Children Development Co-Savings (Amendment) Regulations 2008

No. S 324

Children Development Co-Savings Act

(Chapter 38A)

Children Development Co-Savings (Amendment) Regulations 2008

In exercise of the powers conferred by section 3 of the Children Development Co-Savings Act, the Minister for Community Development, Youth and Sports hereby makes the following Regulations:

Citation and commencement

1.—(1) These Regulations may be cited as the Children Development Co-Savings (Amendment) Regulations 2008 and shall, with the exception of regulation 13, come into operation on 1st August 2008.

(2) Regulation 13 shall come into operation on 30th June 2008.

Amendment of regulation 2

2. Regulation 2 of the Children Development Co-Savings Regulations (Rg 2) (referred to in these Regulations as the principal Regulations) is amended ––

(a)

by inserting, immediately after the definition of “member”, the following definition:

“ “NETS” means the electronic funds transfer at point-of-sale system commonly known as NETS;”; and

(b)

by deleting the definition of “service agreement” and substituting the following definition:

“ “service agreement”, in relation to a managing agent, means the agreement entered into between the Government and the managing agent in relation to the operation and administration of the Scheme;”.

Amendment of regulation 4

3. Regulation 4 of the principal Regulations is amended —

(a)

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

“(1) The Minister may appoint one or more managing agents to operate and administer the Scheme for and on behalf of the Minister on the terms and conditions specified in the service agreement or agreements.”;

(b)

by deleting the words “The managing agent” in paragraphs (2) and (4) and substituting in each case the words “A managing agent”;

(c)

by deleting the words “The managing agent shall, on the instruction of the Director, open and maintain for every member of the Scheme a bank account” in paragraph (3) and substituting the words “A managing agent shall, on receipt of an application under regulation 5(3A) and on the instruction of the Director, open and maintain for the member concerned a bank account”;

(d)

by deleting the words “the managing agent” wherever they appear in paragraph (5) and substituting in each case the words “a managing agent”; and

(e)

by deleting the regulation heading and substituting the following regulation heading:

“Managing agents”.

Amendment of regulation 5

4. Regulation 5 of the principal Regulations is amended —

(a)

by inserting, immediately after paragraph (3), the following paragraphs:

“(3A) The application shall be accompanied by an application by the person nominated as a trustee referred to in paragraph (3)(b) to the managing agent of his choice to open a Children Development Account for the child.

(3B) The application to the managing agent under paragraph (3A) shall be in such form as the managing agent may provide.”;

(b)

by inserting, immediately after the word “application” in paragraph (4), the words “for membership”; and

(c)

by inserting, immediately after the words “member of the Scheme” in paragraph (4A), the words “, and the Director shall immediately forward the application to the managing agent referred to in paragraph (3A)”.

New regulation 5A

5. The principal Regulations are amended by inserting, immediately after regulation 5, the following regulation:

“Change of managing agent

5A.—(1) Subject to paragraph (2), the trustee of a Children Development Account (referred to in this regulation as the existing Account) opened with a managing agent (referred to in this regulation as the existing managing agent) may at any time, at his own expense and with the approval of the Director, apply to another managing agent (referred to in this regulation as the new managing agent) to open a Children Development Account for the member concerned (referred to in this regulation as the new Account) to replace the existing Account.

(2) No application shall be allowed on or after 31st December of the year in which the sixth anniversary of the date of birth of the member falls.

(3) The application shall be in such form as the new managing agent may provide.

(4) After the new Account is opened by the new managing agent, the existing managing agent shall, as soon as practicable —

(a)	close any fixed deposit or time deposit account opened under regulation 9(1)(d) and transfer any moneys standing to the credit of the member in that account on the date of closure, including any interest paid on those moneys, to the existing Account; and
(b)	thereafter close the existing Account and transfer any moneys standing to the credit of the member in that Account on the date of closure, including any interest paid on those moneys, to the new Account.

(5) The reference to the Children Development Account of a member in regulations 5(7)(a), 7(2) and (3) and 10(1) shall, if at the relevant time the member has 2 such Accounts by virtue of the fact that the new Account has been opened but the existing Account has yet to be closed under paragraph (4), be read as a reference to both of these Accounts.

