Central Provident Fund (Amendment) Bill

Bill No. 4/2016

Read the first time on 26th January 2016.

An Act to amend the Central Provident Fund Act (Chapter 36 of the 2013 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 is the Central Provident Fund (Amendment) Act 2016 and comes into operation on a date that the Minister appoints by notification in the Gazette.

Amendment of section 2

2. Section 2 of the Central Provident Fund Act (called in this Act the principal Act) is amended —

(a)

by deleting the words “, and includes a person who contributes to the Fund voluntarily in accordance with section 13B” in the definition of “ “member of the Fund” or “member” ” in subsection (1);

(b)

by deleting the definition of “retirement account” in subsection (1) and substituting the following definition:

“ “retirement account” means a retirement account —

(a)	maintained for the crediting, transfer and payment to the account of moneys or contributions in accordance with this Act; and
(b)	from which withdrawals, transfers and deductions may be made in accordance with this Act;”;

(c)

by inserting, immediately after the definition of “securities account” in subsection (1), the following definition:

“ “self-employed person” has the meaning given to it in any regulations made under section 77(1)(e);”;

(d)

by inserting, immediately after subsection (1), the following subsection:

“(1AA) In this Act —

(a)	a reference to the former section 15(6C)(b) is a reference to section 15(6C)(b), as in force immediately before the date of commencement of section 9(1) of the Central Provident Fund (Amendment) Act 2016; and
(b)	a reference to an amount referred to in section 15(6C)(a) is a reference to an amount deposited with an approved bank or retained in the member’s retirement account under that section or the former section 15(6C)(b).”; and

(e)

by deleting subsection (2).

Amendment of section 7

3. Section 7 of the principal Act is amended —

(a)

by inserting, immediately after the words “the First Schedule” in subsection (4), the words “, and subject to such terms and conditions as the Board may impose”;

(b)

by inserting, immediately after subsection (4), the following subsection:

“(4A) Despite subsection (4), the Board may refuse to credit any voluntary contribution received under subsection (4) to an employee’s account in the Fund —

(a)

where the amount of the intended voluntary contribution for any year, if paid into the Fund to the employee’s credit, will result in the prescribed sum under section 13B(3) being exceeded for that year;

(b)

where the intended voluntary contribution is to be made only to the medisave account of the employee and the amount of the intended voluntary contribution, if paid into the employee’s medisave account, will result in —

(i)	the total amount in the employee’s medisave account exceeding the amount that the Minister directs under section 13(6); or
(ii)	the prescribed sum under section 13B(3) being exceeded for that year; or

(c)

in such other circumstances as may be prescribed in regulations made under section 77(1).”;

(c)

by deleting the word “and” at the end of subsection (8)(a); and

(d)

by deleting paragraph (b) of subsection (8) and substituting the following paragraphs:

“(b)

the payment of contributions on such additional wages as may be specified in the First Schedule, and the computation of such contributions which may —

(i)	be based on the wages of an employee for the preceding year or the current year; and
(ii)	be adjusted at the end of the year or in the last month of the employee’s employment with the employer based on the employee’s actual wages for the year; and

(c)

modifications to the contributions payable on an employee’s additional wages for any year by any of the employee’s employers which the Board is satisfied —

(i)	are related in a manner approved by the Board; and
(ii)	meet any requirements specified by the Board.”.

Amendment of section 10

4. Section 10 of the principal Act is amended by inserting, immediately after subsection (2), the following subsection:

“(3) Despite anything in this Act, no money in the Fund is to be used to make any payment for the purposes of Part IIIB or IV or any costs or expenses incurred in the administration of the Lifelong Income Scheme or the Home Protection Insurance Scheme, except for withdrawals or deductions from any of a member’s accounts in the Fund made in accordance with this Act.”.

Amendment of section 13

5. Section 13 of the principal Act is amended —

(a)

by deleting subsection (1) and substituting the following subsections:

“(1) Subject to subsections (7A) to (7G), the following subsidiary accounts are to be maintained for each member in respect of the money standing to the member’s credit in the Fund:

(a)	an ordinary account;
(b)	a medisave account;
(c)	a special account.

(1A) An account referred to in subsection (1) is an account —

(a)	maintained for the crediting, transfer and payment to the account of moneys or contributions in accordance with this Act or the MediShield Life Scheme Act 2015 (Act 4 of 2015); and
(b)	from which withdrawals, transfers and deductions may be made in accordance with this Act or the MediShield Life Scheme Act 2015.”;

(b)

by deleting the words “and retirement account” in subsection (5A)(a) and substituting the words “, retirement account and nominee account”;

(c)

by deleting subsection (7) and substituting the following subsection:

“(7) Where there is no balance in the medisave account of a member, the Board may, on the member’s application and with the Minister’s approval, transfer to the member’s medisave account the whole or such part, as the Board may determine, of —

(a)	the amount standing to the member’s credit in any designated account, not exceeding the total amount which had been transferred from the medisave account to that designated account under subsection (6) (called in this subsection the transferred amount); and
(b)	any interest that would have been payable on the transferred amount if the transfer had not been made.”;

(d)

by deleting subsections (7C) and (7D) and substituting the following subsections:

“(7C) Where the Board has made an initial transfer specified in subsection (7D) of any amount standing to a member’s credit in the Fund from any account of the member in the Fund (called in this subsection Account A), the Board may in such circumstances as may be prescribed in any regulations made under section 77(1) —

(a)	restore to Account A or transfer to such other account of the member in the Fund as may be prescribed in those regulations (called in this subsection Account B), the whole or such part, as the Board may determine, of the amount of the initial transfer; and
(b)	pay into Account A or Account B (as the case may be) the whole or such part, as the Board may determine, of any interest that would have been payable on the amount restored to Account A or transferred to Account B, if the initial transfer had not been made.

(7D) The initial transfer referred to in subsection (7C) is —

(a)	a transfer to the member’s ordinary account under subsection (7A);
(b)	a transfer to the general moneys of the Fund under subsection (7B); or
(c)	a transfer to the general moneys of the Fund under any regulations made under section 77(1).”; and

(e)

by deleting the words “or 13B(1)(b) or (2)(b)” in subsection (7I) and substituting the words “, 13B(1)(b) or (2)(b) or 13C”.

