Central Provident Fund (Amendment) Bill

Bill No. 6/2006

Read the first time on 13th February 2006.

An Act to amend the Central Provident Fund Act (Chapter 36 of the 2001 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) Act 2006 and shall come into operation on such date as the Minister may, by notification in the Gazette, appoint.

Amendment of section 2

2. Section 2(1) of the Central Provident Fund Act (referred to in this Act as the principal Act) is amended by deleting the definition of “retirement account” and substituting the following definition:

“ “retirement account” means a retirement account maintained for the purposes of section 15(2A)(a), (6C), (7B)(a) and (8A)(a);”.

Amendment of section 4

3. Section 4 of the principal Act is amended —

(a)

by deleting “4” in subsection (4)(d) and substituting “7”; and

(b)

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

“(4A) The Minister, with the President’s concurrence under Article 22A(1)(b) of the Constitution, may appoint the chief executive officer to be a member of the Board.”.

Amendment of section 5

4. Section 5(1) of the principal Act is amended by deleting the words “, with the approval of the Minister,”.

Amendment of section 13

5. Section 13 of the principal Act is amended —

(a)

by deleting the words “section 15(2) to (5), 18, 18A, 18B, 22 or 45” in subsection (1)(a) and substituting the words “subsection (7) and sections 15(2), (3), (4) and (5), 18, 18A, 18B, 22 and 45”;

(b)

by deleting the words “sections 15(2) to (5) and 54” in subsection (1)(b) and substituting the words “subsection (6) and sections 15(2), (3), (4) and (5), 16A and 54”;

(c)

by deleting the words “section 15(2) to (5), section 17, section 45(2)” in subsection (1)(c) and substituting the words “subsection (7) or section 15(2), (3), (4) or (5), 17 or 45”;

(d)

by deleting the words “to a member’s ordinary account” in subsection (6) and substituting the words “to one or more designated accounts of a member, in accordance with any regulations made under section 77(1)(ka),”;

(e)

by deleting the words “the ordinary account” in subsection (7) and substituting the words “any designated account”; and

(f)

by inserting, immediately after subsection (7), the following subsection:

“(8) In this section, “designated account”, in relation to a member, means such ordinary account, special account or retirement account (if any) of the member as may be prescribed by any regulations made under section 77(1)(ka).”.

Amendment of section 15

6. Section 15 of the principal Act is amended —

(a)

by deleting paragraphs (d) and (e) of subsection (2) and substituting the following paragraphs:

“(d)

is physically or mentally incapacitated —

(i)	from ever continuing in any employment; or
(ii)	in such other manner as the Minister may approve;

(e)

is of unsound mind;

(f)

is suffering from a medical condition leading to a severely impaired life expectancy; or

(g)

is suffering from a terminal illness or disease.”;

(b)

by inserting, immediately after subsection (2), the following subsections:

“(2A) A member of the Fund who is entitled under subsection (2)(d), (e) or (f) to withdraw the sum standing to his credit in the Fund shall, at the time of the withdrawal and in accordance with such directions as the Minister may give in any particular case —

(a)	set aside or top-up in his retirement account such amount as the Minister may specify; and
(b)	set aside or top-up in his medisave account the prescribed amount referred to in section 16.

(2B) The amount referred to in subsection (2A)(a) may be withdrawn by the member in accordance with such terms and conditions as the Minister may from time to time impose.”;

(c)

by deleting the words “sum standing to the credit of that member in the Fund” in subsection (5) and substituting the words “balance standing to the credit of that member in the Fund, after deducting any sum withdrawn, or to be withdrawn, under section 16A,”;

(d)

by deleting the words “subsections (6A) and (8)” in subsection (6) and substituting the words “subsections (6A), (8) and (8A)”;

(e)

by deleting subsections (6A) and (6B) and substituting the following subsections:

“(6A) Where 2 members of the Fund are parties to a marriage, the Board may, on their joint application, permit them to set aside jointly an amount which is less than 2 times the minimum sum if each member has executed a memorandum under section 25(1) nominating the other member to receive, on his death, an amount belonging to him which is not less than such amount as the Board may specify.

