease from the current 50% to 40%, and thereafter be further reduced every year by 10 percentage points. Therefore, from 1 January 2013, CPF members must meet the CPF and Medisave Minimum Sums first before they can withdraw their remaining Ordinary Account and Special Account balances at age 55. However, CPF members can continue to withdraw the first $5,000 from their Ordinary Account and Special Account balances.</p><p>The change in the withdrawal rule will enable members turning age 55 from 1 Jan 09 to set aside more savings for their retirement.</p><p><a href="#AnnexA">Examples on what happens when members reach age 55 and how the Minimum Sum (MS) scheme works</a><br></p><table width="100%" border="0" cellspacing="0"><tbody><tr><td width="2%" valign="top"><p> <sup style="font-size:0.9em;">1</sup></p></td><td><p> <span style="font-size:0.9em;">CPF Accounts refer to monies in the Ordinary and Special Accounts and monies in excess of the Medisave Minimum Sum in the Medisave Account.</span><br><br></p></td></tr></tbody></table><p> </p><h3> <strong>Public Enquiries</strong><strong>​</strong></h3><p>Members with enquiries may call the CPF Call Centre on 1800-227 1188.<br><br><br></p><p align="right"> <a name="AnnexA"></a>Annex A</p><h3> <strong>Example 1</strong></h3><p>Member A turns 55 on 14 July 2008. He can withdraw his CPF after setting aside the CPF Minimum Sum (MS). The MS applicable to him is $106,000. His current balances are as follows:</p><p> </p><table class="cpf-table cpf-form-table " width="100%" style="text-align:center;"><thead><tr><th><div style="text-align:center;">Special Account</div><div style="text-align:center;">(SA)</div><div> </div></th><th style="text-align:center;"><div>Ordinary Account</div><div>(OA)</div><div> </div></th><th colspan="1" style="text-align:center;"><div>Medisave Account</div><div>(MA)</div><div> </div></th></tr></thead><tbody><tr><td>$80,000</td><td>$150,000</td><td colspan="1"><div>​$34,500</div><div>(note: this amount is also the Medisave Contribution Ceiling (MCC))</div></td></tr></tbody></table> ​<span style="line-height:1.6;">The Board will create a new account for him called the Retirement Account (RA), which will be used to set aside his CPF MS.<br><br></span> <p>The MS is drawn from his balances in his SA and OA. In his case, his entire SA balance of $80,000 will be transferred to his RA to meet part of the MS of $106,000. The remaining $26,000 will be taken from his OA savings and transferred to his RA. He can choose to withdraw the remaining amount of $124,000 in his OA.</p><p>His balances when he reaches 55 will be as follows:<br></p><table class="cpf-table cpf-form-table " width="100%"><thead><tr><th><div style="text-align:center;">SA<br></div><div> </div></th><th style="text-align:center;"><div>OA<br></div><div> </div></th><th colspan="1" style="text-align:center;">MA<br></th><th colspan="1" style="text-align:center;">​Retirement Account (RA)</th></tr></thead><tbody style="text-align:center;"><tr><td>$0​<br><em>($80,000 - $80,000)</em></td><td>$124,000<br><em>($150,000 - $26,000)</em></td><td colspan="1"><div>​$34,500</div></td><td colspan="1"><div>$106,000</div><div>(made up of $80,000 from his SA and $26,000 from his OA)</div>​</td></tr></tbody></table><p> </p><p>At age 55, he is also required to set aside the Medisave Minimum Sum (MMS) of $29,500, or the actual balance in his MA, whichever is lower. In this case, after retaining the MMS of $29,500, he can withdraw the amount in excess, ie. $5,000 in addition to his entire OA balance of $124,000. </p><p>Assuming he makes these withdrawals, his balances will be as follows:<br></p><table class="cpf-table cpf-form-table " width="100%"><thead><tr><th><div style="text-align:center;">SA<br></div><div> </div></th><th style="text-align:center;"><div>OA<br></div><div> </div></th><th colspan="1" style="text-align:center;">MA<br></th><th colspan="1" style="text-align:center;">RA</th></tr></thead><tbody style="text-align:center;"><tr><td><div style="text-align:center;">$0</div></td><td style="text-align:center;"><div>$0</div><div>(after withdrawing $124,000)</div></td><td colspan="1" style="text-align:center;"><div>$29,500</div><div>(after withdrawing $5,000)</div></td><td colspan="1"><div style="text-align:center;">$106,000</div><div> </div></td></tr></tbody></table><h3> <strong> <br>​Example 2</strong></h3><p>Member B turns 55 on 1 August 2008. He does not have sufficient savings in his OA and SA to meet the full MS of $106,000. The MS applicable to him is $106,000. His current balances are as follows:<br></p><table class="cpf-table cpf-form-table " width="100%"><thead><tr><th><div style="text-align:center;">Special Account (SA)<br></div><div> </div></th><th style="text-align:center;"><div>Ordinary Account (OA)<br></div><div> </div></th><th colspan="1" style="text-align:center;">Medisave Account (MA)<br></th></tr></thead><tbody style="text-align:center;"><tr><td><div style="text-align:center;">$30,000</div></td><td style="text-align:center;"><div>$50,000</div></td><td colspan="1" style="text-align:center;"><div>$10,000​</div></td></tr></tbody></table><p>The MS is drawn from his balances in his SA and OA to create his new Retirement Account. In his case, as he has insufficient balance to set aside $106,000, 50% of his combined SA and OA savings of $80,000 ($30,000 from the SA and $10,000 from the OA) will be used to set aside his MS. There is therefore a shortfall of $66,000 ($106,000 - $40,000) in his MS.</p><p>His balances when he reaches 55 will be as follows:<br></p><table class="cpf-table cpf-form-table " width="100%"><thead><tr><th><div style="text-align:center;">SA<br></div><div> </div></th><th style="text-align:center;"><div>OA<br></div><div> </div></th><th colspan="1" style="text-align:center;">MA<br></th><th colspan="1" style="text-align:center;">​Retirement Account (RA)</th></tr></thead><tbody style="text-align:center;"><tr><td><div>$0</div><div> <em>($30,000 - $30,000)</em></div></td><td><div>$40,000</div><div> <em>($50,000 - $10,000)</em></div></td><td colspan="1">​$10,000</td><td colspan="1"><div>$40,000</div></td></tr></tbody></table><p>​He can withdraw the remaining OA balance of $40,000. As there is a shortfall in his MS, for subsequent withdrawals, he will only be able to withdraw half of the new contributions he receives. The remaining half of the contributions will be channeled to his RA to make up the required MS.<br><br></p><h3> <strong>Example 3</strong></h3><p>Member C turns 55 on 1 January 2009. He does not have sufficient savings in his OA and SA to meet the full MS of $106,000. The MS applicable to him is $106,000. His current balances are as follows:<br></p><table class="cpf-table cpf-form-table " width="100%"><thead><tr><th><div style="text-align:center;">Special Account (SA)<br></div><div> </div></th><th style="text-align:center;"><div>Ordinary Account (OA)<br></div><div> </div></th><th colspan="1" style="text-align:center;">Medisave Account (MA)<br></th></tr></thead><tbody style="text-align:center;"><tr><td><div>$30,000</div><div>  </div></td><td>$50,000</td><td colspan="1"><div>$10,000​</div><div>  </div></td></tr></tbody></table><p>​The MS is drawn from his balances in his SA and OA to create his new Retirement Account. In his case, as he has insufficient balance to set aside $106,000, 60% of his combined SA and OA savings of $80,000 ($30,000 and $18,000 from his SA and OA respectively) will be used to set aside his MS. There is therefore a shortfall of $58,000 ($106,000 - $48,000) in his MS.