Changes to Housing Refund Policy and Nomination

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.

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