Amendment of section 13B

6. Section 13B of the principal Act is amended —

(a)

by inserting, immediately after the words “section 77(1)” in subsections (1) and (2), the words “, and such terms and conditions as the Board may impose”;

(b)

by deleting the words “, for the purposes specified in section 13(1),” in subsections (1)(b) and (2)(b);

(c)

by deleting the words “Subject to subsection (3A), the” in subsection (3) and substituting the word “The”;

(d)

by deleting subsection (3A); and

(e)

by inserting, immediately after subsection (4), the following subsection:

“(5) Despite subsections (1) and (2), the Board may refuse to credit any voluntary contribution received under subsection (1)(a), (2)(a) or (3)(c) to a member’s account in the Fund under this section —

(a)

where the amount of the intended voluntary contribution for any year, if paid into the Fund to the person’s credit, will result in the prescribed sum under subsection (3) being exceeded for that year;

(b)

where the intended voluntary contribution is to be made only to the medisave account of the person and the amount of the intended voluntary contribution, if paid into the person’s medisave account, will result in —

(i)	the total amount in the person’s medisave account exceeding the amount that the Minister directs under section 13(6); or
(ii)	the prescribed sum under subsection (3) being exceeded for that year; or

(c)

in such other circumstances as may be prescribed in regulations made under section 77(1).”.

New section 13C

7. The principal Act is amended by inserting, immediately after section 13B, the following section:

“Other contributions to Fund

13C.—(1) This section applies to a person who —

(a)	has withdrawn the sum standing to the person’s credit in the Fund by virtue of section 15(2)(b) or (c); and
(b)	subsequently applies to be or becomes a citizen or permanent resident of Singapore.

(2) Despite anything in this Act, the Board may, in any particular case, permit a person referred to in subsection (1) to contribute to the Fund, if the person satisfies such conditions as the Board may impose.

(3) Where the Board permits a person to contribute to the Fund, the Board may determine the manner and amount of the person’s contribution to the Fund, including —

(a)	the account or accounts of that person in the Fund to which the amount of contribution is to be credited; and
(b)	the amount to be credited into each account of that person in the Fund.

(4) A contribution which the Board may permit under this section is not subject to any maximum limit, despite anything in this Act.”.

Amendment of section 14

8. Section 14 of the principal Act is amended —

(a)

by inserting, immediately after the words “such account” in subsection (1), the words “in the Fund”;

(b)

by inserting, immediately after subsection (1), the following subsection:

“(1A) Where —

(a)

the Board, pursuant to an activity engaged under section 76(1)(a) —

(i)	has attempted to make a cash payment to a person by issuing a cheque or other physical payment instrument to the person; and
(ii)	has sent a notice to the person of the issue of the cheque or other physical payment instrument, whether or not the person receives the notice; and

(b)

the cheque or other physical payment instrument has been returned to the Board or has expired before it is encashed,

the Board may, in lieu of making the cash payment, credit an amount equivalent to the value of the cash payment into such account of that person in the Fund as the Minister may direct.”;

(c)

by inserting, immediately after the words “cash grant” wherever they appear in subsections (2) and (3), the words “or payment”;

(d)

by inserting, immediately after the words “subsection (1)” in subsection (2), the words “or (1A), as the case may be,”; and

(e)

by inserting, immediately after the word “Government” in the section heading, the words “or other payments”.

Amendment of section 15

9.—(1) Section 15 of the principal Act is amended —

(a)

by deleting subsection (6C) and substituting the following subsection:

“(6C) The amount standing to the credit of a member in the member’s retirement account may, in accordance with such terms and conditions as the Board may impose, be used or withdrawn in all or any of the following manner:

(a)	deposited before 1 January 2014 with an approved bank or retained in the member’s retirement account;
(b)	withdrawn to purchase an approved annuity from an insurer;
(c)	withdrawn to pay a premium referred to in section 27L(1) or (1A);
(d)	used, transferred or withdrawn in any other circumstances as permitted under this Act.”;

(b)

by deleting subsection (7) and substituting the following subsection:

“(7) Where a member has deposited the amount referred to in subsection (6C)(a) with an approved bank or retained that amount in the member’s retirement account, the member is, on attaining the prescribed age, entitled to withdraw that amount or such part of that amount and any interest accruing on that amount, as the Board may determine, in accordance with any regulations made under section 77(1).”;

(c)

by deleting the words “shall be entitled to withdraw the amount referred to in subsection (6C)(b), or such part thereof as the Board may determine, from his account with an approved bank or his retirement account” in subsection (7A) and substituting the words “is entitled, in accordance with any regulations made under section 77(1), to withdraw the amount referred to in subsection (6C)(a) which is deposited with an approved bank or retained in the member’s retirement account or such part of that amount as the Board may determine”;

(d)

by deleting the words “referred to in subsection (6C)(b) or any part thereof from his account with an approved bank or his retirement account” in subsection (7B) and substituting the words “referred to in subsection (6C)(a) which is deposited with an approved bank or retained in the member’s retirement account or any part of that amount”;

(e)

by deleting subsection (8C) and substituting the following subsection:

“(8C) A member who has attained the prescribed age and who need not comply with subsection (6)(a) by reason of subsection (8)(e) is entitled, in accordance with any regulations made under section 77(1) —

(a)	where any amount standing to the member’s credit in the member’s retirement account is deposited with an approved bank or retained in the member’s retirement account under subsection (6C)(a), to withdraw the amount or such part of the amount, as the Board may determine, which was so deposited or retained; and
(b)	where any amount standing to the member’s credit in the member’s retirement account is used to purchase an approved annuity under subsection (6C)(b), to surrender the approved annuity.”;

(f)

by inserting, immediately after the words “referred to in” in subsections (9)(a), (9A)(a), (10)(a) and (10A)(a), the words “the former”;

(g)

by inserting, immediately after the words “permit the member” in subsections (11), (11A), (11B) and (11C), the words “, in accordance with any regulations made under section 77(1)”;

(h)

by deleting paragraph (a) of subsection (11) and substituting the following paragraph:

“(a)	to withdraw the amount referred to in subsection (6C)(a) which is deposited with an approved bank or retained in the member’s retirement account or any part of that amount; or”;

(i)

by deleting paragraph (a) of subsection (11A) and substituting the following paragraph:

“(a)	to withdraw the amount referred to in subsection (6C)(a) which is deposited with an approved bank or retained in the member’s retirement account or any part of that amount; or”;

(j)

by deleting paragraph (a) of subsection (11B) and substituting the following paragraph:

“(a)	to withdraw the amount referred to in subsection (6C)(a) which is deposited with an approved bank or retained in the member’s retirement account or any part of that amount; or”;

(k)

by deleting paragraph (a) of subsection (11C) and substituting the following paragraph:

“(a)	to withdraw the amount referred to in subsection (6C)(a) which is deposited with an approved bank or retained in the member’s retirement account or any part of that amount; or”; and

(l)

by deleting the words “subsection (6C)(b) or part thereof from his account with an approved bank or his retirement account” in subsection (11D) and substituting the words “subsection (6C)(a) which is deposited with an approved bank or retained in the member’s retirement account or any part of that amount”.