</p><p>His balances when he reaches 55 will be as follows:<br></p><table class="cpf-table cpf-form-table " width="100%"><thead><tr><th><div style="text-align:center;">SA<br></div><div> </div></th><th style="text-align:center;"><div>OA<br></div><div> </div></th><th colspan="1" style="text-align:center;">MA<br></th><th colspan="1" style="text-align:center;">​Retirement Account (RA)</th></tr></thead><tbody style="text-align:center;"><tr><td><div>$0</div><div> <em>($30,000 - $30,000)</em></div></td><td><div>$32,000<br></div><div> <em>($50,000 - $18,000)</em></div></td><td colspan="1">​$10,000</td><td colspan="1">$48,000​</td></tr></tbody></table><p>He can withdraw the remaining OA balance of $32,000. As there is a shortfall in his MS, for subsequent withdrawals, he will only be able to withdraw 40% of the new contributions he receives. The remaining 60% of the contributions will be channeled to his RA to make up the required MS. </p>Changes in CPF Minimum Sum, Medisave Minimum Sum and Medisave Contribution Ceiling from 1 July 200815/8/2008 4:00:00 PMhttps://null/common/Lists/News/DispForm.aspx?ID=2280
Singapore Budget 2008: Initiatives relating to CPF2273/News/news-categories-info/cpf-changes<p>​To help Singaporeans achieve adequate savings for retirement, Finance Minister Tharman Shanmugaratnam announced the following initiatives relating to CPF during his Budget speech in Parliament o​n 15 February 2008:</p><ul><li><p> <a href="#1">LIFE Bo​nus​</a> </p></li><li><p> <a href="#2">Liberalization of CPF Minimum Sum Topping-Up Scheme</a> </p></li><li><p> <a href="#3">Growth Dividends</a> </p></li><li><p> <a href="#4">Tax Relief for Voluntary Contributions to CPF Medisave Account</a> </p></li><li><p> <a href="#5">Top-ups to CPF Medisave Account</a> </p></li><li><p> <a href="#6">Liberalization of Supplementary Retirement Scheme (SRS)*</a> </p></li><li><p> <a href="#7">Tax Deduction for Costs of Medical Benefits Incurred by Employers for their Employees*</a> </p></li><li><p> <a href="#8">Skills Development Levy (SDL)*​</a> </p></li></ul><p>*Applicable to employers </p><p> </p><h3> <a name="1"></a> <strong>LIFE Bonus</strong></h3><p>The CPF LIFE scheme will be introduced as a major new plank to assure Singaporeans of a stream of income for as long as they live. Singaporeans who turn age 55 in or after 2013 and who have at least $40,000 in their CPF Minimum Sum will be automatically included in the scheme. Older Singaporeans and those with less in their Minimum Sum can opt in.</p><p>The Government will provide a Bonus, called the LIFE Bonus (L-Bonus), to encourage Singaporeans to enroll in the LIFE scheme.</p><ul><li><p>L-Bonus will be provided for the first five cohorts of Singaporeans who join the LIFE scheme i.e. those aged 46 to 50 in 2008, with up to $54,000 Assessable Income (AI) and live in a property of up to $11,000 Annual Value (AV) at the time of enrolment. </p></li><li><p>Members in the oldest cohort, those aged 50 in 2008, can expect to receive between $2,200 and $4,000 (Please refer to the table below). The youngest cohort, those aged 46 today, will get 30 percent of what the 50 year-old receives. <br></p><p> L-Bonus for those aged 55 and older in 2013</p><table class="cpf-table cpf-form-table--vtop" style="width:100%;"><thead><tr><th style="width:25%;">             <br></th><th colspan="2" style="width:40%;text-align:center;"> <span style="line-height:20.79px;font-weight:bold;">A​​nnua​l Value (AV</span>)</th></tr><tr><th style="width:25%;height:22px;"> <span style="line-height:20.79px;font-weight:bold;">Assessable Inc​o​​me (​​AI)<br>​</span></th><th style="width:20%;height:22px;text-align:center;"> <span style="line-height:20.79px;font-weight:bold;">Up t​o $​​6​​,0​00​​</span>​​<br><br></th><th colspan="1" style="width:20%;text-align:center;">​<span style="font-weight:bold;">More than $6,000 and up to $11,000​</span>​</th></tr><tr><th style="width:25%;"> <span style="line-height:20.79px;font-weight:bold;">$24,000 or less</span></th><td style="width:20%;text-align:center;"> <span style="line-height:20.79px;">$4,0​0​​​0</span></td><td colspan="1" style="width:20%;text-align:center;">​<span style="line-height:20.79px;">​$3,2​00</span></td></tr><tr><th style="width:25%;"> <span style="line-height:20.79px;font-weight:bold;">More than $24,000 and up to $54,000</span></th><td style="width:20%;text-align:center;"> <span style="line-height:20.79px;">$3​​,200</span></td><td colspan="1" style="width:20%;text-align:center;">​<span style="line-height:20.79px;">$2​​,200</span></td></tr></thead></table><p>​ <br> Based on AV and AI cut-offs in 2008. Actual AV and AI cut-offs for the year of enrolment may vary.<br> </p></li><li><p> L-Bonus will also be extended to those aged above 50 in 2008 who opt in.<br></p></li><li><p> For members with less than $40,000 in their Minimum Sum, but want to participate in the LIFE scheme, the Government will help them to do so and give them the L-Bonus as long as they are willing to make a reasonable contribution to their balances and accept lower monthly payouts.<br></p></li><li><p> L-Bonus will be given to members at the point of enrolment in the CPF LIFE Scheme.​<br></p></li></ul><h3> <strong><a name="2"></a><br>Libe​ralization of CPF Minimum Sum Topping-Up Scheme</strong><br></h3><p>The CPF Minimum Sum Topping-Up Scheme will be liberalized to encourage Singaporeans to voluntarily put aside more savings whenever they can. It will be made easier for Singaporeans to top up CPF accounts for themselves and their family members in order to meet the Minimum Sum, and offer more tax incentives for them to do so.​<br></p><p> Details are shown in the table below: ​<br></p><table class="cpf-table cpf-form-table--vtop " style="width:100%;"><thead><tr><th style="width:40%;"> ​Curre​​nt​ Treatment​<br></th><th style="width:60%;">New Treatment</th></tr></thead><tbody><tr><td style="width:40%;"><p>Individuals can claim tax relief for ​​​​cash top-ups to their own Minimum Sum and top-u​ps to siblings, spouse​s<sup>1</sup>, parents and grandparents’ Minimum Sums, provided that th​e recipients are aged 55 and above.</p></td><td style="width:60%;"><p>Individuals c​​​an​ claim tax relief for cash top-ups by themselves or their employers to thei​​r own ​Minimum Sum and cash top-ups to siblings, spouses<sup>2</sup>, parents and grandparents’ Minimum Sums, regardless of the age of the recipients.</p></td></tr><tr><td style="width:40%;"><div><p>Total tax relief for self top-ups and family top-ups is capped at $7,000 p​​er year of assessment.