Top-up Loved Ones' CPF

The CPF scheme has been amended to provide more ways for family members to support one another financially, and allow a smooth and equitable distribution of CPF monies for divorcing couples. The CPF Act amendments were announced by Manpower Minister Dr Ng Eng Hen in Parliament on Monday.

(I) Family Members Top-Ups
Before:
1) Members can top-up accounts using cash only and not their CPF funds.
2) Allow top-ups to spouses'/siblings' accounts only if their age are >55yrs old.

Changes (wef Oct 2007, otherwise stated):
1) Members can top-up their siblings'/grandparents' retirement accounts from their own CPF accounts or in cash.
2) Tax relief of max $7k/yr will be given for (a) cash top-ups, and (b) sibling >=55yrs old, and (c) sibling's earning is <=$2k/yr (ie <=$166/mth).
3) Allow top-ups to spouses/siblings' special accounts below the age of 55 using CPF or cash.
This is to be used to provide a steady income stream during the recipients' retirement and cannot be withdrawn as a lump sum. (wef Jan 2007)

- 1 in 4 members aged 40-55 has hit 1.5x Min Sum.
[Note: Members need to hv 1.5x the prevailing Min Sum before they can top-up someone else's account]
- 1/3 of members who turned 62 last yr met their Min Sum (of $60k) when they were 55yrs in 1999.
[Note: Current Min Sum is $99.6k, and will raise in stages till $120k]

(II) Smooth & Equitable Division of CPF for Divorce
Before:
1) Ex-spouse has to wait till his/her ex-spouse (a) reaches 55yrs, and (b) meets the Min Sums in his Retirement and Medisave accounts, then will receive the funds (if granted a share).
2) CPF doesn't allow member, who's a male, to transfer property to the ex-spouse.

Changes (wef Oct 2007, otherwise stated):
1) Allow immediate transfer of CPF monies to ex-spouse's CPF account.
2) Allow immediate transfer of immovable property to ex-spouse. Shd the property be sold off later, the amount took fr CPF savings to buy the property will hv to be returned to CPF.
Note: The ex-spouse must be a Singapore citizen or permanent resident.

* In Parliament-Top-ups , In Parliament-Divorce , Keynote Address , CPF *

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Vy real ageing problem ... ... Me inactive now, tink my old age cld be bad *sigh*.