Changes in CPF Act

The Straits Times, dated 22 Novem­ber 2011, just pub­lished the fol­low­ing 3 changes to the CPF Act.

CPF Top-up
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.

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