<br></p></div></td><td style="width:60%;"><p>Tax relief for cash top-ups by the member and his employer is capped at $7,000 per year ​of assessment. There will also be a separate tax relief for family cash top-ups, which is capped at another $7,000 per year of assessment.</p></td></tr><tr><td style="width:40%;"><p>Employers cannot ​​make Minimum Sum cash top-ups for their employees.</p></td><td style="width:60%;"><p>Employers can make Minimum Sum cash top-ups for​ their employees and receive a tax deduction on the entire top-u​p<sup>3</sup>. Employees are taxable on the employer’s top-ups to their Minimum Sum. However, the employees may claim tax relief ​for the employer top-ups. Total tax relief for employer top-ups and self top-ups is capped at $7,000 per year of assessment.</p><p>These chan​​​​ges will take effect from year of assessment 2009.</p></td></tr></tbody></table><p> <sup>1</sup>For top-ups to siblings/spouses, the recipient must have earned $2,000 or less in the preceding year for the tax relief to be claimed.<br><sup>2 </sup> For top-ups to siblings/spouses, the recipient must have earned $2,000 or less in the preceding year for the tax relief to be claimed. <br> <sup>​3</sup>Any voluntary contributions to the CPF made by the individual or in the case where the individual is an employee, by his employer (whether on the employee’s behalf or not), that are not specifically made to the Minimum Sum are still not allowed as tax deduction for the employer or tax relief for the employee.</p><p>The above changes will take effect from 1 November 2008.</p><h3> <a name="3"></a> <strong> <br>Growth Dividends</strong></h3><p>Growth Dividends will be given to all adult Singaporeans, to be paid out in two instalments in April and October this year. Those who have already signed up for their GST credits will automatically receive their Growth Dividends.</p><p>Generally, a lower-income Singaporean living in a three-room HDB flat or smaller, will receive a Growth Dividend of $400. The majority of Singaporeans, who live in other HDB flats and do not have high incomes, will receive a Growth Dividend of $300. </p><p>Older Singaporeans, those aged 60 and above, will get more. Most older Singaporeans will receive one and a half times what other Singaporeans will receive. </p><p>Those with Annual Incomes more than $100,000 will receive a Growth Dividend of $100.</p><p>Those who have served and are currently serving national service will get an additional $100 of Growth Dividends, to recognise their contributions to our nation.</p><p>As before, Singaporeans will have the option to donate their Growth Dividends to charity, so that those who wish to can conveniently contribute to a cause of their choice.</p><p> <strong>Structure of Growth Dividends</strong></p><p> <strong>Annual Assessable Income in 2007 - $24,000 or less</strong></p><table class="cpf-table cpf-form-table--vtop " style="width:80%;"><thead><tr><th style="width:40%;text-align:left;">Annual Value of Home in 2007​<br></th><th style="width:40%;text-align:left;">Structure of Growth Dividends</th></tr></thead><tbody><tr><td style="width:40%;"><p>$5,000 or less<br>(1-3R HDB flats)</p></td><td style="width:40%;"><p>$400<br>For those 60 years old and above:<br>+$200<br></p></td></tr><tr><td style="width:40%;"><p>More than $5,000 and up to $10,000<br>(4R, 5R HDB flats, exec flats and some less expensive private properties)</p></td><td style="width:40%;"><p>$300<br>For those 60 years old and above:<br>+$150</p></td></tr><tr><td style="width:40%;"><p>More than $10,000<br>(more expensive private properties)<br></p></td><td style="width:40%;"><p>$150<br>For those 60 years old and above:<br>+$75<br></p></td></tr></tbody></table>NS men, ex-NS men and NSFs: +$100<br><br> <p> <strong>Annual Assessable Income in 2007 - More than $24,000 or up to $100,000</strong></p><table class="cpf-table cpf-form-table--vtop " style="width:80%;"><thead><tr><th style="width:40%;text-align:left;">Annual Value of Home in 2007​<br></th><th style="width:40%;text-align:left;">Structure of Growth Dividends</th></tr></thead><tbody><tr><td style="width:40%;"><p>$5,000 or less<br>(1-3R HDB flats)</p></td><td style="width:40%;"><p>$300<br>For those 60 years old and above:<br>+$150</p></td></tr><tr><td style="width:40%;"><p>More than $5,000 and up to $10,000<br>(4R, 5R HDB flats, exec flats and some less expensive private properties)</p></td><td style="width:40%;"><p>$300<br>For those 60 years old and above:<br>+$150</p></td></tr><tr><td style="width:40%;"><p>More than $10,000<br>(more expensive private properties)<br></p></td><td style="width:40%;"><p>$150<br>For those 60 years old and above:<br>+$75</p></td></tr></tbody></table> NS men, ex-NS men and NSFs: +$100<br><br> <p> <strong>Annual Assessable Income in 2007 - More than $100,000</strong></p><table class="cpf-table cpf-form-table--vtop " style="width:80%;"><thead><tr><th style="width:40%;text-align:left;">Annual Value of Home in 2007​<br></th><th style="width:40%;text-align:left;">Structure of Growth Dividends</th></tr></thead><tbody><tr><td style="width:40%;"><p>$5,000 or less<br>(1-3R HDB flats)</p></td><td style="width:40%;"><p>$100</p></td></tr><tr><td style="width:40%;"><p>More than $5,000 and up to $10,000<br>(4R, 5R HDB flats, exec flats and some less expensive private properties)</p></td><td style="width:40%;"><p>$100</p></td></tr><tr><td style="width:40%;"><p>More than $10,000<br>(more expensive private properties)<br></p></td><td style="width:40%;"><p>$100<br></p></td></tr></tbody></table> NS men, ex-NS men and NSFs: +$100<br><br><a name="4"></a>​ <h3>​<strong>Tax Relief for Voluntary Contributions to CPF Medisave Account</strong></h3><p>To encourage savings to meet medical needs, tax relief will be provided for voluntary contributions that CPF members specifically direct to the Medisave Account. This will also help more CPF members meet the Medisave Minimum Sum. The change will be implemented on 1 November 2008 and the tax relief changes will take effect from year of assessment 2009.​</p><p>Details are shown in the table below: </p><table class="cpf-table cpf-form-table--vtop " width="100%"><thead><tr><th>​ <span class="blackhighlight">Current Treatment</span> </th><th> <span class="blackhighlight">New Treatment</span> </th></tr></thead><tbody><tr><td>Individuals cannot claim t​ax relief for voluntary contributions specifically directed to the CPF member’s own Medisave Account.<br></td><td>Individuals will now be able to claim tax relief for voluntary contributions that they make specifically to their own Medisave Account<sup>4</sup> up to a cap of ($26,393 less mandatory contributions<sup>5</sup>) per year of assessment. </td></tr></tbody></table><div> <sup>4 </sup>Voluntary contribut​ions to the Medisave Account are capped at the prevailing Medisave Contribution Ceiling (MCC). </div><div> <sup>5 </sup>Mandatory contributions are compulsory contributions by employers and employers required under the CPF Act. This includes CPF contributions on the Ordinary and Additional Wages for employees, and Medisave contributions by self-employed persons. </div><div> <br>  </div><div><h3> <a name="5"></a> <strong>Top-ups to CPF Medisave Account</strong></h3><p>​​​​​​​Ministry of Health (MOH) will be enhancing MediShield to provide better coverage for patients with large hospital bills, with some adjustment to MediShield premiums in tandem. To help older Singaporeans pay for their medical bills and their increased ​MediShield premiums, the Government will top up the Medisave accounts of all those aged 51 and above by up to $450. The top-ups will be made in the second half of 2008.