Central Provident Fund (Amendment No. 2) Bill

Bill No. 21/1990

Read the first time on 30th August 1990.

An Act to amend the Central Provident Fund Act (Chapter 36 of the 1988 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. This Act may be cited as the Central Provident Fund (Amendment No. 2) Act 1990 and shall be deemed to have come into operation on 1st January 1990.

Amendment of section 7

2. Section 7 of the Central Provident Fund Act (referred to in this Act as the principal Act) is amended by deleting subsection (8) and substituting the following subsections:

“(8) The Minister may, by notification in the Gazette, amend the Schedule and may prescribe in the Schedule —

(a)	different rates of contributions payable in respect of different types of wages; and
(b)	the payment of contributions on such additional wages as may be specified in the Schedule to be based on the wages of an employee for the preceding year and to be adjusted at the end of the year or in the last month of his employment with the employer based on his actual wages for the year.

(9) Notwithstanding subsection (6), where an employer is required to pay to the Fund any additional contributions on additional wages and is entitled to recover such contributions from the wages of the employee in accordance with the Schedule, he may recover such contributions from the wages payable by him to the employee not later than 6 months from the end of the year in which the additional contributions are payable.

(10) Notwithstanding subsection (5), if it appears to the employer at the time when additional wages as specified in the Schedule are payable to the employee that additional contributions in respect of such additional wages are likely to arise at the end of the year due to the recomputation of additional wages on which contributions are payable in accordance with the Schedule, he may contribute to the Fund a sum additional to that shown in the Schedule as payable by the employer and, notwithstanding subsection (6), recover the appropriate proportion of such sum in accordance with the Schedule from the additional wages of the employee.

(11) Where an employer is required to pay to the Fund any additional contributions and is entitled to recover such contributions from the wages of the employee in accordance with the Schedule, the Board may, notwithstanding subsection (1), if it is satisfied that the employer is unable to recover in full or in part from the wages of the employee and that the employee is no longer in the employment of the employer, waive the payment of that portion of the additional contributions that the employer is unable to so recover.”.

New section 54A

3. The principal Act is amended by inserting, immediately after section 54, the following section:

“Refund of excess contributions on additional wages

54A.—(1) Subject to subsections (2) and (3), where the Board is satisfied that the amount of contributions paid for the year on additional wages exceeds the amount of contributions payable on such additional wages after recomputation in accordance with the Schedule, the Board may refund the excess contributions, together with any interest payable in respect of the excess contributions under section 6(4), in such manner as the Minister may by regulations prescribe.

(2) If any amount is due to the Fund from any person to whom refund of any excess contributions and interest thereon would otherwise be made, the Board may retain the whole or any part of the excess contributions and interest and set them off against such amount as is due.

(3) The Board may require any person who claims to be entitled to any refund under this section or to have paid any excess contributions to the Fund to furnish such information to the Board as may be necessary.”.

Amendment of section 56

4. Section 56(1)(a) of the principal Act is amended by deleting the words “and collection” and substituting the words “, collection and refund”.

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