CPF Medisave Required Amount to be raised

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.

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