PART 1 AMENDMENTS RELATING TO
CLOSURE OF SPECIAL ACCOUNT, ETC. |
2. In the Central Provident Fund Act 1953 (called in this Act the principal Act), in section 13 —| (a) | in subsection (1), replace “subsections (7A), (7B), (7C), (7D) and (7G)” with “this Act”; | | (b) | in subsection (1)(c), after “special account”, insert “or a retirement account, or both”; | | (c) | after subsection (5), insert —“(5AA) Despite subsection (5), where a member’s special account is closed under section 13AA(1), the Board may credit any interest mentioned in section 6(4) that had accrued to the amount standing to the credit of the member in the member’s special account in the following manner:| (a) | if there is a shortfall in the retirement sum applicable to the member, or in the amount specified by the Minister for the member pursuant to section 15AA(5)(a) — credit the interest to the member’s retirement account, even if the interest so credited exceeds that shortfall; | | (b) | in any other case or if (despite paragraph (a)) the prescribed circumstances apply — credit the interest to the member’s ordinary account.”; |
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| | (d) | after subsection (7C), insert —“(7CA) Where Account A mentioned in subsection (7C) is a special account that has since been closed under section 13AA(1), subsection (7C) applies with the following modifications:| (a) | any amount to be restored to Account A under subsection (7C)(a) may be paid to the member’s accounts in the Fund in accordance with section 13AA(4); | | (b) | any interest (in respect of the restored amount) to be paid into Account A under subsection (7C)(b) may be paid to the member’s accounts in the Fund in accordance with section 13AA(5) or (6), whichever is applicable.”; |
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| | (e) | after subsection (7G), insert —| “(7GA) Subsections (7E), (7F) and (7G) apply in respect of the restoration of any amount or payment of any interest under subsection (7C) read with subsection (7CA), and a reference in subsections (7E), (7F) and (7G) to subsection (7C)(a) or (b) or subsection (7C) includes a reference to any of those provisions as modified by subsection (7CA).”; |
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| | (f) | after subsection (7H), insert —“(7HA) Where either Account A or Account B (mentioned in subsection (7H)) or both are special accounts that have since been closed under section 13AA(1), subsection (7H) applies with the following modifications:| (a) | if only Account A is closed —| (i) | any amount to be restored to Account A under subsection (7H)(a) may be paid to the member’s accounts in the Fund in accordance with section 13AA(4); and | | (ii) | any interest (in respect of the restored amount) to be paid to Account A under subsection (7H)(b) may be paid to the member’s accounts in the Fund in accordance with section 13AA(5) or (6), whichever is applicable; |
| | (b) | if only Account B is closed —| (i) | any amount to be restored to Account A under subsection (7H)(a) may be deducted from the accounts in the Fund of the member for whom Account B was maintained, in accordance with section 13AA(7) or (8), whichever is applicable; and | | (ii) | any interest to be transferred to the general moneys of the Fund under subsection (7H)(c) may be transferred from the accounts in the Fund of the member for whom Account B was maintained, in accordance with section 13AA(7) or (8), whichever is applicable; |
| | (c) | if both Account A of a member (called Member A) and Account B of another member (called Member B) are closed —| (i) | any amount to be restored to Account A under subsection (7H)(a) may be paid to Member A’s accounts in the Fund in accordance with section 13AA(4), by a deduction from Member B’s accounts in the Fund in accordance with section 13AA(7) or (8), whichever is applicable; | | (ii) | subsection (7H)(b) applies, in relation to Member A, as modified by paragraph (a)(ii); and | | (iii) | subsection (7H)(c) applies, in relation to Member B, as modified by paragraph (b)(ii). |
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(7HB) Where the money transferred to Account B mentioned in subsection (7H) has been transferred to another account in the Fund of the member (called in this subsection Account C) pursuant to subsection (7C), section 15(6CA), 15AA(5) or 18(4), subsection (7H) applies with the following modifications:| (a) | any amount to be restored to Account A under subsection (7H)(a) may be deducted from Account C; | | (b) | any interest to be transferred to the general moneys of the Fund under subsection (7H)(c) may be transferred from Account C, and is the whole or any part, as the Board may determine, of —| (i) | any interest paid on the restored amount while the restored amount was in Account B and Account C; and | | (ii) | if applicable, any interest paid in respect of the restored amount in connection with an initial transfer specified in subsection (7D).”; |
