The Straits Times, dated 22 November 2011, just published the following 3 changes to the CPF Act.
Previously, CPF members could only contribute to their own accounts or those of family members. Employers could also contribute to the accounts of employees. Now, voluntary contributions to a member’s account can be made by any person, company or association.
Reversal of CPF SA Transfer
Previously, once the CPF OA money is transferred to CPF SA account, it is irreversible. Now, they can be reversed under special circumstances. For instance, a CPF member who suffers unforeseen financial hardship after the transfer may need the transferred savings to service his housing instalments. The amendment allows CPFB to make exceptions and allows transfers to be reversed in such cases.
Portability of Home Protection Scheme (HPS)
Previously, HPS is not portable. That is to say, if a CPF member sells away current HDB flat and buy a new flat, the old HPS will be terminated. CPF member will then need to apply for new HPS cover, subject to health underwriting. This is not desirable as member’s health condition may not be good then. Now, CPFB is able to waive the requirement of good health for members who were insured under HPS for their previous flat.