Changes to Housing Refund Policy
Currently, member who sells his property after age 55, he will refund either his Minimum Sum shortfall or the Principal amount that he had withdrawn for the purchase of the house plus the prevailing OA interest that would have accrued on this amount (P+I), whichever is lower. Remaining proceeds from the sale of his property is received in cash.
From 1 January 2013, the full P+I will have to be returned to the member’s account first. The refunded amount will first be used to set aside the required Minimum Sum in his RA and the required Medisave amount in his MA, and the excess can be withdrawn as cash.
The above change will at least ensure that the member’s contribution to the purchase of the house will be fairly returned to him upon the sale, especially when there are two or more co-owners. Previously, when only the shortfall of MS needs to be met, co-owners may have problem on the proportion of cash to be distributed among them. And member who has the full MS in his account may be disadvantaged.
Minimum Age for Making CPF Nomination
Currently, there is no minimum age for making CPF nomination. However, a minimum age of 16 years old will be set later this year to effect this change.