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| | (g) | replace subsection (7I) with —“(7I) Where the Board has credited any money to a member’s account in the Fund (called in this subsection Account A) under section 13(4), 13B(2) or 13C, or where any money has been paid into Account A under section 18(1)(b) or (c), (2)(b) or (3)(b) or any regulations made under section 77(1), the Board may, on the Board’s own motion or on an application to the Board, and subject to any terms and conditions that the Board may impose —| (a) | refund to the person who paid the money, or pay to any person whom the Board is satisfied is entitled to that payment, the whole or any part of the money (called in this subsection the relevant amount) by a deduction from any of the following accounts in the Fund of the member:| (i) | Account A; | | (ii) | if Account A is a special account that has since been closed under section 13AA(1) — the member’s accounts in the Fund in accordance with section 13AA(7) or (8), whichever is applicable; | | (iii) | if the money credited or paid into Account A has been transferred from Account A to another account in the Fund of the member (called in this subsection Account B) pursuant to subsection (7C), section 15(6CA), 15AA(5) or 18(5) — Account B; and |
| | (b) | transfer interest to the general moneys of the Fund in the following manner:| (i) | if paragraph (a)(i) applies — transfer from Account A, the whole or any part, as the Board may determine, of the interest paid on the relevant amount while the relevant amount was in Account A; | | (ii) | if paragraph (a)(ii) applies — transfer any interest in respect of the relevant amount from the member’s accounts in the Fund in accordance with section 13AA(7) or (8), whichever is applicable; | | (iii) | if paragraph (a)(iii) applies — transfer from Account B, the whole or any part, as the Board may determine, of —| (A) | the interest paid on the relevant amount while the relevant amount was in Account A and Account B; and | | (B) | if applicable, any interest paid in respect of the relevant amount in connection with an initial transfer specified in subsection (7D).”; and |
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| | (h) | in subsection (8), delete “(if any)”. |
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3. In the principal Act, after section 13, insert —| “Closure of special account |
13AA.—(1) The Board may, on or after the date of commencement of section 3 of the Central Provident Fund (Amendment) Act 2024, close the special account of a member who has attained the age of 55 years (whether before, on or after that date), unless any prescribed circumstances apply.| (2) In connection with the closure of the member’s special account under subsection (1), the Board must transfer the moneys standing to the credit of the member in the special account to the ordinary account or retirement account of the member (or both) in accordance with regulations made under section 77(1). |
| (3) Subsections (4) to (9) apply where the member’s special account has been closed under subsection (1). |
(4) Where any amount (P) would have been payable to the member’s special account if not for its closure, the Board may pay P in the following manner:| (a) | if there is a shortfall in the retirement sum applicable to the member or in the amount specified by the Minister for the member pursuant to section 15AA(5)(a) — pay P (in whole or in part) to the member’s retirement account towards the maintenance of that retirement sum or specified amount (as the case may be), and the remaining part (if any) of P to the member’s ordinary account; | | (b) | in any other case or if (despite paragraph (a)) the prescribed circumstances apply — pay P to the member’s ordinary account. |
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(5) Subject to subsection (6), the Board may pay the whole or any part, as the Board may determine, of any interest payable on P paid under subsection (4) as if P were in the member’s special account for the relevant period and the special account had not been closed, in the following manner:| (a) | if the shortfall mentioned in subsection (4)(a) remains after the payment to the member’s retirement account under subsection (4)(a) — to the member’s retirement account, even if the interest so paid exceeds that shortfall; | | (b) | if there is no longer any shortfall mentioned in subsection (4)(a) after the payment to the member’s retirement account under subsection (4)(a), or if P was paid under subsection (4)(b) — to the member’s ordinary account. |
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(6) Where —| (a) | P is a refund arising from the request of the member to vary or cancel the member’s application to withdraw moneys from the member’s special account; or | | (b) | the Board considers it reasonable to do so in the circumstances, |
| the Board may, instead of making any payment of interest under subsection (5), pay interest in the following manner: |
| (c) | if P was paid (in whole or in part) to the member’s retirement account under subsection (4)(a) — pay to the member’s retirement account the whole or any part, as the Board may determine, of any interest payable on the amount of P so paid as if that amount were in the member’s retirement account for the relevant period, even if the interest so paid exceeds the shortfall mentioned in subsection (4)(a); | | (d) | if P was paid (in whole or in part) to the member’s ordinary account under subsection (4)(a) or (b) — pay to the member’s ordinary account the whole or any part, as the Board may determine, of any interest payable on the amount of P so paid as if that amount were in the member’s ordinary account for the relevant period. |