(2) Section 15 of the principal Act, as amended by subsection (1), is amended by inserting, immediately after subsection (8C), the following subsections:

“(8D) Despite sections 14(2), 15(2), (2A), (6), (6C), (7), (7B) and (8A) and 27, where the Board has transferred or paid any amount into a member’s account in the Fund (called in this section the transferred amount), the Board may, on the member’s application, permit the member to withdraw an amount determined by the Board —

(a)	from one or more accounts in the Fund as the Board may determine;
(b)	in circumstances prescribed by regulations made under section 77(1); and
(c)	if the member satisfies such requirements as the Board may specify.

(8E) An application under subsection (8D) must be made within such time as may be prescribed by regulations made under section 77(1), and different times may be prescribed for different types of withdrawals.

(8F) The amount that the Board may permit a member to withdraw under subsection (8D) must not exceed the transferred amount.”.

Amendment of section 17

10. Section 17 of the principal Act is amended by deleting paragraph (b) and substituting the following paragraphs:

“(b)

for the payment of —

(i)	any improvement contribution due to the Housing and Development Board in respect of upgrading works carried out under Part IVA of the Housing and Development Act (Cap. 129) or to a Town Council in respect of lift upgrading works carried out under Part IVA of the Town Councils Act (Cap. 329A);
(ii)	any interest imposed by the Housing and Development Board or the Town Council, as the case may be, on the improvement contribution referred to in sub-paragraph (i), where the improvement contribution is paid in instalments; and
(iii)	any costs, fees or other incidental expenses arising from such works;

(c)

for such other purposes as permitted under, and in accordance with, this Act.”.

Amendment of section 18

11. Section 18(1) of the principal Act is amended by deleting sub‑paragraph (ii) of paragraph (c) and substituting the following sub‑paragraph:

“(ii)

any other sum that the Board may allow, being a sum not exceeding such sum as may be prescribed by any regulations made under section 77(1)(o).”.

Amendment of section 18A

12. Section 18A of the principal Act is amended by deleting subsection (2) and substituting the following subsection:

“(2) In this section, “prescribed amount” means an amount prescribed by regulations made under section 77(1)(o).”.

Amendment of section 21

13. Section 21(1) of the principal Act is amended by deleting paragraph (ca) and substituting the following paragraph:

“(ca)

to pay —

(i)	any improvement contribution due to the Housing and Development Board in respect of upgrading works carried out under Part IVA of the Housing and Development Act (Cap. 129) or to a Town Council in respect of lift upgrading works carried out under Part IVA of the Town Councils Act (Cap. 329A);
(ii)	any interest imposed by the Housing and Development Board or the Town Council, as the case may be, on the improvement contribution referred to in sub-paragraph (i), where the improvement contribution is paid in instalments; and
(iii)	any costs, fees or other incidental expenses arising from such works;”.

Amendment of section 21B

14. Section 21B(1) of the principal Act is amended by deleting paragraph (c) and substituting the following paragraph:

“(c)

to pay —

(i)	any improvement contribution due to the Housing and Development Board in respect of upgrading works carried out under Part IVA of the Housing and Development Act (Cap. 129) or to a Town Council in respect of lift upgrading works carried out under Part IVA of the Town Councils Act (Cap. 329A);
(ii)	any interest imposed by the Housing and Development Board or the Town Council, as the case may be, on the improvement contribution referred to in sub-paragraph (i), where the improvement contribution is paid in instalments; and
(iii)	any costs, fees or other incidental expenses arising from such works; or”.

Amendment of section 22

15. Section 22 of the principal Act is amended by inserting, immediately after subsection (4), the following subsection:

“(4A) Any person who gives or has given an undertaking under subsection (3) to the Board in relation to any withdrawal under subsection (1) for payment to an approved educational institution may, if that person has attained 16 years of age, consent —

(a)

to the approved educational institution disclosing to the Board such information, evidence or document about that person as the Board may reasonably require for the purpose of carrying out the provisions of this section or regulations made under section 23; and

(b)

to the Board disclosing to any other person such information, evidence or document relating to that person as may be necessary or expedient —

(i)	for the purpose of carrying out the provisions of this section or regulations made under section 23; or
(ii)	to facilitate the enforcement of an undertaking given, or a payment or repayment required, under this section.”.

Amendment of section 24

16. Section 24(1) of the principal Act is amended by deleting paragraph (e) and substituting the following paragraph:

“(e)	any moneys referred to in section 15(6C)(a) or 15B(2) which is deposited by a member with an approved bank and any interest on those moneys, and any withdrawals from the moneys and interest;”.

Amendment of section 27

17. Section 27(2A) of the principal Act is amended by deleting the word “or” in paragraph (b) and substituting the word “of”.

Amendment of section 27B

18. Section 27B of the principal Act is amended —

(a)	by inserting, immediately after the words “section 13(7),” in subsections (6)(b)(i) and (7)(b)(i), “15(8D),”; and
(b)	by deleting the words “or 22” in subsections (6)(b)(i) and (7)(b)(i) and substituting in each case the words “, 22 or 57DA”.

Amendment of section 27C

19. Section 27C of the principal Act is amended by deleting paragraph (a) of subsections (1) and (2) and substituting in each case the following paragraph:

“(a)	a member of the Fund has withdrawn the amount referred to in section 15(6C)(a) which is deposited with an approved bank or retained in the member’s retirement account or any part of that amount, or has surrendered his approved annuity, under section 15(9) or (9A);”.