​<br></p></div><blockquote style="margin:0px 0px 0px 40px;padding:0px;border:currentcolor;"> ​</blockquote><div><p> <span class="blackhighlight">Structure of Medisave Top-ups</span>​</p><table class="cpf-table cpf-form-table " style="width:60%;"><thead><tr><th style="width:20%;"> <span class="blackhighlight">Age in 2008</span> </th><th style="width:40%;"> <span class="blackhighlight">Medisave Top-up Amount</span><br></th></tr></thead><tbody><tr><td style="width:20%;">51 to 60<br></td><td style="width:40%;">$150</td></tr><tr><td style="width:20%;">61 to 70<br></td><td style="width:40%;">$250​</td></tr><tr><td style="width:20%;">71 to 75<br></td><td style="width:40%;">$350</td></tr><tr><td style="width:20%;">76 and above<br></td><td style="width:40%;">$450<br></td></tr></tbody></table><h3>​<br><a name="6"></a><strong>Liberalization of Supplementary Retirement Scheme (SRS)</strong>​ </h3><p>The Supplementary Retirement Scheme (SRS) provides a tax incentive for Singaporeans as well as foreigners to save for retirement outside of the CPF scheme. It will be liberalized to allow employers to directly contribute to the SRS on behalf of their employees. In addition, the age limit on contributions to the SRS will be removed since more Singaporeans are now working beyond the retirement age. The changes listed below will take effect from 1 October 2008.</p><div> <br> </div><p>Details are shown in the table below: </p><div><table class="cpf-table cpf-form-table--vtop " style="width:100%;"><thead><tr><th style="width:40%;"> <span class="blackhighlight"> <span class="blackhighlight">Current Treatment</span>​</span></th><th style="width:60%;"> <span class="blackhighlight"></span> <span class="blackhighlight">New Treatment</span>​           </th></tr></thead><tbody><tr><td style="width:40%;">Employers cannot directly contribute to their employees’ SRS accounts.<br></td><td style="width:60%;"><div>Employers can contribute to their employees’ SRS accounts, subject to the current contribution limits of $11,475 per year for Singapore Citizens and Permanent Residents, and $26,775 for foreigners for each employee.<br></div><div> </div><div>Employers will be able to claim full tax deduction for the contributions they make to their employees’ SRS accounts.<br></div><div>SRS members will be taxable on the contributions that their employers make to their SRS accounts. But, they can enjoy a tax relief up to the applicable contribution limit per year of assessment for the SRS contributions which they or their employers make.</div></td></tr><tr><td style="width:40%;">SRS members can contribute up to the prevailing statutory retirement age. They can withdraw their SRS monies over 10 years from the prevailing statutory retirement age.<br></td><td style="width:60%;">SRS members can contribute beyond the prevailing statutory retirement age, up to the point of their first penalty-free withdrawal. They can withdraw their SRS monies over 10 years from the point of their first penalty-free withdrawal.</td></tr><tr><td style="width:40%;">Individuals without any earned employment income in the previous year cannot contribute to SRS in the current year.<br></td><td style="width:60%;"><div>Individuals without any earned employment income in the previous year can contribute to the SRS in the current year.</div><div> </div><div>These changes will take effect from year of assessment 2009.​<br></div></td></tr></tbody></table><h3> <a name="7"></a><br><strong>T​ax Deduction for Costs of Medical Benefits Incurred by Employers for their Employees</strong></h3><p>The criteria for employers to enjoy tax deductions for the costs of medical benefits incurred for their employees will be relaxed to encourage them to provide portable medical benefits through Medisave and MediShield. Beyond regular Medisave contributions, employers will also be allowed tax deductions up to the higher cap if they make ad-hoc contributions to their employees’ Medisave accounts, or if they purchase MediShield or Medisave-approved private integrated plans for their employees.<br><br></p><p>Details are shown in the table below: </p><table class="cpf-table cpf-form-table--vtop " width="100%"><thead><tr><th>​ <span class="blackhighlight">Current Treatment</span></th><th> <span class="blackhighlight">New Treatment</span></th></tr></thead><tbody><tr><td>Currently, the tax deduction limit for costs of medical benefits incurred by employers for their employees is generally 1% of total wage bill. However, companies which have implemented the Portable Medical Benefits Scheme (PMBS) or Transferable Medical Insurance Scheme (TMIS) can qualify for tax deduction for the costs they incur on medical benefits at 2% of total wage bill. This is to encourage more employers to adopt the PMBS or TMIS, which provide portable medical insurance coverage for employees that employees can continue to enjoy, if they wish to, even when they switch jobs or retire<sup>6</sup>.<br></td><td><div>With effect from year of assessment 2008, employers who provide their employees with inpatient medical insurance benefits in the form of portable medical shield plans can qualify for tax deduction at 2% of the total wage bill for medical expenses they incur for their employees. Employers can provide such portable medical shield plans, either by paying the insurance premiums on behalf of their employees to the insurance companies directly or by reimbursing the premiums into employees’ Medisave accounts. To qualify, the employer must provide the portable medical shield plans for at least 20% of existing local employees employed as at the first day of the basis period for the year of assessment, and every local employee who commences his employment during the basis period for that year of assessment.</div><div> </div><div>The medical insurance expenses qualifying for the additional 1% of tax deduction will exclude premiums for “riders”<sup>7</sup> that cover deductibles and co-payments.</div><div> </div><div>In addition, with effect from year of assessment 2008, if employers make ad-hoc contribution to employees’ Medisave account (subject to a cap of $1,500 per employee per year), the 1% tax deduction limit will be lifted for these ad-hoc contributions (but subject to the cap of 2% of total wage bill for total medical benefits expenses). Tax deduction for all other medical benefits will remain capped at 1% of total remuneration if employers are not on PMBS or TMIS or do not provide portable Shield plans for their employees (as above).