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(7) Subject to subsection (8), where any amount (D) would have been deducted or transferred from the member’s special account if not for its closure, the Board may —| (a) | deduct or transfer both of the following from the member’s available ordinary account balance:| (i) | D, in whole or in part; | | (ii) | the whole or any part, as the Board may determine, of any interest payable on the amount of D so deducted or transferred, as if that amount were in the member’s ordinary account for the relevant period; and |
| | (b) | if D is not deducted or transferred under paragraph (a)(i) in whole — deduct or transfer both of the following from the amount standing to the credit of the member in the member’s retirement account:| (i) | the remaining part of D, in whole or in part; | | (ii) | the whole or any part, as the Board may determine, of any interest payable on the amount of the remaining part of D so deducted or transferred, as if that amount were in the member’s retirement account for the relevant period. |
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(8) If the prescribed circumstances apply, the Board may instead of making any deduction or transfer under subsection (7) —| (a) | deduct or transfer D (in whole or in part) from the amount standing to the credit of the member in the member’s retirement account; and | | (b) | deduct or transfer the interest paid (if any) on the amount of D so deducted or transferred, in the following manner:| (i) | deduct or transfer from the amount standing to the credit of the member in the member’s retirement account — the whole or any part, as the Board may determine, of the interest paid on D —| (A) | while D was in the member’s special account before its closure; and | | (B) | while D was in the member’s retirement account after the closure of the member’s special account, and before such deduction or transfer of interest from the retirement account; |
| | (ii) | deduct or transfer from the member’s available ordinary account balance — the whole or any part, as the Board may determine, of the interest paid on D while D was in the ordinary account after the closure of the special account, and before such deduction or transfer of interest from the ordinary account. |
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(9) Unless otherwise provided by or under this Act, where a member’s special account has since been closed under subsection (1) and the Board is required or permitted to determine the whole or any part of any interest that would have been payable on —| (a) | an amount standing to the credit of the member in the member’s special account; | | (b) | an amount that is treated as if it had not been deducted, transferred or withdrawn from the member’s special account; | | (c) | an amount (including an amount equivalent to the value of an instrument) that is treated as if it had been restored to the member’s special account and not debited from that account; | | (d) | an amount that is treated as if it had been transferred to the member’s special account upon the occurrence of any event; | | (e) | an amount that is treated as if it had been paid on its due date to the member’s special account; or | | (f) | an amount that is treated as if it were in the member’s special account by way of any other transaction, |
| the Board may make that determination by reference to any interest that would have been payable on that amount as if that amount were standing to the credit of the member in the member’s special account, and the special account had not been closed. |
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(10) In this section —| “available ordinary account balance”, in relation to a member, means the amount standing to the credit of the member in the member’s ordinary account, after excluding any reserved amount standing to the credit of that member in his or her ordinary account; |
“relevant period” means —| (a) | in a case of any amount mentioned in subsection (4) that was withdrawn or transferred from the member’s special account before its closure — the period starting on the date of the withdrawal or transfer (as the case may be) and ending on the date immediately before the date the amount is paid (in whole or in part) to the member’s retirement account or ordinary account under subsection (4); | | (b) | in a case of any amount mentioned in subsection (4) that does not fall under paragraph (a) but would otherwise have been payable to the member’s special account — the period starting on the date the amount was payable to the member’s special account and ending on the date immediately before the date the amount is paid (in whole or in part) to the member’s retirement account or ordinary account under subsection (4); or | | (c) | in a case of any amount mentioned in subsection (7) that would have been deducted or transferred from the member’s special account — the period starting on the date the amount was in the special account or transferred to the special account (as the case may be) and ending on the date immediately before the amount was deducted or transferred (in whole or in part) from the member’s ordinary account or retirement account under subsection (7). |
