5. Regulation 10 of the principal Regulations is deleted and the following regulation substituted therefor:| “Closure of Children Development Account, transfer of member’s moneys and related matters |
10.—(1) The Children Development Account of a member shall be closed in January in the year in which the seventh anniversary of his date of birth falls.(2) Subject to paragraph (3), the amounts standing to the credit of a member in his Children Development Account before the Account is closed shall be dealt with as follows:| (a) | the following amounts shall, as soon as practicable in the year in which the seventh anniversary of the member’s date of birth falls, be transferred to his PSE account:| (i) | any moneys standing to the credit of the member in the Account on 31st December in the year in which the sixth anniversary of his date of birth falls, up to a maximum amount equivalent to the sum of —| (A) | the aggregate amount of all co-investment sums deposited into the Account under regulation 6(1) or the relevant amount applicable to the member, whichever is the lesser; and | | (B) | the aggregate amount of all co-payment contributions made by the Government under regulation 6(2) and paid into the Account on or before 31st December in the year in which the sixth anniversary of the member’s date of birth falls; and |
| | (ii) | any interest paid on all moneys standing to the credit of the member in the Account on or before 31st December in the year in which the sixth anniversary of his date of birth falls; |
| | (b) | the following amounts (if any) shall, as soon as practicable after the Account is closed, be transferred to his PSE account:| (i) | any co-payment contribution made by the Government under regulation 6(2) which is paid into the Account in the year in which the seventh anniversary of the member’s date of birth falls; and | | (ii) | any interest paid on all moneys standing to the credit of the member in the Account in the year in which the seventh anniversary of his date of birth falls; and |
| | (c) | any remainder of the moneys standing to the credit of the member in the Account when the Account is closed may be —| (i) | transferred to an account in the member’s name with a bank in Singapore, being an account which is nominated by the trustee of the Account; or | | (ii) | withdrawn by the trustee, if the trustee has obtained the approval of the Director under regulation 9(5) for such withdrawal. |
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(3) Where a member is born on or after 1st April 2001 but before 1st January 2008 —| (a) | paragraph (2) shall apply to the member unless the trustee of the member’s Children Development Account elects in writing, within such period as the Director may allow, that paragraph (2) shall not apply to the member; and | | (b) | if the trustee elects in writing, within the period allowed by the Director under sub-paragraph (a), that paragraph (2) shall not apply to the member, then —| (i) | paragraph (2) shall not apply to the member; and | | (ii) | when the Account is closed, all moneys standing to the credit of the member in the Account may be —| (A) | transferred to an account in the member’s name with a bank in Singapore, being an account which is nominated by the trustee; or | | (B) | withdrawn by the trustee, if the trustee has obtained the approval of the Director under regulation 9(5) for such withdrawal. |
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| (4) For the avoidance of doubt, any election by the trustee under paragraph (3) shall be irrevocable. |
| (5) Any moneys transferred to an account in a member’s name with a bank in Singapore under paragraph (2)(c)(i) or (3)(b)(ii) (A), or withdrawn by the trustee of a member’s Children Development Account under paragraph (2)(c)(ii) or (3)(b)(ii)(B), shall be used for the benefit of the member or his sibling. |
(6) In paragraph (2)(a)(i) (A), “relevant amount”, in relation to a member, means —| (a) | where the member is a citizen of Singapore at the time of his birth or becomes a citizen of Singapore before the first anniversary of his date of birth —| (i) | $6,000, if he is a second child; or | | (ii) | $12,000, if he is a third or fourth child; |
| | (b) | where the member becomes a citizen of Singapore on or after the first anniversary of his date of birth but before the second anniversary thereof —| (i) | $5,000, if he is a second child; or | | (ii) | $10,000, if he is a third or fourth child; |
| | (c) | where the member becomes a citizen of Singapore on or after the second anniversary of his date of birth but before the third anniversary thereof —| (i) | $4,000, if he is a second child; or | | (ii) | $8,000, if he is a third or fourth child; |
| | (d) | where the member becomes a citizen of Singapore on or after the third anniversary of his date of birth but before the fourth anniversary thereof —| (i) | $3,000, if he is a second child; or | | (ii) | $6,000, if he is a third or fourth child; |
| | (e) | where the member becomes a citizen of Singapore on or after the fourth anniversary of his date of birth but before the fifth anniversary thereof —| (i) | $2,000, if he is a second child; or | | (ii) | $4,000, if he is a third or fourth child; or |
| | (f) | where the member becomes a citizen of Singapore on or after the fifth anniversary of his date of birth but before the sixth anniversary thereof —| (i) | $1,000, if he is a second child; or | | (ii) | $2,000, if he is a third or fourth child.”. |
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[G.N. Nos. S 603/2004; S 424/2005; S 769/2005; S 179/2007] |