Amendment of section 27D

20. Section 27D of the principal Act is amended by deleting paragraph (a) of subsections (1) and (2) and substituting in each case the following paragraph:

“(a)	a member of the Fund has withdrawn the amount referred to in section 15(6C)(a) which is deposited with an approved bank or retained in the member’s retirement account or any part of that amount, or has surrendered his approved annuity, under section 15(10) or (10A);”.

Amendment of section 27DA

21. Section 27DA of the principal Act is amended by deleting paragraph (a) of subsections (1) and (2) and substituting in each case the following paragraph:

“(a)	a member of the Fund has withdrawn the amount referred to in section 15(6C)(a) which is deposited with an approved bank or retained in the member’s retirement account or any part of that amount, or has surrendered his approved annuity, under section 15(11), (11A), (11B) or (11C);”.

Amendment of section 27K

22. Section 27K of the principal Act is amended —

(a)

by deleting subsections (2) to (5) and substituting the following subsections:

“(2) Subject to subsections (3) to (5A) and the relevant regulations, the Scheme applies to every member who —

(a)

attains 55 years of age, on or after 1 January 2013; and

(b)

on an assessment date applicable to the member, satisfies all of the following requirements:

(i)	the member is a citizen or permanent resident of Singapore;
(ii)	the member is entitled under section 15(2)(a), (3) or (4) to withdraw any sum standing to the member’s credit in the Fund and would be required to comply with section 15(6)(a) if the member were to make such a withdrawal;
(iii)	the amount standing to the member’s credit in the member’s retirement account is not less than such amount as may be prescribed in the relevant regulations for the purposes of this sub-paragraph.

(3) The Scheme —

(a)	does not apply to an excluded member; or
(b)	if the member is a relevant member, ceases to apply when the member becomes an excluded member.

(4) The Board may, on such terms and conditions as the Board may impose, approve a member’s application to be an excluded member.

(5) Despite subsections (2), (3) and (4), the Board may, on such terms and conditions as the Board may impose, approve a member’s application to join the Scheme if the member —

(a)	has attained such age as may be prescribed in the relevant regulations, or such earlier age as the Board may permit in a particular case; and
(b)	is a citizen or permanent resident of Singapore.

(5A) Despite subsections (2), (3) and (4), the Scheme —

(a)	applies to a member whose application to join the Scheme has been approved under subsection (5); and
(b)	ceases to apply to that member only when the Board’s approval under subsection (5) is cancelled under subsection (5B).

(5B) The Board may cancel an approval given under subsection (4) or (5) —

(a)	if the member does not comply with any terms or conditions imposed by the Board; or
(b)	in any other circumstances prescribed by the Minister in the relevant regulations.

(5C) Where the Board cancels an approval given under subsection (4) or (5), the Board may specify the time (on or after the time of occurrence of the circumstances, referred to in subsection (4) or (5), as the case may be, which gave rise to the cancellation) that the cancellation takes effect.”; and

(b)

by inserting, immediately after subsection (8), the following subsection:

“(9) In this section —

“assessment date” means —

(a)	for a member who attains 55 years of age on or after 1 January 2013 but before the date of commencement of section 22 of the Central Provident Fund (Amendment) Act 2016, the date the member attains 55 years of age or any other time prescribed in the relevant regulations for the purposes of subsection (2)(b); or
(b)	for a member who attains 55 years of age on or after the date of commencement of section 22 of the Central Provident Fund (Amendment) Act 2016, the time prescribed in the relevant regulations for the purposes of subsection (2)(b);

“excluded member” means a member —

(a)	who belongs to any class of members prescribed under the relevant regulations for the purposes of subsection (3); or
(b)	whose application under subsection (4) has been approved by the Board and the approval remains in force.”.

Amendment of section 27Q

23. Section 27Q of the principal Act is amended by inserting, immediately after subsection (2), the following subsections:

“(3) Different times may be prescribed for different classes of members for the purposes of paragraphs (a) and (b) of the definition of “assessment date” in section 27K(9).

(4) Different amounts may be prescribed for different classes of members for the purposes of section 27K(2)(b)(iii).”.

Amendment of section 28

24. Section 28(1) of the principal Act is amended —

(a)

by deleting the definition of “incapacitated” and substituting the following definitions:

“ “incapacitated” means suffering from —

(a)	a total permanent disability; or
(b)	a terminal illness which arises on or after the date of commencement of section 24 of the Central Provident Fund (Amendment) Act 2016,

and “incapacity” is to be construed accordingly;

“insured sum” means the sum prescribed in regulations made under this Part which is payable on the death or incapacity of a Scheme member;”;

(b)

by deleting the definition of “member of the Scheme” and substituting the following definition:

“ “member of the Scheme” or “Scheme member” means a person who is insured under the Scheme;”; and

(c)

by deleting the full-stop at the end of the definition of “Scheme” and substituting a semi-colon, and by inserting immediately thereafter the following definitions:

“ “terminal illness” means any illness that a registered medical practitioner under the Medical Registration Act (Cap. 174) certifies is expected to result in death within 12 months;

“total permanent disability” means —

(a)

being physically or mentally incapacitated from ever continuing in any employment; or

(b)

the total or permanent loss, which arises on or after the date of commencement of section 24 of the Central Provident Fund (Amendment) Act 2016, of the physical function of —

(i)	2 eyes;
(ii)	2 limbs; or
(iii)	one eye and one limb.”.

Amendment of section 29

25. Section 29 of the principal Act is amended —

(a)

by deleting subsection (1) and substituting the following subsection:

“(1) The Board is authorised to establish and maintain a Home Protection Insurance Scheme to provide for an insured sum to be paid in respect of any person who is a Scheme member, in accordance with the provisions of this Part, on the person’s death or incapacity at any time during the period in which the person is insured under the Scheme.”; and

(b)

by deleting the words “cancel or terminate” in subsection (7) and substituting the words “issue to a member a cover under the Scheme, or cancel, terminate or reinstate”.

Amendment of section 31

26. Section 31 of the principal Act is amended by deleting subsections (1) and (2) and substituting the following subsections:

“(1) Subject to subsection (2), a person is not entitled to join the Scheme if the Board is not satisfied that the person is in good health at the time the insurance cover under the Scheme is to commence.

(2) The Board may, on the application of a person who is not entitled to join the Scheme solely by reason of subsection (1), permit the person to join the Scheme, subject to such terms and conditions as the Board may impose either generally or in a particular case.”.