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| (11) For the purposes of this section and section 77(1)(kb), a reference to a payment of any amount to a special account, an ordinary account or a retirement account includes a reference to the refund, restoration or crediting of the amount to, or the retention of the amount in, any of those accounts.”. |
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| 4. In the principal Act, in section 13B(2), replace “or a special account” with “, a special account or a retirement account”. |
5. In the principal Act, in section 15 —| (a) | after subsection (1A), insert —“(1B) Where a member’s special account is closed under section 13AA(1), the Board may, with the approval of the Minister, give its authority for the withdrawal or transfer of any amount from the moneys standing to the credit of the member in the member’s ordinary account or retirement account, or both —| (a) | on the application of a person who would have been entitled or allowed to withdraw or transfer moneys from the member’s special account if the special account had not been closed; or | | (b) | without any application by a person mentioned in paragraph (a), if —| (i) | the withdrawal relates to any prescribed class of payments; and | | (ii) | before the date of closure of the member’s special account, the Board had authorised the withdrawal of moneys from the member’s special account for such payments. |
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| (1C) Subsection (1B) applies despite section 13AA(7) and (8), and the requirements under sections 15(6)(a) and (7) and 15AA(5)(a) and (6) do not apply to the withdrawals or transfers authorised under subsection (1B).”; |
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| | (b) | in subsection (6CA), replace “such amount at such time as may be prescribed in those regulations” with “any amount prescribed by those regulations at any time determined by the Board”; | | (c) | in subsection (6CB), replace “and times may be prescribed for different classes of members” with “may be prescribed, and different times may be determined by the Board, for different classes of members”; and | | (d) | replace subsection (7E) with —“(7E) Except for the determined amount mentioned in subsection (7B)(b) or (7C)(b) and subject to regulations made under section 77(1), other limits imposed on the amount of moneys that may be transferred to or maintained in the member’s retirement account do not apply to —| (a) | any transfer to a member’s retirement account under subsection (7A)(b); or | | (b) | any crediting of interest to a member’s retirement account under section 13(5AA), or payment of interest to a member’s retirement account under section 13AA(5) or (6).”. |
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| 6. In the principal Act, delete section 17. |
| 7. In the principal Act, in section 18(7), replace “any regulations made under section 77(1)(oa)” with “this Act”. |
8. In the principal Act, in section 19 —| (a) | in subsection (1), replace “The” with “Subject to subsections (2A) and (2B), the”; | | (b) | after subsection (2), insert —“(2A) Where either Account A or Account B (mentioned in subsection (1)) or both are special accounts that have since been closed under section 13AA(1), subsections (1) and (2) apply with the following modifications:| (a) | if only Account A is closed —| (i) | any refund to Account B under subsection (1) must be deducted from the relevant individual’s accounts in the Fund in accordance with section 13AA(7) or (8), whichever is applicable; and | | (ii) | any interest in respect of the refunded amount under subsection (2)(b) must be deducted from the relevant individual’s accounts in the Fund in accordance with section 13AA(7) or (8), whichever is applicable; |
| | (b) | if only Account B is closed —| (i) | any refund to Account B under subsection (1) must be paid to the member’s accounts in the Fund in accordance with section 13AA(4); and | | (ii) | any interest in respect of the refunded amount under subsection (2)(a) must be paid to the member’s accounts in the Fund in accordance with section 13AA(5) or (6), whichever is applicable; |
| | (c) | if both Account A and Account B are closed —| (i) | any refund to Account B under subsection (1) must be paid to the member’s accounts in the Fund in accordance with section 13AA(4) by deducting that refund from the relevant individual’s accounts in the Fund in accordance with section 13AA(7) or (8), whichever is applicable; | | (ii) | subsection (2)(a) applies as modified by paragraph (b)(ii); and | | (iii) | subsection (2)(b) applies as modified by paragraph (a)(ii). |
