CPF minimum sum to be revised upwards to
S$131,000
SINGAPORE: From July, the prevailing CPF minimum
sum (MS) will be revised upwards to S$131,000, up from S$123,000.
The CPF Board said the new MS will apply to members who turn 55
from July 1 2011 to June 30 2012.
It was announced in August 2003, that the
minimum sum would be raised gradually to reach S$120,000 (in 2003
dollars) in 2013.
CPF Board said the increase in minimum sum, which includes an
adjustment for inflation, is to ensure that Singaporeans set aside
sufficient savings for their retirement.
Members who can set aside the MS fully in cash can apply to
commence their monthly payouts of S$1,170 when they reach their
draw down age.
Also from July, the Medisave Minimum Sum (MMS) will be raised to
S$36,000 from S$34,500.
Members will be able to withdraw their Medisave savings in
excess of the MMS at or after age 55.
The maximum balance a member may have in his Medisave Account,
known as the Medisave Contribution Ceiling (MCC), is fixed at
S$5,000 above MMS and this would be increased correspondingly to
S$41,000, from S$39,500.
Any Medisave contribution in excess of the prevailing MCC will
be transferred to the member’s Special Account if he is below age
55 or to his Retirement Account if he is above age 55 and has a MS
shortfall.
The revisions to MMS and MCC are to ensure that Singaporeans
have sufficient savings to meet their healthcare expenses, and have
been adjusted for inflation.
—CNA/ac