</div><div> </div><div>The above changes are introduced in recognition that employers’ provision of portable medical shield plans or ad-hoc contributions to the Medisave accounts of employees achieves the same objective as the PMBS and TMIS, namely, to provide portability of medical benefits. MOM will release more details by March 2008.​</div></td></tr></tbody></table></div><p> <sup>6 </sup> <a href="http://www.mom.gov.sg/employment-practices/schemes-for-employers-and-employees/portable-medical-benefits" target="_blank">More information about Portable Medical Benefits Scheme (PMBS) or Transferable Medical Insurance Scheme (TMIS)</a>.<br></p><p> <sup>7</sup> A policy rider is a provision or modification to an existing insurance policy that provides additional coverage to an insurance policy.<br></p><h3> ​<br><a name="8"></a><strong>Skills Development Levy (SDL)</strong> </h3><p>Currently, employers contribute a Skills Development Levy (SDL) on workers earning $2,000 and below. In line with the Government’s move to provide Continuing Education and Training (CET) to workers across all levels, employers will contribute SDL on all workers they employ, up to the first $4,500 of gross remuneration from 1st October 2008. The levy rate will in turn be reduced from 1% to 0.25%, subject to a minimum of $2. This will help to reduce the overall burden on smaller companies and employers of lower-wage workers. </p></div>Singapore Budget 2008: Initiatives relating to CPF14/2/2008 4:00:00 PMhttps://null/common/Lists/News/DispForm.aspx?ID=2273
CPF Reforms and Other Changes: More $ For Your Retirement 2279/News/news-categories-info/cpf-changes<p>Your CPF savings earn a minimum risk-free interest of 2.5% guaranteed by the Government. In 2008 and 2009, Special, Medisave and Retirement Account savings will earn a guaranteed minimum 4% interest. In addition, the first $60,000 in your combined CPF balances, with up to $20,000 from your Ordinary Account, will earn <span style="line-height:1.6;">an extra 1% interest.</span></p><p> <span style="line-height:1.6;"> <img alt="Extra 1% Interest" src="/Assets/members/PublishingImages/VideoPic.jpg" border="0" style="width:60%;height:auto;" /> ​ <br></span> </p><p>To earn more interest, consider the following:</p><p>If you are currently <strong>below age 55</strong>:</p><ol><li> <span style="line-height:1.6;">Leave your CPF savings in your accounts to earn the <a href="#extrainterest">extra interest</a>.</span></li><li> <span style="line-height:1.6;"> <span style="line-height:20.79px;"> <a href="#transferOA">Transfer savings</a> from your Ordinary Account (OA) to the Special Account (SA). </span> </span></li><li> <span style="line-height:1.6;"> <span style="line-height:20.79px;">Make a <a href="#cashcontribution">voluntary cash contribution</a>. </span> ​<br></span><br></li></ol><p>If you are currently <strong>above age 55</strong>:</p><ol><li> <a href="#topup">​Top u​p​</a><span style="color:#444444;"> your Minimum Sum (​MS).</span><span style="color:#444444;"> </span><span style="color:#444444;"><a href="https://www.cpf.gov.sg/members/News/news-categories-info/cpf-changes/2279#topup">​</a></span><a href="https://www.cpf.gov.sg/members/News/news-categories-info/cpf-changes/2279#topup"><br></a></li><li>Keep at least <a href="#RetAccount">$30,000 in your Retirement Account</a>.<br></li></ol><div><h3>Here's how you can optimise the 1% extra interest... </h3><p>  </p><h4> <a name="extrainterest"></a>1. Leave your CPF savings in your accounts to earn the extra interest </h4><p>The first $60,000 of your combined CPF balances, with up to $20,000 from your Ordinary Account (OA), will earn an extra 1% interest. So, leave your money in your CPF accounts to enjoy this extra interest.  <br>  </p><h4> <a name="transferOA"></a>2. Transfer savings from your Ordinary Account (OA) to <br>the Special Account (SA) </h4><p>Transfer the savings from your OA to your SA for higher interest if you do not intend to use your OA for housing. You can transfer an amount up to the prevailing Minimum Sum (MS) of $117,000* in your SA.<br><em>*Effective from 1 July 2009.</em></p><p> <br><a href="https://www.cpf.gov.sg/eSvc/Web/PortalServices/MemberPortalServices">Transfer your OA savings to SA via my cpf Online Services - My Requests.</a><br>(Note: SingPass is required for log-in) <br>  </p><h4> <a name="cashcontribution"></a>3. Make a voluntary cash contribution </h4><p>Make a voluntary cash contribution to your CPF accounts. The maximum amount of CPF contributions, including mandatory contributions your employer pays on your behalf, is $26,393.</p><p> </p><h4> <a name="topup"></a>4. Top up your Minimum Sum (MS) </h4><p>Top up your Retirement Account to the prevailing MS of $117,000 yourself using cash. Or ask your spouse, children, grandchildren and siblings to top-up for you using cash or their CPF savings. And they can enjoy tax relief for cash top-ups of up to $7,000 per year!</p><p> <a href="/Members/Schemes/schemes/retirement/retirement-sum-scheme">More information on the topping-up of CPF Minimum Sum.</a></p><p> <a href="https://www.cpf.gov.sg/eSvc/Web/PortalServices/MemberPortalServices">Top-up your/ your loved ones’ Retirement Account via my cpf Online Services - My Requests.</a><br>(Note: SingPass is required for log-in) <br>  </p><h4> <a name="RetAccount"></a>5. Keep at least $30,000 in your Retirement Account </h4><p>Enjoy the maximum of D-Bonus and V-Bonus by keeping at least $30,000 in your Retirement Account.</p><p><a href="https://www.cpf.gov.sg/eSvc/Web/Schemes/MinimumSumDAndVBonusCalculator/MinimumSumDAndVBonusCalculate">Check your D-Bonus and V-Bonus eligibility.</a></p><h3> </h3><h3> <strong>CPF Reforms and Other Measures to Help Older Singaporeans Improve Retirement Adequacy and Work Longer </strong></h3><div>- <a href="/Assets/members/Documents/OnlineDemo/money_got_enough-english.swf" target="_blank">Video: Money Got Enough? (English Audio)</a> (SWF, 50KB)</div><div> <strong>Other languages: </strong> <a href="/Assets/members/Documents/OnlineDemo/money_got_enough-mandarin.swf" target="_blank">Chinese</a> (SWF, 50KB) | <a href="/Assets/members/Documents/OnlineDemo/money_got_enough-malay.swf" target="_blank">Malay</a> (SWF, 50KB) | <a href="/Assets/members/Documents/OnlineDemo/money_got_enough-tamil.swf" target="_blank">Tamil</a> (SWF, 50KB)<br></div><div> <strong><em>(Flash Player Version 9 is required) </em></strong></div><div> <a href="/Members"><img src="/Assets/members/PublishingImages/cartoonbooklet.gif" alt="A Simple Guide To CPF And Other Changes: More $ For Your Retirement" style="width:10.5%;height:auto;" /></a><br></div></div>CPF Reforms and Other Changes: More $ For Your Retirement 31/12/2007 4:00:00 PMhttps://null/common/Lists/News/DispForm.aspx?ID=2279
