CPF Act to be amended for easier transfer of funds to parents’ and grandparents’ accounts
SINGAPORE — It may soon be easier for Singaporeans to transfer money to the Central Provident Fund accounts of their parents and grandparents, giving the recipients more flexibility to plan for retirement.
Under proposed changes to the CPF Act tabled by the Ministry of Manpower in Parliament on Monday (Oct 2), CPF members will be allowed to transfer their savings to their parents and grandparents, as long as they have the required Basic Retirement Sum (currently S$83,000) in their own accounts and a sufficient property pledge or charge to make up the rest of the full sum. TODAY file photo
SINGAPORE — It may soon be easier for Singaporeans to transfer money to the Central Provident Fund accounts of their parents and grandparents, giving the recipients more flexibility to plan for retirement.
Under proposed changes to the CPF Act tabled by the Ministry of Manpower in Parliament on Monday (Oct 2), CPF members will be allowed to transfer their savings to their parents and grandparents, as long as they have the required Basic Retirement Sum (currently S$83,000) in their own accounts and a sufficient property pledge or charge to make up the rest of the full sum.
Currently, those aged below 55 need to have the Full Retirement Sum of at least S$166,000 in their accounts, before they are able to transfer their Ordinary Account savings to their parents and grandparents.
Those aged 55 and above now need to meet the sum that is applicable to their cohort.
With the proposed changes, those aged 55 and above can transfer savings above their applicable Basic Retirement Sum from their Ordinary Account, Special Account and Retirement Account, provided they have met certain conditions for the Full Retirement Sum applicable to their cohort.
For those aged below 55, Ordinary Account savings can be transferred after they set aside the Basic Retirement Sum in their Ordinary Account and Special Account, with sufficient property pledge or charge to make up the current Full Retirement Sum.
In another proposal, members can apply to be exempted from setting aside their Full Retirement Sum, if their own private insurance or pension scheme pays out the same amount as what they would receive monthly under the Retirement Sum Scheme.
The CPF’s Retirement Sum Scheme provides its members with a monthly income to support a basic standard of living during retirement.
Amendments will also provide greater clarity and efficiency in the administration of the CPF system.
More details will be released when the Bill is read for the second time next month.
Stay in the know. Anytime. Anywhere.
Subscribe to get daily news updates, insights and must reads delivered straight to your inbox.
By clicking subscribe, I agree for my personal data to be used to send me TODAY newsletters, promotional offers and for research and analysis.