(6B) No memorandum executed under subsection (6A) shall be revocable during the subsistence of the marriage between the members unless the Board is satisfied that either or both of the members are —

(a)

physically or mentally incapacitated —

(i)	from ever continuing in any employment; or
(ii)	in such other manner as the Minister may approve;

(b)

of unsound mind;

(c)

suffering from a medical condition leading to a severely impaired life expectancy; or

(d)

suffering from a terminal illness or disease.”;

(f)

by deleting the words “with the Board” in subsection (6C);

(g)

by deleting paragraphs (a) and (b) of subsection (7A) and substituting the following paragraphs:

“(a)

physically or mentally incapacitated —

(i)	from ever continuing in any employment; or
(ii)	in such other manner as the Minister may approve;

(b)

of unsound mind;

(ba)

suffering from a medical condition leading to a severely impaired life expectancy;”;

(h)

by inserting, immediately after subsection (7A), the following subsections:

“(7B) A member of the Fund who is entitled under subsection (7A)(a), (b) or (ba) to withdraw the minimum sum or any part thereof from his account with an approved bank or his retirement account or surrender his approved annuity from an insurer shall, at the time of the withdrawal or surrender, as the case may be, and in accordance with such directions as the Minister may give in any particular case —

(a)	set aside or top-up in his retirement account such amount as the Minister may specify; and
(b)	set aside or top-up in his medisave account the prescribed amount referred to in section 16.

(7C) The amount referred to in subsection (7B)(a) may be withdrawn by the member in accordance with such terms and conditions as the Minister may from time to time impose.”;

(i)

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

“(8) A member need not deposit the minimum sum with an approved bank or in his retirement account, or use the minimum sum to purchase an approved annuity from an insurer, if the Board is satisfied that the member —

(a)

is physically or mentally incapacitated —

(i)	from ever continuing in any employment; or
(ii)	in such other manner as the Minister may approve;

(b)

is of unsound mind;

(c)

is suffering from a medical condition leading to a severely impaired life expectancy;

(d)

is suffering from a terminal illness or disease;

(e)

on his retirement will receive such 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; or

(f)

has attained the age of 55 years before 1st January 1987.

(8A) A member of the Fund who is entitled under subsection (2)(a), (3) or (4) to withdraw the sum standing to his credit in the Fund and who, under subsection (8)(a), (b) or (c), need not deposit the minimum sum with an approved bank or in his retirement account or use the minimum sum to purchase an approved annuity from an insurer shall, at the time of the withdrawal and in accordance with such directions as the Minister may give in any particular case —

(a)	set aside or top-up in his retirement account such amount as the Minister may specify; and
(b)	set aside or top-up in his medisave account the prescribed amount referred to in section 16.

(8B) The amount referred to in subsection (8A)(a) may be withdrawn by the member in accordance with such terms and conditions as the Minister may from time to time impose.”;

(j)

by inserting, immediately after the words “minimum sum” in subsection (9)(a), the words “or part thereof”;

(k)

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

“(10B) The Board shall not enforce any undertaking under subsection (10) or (10A) if the Board is satisfied of the occurrence of any of the events mentioned in subsection (15)(e).”;

(l)

by deleting the word “if” wherever it appears in subsection (15)(e)(ii) to (v); and

(m)

by deleting the words “subsection (6)” in subsection (15)(e)(iii) and substituting the words “subsection (2A), (6), (7B) or (8A)”.

Amendment of section 15A

7. Section 15A of the principal Act is amended by deleting the words “section 15(2)(b), (c), (d) or (e)” and substituting the words “section 15(2)(b), (c), (d), (e), (f) or (g)”.

Amendment of section 16

8. Section 16 of the principal Act is amended —

(a)

by deleting the words “section 15(2)(a), (d) or (e) or (3)” in subsection (1) and substituting the words “section 15(2)(a), (d), (e), (f) or (g), (3) or (4)”; and

(b)

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

“(2) Where the amount in a member’s medisave account exceeds the prescribed amount —

(a)	if the member is required to top-up the minimum sum under section 15(6)(a), the amount in excess of the prescribed amount (referred to in this subsection as the excess amount) shall be applied to meet any shortfall in the minimum sum, and any balance of the excess amount may be withdrawn under section 15(3) or (4);
(b)	if the member is required to set aside or top-up in his retirement account the amount referred to in section 15(2A)(a), the excess amount shall be applied to meet any shortfall in that amount, and any balance of the excess amount may be withdrawn under section 15(2)(d), (e) or (f);
(c)	if the member is required to set aside or top-up in his retirement account the amount referred to in section 15(7B)(a) or (8A)(a), the excess amount shall be applied to meet any shortfall in that amount, and any balance of the excess amount may be withdrawn under section 15(2)(a), (3) or (4); or
(d)	in any other case, the excess amount may be withdrawn under section 15(2)(a) or (g), (3) or (4).”.