Amendment of section 32

27. Section 32 of the principal Act is amended —

(a)

by deleting subsection (4) and substituting the following subsection:

“(4) Where the amount of the premium which a Scheme member is liable to pay under the Scheme exceeds the amount standing to the Scheme member’s credit in the Fund, the deficiency may be paid in either or both of the following manner:

(a)	the Board may deduct the deficiency (in whole or in part) from any payment from the insured sum which the Board may make under the Scheme under section 36(1), (2) or (6);
(b)	the deficiency may be paid in such other manner and within such time as the Board may determine.”;

(b)

by deleting the words “permit a joint-owner who is a spouse of the first-mentioned joint-owner” in subsection (5) and substituting the words “(on such terms and conditions as the Board may impose) permit such other joint-owner of the immovable property”; and

(c)

by inserting, immediately after subsection (5), the following subsection:

“(6) The other joint-owner referred to in subsection (5) —

(a)	need not be insured under the Scheme; and
(b)	must satisfy such other criteria as the Board may determine.”.

Amendment of section 36

28. Section 36 of the principal Act is amended —

(a)

by deleting the words “forthwith pay such amount” in subsection (1) and substituting the words “pay such amount deducted from the Scheme member’s insured sum”;

(b)

by inserting, immediately after the words “pay such amount” in subsection (2)(a), the words “deducted from the Scheme member’s insured sum”;

(c)

by inserting, immediately after the words “exceeding 2 years” in subsection (2)(b), the words “, by deducting the amount from the Scheme member’s insured sum”;

(d)

by deleting the words “such an amount as is prescribed under regulations made under this Part” in subsection (5) and substituting the words “the Scheme member’s insured sum”;

(e)

by deleting subsection (6) and substituting the following subsection:

“(6) Despite subsection (2)(b), if the incapacity of the Scheme member is in the opinion of the Board likely to continue for more than 2 years, the Board must pay the Housing Authority or the approved mortgagee an amount as is prescribed by regulations made under this Part.”;

(f)

by inserting, immediately after subsection (8), the following subsection:

“(8A) The Board must credit the excess of the Scheme member’s insured sum over the amount payable under this section to the Scheme member’s account in the Fund.”;

(g)

by deleting the word “or” at the end of subsection (10)(a);

(h)

by deleting the full-stop at the end of paragraph (b) of subsection (10) and substituting the word “; or”, and by inserting immediately thereafter the following paragraph:

“(c)	was suffering from an illness when the member joined the Scheme, unless the Board permitted the member to join the Scheme when it knew that the member was suffering from that illness.”; and

(i)

by inserting, immediately after subsection (10), the following subsections:

“(11) Subsection (9) does not limit the particulars, facts and circumstances which may be taken to be material for the purposes of subsection (10)(a) or (b).

(12) Despite subsections (9) and (10), the Board may, on proof of death or incapacity of a Scheme member, pay in any circumstances prescribed by regulations made under this Part the whole or part of the insured sum.

(13) Any payment made by the Board in respect of a Scheme member before the date of commencement of section 28 of the Central Provident Fund (Amendment) Act 2016, which if made after that date would be permitted under subsection (12), is taken to be and always to have been validly paid, and no legal proceedings lie or may be instituted or maintained in any court of law on account of or in respect of any such payment.”.

Amendment of section 39

29. Section 39 of the principal Act is amended —

(a)

by deleting paragraph (ca) and substituting the following paragraph:

“(ca)

prescribe the insured sum in respect of each class of Scheme members;”;

(b)

by deleting paragraph (ea); and

(c)

by deleting paragraph (f) and substituting the following paragraph:

“(f)

provide for the refund of any premium (and the whole or such part, as the Board may determine, of any interest that would have been payable on the amount of the premium if that amount had been standing to a person’s credit in the person’s account in the Fund), the manner in which the premium and interest are to be refunded and the circumstances in which the refund is to be made and at such rates as may be prescribed by the Minister;”.

Amendment of section 40

30. Section 40 of the principal Act is amended by deleting the full‑stop at the end of the definition of “Scheme” and substituting a semi‑colon, and by inserting immediately thereafter the following definition:

“ “serious illness”, in relation to an insured person, means any illness that —

(a)	is likely to result in a claim under that insured person’s insurance cover under the Scheme; and
(b)	the Board has specified for the purposes of section 43(1), in a manner accessible to the insured person, as a serious illness which the insured person must disclose to the Board.”.

Amendment of section 42

31. Section 42 of the principal Act is amended —

(a)

by inserting, immediately after the words “subsection (2)” in subsection (4), the words “but without prejudice to section 43A”; and

(b)

by inserting, immediately after subsection (5), the following subsection:

“(6) The Board or an appointed insurer, as the case may be, may, in such circumstances as may be prescribed by regulations made under this Part —

(a)	refuse to insure, under the Scheme, any person who has made an application under subsection (4);
(b)	insure a person under the Scheme subject to such terms and conditions as the Board or appointed insurer may impose either generally or in a particular case; or
(c)	continue to insure a person referred to in section 43(1), subject to such terms and conditions as the Board or appointed insurer may impose either generally or in a particular case.”.

Amendment of section 43

32. Section 43 of the principal Act is amended —

(a)

by deleting the words “terminal illness” in subsection (1) and substituting the words “serious illness”; and

(b)

by inserting, immediately after subsection (4), the following subsections:

“(5) Subsection (1) applies to a person’s insurance cover under the Scheme which commenced before, on or after the date of commencement of section 32 of the Central Provident Fund (Amendment) Act 2016.

(6) Where a person’s insurance cover under the Scheme —

(a)	was cancelled before the date of commencement of section 32 of the Central Provident Fund (Amendment) Act 2016; and
(b)	could be cancelled under subsection (1) if it were still in force on that date,

that cancellation is taken to be and always to have been validly made, and no legal proceedings lie or may be instituted or maintained in any court of law on account of or in respect of that cancellation.”.

New section 43A

33. The principal Act is amended by inserting, immediately after section 43, the following section:

“Board may reinstate, etc., member’s cover

43A. The Board may reinstate an insured person’s cover under the Scheme or issue a cover to any person, in such circumstances as may be prescribed by regulations made under this Part.”.

