Simplification of CPF Top-up Schemes

There are cur­rently two chan­nels to top-up your Spe­cial Account (SA) and Retire­ment Account (RA).
They are :-
              a) Vol­un­tary Con­tri­bu­tions (VC) to a member’s Retire­ment Account (RA); and
              b) Top-ups made under the Ordin­ary Account-to-Special Account (OA-to-SA) Trans­fer scheme.

The above two will be merged into the exist­ing Min­imum Sum Top­ping Up (MSTU) Scheme. This sim­pli­fic­a­tion will align the top-up limit and terms and con­di­tions so that it is less con­fus­ing to the member.

The New Aligned Top-Up Lim­its
 For top-ups into the SA, mem­bers who are less than 55 years old will be able to receive top-ups up to the pre­vail­ing Min­imum Sum, minus the sum of their SA cash bal­ance and SA sav­ings which they have used for invest­ment.
  For top-ups into the RA, mem­bers who are 55 years old or older will receive top-ups up to the pre­vail­ing Min­imum Sum, minus their RA cash bal­ance. The RA cash bal­ance excludes amounts such as interest earned, gov­ern­ment grants received and amounts that mem­bers have withdrawn.

Tax Relief exten­ded to parents-in-law and Grandparents-in-law
Any­one who makes a cash top-up to his own CPF account and/or receives a cash top-up from his employer will receive up to $7,000 of tax relief, and up to another $7,000 for cash top-ups to eli­gible fam­ily mem­bers in a cal­en­dar year. Eli­gible fam­ily mem­bers cur­rently refer to par­ents, grand­par­ents, spouses and sib­lings. This will be exten­ded to parents-in-law and grandparents-in-law from 1 Janu­ary 2013. For mem­bers who make top-ups to their spouse or sib­lings, they are eli­gible for the tax relief if their spouse or sib­lings have an annual income below $4,000 or are handicapped.

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