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(2B) Where the moneys transferred to Account A mentioned in subsection (1) have been transferred to another account in the Fund of the relevant individual (called in this subsection Account C) pursuant to section 13(7C), 15(6CA), 15AA(5) or 18(4), subsections (1) and (2) apply with the following modifications:| (a) | any refund to Account B under subsection (1) must be deducted from Account C; | | (b) | any interest in respect of the refunded amount to be deducted under subsection (2)(b) must be deducted from Account C, and is the whole or any part, as the Board may determine, of —| (i) | any interest paid into Account A and Account C that accrued to the refunded amount while the refunded amount was in Account A and Account C; and | | (ii) | if applicable, any interest paid in respect of the refunded amount in connection with an initial transfer specified in section 13(7D).”; and |
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| | (c) | in subsection (4), in the definition of “refunded amount”, after “subsection (1)”, insert “, as modified by subsection (2A) or (2B), if applicable”. |
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9. In the principal Act, in section 20(1D) —| (a) | in paragraph (a)(iii), after “account”, insert “, if the member had a special account at the time of his or her death”; and | | (b) | in paragraph (b), after “special account”, insert “(if any)”. |
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| 10. In the principal Act, in section 27B(6)(b)(i) and (7)(b)(i), delete “17,”. |
11. In the principal Act, in section 45 —| (a) | replace subsection (2) with —| “(2) Despite anything in this Act but subject to subsection (4), the Board is entitled to deduct the whole or any part of a premium payable by an insured person from the moneys standing to the credit of the insured person in any of his or her accounts in the Fund. |
| (2A) For the purposes of subsection (2), the deduction may be made from different accounts in the Fund for different classes of members or a particular member.”; and |
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| | (b) | replace subsection (4) with —“(4) Where any premium payable by an insured person under the Scheme is not paid in the manner or within the time prescribed by regulations made under section 51, either or both of the following apply:| (a) | the Board or appointed insurer may deduct the unpaid amount (in whole or in part) from any payment for an insured sum that the Board or appointed insurer (as the case may be) may make under the Scheme under section 49; | | (b) | the unpaid amount (in whole or in part) may be paid in such other manner and within such time as the Board may allow.”. |
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| 12. In the principal Act, in section 61B(1A), replace “or special account” wherever it appears with “, special account or retirement account”. |
| 13. In the principal Act, in section 66A(2), replace “or special account” with “, special account or retirement account”. |
14. In the principal Act, in section 71, after subsection (6), insert —| “(6A) Despite subsection (6), if any interest was credited to the member’s special account in respect of the amount of the refund or payment but the special account has since been closed under section 13AA(1), any interest for the purposes of subsection (6)(a), (b) or (c) may be determined in accordance with section 13AA(5), (6), (7) or (8), whichever is applicable.”. |
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15. In the principal Act, in section 75(2)(c) —| (a) | in sub-paragraph (ii), replace “section 13(7H)” with “section 13(7H), (7HA), (7HB)”; and | | (b) | after sub-paragraph (ii), insert —| “(iia) | a transaction under section 13AA or in accordance with that section;”. |
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16. In the principal Act, in section 77(1), after paragraph (ka), insert —| “(kb) | for the purposes of sections 13(5AA), 13AA and 15(1B) and (7E) and other provisions of this Act relating to the use of a special account or its closure, including in relation to —| (i) | the transfer of moneys from a member’s special account to the member’s retirement account or ordinary account, or both, in connection with the closure of the special account; | | (ii) | the transfer of moneys between subsidiary accounts of a member; | | (iii) | the transfer of moneys from a member’s subsidiary account to another member’s subsidiary account, or to the general moneys of the Fund; | | (iv) | the order in which moneys or interest (or both) may be paid to, or deducted, transferred or withdrawn from, a member’s retirement account or ordinary account, or both; | | (v) | the allocation between the retirement account and ordinary account of a member of moneys or interest (or both) that may be paid to, or deducted, transferred or withdrawn from, either or both of those accounts; | | (vi) | the different application of any of the matters described in sub‑paragraphs (i) to (v) in different circumstances or for different classes of members; and | | (vii) | any transitional, saving and other consequential, incidental and supplemental provisions in connection with the closure of the special account that are necessary or expedient;”. |
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