News Releases
INTEREST
RATES FOR SPECIAL AND MEDISAVE ACCOUNTS MONIES FROM 1 JAN 2011 TO
31 MAR 2011, AND FOR RETIREMENT ACCOUNT MONIES FROM 1 JAN 2011 TO
31 DEC 2011
News Release by:
Central Provident Fund Board
22 December 2010
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The interest rate on Special and Medisave Account (SMA) monies from
1 January 2011 to 31 March 2011 will be maintained at 4%. The
interest rate on Retirement Account (RA) monies for the year 2011
will be maintained at 4%. As announced on 20
September 2010, the Government will maintain the 4% minimum
interest rate on all Special, Medisave and Retirement Accounts
monies until 31 December 2011. Thereafter, interest rates on
all CPF account monies will be subject to a minimum rate of 2.5%
p.a.
Interest Rate for SMA Monies
Savings in the SMA are invested in Special Singapore Government
Securities (SSGS) which earn an interest rate pegged to either the
12-month average yield of 10-year Singapore Government Securities
(10YSGS) plus 1%, or 4% whichever is the higher, adjusted
quarterly.
The average yield of the 10YSGS plus 1%, from 1 December 2009 to 30
November 2010, works out to be 3.41%. Hence, SMA monies will
be invested in SSGS which earn 4%. Please refer toAnnex
A for the 10-year SGS yield.
Accordingly, the SMA interest rate payable to CPF members from 1
January 2011 to 31 March 2011 will be maintained at 4%.
Interest Rate for RA Monies New
RA savings are invested in SSGS which earn a fixed coupon equal to
either the 12-month average yield of the 10YSGS plus 1% at the
point of issuance, or 4%, whichever is the higher, adjusted yearly.
Given the low 10YSGS yield, new RA savings will be invested in SSGS
which earn a fixed coupon of 4% (floor rate).
The interest rate to be credited to the RA is the weighted average
interest rate of the entire portfolio of these SSGS, and adjusted
yearly in January. The weighted average interest of the
entire portfolio of these SSGS is 4% at the moment, so the interest
rate payable to CPF members on their RA balances from 1 January
2011 to 31 December 2011 will be 4%.
Additional Interest of 1% An
additional 1% interest will continue to be paid on the first
$60,000 of a member’s combined balances, with up to $20,000 from
the Ordinary Account (OA). The additional interest received
on the OA will go into the member’s SA or RA to enhance his
retirement savings. If the member is above 55 years old and
participates in the LIFE scheme, the additional 1% interest will
also be payable on his annuity premium, less annuity payouts
already made. The additional interest earned on the member’s
LIFE annuity monies will be paid into his RA.
Medisave Required Amount From 1
January 2011, the Medisave Required Amount (MRA) will be raised
from the current $22,500 to $27,500.
Since 1 January 2004, CPF members who turn 55 and are able to meet
the CPF Minimum Sum are required to set aside the MRA in their
Medisave Account when they make a CPF withdrawal. If such members
have less than the MRA in their Medisave Accounts, their Ordinary
and/or Special Account balances in excess of the Minimum Sum will
be used to top up the MRA.
The requirement for members to set aside the MRA in their Medisave
Account is to enable them to have enough savings to meet their
healthcare needs during old age.
Public Enquiries For more information, please
visit www.cpf.gov.sg or call the
CPF Call Centre at 1800-227-1188.