(6) The reference to the Children Development Account of a member in regulations 6(1) and 9 shall, if at the relevant time the member has 2 such Accounts by virtue of the fact that the new Account has been opened but the existing Account has yet to be closed under paragraph (4), be read as a reference to either of these Accounts.”.

Amendment of regulation 6

6. Regulation 6 of the principal Regulations is amended by inserting, immediately after paragraph (4A), the following paragraphs:

“(4B) If the Account referred to in paragraph (4) has been closed under regulation 5A(4) at the time the Government is to pay the co-payment contribution, the Government shall pay the contribution into the new Children Development Account of the member.

(4C) If, at the time the Government is to pay the co-payment contribution, the Account referred to in paragraph (4) has yet to be closed pursuant to regulation 5A(4) but a new Account referred to in that regulation has been opened, the Government may pay the contribution into either of those Accounts.”.

Amendment of regulation 7

7. Regulation 7 of the principal Regulations is amended by inserting, immediately after paragraph (3), the following paragraph:

“(4) The managing agent with whom the Children Development Account is opened shall, before closing that Account, close any fixed deposit or time deposit account opened under regulation 9(1)(d) and then transfer any moneys standing to the credit of the member in that account on the date of closure, including any interest paid on those moneys, to the Children Development Account.”.

Amendment of regulation 9

8. Regulation 9 of the principal Regulations is amended —

(a)

by deleting the word “and” at the end of paragraph (1)(b);

(b)

by deleting the full-stop at the end of sub-paragraph (c) of paragraph (1) and substituting the word “; and”, and by inserting immediately thereafter the following sub-paragraph:

“(d)

the purpose of depositing the moneys in a fixed deposit or time deposit account —

(i)	opened by the trustee on behalf of the member with the managing agent with whom the Children Development Account was opened; and
(ii)	approved by the Director.”;

(c)

by deleting the words “paragraph (1)” in paragraph (2) and substituting the words “paragraph (1)(a), (b) and (c)”;

(d)

by inserting, immediately after the words “inter-bank GIRO” in paragraph (2)(a), the words “or NETS”; and

(e)

by inserting, immediately after paragraph (2), the following paragraphs:

“(2A) The Director shall not approve a fixed deposit or time deposit account under paragraph (1)(d)(ii) unless he is satisfied that the terms for the opening of the account provide that —

(a)	the account is to be maintained in Singapore dollars only;
(b)	no moneys standing to the credit of the account or interest paid on those moneys may be withdrawn before the expiry of the term of the account;
(c)	upon the expiry of the term of the account and unless the account is extended for another term, the managing agent must transfer the full amount deposited in the account together with any interest paid to the Children Development Account; and
(d)	where the Children Development Account is to be closed, the managing agent must, before the Children Development Account is closed, close the account notwithstanding that the term of the account may not have expired by then, and transfer the full amount deposited in the account together with any interest paid to the Children Development Account.

(2B) A managing agent shall not, without the approval of the Director, vary any of the terms referred to in paragraph (2A)(a) to (d).”.

Amendment of regulation 9A

9. Regulation 9A of the principal Regulations is amended by deleting sub-paragraphs (a) and (b) of paragraphs (1) and (2) and substituting in each case the following sub-paragraphs:

“(a)	that Account;
(b)	if at the time of the refund that Account has been closed under regulation 5A(4), the new Children Development Account of the member; or
(c)	if at the time of the refund that Account has been closed and the member no longer has any Children Development Account, such other account in the name of the member as the Director may specify.”.

Amendment of regulation 10

10. Regulation 10 of the principal Regulations is amended —

(a)

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

“(1A) The managing agent with whom the Children Development Account is opened shall, before closing that Account, close any fixed deposit or time deposit account opened under regulation 9(1)(d) and then transfer any moneys standing to the credit of the member in that account on the date of closure, including any interest paid on those moneys, to the Children Development Account.”; and

(b)

by inserting, immediately after paragraph (6), the following paragraph:

“(7) In paragraph (2)(a)(i) and (ii) —

(a)	a reference to co-investment sums deposited into a member’s Children Development Account includes such sums paid into any previous Children Development Account of that member and transferred to the first-mentioned Account;
(b)	a reference to co-payment contributions made by the Government and paid into a member’s Children Development Account includes such contributions made by the Government and paid into any previous Children Development Account of that member and transferred to the first-mentioned Account; and
(c)	a reference to interest paid on moneys standing to the credit of a member’s Children Development Account includes interest paid on moneys standing to the credit of the member in any previous Children Development Account of that member and transferred to the first-mentioned Account.”.

