SINGAPORE: From January next year, the Medisave
Required Amount (MRA) in the Central Provident Fund (CPF) will be
raised to S$38,500 from the current S$32,000.
The MRA refers to the amount that must be set aside
in the Medisave Account, after the CPF Minimum Sum requirement has
been met.
The CPF Board said those who have met the CPF
Minimum Sum and have an MRA shortfall at the point of withdrawal
have to make a top-up to the Medisave Account.
This can be done with part of the balances from the Ordinary
Account and/or Special Account to meet the prevailing MRA.
CPF said 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.
Central Provident Fund members will also continue to enjoy a risk
free interest rate of four percent on their Special and Medisave
Accounts (SMA) for the next three months, from 1 January to 31
March 2013.
The interest rate on their Retirement Accounts (RA) for the whole
of next year will also remain at four percent.
The CPF Board said this was in line with the government's
announcement in September that it would maintain the four percent
per annum floor rate for interest earned on all monies in the
Special and Medisave Accounts as well as savings in the Retirement
Account until the end of next year.
Savings in the SMA currently earn either 4 percent or the 12-month
average yield of 10-year Singapore Government Securities (10YSGS)
plus 1 percent, whichever is the higher.
The interest rate on SMA savings is adjusted quarterly, based on
interest rates on 10YSGS over a preceding 12-month period.
Since the average yield of the 10YSGS plus 1 percent, from 1
December 2011 to 30 November 2012, works out to be 2.49 percent,
the SMA interest rate payable to CPF members from 1 January 2013 to
31 March 2013 will be maintained at the current floor of 4 percent,
CPF said.
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 percent
at the point of issuance, or 4 percent, whichever is the higher,
adjusted yearly.
CPF said given the lower 10YSGS yield, new RA savings will earn a
fixed coupon of 4 percent.
- CNA/al
