From 1 January 2011, CPF members who are turning 55 will need to retain $27,500 in their CPF Medisave account, up from the current $22,500.
Therefore, if there is shortfall in the CPF Medisave Required Amount, the excess beyond the current CPF Minimum Sum of $123,000 from CPF Ordinary Account (OA) and CPF Special Account (SA) will be used to top-up the CPF Medisave shortfall.
CPF Board has also extended the minimum interest rate of 4% to the CPF SA, Retirement Account (RA) and Medisve Account (MA) till end of 2011, which was supposed to end this year. From Jan 2012, the CPF SA, RA and MA will be pegged to the 12-month average yield of 10-year Singapore Govenment Securities (10YSGS) plus 1 per cent, adjusted quarterly. The average 10YSGS yield plus 1 per cent from 1 Dec 2009 till 30 Nov 2010 is 3.41%, lower the the minimum of 4% on SMRA. Hence, the interest for the next quarter will remain at 4%.
An extra 1% interest will continue to be paid on the first $60,000 of the combined balances from CPF OA, SA, MA and RA, with maximium $20,000 from CPF OA. The extra 1% interest will be paid into member’s CPF SA or RA.