SINGAPORE : The CPF scheme has been amended to provide more ways for family members to support one another financially. In addition, the changes will also allow a smooth and equitable distribution of CPF monies for divorcing couples.
The amendments were announced by Manpower Minister Dr Ng Eng Hen in Parliament on Monday.
Building a strong family support structure is key in today's ageing society.
So the CPF amendments will allow grandchildren to transfer funds from their Ordinary Account to their grandparents' Retirement Accounts, subject to both meeting the top-up criteria.
This will be effective from October this year.
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CPF scheme amended to allow family members to support each other
The scheme now only enables the members to top up accounts using cash and not their CPF funds.
Another amendment will help singles and those without children to build up their retirement savings.
Dr Ng said: "We'll also now allow, as a new initiative, members to top up their siblings' retirement accounts, with savings from their own CPF accounts or in cash.
"In addition, we will allow top-ups to spouses and siblings below the age of 55 using CPF or cash. Previously, it was only above 55; we're now allowing below the age of 55.
"The top-ups can be made into the members' Special Accounts. In keeping with the intent of the scheme to build up the CPF of recipients for long-term needs, the top-up monies can only be used to provide a steady income stream during the recipients' retirement and cannot be withdrawn as a lump sum."
This top-up scheme will be effective from January next year.
Dr Ng said at present, about one in four CPF members, aged 40 to 55, are potential donors.
He also announced changes to the CPF over the division of matrimonial assets for divorcing couples.
One amendment is to allow an immediate transfer of CPF monies to the ex-spouse's CPF account. Another is the immediate transfer of immovable property to the ex-spouse.
The ex-spouse must be a Singapore citizen or permanent resident.
Dr Ng said: "Under the current Act now, even if the member, who's a male, wants the property to be transferred to the ex-spouse, the current CPF doesn't allow that.
"What we're doing now is to amend it, to say you can transfer it - the house - but we place a charge on the amount that was used to buy that house so that when she sells it later, that money is refunded back to the member's account."
On top-ups of CPF retirement accounts, some Members of Parliament asked if it can be extended to include top-ups in the Medisave accounts.
But Dr Ng pointed out that this is not necessary because members are already allowed to use their Medisave accounts to pay for their family members' hospitalisation and MediShield insurance premiums. - CNA/ch
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