Increase in CPF Minimum Sum, Medisave Minimum Sum and Medisave Contribution Ceiling from 1 July 20072265/News/news-categories-info/cpf-changes<h3> <strong></strong></h3><div> <strong><em>News Release by:</em></strong></div><div> <strong><em>Central Provident Fund Board</em></strong></div><div> <strong><em>07 June 2007 --</em></strong></div><h3> <br> <strong>CPF Minimum Sum</strong> </h3><p>From 1 July 07, the CPF Minimum Sum (MS) will be increased from $94,600 to $99,600. The new amount will apply to CPF members who turn 55 between 1 July 07 and 30 June 08. CPF members who set aside the $99,600 fully in cash will receive a monthly payout of $790 from age 62 for about 20 years. </p><p>This increase is in line with the announcements made in August 03 that the CPF MS will be raised gradually to reach $120,000 (in 2003 dollars) in 2013. The increase in MS, which includes an adjustment for inflation, is to ensure that Singaporeans set aside sufficient savings for their retirement. Please refer to Annex A for examples on what happens when members reach age 55 and how the MS scheme works.<br><br> </p><h3> <strong> Medisave Minimum Sum and Medisave Contribution Ceiling </strong></h3><p>From 1 July 07, the Medisave Minimum Sum (MMS) will be increased from $28,000 to $28,500. Members will have to set aside this amount, or the actual Medisave balance, whi​chever is lower, in their Medisave Account, when they withdraw their CPF at or after 55 years old. <br><br>The Medisave Contribution Ceiling (MCC) will be also raised from $33,000 to $33,500. This is the maximum balance each member may have in his Medisave Account. As announced previously, any Medisave contribution in excess of the prevailing MCC will be transferred to the member’s Special Account if he is below age 55. If he is above age 55, the Medisave contribution in excess of the prevailing MCC will be transferred to his Retirement Account if he has a Minimum Sum shortfall.<br><br>The revisions to MMS and MCC are to ensure that Singaporeans have sufficient savings to meet their hospitalisation expenses, and have been adjusted for inflation.<br><br></p><h3> <strong>Public Enquiries</strong></h3><p>For more information, please visit <a href="http://www.cpf.gov.sg/" target="_blank">www.cpf.gov.sg</a> or call the CPF Call Centre at 1800-227 1188.<br><br><br></p><div><div style="text-align:right;"> <span style="color:#444444;">​</span><span style="color:#444444;">ANN​EX A</span><br></div><h4> <strong>​Example 1</strong></h4><div style="text-align:left;"><p>Member A turns 55 on 11 July 2007. He can withdraw his CPF after setting aside the CPF Minimum Sum (MS). The MS applicable to him is $99,600. His current balances are as follows:<br></p><table class="cpf-table cpf-form-table" width="100%" style="text-align:center;"><thead><tr><th style="text-align:center;">Special Account (SA)</th><th style="text-align:center;">Ordinary Account (OA)     </th><th colspan="1" style="text-align:center;">Medisa​ve Account (MA)​​</th></tr></thead><tbody><tr><td>$80,000<br></td><td>$150,000</td><td colspan="1"><div>$33,500</div><div>(<em>note: this amount is also the Medisave Contribution Ceiling</em> (MCC))</div></td></tr></tbody></table><p> On 11 July 2007, he reaches age 55. The MS applicable to him is $99,600. The Board will create a new account for him called the Retirement Account (RA), which will be used to set aside his MS.<br> </p><p>The MS is drawn from his balances in his SA and OA. In his ​case, his entire SA balance of $80,000 will be transferred to his RA to meet part of the MS of $99,600. The remaining $19,600 will be taken from his OA savings and transferred to his RA. He can choose to withdraw the remaining amount of $130,400 in his OA.</p><p>His balances when he reaches 55 will be as follows:<br></p><table class="cpf-table cpf-form-table " width="100%"><thead><tr><th style="text-align:center;">SA</th><th style="text-align:center;">OA</th><th colspan="1" style="text-align:center;">MA</th><th colspan="1" style="text-align:center;">​Retirement Account (RA)</th></tr></thead><tbody><tr><td><div style="text-align:center;">$0 </div><div style="text-align:center;"> <em>($80,000 - $80,000)</em><br></div></td><td style="text-align:center;"> <em>$130,400 ($150,000 - $19,600)</em></td><td colspan="1"><div style="text-align:center;">$33,500</div></td><td colspan="1" style="text-align:center;"><div>$99,600</div><div>(made up of $80,000 from his SA and $19,600 from his OA)​</div></td></tr></tbody></table></div><h4> <br> <strong>Example 2</strong></h4><p dir="ltr" style="text-align:left;">Member B turns 55 on 1 August 2007. He does not have sufficient savings in his OA and SA to meet the full MS of $99,600. The MS applicable to him is $99,600. His current balances are as follows:<br></p><table class="cpf-table cpf-form-table" width="100%" style="text-align:center;"><thead><tr><th style="text-align:center;">Special Account (SA)</th><th style="text-align:center;">Ordinary Account (OA)     </th><th colspan="1" style="text-align:center;">Medisa​ve Accou​nt (MA)​​</th></tr></thead><tbody><tr><td>$30,000<br></td><td>$150,000</td><td colspan="1"><div>$10,000​</div></td></tr></tbody></table><p style="text-align:left;">On 1 August 2007, he reaches age 55. The MS applicable to him is $99,600. The MS is drawn from his balances in his SA and OA to create his new Retirement Account. In his case, as he has insufficient balance to set aside $99,600, 50% of his SA and OA savings will be used to set aside his MS.</p><div style="text-align:left;"><p>His balances when he reaches 55 will be as follows:</p> <table class="cpf-table cpf-form-table " width="100%"><thead><tr><th style="text-align:center;">SA</th><th style="text-align:center;">OA</th><th colspan="1" style="text-align:center;">MA</th><th colspan="1" style="text-align:center;">​Retirement Account (RA)</th></tr></thead><tbody><tr><td><div style="text-align:center;">$​0</div><div style="text-align:center;"> <em>($30,000 - $30,000)</em><br></div></td><td style="text-align:center;"> <em>$40,000 ($50,000 - $10,000)</em></td><td colspan="1"><div style="text-align:center;">$10,000</div></td><td colspan="1" style="text-align:center;"><div>$40,000​</div></td></tr></tbody></table><p>He can withdraw the remaining OA balance of $40,000. As there is a shortfall in his MS, for subsequent withdrawals, he will only be able to withdraw half of the new contributions he receives. The remaining half of the contributions will be channeled to his RA to make up the required MS. </p><p> Note: If a member has less than $5,000 in his OA and SA at age 55, he will be able to withdraw all the monies without setting aside the required MS. However, for subsequent withdrawals, he will be required to set aside 50% of the withdrawable savings in his RA until he meets his required MS. </p></div></div>Increase in CPF Minimum Sum, Medisave Minimum Sum and Medisave Contribution Ceiling from 1 July 200730/6/2007 4:00:00 PMhttps://null/common/Lists/News/DispForm.aspx?ID=2265