Amendment of section 45

34. Section 45 of the principal Act is amended by deleting subsection (4) and substituting the following subsection:

“(4) Where the amount of the premium which an insured person is liable to pay under the Scheme exceeds the amount standing to the person’s credit in the person’s ordinary and special accounts, the deficiency may be paid in either or both of the following manner:

(a)	the Board or the appointed insurer, as the case may be, may deduct the deficiency (in whole or in part) from any payment from the insured sum which the Board or the appointed insurer may make under the Scheme under section 49;
(b)	the deficiency may be paid in such other manner and within such time as the Board may determine.”.

Amendment of section 47

35. Section 47 of the principal Act is amended by deleting subsection (1) and substituting the following subsection:

“(1) On payment of the prescribed premium payable under section 45 for an insured person, the person is covered under the Scheme by the Board or an appointed insurer assigned by the Board, as the case may be, for a period of 12 months beginning on —

(a)	the date of such payment; or
(b)	where the insured person’s insurance cover is issued under section 43A, such other date as may be prescribed under section 51(e).”.

Amendment of section 51

36. Section 51 of the principal Act is amended —

(a)

by deleting paragraph (d) and substituting the following paragraph:

“(d)

provide for the refund of any premium (and the whole or such part, as the Board may determine, of any interest that would have been payable on the amount of the premium if that amount had been standing to an insured person’s credit in the person’s account in the Fund), the manner in which the premium and interest are to be refunded and the circumstances in which the refund is to be made and at such rates as may be prescribed by the Minister;”; and

(b)

by deleting paragraph (e) and substituting the following paragraph:

“(e)	provide for the commencement of cover under the Scheme;”.

Amendment of section 57D

37. Section 57D(1) of the principal Act is amended by deleting the words “fine prescribed under section 61 or penalty prescribed under” and substituting the words “penalty prescribed under section 61 or”.

New section 57DA

38. The principal Act is amended by inserting, immediately after section 57D, the following section:

“Withdrawal from Fund where relevant contribution credited into account of eligible member in certain circumstances

57DA.—(1) Despite sections 14(2), 15(2), (2A), (6), (6C), (7), (7B) and (8A) and 27, where the Board has credited a relevant contribution into an eligible member’s account in the Fund (called in this section the contribution amount), the Board may, on the member’s application, permit the member to withdraw an amount determined by the Board —

(a)	from one or more accounts in the Fund as the Board may determine;
(b)	in circumstances prescribed by regulations made under section 57F; and
(c)	if the member satisfies such requirements as the Board may specify.

(2) An application under subsection (1) must be made within such time as may be prescribed by regulations made under section 57F.

(3) The amount that the Board may permit a member to withdraw under subsection (1) must not exceed the contribution amount.”.

Amendment of section 57F

39. Section 57F(2) of the principal Act is amended —

(a)

by deleting the words “or relevant contribution” in paragraph (f) and substituting the words “, relevant contribution or amount withdrawn under section 57DA”; and

(b)

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

“(fa)

the whole or any part of the interest paid on the amount withdrawn from the member’s account under section 57DA to be dealt with in all or any of the following manner:

(i)	retained in that account;
(ii)	withdrawn from that account and paid to the member;
(iii)	transferred to the general moneys of the Fund;”.

Amendment of section 61B

40. Section 61B of the principal Act is amended —

(a)	by deleting the word “fine” in subsection (1) and substituting the word “penalty”; and
(b)	by deleting the words “fine prescribed under this Act or penalty prescribed under that law” in subsection (1A) and substituting the words “penalty prescribed under this Act or under that other written law”.

New Part VIIA

41. The principal Act is amended by inserting, immediately after section 67, the following Part:

“PART VIIA

ADMINISTRATIVE PENALTIES

Interpretation of this Part

67A. In this Part, unless the context otherwise requires —

“approved applicant” means a Medisave healthcare provider or an insurer which is approved —

(a)	under section 67B(2) to submit a withdrawal application on behalf of a member; or
(b)	before the date of commencement of section 41 of the Central Provident Fund (Amendment) Act 2016, to submit a withdrawal application on behalf of any member;

“Medisave healthcare provider” means a person or an institution that has provided or is providing any medical, psychiatric or other treatment or services prescribed under section 77(1)(j);

“withdrawal application” means an application, submitted on behalf of a member, to the Board —

(a)	by a Medisave healthcare provider for any sum standing to the member’s credit in the member’s medisave account to be withdrawn and paid to the Medisave healthcare provider in respect of medical, psychiatric or other treatment or services prescribed under section 77(1)(j); or
(b)	by an insurer for any sum standing to a member’s credit in the member’s medisave account to be withdrawn and paid to the insurer as a premium in respect of a medical insurance scheme or other insurance scheme referred to in section 77(1)(k).

Application to withdraw money from member’s medisave account by approved applicant

67B.—(1) A person may not, on behalf of a member, submit a withdrawal application to the Board for the withdrawal of any sum standing to the member’s credit in the member’s medisave account unless the person is approved under subsection (2).

(2) The Board may, with the concurrence of the Minister charged with the responsibility for health, approve a Medisave healthcare provider or an insurer to submit any withdrawal applications on such terms and conditions as the Board may require.

(3) The Board may, at any time, order the audit of an approved applicant in such manner as it may direct.

(4) Subject to subsection (6), the Board may, with the concurrence of the Minister charged with the responsibility for health, cancel the approval of an approved applicant, by the Board or on the approved applicant’s application.

(5) Where the Board is considering the cancellation of the approval of an approved applicant, the Board may, before the approval is cancelled, suspend the submission of any or all withdrawal applications by the approved applicant.

(6) If the Board imposes a financial penalty on an approved applicant under section 67C, the Board must not cancel the approval of the approved applicant until after —

(a)	the disposal of any appeal against the imposition of the financial penalty and interest for late payment, if any, in accordance with regulations made under section 77(1)(rb); and
(b)	the approved applicant has paid the financial penalty and any interest for late payment that the approved applicant is liable to pay.

Financial penalties for approved applicants

67C.—(1) The Board may impose a financial penalty on an approved applicant for engaging in conduct that contravenes, on or after the date of commencement of section 41 of the Central Provident Fund (Amendment) Act 2016, any regulations made under section 77(1)(rb)(i) and is not an offence.

