Savings in the CPF Special and Medisave Account (SMA) currently earn the higher of either 4% or the 12-month average yield of 10-year Singapore Government Securities (10YSGS) plus 1%. The interest rate on SMA savings is adjusted quarterly, based on interest rates on 10YSGS over a preceding 12-month period. The average yield of the 10YSGS plus 1%, from 1 December 2012 to 30 November 2013, is 2.93%. Therefore, the interest rate for CPF SMA will continue to be 4% p.a. from 1 Jan 2014 to 31 March 2014.
Savings in CPF Retirement Account (RA) earn the higher of either 4% or the 12-month average yield of the 10YSGS plus 1%, and adjusted yearly. Therefore, the 4% p.a. interest rate will apply to CPF RA from 1 January 2014 to 31 December 2014.
The additional 1% interest will continue to be paid on the first $60,000 of the combined balances, with up to $20,000 from the Ordinary Account (OA). The additional interest received on the OA will go into the SA or RA to enhance the retirement savings.
From 1 January 2014, the Medisave Required Amount (MRA) will be adjusted to $40,500 from the current $38,500, which is the same as the Medisave Minimum Sum (MMS). This is the amount that CPF members are required to top up to the Medisave Account (MA) to the current MMS/MRS when they make a CPF withdrawal at age 55.
CPFB will distribute $29m of surplus from its Dependants’ Protection Scheme (DPS) to members who had active covers when DPS was privatised on 17 September 2005. This rebate will be credited to their CPF OA on 15 December 2013.