New section 16A

9. The principal Act is amended by inserting, immediately after section 16, the following section:

“Withdrawal from medisave account of deceased member for payment of his medical expenses

16A.—(1) Notwithstanding section 24(3A), on or after the death of a member of the Fund, the Board may, subject to such conditions as the Minister may from time to time impose, permit the withdrawal of the whole or any part of the sum standing to his credit in his medisave account, in accordance with any regulations made under section 77(1), for the payment of expenses for medical treatment received by him, if that withdrawal had been authorised —

(a)	before his death, by him or, if he was unable to give the authorisation, by a prescribed person; or
(b)	on or after his death, by a prescribed person.

(2) Where the Board has permitted the withdrawal of any money under subsection (1), section 24(3A) shall not apply to that money.

(3) In subsection (1), “prescribed person” means such person or committee as may be prescribed by any regulations made under section 77(1).”.

Amendment of section 18

10. Section 18 of the principal Act is amended —

(a)

by renumbering the section as subsection (1) of that section, and by inserting immediately thereafter the following subsection:

“(2) The Board may, for any of the purposes mentioned in section 15(2A)(a), (7B)(a) and (8A)(a) 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 the Board may determine to the retirement account of his parent or spouse to be applied by the parent or spouse; or
(b)	any person to pay money into his parent’s, grandparent’s or spouse’s retirement account.”; and

(b)

by inserting, immediately after the words “minimum sum” in the section heading, the words “and amounts specified under section 15(2A)(a), (7B)(a) and (8A)(a),”.

Amendment of section 24

11. Section 24 of the principal Act is amended —

(a)

by deleting subsections (1), (2) and (3) and substituting the following subsections:

“(1) Notwithstanding any written or other law but subject to any regulations made under section 77(1) —

(a)

no withdrawals made from the Fund under this Act and no rights of any member of the Fund acquired thereunder; and

(b)

no moneys repayable to the Fund by any member of the Fund which are secured by —

(i)	a charge on his estate or interest in an immovable property under section 21(1) or 21A(1); or
(ii)	a charge constituted on an HDB flat under section 21B(1),

shall be assignable, transferable, attached, sequestered or levied upon for or in respect of any debt or claim, or be subject to any set-off of any nature for any debt owing by the member.

(2) Notwithstanding any written or other law, every investment made by a member of the Fund under any scheme in accordance with any regulations made under section 77(1)(n), and the proceeds and benefits of the investment, shall not be assignable, transferable, attached, sequestered or levied upon for or in respect of any debt or claim, or be subject to any set-off of any nature for any debt owing by the member.

(3) Notwithstanding anything in the Bankruptcy Act (Cap. 20), if a member of the Fund is adjudicated a bankrupt by a court, every investment made by the member under any scheme in accordance with any regulations made under section 77(1)(n) and the proceeds and benefits of the investment —

(a)	shall not pass to the Official Assignee on the bankruptcy of the member; and
(b)	shall be deemed not to form part of the property of the member.”;

(b)

by deleting the word “All” in subsection (3A) and substituting the words “Subject to section 16A, all”; and

(c)

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

“(7) In this section, “HDB flat” has the same meaning as in section 21B(14).”.

Amendment of section 25

12. Section 25 of the principal Act is amended by deleting subsection (2) and substituting the following subsection:

“(2) Where, at the time of the death of a member of the Fund, no person has been nominated by him under subsection (1), the total amount payable on his death out of the Fund shall be paid to the Public Trustee for disposal in accordance with —

(a)	the Intestate Succession Act (Cap. 146), if the member is not a Muslim at the time of his death; or
(b)	section 112 of the Administration of Muslim Law Act (Cap. 3), if the member is a Muslim at the time of his death.”.

Amendment of section 27

13. Section 27(2) of the principal Act is amended by deleting the words “section 15(2)(a), (d) or (e)” in paragraph (a) and substituting the words “section 15(2)(a), (d), (e), (f) or (g)”.

Amendment of section 77

14. Section 77 of the principal Act is amended —

(a)

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

“(ka)

to provide for the transfer of money from the medisave account of a member to his ordinary account, special account and retirement account (if any);”;

(b)

by deleting the words “investing in such precious metals, insurance policies (including investment-linked insurance policies) and securities, and depositing in such fixed deposit accounts,” in subsection (1)(n) and substituting the words “making such investments”; and

(c)

by deleting the words “is physically or mentally incapacitated” in subsection (2)(c) and substituting the words “satisfies any ground under section 15(2)(d), (e), (f) or (g), (6B), (7A)(a), (b), (ba) or (c), (8)(a), (b), (c) or (d) or (15)(e)(ii), 36(2) or 49(2)”.

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