News Release by:
Central Provident Fund Board
1 June 2009
CPF Minimum Sum
The Ministry of Manpower announced in August 2003 that the MS will be raised gradually to reach $120,000 (in 2003 dollars) in 2013. The increase in MS, which includes an adjustment for inflation, is to ensure that Singaporeans set aside sufficient savings for their retirement. In line with this policy, from 1 July 2009, the prevailing CPF Minimum Sum (MS) will be revised from $106,000 to $117,000. The new MS will apply to CPF members who turn 55 from 1 July 2009 to 30 June 2010.
Medisave Minimum Sum and Medisave Contribution Ceiling
The Medisave Minimum Sum (MMS) and Medisave Contribution Ceiling (MCC) need to be adjusted to ensure that Singaporeans have sufficient savings to meet their hospitalisation expenses, and have been adjusted for inflation. For this reason, from 1 July 2009,
a. The MMS will be raised to $32,000 from $29,500. Members will be able to withdraw their Medisave savings in excess of the MMS at or after 55 years old.
b. The maximum balance a member may have in his Medisave Account, known as the (MCC), is fixed at $5,000 above MMS and this would be increased correspondingly to $37,000, from $34,500.
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.
CPF BOARD ORGANISES FREE MONTHLY TALKS FOR MEMBERS REACHING 55
To help members reaching age 55 better understand the MS and make informed choices about their CPF savings, the Board has started organising free monthly “Reaching 55” talks.
The monthly talks are the brainchild of Mr Soh Chin Heng, Deputy Chief Executive (Services) and have been highly popular with CPF members. In response to strong demand, CPF Board had to shift the venue from our premises to the DBS Auditorium with a seating capacity for 600 participants. The next talk will be held on 16 June 2009 at 7 pm. Those interested can register for the talk at the CPF website www.cpf.gov.sg or at any AXS station.
The Board plans to organise more of such talks, and in Mandarin as well, to satisfy the many requests.
Said Mr Soh: “The response to the talks has been very positive and most encouraging. More than 95% told us they found useful and practical applications. It gives us at CPF Board great satisfaction when our members deepen their understanding of CPF and make good and informed decisions about their CPF monies”.
Members with queries can call the CPF Call Centre at 1800-227-1188.
Source: CPF Board