Central Provident Fund (Amendment) Bill

Bill No. 11/1994

Read the first time on 23rd May 1994.

An Act to amend the Central Provident Fund Act (Chapter 36 of the 1994 Revised Edition).

Be it enacted by the President with the advice and consent of the Parliament of Singapore, as follows:

Short title and commencement

1.—(1) This Act may be cited as the Central Provident Fund (Amendment) Act 1994 and shall, with the exception of sections 3 and 11, come into operation on such date as the Minister may, by notification in the Gazette, appoint.

(2) The Minister may appoint different dates for the coming into operation of the different provisions of this Act.

(3) Sections 3 and 11 shall be deemed to have come into operation on 1st July 1994.

Amendment of section 2

2. Section 2 of the Central Provident Fund Act (referred to in this Act as the principal Act) is amended by deleting the words “section 15(6)” in the definition of “retirement account” and substituting the words “section 15(6C)”.

Amendment of section 13

3. Section 13(1) of the principal Act is amended by deleting paragraph (b) and substituting the following paragraph:

“(b)	a medisave account from which, apart from sections 15(2) to (5) and 54 but subject to section 16, withdrawals may be made in accordance with any regulations made under section 77(1)(j) and (ja); and”.

Amendment of section 15

4. Section 15 of the principal Act is amended —

(a)

by deleting subsections (6) and (7) and substituting the following subsections:

“(6) Subject to subsections (6A) and (8), a member of the Fund who is entitled to withdraw the sum standing to his credit in the Fund under subsection (2)(a) shall at the time of the withdrawal set aside or top-up a prescribed sum (referred to in this Act as the minimum sum) in accordance with regulations made under this Act.

(6A) Where a member and his spouse desire to set aside jointly an amount equal to one and a half times the minimum sum, the Board may permit them to set aside that amount if they have each executed a memorandum under section 26(1) nominating each other to receive the amount of the minimum sum belonging to either party on the death of the other party.

(6B) Any memorandum executed pursuant to subsection (6A) shall be irrevocable during the subsistence of the marriage between the members.

(6C) The minimum sum may be deposited with an approved bank or in a retirement account with the Board or used to purchase an approved annuity from an insurer.

(7) A member who has attained the age of 60 years or such other age as the Minister may prescribe shall be entitled to withdraw from the minimum sum deposited with an approved bank or in a retirement account and any interest accruing thereon in accordance with regulations made under this Act.

(7A) A member who has attained the age of 55 years but has not attained the age of 60 years or such other age as the Minister may prescribe shall be entitled to withdraw the minimum sum or such part thereof as the Board may determine from his account with an approved bank or his retirement account or surrender his approved annuity from an insurer if the Board is satisfied that the member is —

(a)	physically or mentally incapacitated from ever continuing in any employment;
(b)	found to be of unsound mind;
(c)	suffering from a terminal illness or disease; or
(d)	receiving a pension, annuity or other benefit as may be approved which will provide him with a monthly income of not less in value than the amount prescribed by the Minister.”; and

(b)

by deleting the words “subsection (6)” in subsection (12) and substituting the words “subsection (6C)”.

Repeal and re-enactment of section 18

5. Section 18 of the principal Act is repealed and the following section substituted therefor:

“Transfer of member’s moneys in Fund to parent’s or spouse’s retirement account, etc.

18. The Board may, for any of the purposes mentioned in section 15(6C) and subject to such terms and conditions as it may impose, permit —

(a)	a member to transfer such portion of the sum standing to his credit in the Fund as may be prescribed to the retirement account of his parent or spouse to be applied by the parent or spouse; or
(b)	any person to voluntarily maintain a minimum sum with the Board or to pay money into his parent’s or spouse’s retirement account.”.

Repeal and re-enactment of section 19

6. Section 19 of the principal Act is repealed and the following section substituted therefor:

“Moneys transferred to parent’s or spouse’s retirement account to be credited to member’s account on death of parent or spouse

19. Any moneys transferred by a member to his parent’s or spouse’s retirement account or paid by any person into his parent’s or spouse’s retirement account under section 18 shall be deemed to be contributions for the purposes of this Act and shall not form part of the moneys payable out of the Fund on the death of the parent or the spouse, as the case may be, and on the death of the parent or the spouse, any moneys so transferred or paid or the balance thereof shall be credited to the account from which it was transferred or to the account of the person or spouse who made the payment.”.

Amendment of section 30

7. Section 30(5) of the principal Act is amended by deleting paragraph (a) and substituting the following paragraph:

“(a)	any member if he is 60 years of age or above or such other age as the Minister may prescribe at the time he is required to join the Scheme; and”.

Amendment of section 35

8. Section 35 of the principal Act is amended by deleting the words “55 years” wherever they appear and substituting in each case the words “60 years or such other age as the Minister may prescribe”.

Amendment of section 42

9. Section 42(2) of the principal Act is amended by deleting paragraph (a) and substituting the following paragraph:

“(a)	any member of the Fund who has not attained the age of 16 years or who has attained the age of 60 years or such other age as the Minister may in either case prescribe;”.

Amendment of section 50

10. Section 50 of the principal Act is amended by inserting, immediately after the word “Part”, the words “and Part VI”.

Amendment of section 77

11. Section 77(1) of the principal Act is amended —

(a)

by inserting, immediately after paragraph (j), the following paragraph:

“(ja)

with respect to the withdrawal of money from the medisave account of a member for payment of premium payable by the member or his dependant who is insured under a medical insurance scheme approved by the Minister charged with the responsibility for health;”; and

(b)

by inserting, immediately after the words “set aside” in the second line of paragraph (n), the words “or topped-up”.

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