CPF changes from 1 January 20072264news-categories-info/cpf-changes<div><em><strong>News Release by:</strong></em></div><div><em><strong>Central Provident Fund Board</strong></em></div><div><em><strong>19 December 2006 -- </strong></em></div><p><br>​The Board would like to remind CPF members of the following changes to the CPF schemes which will take effect from <strong>1 January 2007</strong>.</p><h3><strong>Medisave Required Amount</strong></h3><p>CPF members who turn 55 and are able to meet the CPF Minimum Sum are required to set aside a Required Amount in their Medisave Account when they make a CPF withdrawal. If members have less than the Required Amount in their Medisave Accounts, their Ordinary and/or Special Account balances in excess of the Minimum Sum will be used to top up the Required Amount.</p><p>The requirement for members to set aside the Required Amount in their Medisave Account is to enable members to have enough savings to meet their healthcare needs during old age.​</p><p>From 1 January 2007, the Required Amount will be raised from the current $8,300 to $11,500, after adjusting for inflation. The Required Amount will increase by $2,500 (in 2003 dollars) each year until it reaches $25,000 (in 2003 dollars) on 1 January 2013.<br>​<br></p> <h3> <strong>Housing Withdrawal Limit</strong></h3><p>The cap on the CPF withdrawal limit for the purchase of private residential properties and HDB flats financed with bank loans will be reduced from the current 132% to 126% of the Valuation Limit, and thereafter, by another 6 percentage points to 120% on 1 January 2008. This is to encourage prudence in the use of CPF savings for properties so that members will have enough savings in their CPF accounts to meet their retirement needs.</p> <h3> <strong><br>Public Enquiries</strong></h3><p>For more details, please log on to <a href="/Content/common/Lists/News/www.cpf.gov.sg" target="_blank">www.cpf.gov.sg</a> or call the CPF Call Centre at 1800 - 227 1188.</p>CPF changes from 1 January 200731/12/2006 4:00:00 PMhttps://null/common/Lists/News/DispForm.aspx?ID=2264
CPF changes from 1 July 06 to improve members' retirement adequacy2262/News/news-categories-info/cpf-changes<p>​The Board would like to remind CPF members of the following changes to the CPF schemes which will take effect from <strong>1 July 06</strong>:-<br></p><ol><li><p> <a href="#P1">Transfer excess Medisave Account (MA) contributions to Special or Retirement Account (SA, RA) instead of the Ordinary Account (OA)</a></p></li><li><p> <a href="#P2">Restrictions on use of CPF savings for multiple property purchases</a></p></li><li><p> <a href="#P3">Phasing Out of Non-Residential Properties Scheme (NRPS)</a></p></li><li><p> <a href="#P4">Increase in CPF Minimum Sum (MS), Medisave Minimum Sum (MMS) and Medisave Contribution Ceiling (MCC)</a></p></li></ol><p>The changes (1-3) were first announced by the Government last year on 19 July 05. They are implemented to improve members’ retirement adequacy and help members build up their retirement nest egg. (4) was first announced by the Government in ‘03.</p><p> </p><h4> <strong><a name="P1"></a>1. Transfer excess Medisave Account (MA) contributions to Special or Retirement Account (SA, RA) instead of the Ordinary Account (OA)</strong></h4><p>Currently, contributions to the Medisave Account (MA) which are in excess of the Medisave Contribution Ceiling, or known as “MA overflows”, are automatically transferred to members’ Ordinary Accounts (OA). </p><p>From 1 July 06, MA overflows will be transferred into members’ Special Account (SA) or Retirement Account (RA)<sup><strong>1</strong></sup>, depending on their age. This will improve the retirement adequacy of members. Members will benefit from this as they will enjoy a higher interest on their MA overflows. Currently, savings in the SA and RA earn an interest rate of 4%. </p><p>For members below age 55, MA overflows will be transferred to their Special Account (SA). Once the SA balance (inclusive of amounts withdrawn under CPFIS-SA) has reached the prevailing Minimum Sum (MS), excess MA overflows would then go into their Ordinary Account (OA). </p><p>For members aged 55 and above, MA overflows will be transferred to their RA to top up any shortfall. Once the RA has been topped up to cover any MS shortfall, MA overflows would go into their OA. </p><p>As savings in the SA and RA cannot be used for property purchases, some members who currently rely on their MA overflows to finance their property mortgages may be affected. </p><p>CPF members who are using MA overflows to service housing mortgages may appeal to the Board to continue to use the overflowed amount to SA to service their loans, if their OA is depleted. They can use their SA savings to the extent that their mortgage payments are affected by this policy change. </p><p>If the MA overflow is to the RA, members will still be able to use the monies if they have met the MS cash component ($47,300 from 1 July 06). </p><p> <sup><strong>1</strong></sup> When a member turns 55, he has a new account called Retirement Account (RA) for him to set aside his Minimum Sum.</p><h4> <strong></strong> </h4><h4> <strong><a name="P2"></a>2. Restrictions on use of CPF savings for multiple property purchases</strong></h4><p>Currently, CPF members can use their CPF savings to purchase more than one property.</p><p>Members who already own a property bought with their CPF savings and wish to buy another property with CPF from 1 July 06 will only be able to do so after setting aside the prevailing Minimum Sum cash component ($47,300 from 1 July 06) in their Ordinary and Special Accounts. This revised policy supports the objective of retirement adequacy. Members who own multiple properties bought with CPF savings before 1 July 06 will not be affected by the policy change unless they subsequently buy another property using their CPF savings. </p><p>However, the Board will still allow a member, from 1 July 06, to use his CPF savings to buy a second property without first setting aside the prevailing Minimum Sum cash component provided he indicates his intention to sell the existing property within a grace period, as follows: </p><ol><li><p>For completed properties – 6 months from the completion of purchase of the second property </p></li><li><p>For uncompleted properties – Up to Temporary Occupation Permit (TOP) + 6 months </p></li></ol><p>Once the grace period is up, they should either own only one property or satisfy the MS cash requirement if they own more than one property. If the MS cash requirement is not met, the Board will stop CPF withdrawals for the new property.</p><p> </p><h4> <strong><a name="P3"></a>3. Phasing Out of Non-Residential Properties Scheme (NRPS)</strong></h4><p>Currently, CPF savings can be used to buy non-residential properties up to the purchase price or 70% of the value of the property, whichever is lower. These include office premises, shop units, factories and warehouses. </p><p>From 1 July 06, the Board will no longer approve any NRPS applications, as members can now invest in property funds under CPF Investment Scheme, which serves the same aim of helping members enhance the returns on their CPF savings. In addition, the take-up rate of NRPS has been low and the number of new NRPS applications has also declined over the years. </p><p>Members who are using CPF to service their non-residential properties before 1 July 06 will not be affected by the policy change. </p><p>For members who purchase shop-houses with leases/titles which can be sub-divided into residential and commercial components, approval may be given to use CPF savings to buy the residential component of such shop-houses. Members will need to sub-divide the lease/title into the residential and commercial components before they can apply to use CPF savings for the residential component.