(2) A financial penalty must not exceed the maximum amount to be prescribed, which in no case may be more than $10,000.

(3) Any financial penalty imposed under subsection (1) and any interest for late payment prescribed under section 77(1)(rb) —

(a)	may be sued for and recovered by the Board under the Government Proceedings Act (Cap. 121) as if it were a debt due to the Government; and
(b)	must be paid into the Consolidated Fund upon collection or recovery by the Board.

(4) The members, officers and employees of the Board, in relation to their administration, assessment, collection and enforcement of payment of financial penalties imposed under subsection (1) —

(a)	are taken to be public officers for the purposes of the Financial Procedure Act (Cap. 109); and
(b)	section 20 of that Act applies to such members, officers and employees of the Board despite not being in the employment of the Government.

Repayment of moneys withdrawn from medisave account

67D.—(1) Where any sum standing to the credit of a member in the member’s medisave account is withdrawn and paid by the Board to —

(a)	an approved applicant which is a Medisave healthcare provider in respect of medical, psychiatric or other treatment or services prescribed under section 77(1)(j); or
(b)	any person as reimbursement for payments made by that person for any medical, psychiatric or other treatment or services prescribed under section 77(1)(j),

the approved applicant referred to in paragraph (a) or the person referred to in paragraph (b), as the case may be, (called in this section the recipient) must, if the withdrawal or payment of the amount paid to the recipient was not in compliance with regulations made under section 77(1)(j) —

(i)	repay to the Board the amount determined by the Board under subsection (3);
(ii)	reimburse the Board for all reasonable expenses incurred by the Board in addressing the non‑compliance with those regulations; and
(iii)	indemnify the Board against any liability incurred by the Board in connection with addressing the non‑compliance with those regulations.

(2) Where any sum standing to the credit of a member in the member’s medisave account is withdrawn and paid by the Board to an insurer as a premium in respect of a medical insurance scheme or other insurance scheme referred to in section 77(1)(k), then, if the withdrawal or payment to the insurer was not in compliance with regulations made under that section, the insurer must —

(a)	repay to the Board the amount determined by the Board under subsection (3);
(b)	reimburse the Board for all reasonable expenses incurred by the Board in addressing the non‑compliance with those regulations; and
(c)	indemnify the Board against any liability incurred by the Board in connection with addressing the non‑compliance with those regulations.

(3) The amount to be repaid under subsection (1)(i) or (2)(a) is the whole or such part as the Board may determine of —

(a)	the amount that was paid to the recipient in subsection (1) or the insurer referred to in subsection (2), as the case may be; and
(b)	the interest which would have been payable on the amount referred to in paragraph (a) if it had not been withdrawn from the medisave account.

(4) Any sum not repaid under subsection (1)(i) or (2)(a) may be sued for and recovered by the Board under section 65.

(5) Any sum not paid to the Board under subsection (1)(ii) or (iii) or (2)(b) or (c) may be sued for and recovered by the Board as a debt due to the Board.

(6) The Board must credit to the member’s medisave account the amount that is determined by the Board under subsection (3).

(7) This section applies —

(a)	whether the amount to be repaid under subsection (1)(i) or (2)(a) was withdrawn from the member’s medisave account or paid to the recipient in subsection (1) or the insurer referred to in subsection (2) (as the case may be) before, on or after the date of commencement of section 41 of the Central Provident Fund (Amendment) Act 2016; and
(b)	even if the recipient in subsection (1) or the insurer referred to in subsection (2) (as the case may be) has no obligation to repay or reimburse the payment to the member or the Board in the circumstances of the case, or is excluded by contract from such obligation.”.

Amendment of section 74

42. Section 74 of the principal Act is amended —

(a)

by deleting subsection (2) and substituting the following subsections:

“(1A) If a claim for a refund or payment of the whole or any part of the money paid in error in any of the circumstances specified in subsection (2) is not received by the Board within one year beginning on the date on which the money was paid in error, the amount claimed —

(a)	is not to be refunded or paid to the claimant but is deemed to have been properly paid under the provisions of this Act in respect of that person or as interest, as the case may be; and
(b)	cannot be set off under subsection (3) against any sum due to the Fund.

(2) For the purposes of subsection (1A), the circumstances in which moneys are paid in error are as follows:

(a)	contributions made by an employer under section 7(1) or (4)(c);
(b)	contributions made by an employee under section 7(4)(b);
(c)	contributions made by a self-employed person under any regulations made under section 77(1)(e);
(d)	interest payable under section 9;
(e)	moneys paid in error to the Fund or as interest under section 9 before the date of commencement of section 42 of the Central Provident Fund (Amendment) Act 2016.”; and

(b)

by deleting the word “If” in subsection (3) and substituting the words “Subject to subsection (1A)(b), if”.

Amendment of section 75A

43. Section 75A of the principal Act is amended by deleting subsection (5).

New sections 75C and 75D

44. The principal Act is amended by inserting, immediately after section 75B, the following sections:

“Refund of excess contributions paid by self-employed person who is alive

75C.—(1) This section applies where the Board is satisfied that the amount of contributions paid for any year by a member who is a self-employed person, under any regulations made under section 77(1)(e), exceeds the amount of contributions payable by the member after recomputation in accordance with those regulations.

(2) Subject to subsections (3), (4) and (5), if any excess contributions referred to in subsection (1) are credited to any account in the Fund of a member who is a self-employed person and the member is alive, the Board may —

(a)

treat the excess contributions as payment towards any future contributions which the member is liable to pay; or

(b)

subject to such terms and conditions as the Board may impose, refund the excess contributions to the member if —

(i)	the member applies in writing for the refund within such time as may be prescribed; and
(ii)	the refund is made in accordance with any regulations made under section 77(1).

(3) The Board may refund the excess contributions to a member, of an amount not exceeding the amount standing to the member’s credit in the account (in which the excess contributions were credited) at the time the Board approves the refund.

(4) Where a member has not applied for a refund under subsection (2) within the prescribed time, the Board may retain the whole or any part of the excess contributions to be used to set off against any contributions or interest on any contributions as is due or may become due to the Board.

(5) 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 provide the Board with such information as the Board considers necessary to determine whether any refund should be made.

Refund of excess voluntary contributions where member is alive

75D.—(1) This section applies where the total amounts referred to in section 13B(3)(a), (b) and (c) which are contributed by or for a member in any year exceeds the sum prescribed under section 13B(3) for that year.