Amendment of regulation 11

11. Regulation 11 of the principal Regulations is amended —

(a)

by deleting the words “letter of approval” in paragraphs (6), (7)(a) and (8) and substituting in each case the words “certificate of approval”;

(b)

by inserting, immediately after the words “Children Development Account” in paragraph (7)(b)(i), the words “(not being a withdrawal made by NETS)”; and

(c)

by inserting, immediately after paragraph (11), the following paragraph:

“(12) In this regulation, “certificate of approval” includes a letter of approval issued by the Minister to the approved person before 1st August 2008.”.

Amendment of regulation 12

12. Regulation 12 of the principal Regulations is amended by inserting, immediately after paragraph (2), the following paragraph:

“(3) Paragraph (1)(b) does not apply to a withdrawal made by NETS.”.

Transitional provisions

13.—(1) These transitional provisions are for the purpose of the appointments of managing agents (referred to in this regulation as the new managing agents) under regulation 4(1) of the principal Regulations, to take effect from 1st August 2008, in replacement of the managing agent appointed before that date (referred to in this regulation as the old managing agent).

(2) The trustee of a member’s Children Development Account opened before 1st July 2008 (referred to in this regulation as the old Account) shall, at any time before 15th July 2008, nominate any of the new managing agents to open a Children Development Account (referred to in this regulation as the new Account) to replace the old Account.

(3) The nomination shall be made through the Director and shall be accompanied by an application to the nominated new managing agent to open the new Account which shall be in such form as the agent provides.

(4) Where a nomination has been made in accordance with paragraphs (2) and (3) —

(a)	the old managing agent shall close the old Account by 7th August 2008 and then transfer any moneys standing to the credit of the member in that Account on the date of closure, including any interest paid on those moneys, to the new Account; and
(b)	the new Account shall, with effect from the date it is opened, be treated as the Children Development Account of the member.

(5) Where the trustee of an old Account has not made a nomination in accordance with paragraphs (2) and (3) —

(a)	any of the new managing agents shall, on the instruction of the Director, open for the member in question a bank account, the fact of which shall be notified by the Director to the trustee and the old managing agent; and
(b)	the old managing agent shall close the old Account by 7th August 2008 and then transfer any moneys standing to the credit of the member in the old Account on the date of closure, including any interest paid on those moneys, to the bank account referred to in sub-paragraph (a) which shall, with effect from the date it is opened, be treated as the Children Development Account of the member.

(6) The Director shall be deemed to be duly authorised to withdraw moneys standing to the credit of the Children Development Account referred to in paragraph (5)(b) for the benefit of the member for any of the purposes referred to in regulation 9(1) of the principal Regulations.

(7) Where —

(a)	an inter-bank GIRO arrangement is in force in relation to an old Account immediately before 1st August 2008 for the making of payments to an approved person on a regular basis for any of the purposes referred to in regulation 9(1) of the principal Regulations; and
(b)	a new bank account has been opened for the member of the old Account by a new managing agent under paragraph (5)(a),

then —

(i)	the new managing agent shall be deemed to have been duly authorised by the trustee to make payment from time to time out of the new bank account to the approved person on the approved person’s instruction for the purpose referred to in sub-paragraph (a) and on such terms as have been notified by the new managing agent to the trustee before that date; and
(ii)	the trustee shall be deemed to have agreed to those terms.

(8) Paragraph (7) shall not apply or shall cease to apply if the trustee has at any time given a written notice to the new managing agent not to make any or any further payment from the new bank account to the approved person on the approved person’s instruction.

[G. N. Nos. S 603/2004; S424/2005; S 769/2005; S 179/2007; S644/2007]

Made this 24th day of June 2008.

NIAM CHIANG MENG

Permanent Secretary,
Ministry of Community Development,
Youth and Sports,
Singapore.

[MCYS 132-20-36 V13; AG/LEG/SL/38A/2001/1 Vol. 9]

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