</p><p> </p><h4> <strong><a name="P4"></a>4. Increase in CPF Minimum Sum (MS), Medisave Minimum Sum (MMS) and Medisave Contribution Ceiling (MCC)</strong></h4><p> <strong>CPF Minimum Sum (MS) </strong></p><p>From 1 July 06, the CPF MS will be increased from $90,000 to $94,600. The new amount will apply to CPF members who turn 55 from 1 July 06 to 30 June 07. CPF members who set aside the $94,600 fully in cash will receive a monthly payout of $750 from age 62 for about 20 years.</p><p>This increase is in line with the announcements made in August ‘03 that the CPF MS will be raised gradually to reach $120,000 (in ‘03 dollars) in 2013. The increase in MS, which includes an adjustment for inflation, is to ensure that Singaporeans set aside sufficient savings for their retirement.</p><p> </p><p> <strong>Medisave Minimum Sum (MMS) and Medisave Contribution Ceiling (MCC)</strong></p><p>From 1 July 06, the MMS will be increased from $27,500 to $28,000. This amount will apply to members who withdraw their CPF at or after 55 years old. </p><p>The MCC will be also raised from $32,500 to $33,000. This amount is the maximum balance each member may have in his Medisave Account.<sup><strong>2 </strong></sup></p><p>The revision to MMS and MCC is to ensure that Singaporeans have sufficient savings to meet their hospitalisation expenses, and have been adjusted for inflation.</p><p><a href="#AnnexA">Annex A: Summary of changes to the Medisave Minimum Sum (MMS) and Medisave Contribution Ceiling (MCC).</a></p><p> <sup><strong>2</strong></sup> Any Medisave contribution in excess of the prevailing MCC will be transferred to the member’s Special or Retirement Account, depending on his age. Please refer to paras 4 and 5 for details. </p><p> </p><h3> <strong>Public Enquiries</strong></h3><p>Members with enquiries can call the Board at 1800-2271188 or log on to <a href="/Members">www.cpf.gov.sg</a> for more information. </p><p> <br><br></p><p style="text-align:right;"> <a name="AnnexA"></a>Annex A</p><table class="cpf-table cpf-form-table" width="100%"><thead><tr><th colspan="2"> <span class="blackhighlight">1. Transfer excess Medisave Account (MA) contributions <br></span>Contributions to Medisave Account (MA) in excess of Medisave Contribution Ceiling are automatically transferred to :</th></tr></thead><tbody><tr align="left" valign="top"><td width="30%" valign="top"><p> <span class="blackhighlight"><strong>Current</strong></span></p><p> <span class="blackhighlight"></span>Members Ordinary Accounts (OA).</p></td><td width="70%"><p> <span class="blackhighlight"><strong>From 1</strong><sup><strong>st</strong></sup><strong> July 2006</strong></span></p><p> <span class="blackhighlight"></span><span class="blackhighlight"><span style="text-decoration:underline;"><strong>Members Age below 55</strong></span></span><br>Special Account (SA). <br>If SA balance (inclusive of amounts withdrawn under CPFIS-SA) has reached the prevailing Minimum Sum, excess MA would go into their Ordinary Account (OA).</p><p> <span class="blackhighlight"><span style="text-decoration:underline;"><strong>Members aged 55 and above</strong></span></span><br>Retirement Account (RA)<br>If RA has been topped up to cover any Minimum Sum shortfall, MA would go into their OA.</p></td></tr></tbody></table><table class="cpf-table cpf-form-table" width="100%"><thead><tr><th colspan="2"> <span class="blackhighlight">2. Restrictions on use of CPF savings for multiple property purchases</span></th></tr></thead><tbody><tr align="left" valign="top"><td width="30%" height="204" valign="top"><p> <span class="blackhighlight"><strong>Current</strong></span></p><p> <span class="blackhighlight"></span>Members can use CPF savings to purchase more than one property.</p></td><td width="70%"><p> <span class="blackhighlight"><strong>From 1</strong><sup><strong>st</strong></sup><strong> July 2006</strong></span></p><p> <span class="blackhighlight"></span>Members can only use their CPF savings for the purchase of their second and subsequent properties provided they are able to set aside the Minimum Sum cash component. </p><p>This policy is applicable to members who already own a property bought with their CPF savings and wish to buy another property with CPF from 1 July 06. Members who own multiple properties bought with CPF savings before 1 July 2006 will not be affected by the policy change unless they subsequently buy another property using their CPF savings. </p></td></tr></tbody></table><table class="cpf-table cpf-form-table" width="100%"><thead><tr><th colspan="2"> <span class="blackhighlight">3. Phasing Out of Non-Residential Properties Scheme (NRPS)</span></th></tr></thead><tbody><tr align="left" valign="top"><td width="30%" height="86" valign="top"><p> <strong>Current</strong></p><p>CPF savings can be used to buy non-residential properties.</p></td><td width="70%"><p> <strong>From 1</strong><sup><strong>st</strong></sup><strong> July 2006</strong></p><p>The Board will no longer approve any NRPS applications.</p></td></tr></tbody></table><table class="cpf-table cpf-form-table " style="width:100%;"><thead><tr><th colspan="2" style="width:100%;height:10%;"> <span class="blackhighlight">4. Increase in CPF Minimum Sum, Medisave Minimum Sum and Medisave Contribution Ceiling </span></th></tr></thead><tbody><tr><td style="width:25%;height:30%;"><p> <strong>CPF Minimum Sum</strong></p></td><td style="width:75%;height:30%;"> <strong>From 1</strong><sup><strong>st</strong></sup><strong> July 2006</strong><br>Increased from $90,000 to $94,600. The new amount will apply to CPF members who turn 55 from 1 July 2006 to 30 June 2007.</td></tr><tr><td valign="top" rowspan="1" style="width:25%;height:30%;"> <strong>​</strong><span class="blackhighlight"><strong>Medisave Minimum Sum</strong></span></td><td rowspan="1" style="width:75%;height:30%;">​Increased from $27,500 to $28,000. This amount will apply to members who withdraw their CPF at or after 55 years old.</td></tr><tr align="left" valign="top"><td valign="top" rowspan="1" style="width:25%;height:30%;"> <strong>​</strong><span class="blackhighlight"><strong>Medisave Contribution</strong></span></td><td rowspan="1" style="width:75%;height:30%;">​Raised from $32,500 to $33,000. This amount is the maximum balance each member may have in his Medisave Account.</td></tr></tbody></table>CPF changes from 1 July 06 to improve members' retirement adequacy12/6/2006 4:00:00 PMhttps://null/common/Lists/News/DispForm.aspx?ID=2262

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