(2) Subject to subsections (4), (5) and (6), where any excess contributions referred to in subsection (1) are credited to any account in the Fund of a member and the member is alive, the Board may, subject to such terms and conditions as it may impose, refund to the member or to any other person such amount of the excess contributions as may be prescribed by regulations made under section 77(1).

(3) Where the member is an employee at any time during that year, and the Board is satisfied that the amount of additional medisave contributions which was paid in that year by his employer for the employee exceeds such sum as the Minister may prescribe by regulations made under section 77(1), the Board may, subject to such terms and conditions as the Board may impose, refund the excess to the employer.

(4) The Board may refund the excess contributions to the member, any other person referred to in subsection (2) or the employer referred to in subsection (3) (as the case may be) of an amount not exceeding the amount standing to the member’s credit in the account (in which the excess contributions were credited) at the time the Board approves the refund.

(5) The Board may require any person to whom any excess contributions are to be refunded under this section to —

(a)	submit an application to the Board for the refund of the excess contributions; and
(b)	provide the Board with such information as the Board considers necessary to determine whether any refund should be made.

(6) The Board may retain the whole or any part of the excess contributions to be used to set off against any contributions or interest on any contributions which is due or may become due to the Board.

(7) In this section, “additional medisave contributions” means the contributions paid by an employer under section 7(4)(c) specifically for the purposes of the medisave account of the employer’s employee.”.

New section 76A

45. The principal Act is amended by inserting, immediately after section 76, the following section:

“Protection from personal liability

76A. No liability shall lie personally against any member, officer or employee of the Board, any other person acting under the Board’s direction or any public officer who, acting in good faith and with reasonable care, does or omits to do anything in the execution or purported execution of this Act.”.

Amendment of section 77

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

(a)

by deleting the words “Town Council in respect of upgrading works” in paragraph (h)(iii)(A) and substituting the words “Town Council in respect of lift upgrading works”;

(b)

by deleting the word “and” at the end of sub-paragraph (A) of paragraph (h)(iii), and by inserting immediately thereafter the following sub-paragraph:

“(AA)

any interest imposed by the Housing and Development Board or the Town Council, as the case may be, on the improvement contribution referred to in sub-paragraph (A), where the improvement contribution is paid in instalments; and”;

(c)

by deleting paragraph (j) and substituting the following paragraph:

“(j)

to provide, in respect of medical, psychiatric or other treatment or services received, or to be received, by a member or by the member’s spouse, child or parent or by such other persons as may be prescribed, for —

(i)	the withdrawal of money from the medisave account of the member for payment for such treatment or services; and
(ii)	the repayment of such payment by any person who has received such payment;”;

(d)

by inserting, immediately after the words “the refund” in paragraph (k)(ii), the words “or repayment”;

(e)

by inserting, immediately after the words “manner in which any such refund” in paragraph (k)(ii), the words “or repayment”;

(f)

by inserting, immediately after “(7),” in paragraph (o), “(8D),”;

(g)

by inserting, immediately after sub-paragraph (ii) of paragraph (o), the following sub-paragraph:

“(iia)

prescribe the circumstances in which any amount standing to the credit of a member in the member’s retirement account is permitted to be used, transferred or withdrawn under section 15(6C)(d), and provide —

(A)	for all or any part of the amount so used, transferred or withdrawn (including the whole or such part, as the Board may determine, of the interest that would have been payable on the amount if the amount had not been so used, transferred or withdrawn) to be paid into any account of the member in the Fund;
(B)	the circumstances in which the payment is to be made; and
(C)	the person who will make the payment;”;

(h)

by deleting the word “and” at the end of paragraph (o)(iv);

(i)

by inserting, immediately after the words “to the Board” in paragraph (o)(v), the words “of the whole or part of the amount”;

(j)

by inserting, immediately after the words “27DA(1) or (2)” in paragraph (o)(v), the words “and for the Board to determine such amount to be paid”;

(k)

by inserting, immediately after sub-paragraph (v) of paragraph (o), the following sub-paragraphs:

“(vi)

provide for the payment into a member’s retirement account of all or any part of the moneys deposited with an approved bank (including any interest on such moneys deposited) or used to purchase an approved annuity in accordance with section 15, the circumstances in which such payment is to be made and the person who will make such payment; and

(vii)

in the case of a member who need not comply with section 15(6)(a) by reason of section 15(8)(e), provide for payment into the member’s retirement account of all or any part of the moneys deposited with an approved bank (including any interest on such moneys deposited) or of such sums when the member’s pension, annuity or other benefit is terminated or surrendered, the circumstances in which such payment is to be made and the person who will make such payment;”; and

(l)

by deleting the word “and” at the end of paragraph (ra), and by inserting immediately thereafter the following paragraph:

“(rb)

to prescribe such matters as are necessary or expedient for giving full effect to section 67C, including —

(i)

requirements and contraventions applicable to approved applicants relating to —

(A)	access to information on a member’s medisave account;
(B)	the accuracy of information in a withdrawal application;
(C)	authorisation by or on behalf of a member for an approved applicant to submit a withdrawal application on behalf of the member; and
(D)	audits ordered by the Board under section 67B(3), and compliance with the Board’s directions in relation to the audit;

(ii)

the payment of interest if a financial penalty is not paid within the time specified in a notice to the approved applicant; and

(iii)

providing for appeals against a decision of the Board to impose a financial penalty or interest for late payment, and the amount of the penalty or interest for late payment imposed, to be made to a panel appointed by the Minister charged with the responsibility for health, and the procedure for making and hearing appeals; and”.

(2) Section 77(1) of the principal Act, as amended by subsection (1), is amended —

(a)

by deleting the word “and” at the end of paragraph (o)(vi); and

(b)

by inserting the word “and” at the end of sub‑paragraph (vii) of paragraph (o), and by inserting immediately thereafter the following sub-paragraph:

“(viii)

prescribe the types of transfer or payment that are made into a member’s account in the Fund for which a member may be permitted to withdraw an amount under section 15(8D), and provide for the whole or any part of the interest paid on the amount so withdrawn from the member’s account to be dealt with in all or any of the following manner:

(A)	retained in that account;
(B)	withdrawn from that account and paid to the member;
(C)	transferred to the general moneys of the Fund;”.

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