Central Provident Fund (Revised Minimum Sum Scheme) (Amendment) Regulations 2006

No. S 361

Central Provident Fund Act

(Chapter 36)

Central Provident Fund (Revised Minimum Sum Scheme) (Amendment) Regulations 2006

In exercise of the powers conferred by section 77(1)(o) of the Central Provident Fund Act, the Minister for Manpower, after consulting with the Central Provident Fund Board, hereby makes the following Regulations:

Citation and commencement

1. These Regulations may be cited as the Central Provident Fund (Revised Minimum Sum Scheme) (Amendment) Regulations 2006 and shall come into operation on 1st July 2006.

Amendment of regulation 2

2. Regulation 2 of the Central Provident Fund (Revised Minimum Sum Scheme) Regulations (Rg 2) (referred to in these Regulations as the principal Regulations) is amended by inserting, immediately after paragraph (3), the following paragraph:

“(4) Notwithstanding paragraphs (1), (2) and (3), a member of the Fund to whom section 15(2A), (7B) or (8A) of the Act applies, and who has complied with that provision, need not comply with these Regulations.”.

Amendment of regulation 6

3. Regulation 6(1) of the principal Regulations is amended by inserting, immediately after the words “minimum sum” in sub-paragraph (a), the words “or purchasing an approved annuity”.

Deletion and substitution of regulation 7

4. Regulation 7 of the principal Regulations is deleted and the following regulation substituted therefor:

“Setting aside of less than 2 times the minimum sum by parties to marriage

7.—(1) Where —

(a)

2 members of the Fund are parties to a marriage;

(b)

one member —

(i)	has already set aside an amount in part or full satisfaction of the minimum sum applicable to him; and
(ii)	is not exempted from depositing the minimum sum or purchasing an approved annuity under section 15(8) of the Act;

(c)

both members desire to set aside jointly an amount which is less than 2 times the minimum sum;

(d)

each member has executed a memorandum in accordance with section 15(6A) of the Act; and

(e)

both members agree, as a condition precedent to the Board permitting them to set aside jointly an amount which is less than 2 times the minimum sum, that in the event of the death of either member, the Board may transfer to the retirement account of the surviving member such amount in cash standing to the credit of the deceased member in the deceased member’s retirement account as he has nominated the surviving member to receive,

the Board may permit the members to set aside jointly such amount, being an amount which is less than 2 times the minimum sum, as the Board may specify.

(2) Where 2 members of the Fund are parties to a marriage, the Board permits them to set aside jointly an amount which is 1.5 times the minimum sum, and one member (referred to in this regulation and the Third Schedule as the first member) has already set aside an amount in part or full satisfaction of the minimum sum applicable to him, the other member (referred to in this regulation and the Third Schedule as the second member) shall contribute —

(a)

where both members have attained the age of 55 years on or after 1st July 1995 but before 1st July 2004, an amount computed in accordance with the formula 0.5MF + S

where M

is the minimum sum applicable to the first member;

is the relevant multiplying factor set out in the Third Schedule; and

is the shortfall in the minimum sum applicable to the first member; or

(b)

where the first member has attained the age of 55 years before 1st July 1995 and the second member has attained the age of 55 years on or after 1st July 1995 but before 1st July 2004, an amount computed in accordance with the formula (1.5M – C)F

Where M

is the minimum sum applicable to the first member;

is the amount already set aside by the first member in part or full satisfaction of the minimum sum applicable to him; and

is the relevant multiplying factor set out in the Third Schedule.

(3) Where the Board permits 2 members of the Fund to set aside jointly an amount which is less than 2 times the minimum sum, both members shall ensure that there is no shortfall in that amount.

(4) The amount which the 2 members of the Fund set aside jointly under this regulation shall include —

(a)	a proportion in cash that is in direct proportion to that required of the first member; and
(b)	a proportion in cash that is in direct proportion to that required of the second member.

(5) Where the amount already set aside by the first member in part or full satisfaction of the minimum sum applicable to him does not include the amount in cash required under paragraph (4), the second member shall be liable to ensure that the amount which the 2 members set aside jointly under this regulation includes the required amount in cash.

(6) Subject to section 15(6)(b) of the Act, the second member may withdraw the whole of the balance of the moneys standing to his credit in the Fund after he has made his contribution in accordance with this regulation.”.

Amendment of regulation 9

5. Regulation 9 of the principal Regulations is amended —

(a)

by deleting paragraphs (2) and (3) and substituting the following paragraphs:

“(2) Where 2 members of the Fund who are parties to a marriage have set aside jointly an amount which is 1.5 times the minimum sum in accordance with regulation 7, the amount which either member may be paid from the amount the 2 members have set aside jointly on the date on which that member attains —

(a)	the age of 60 years, in the case of a member who attains the age of 55 years before 1st January 1999, or who is exempted under paragraph 3(e), (o) to (s), (w), (x) or (z) of the Retirement Age (Exemption) Notification (Cap. 274A, N 1); or
(b)	the age of 62 years, in the case of a member who attains the age of 55 years on or after 1st January 1999 but before 1st July 2004,

and at every monthly interval thereafter, shall be an amount equal to the specified monthly payment, unless otherwise approved by the Board in any particular case.

(3) Where 2 members of the Fund who are parties to a marriage have set aside jointly an amount which is 1.5 times the minimum sum in accordance with regulation 7, and either member dies or the members are divorced, the amount that the surviving or each divorced member may be paid from the amount the 2 members have set aside jointly shall, subject to a minimum of the subsistence amount set out in the Fourth Schedule, be computed in accordance with the formula 230(M – S)/30,000.”; and

(b)

by deleting paragraphs (5) to (8).

Amendment of regulation 10A

6. Regulation 10A of the principal Regulations is amended —

(a)	by deleting the words “or spouse” in the definition of “M” in paragraph (b); and
(b)	by deleting the words “or spouse, as the case may be” in the definition of “S” in paragraph (b).

Amendment of regulation 18

7. Regulation 18 (3) of the principal Regulations is amended by deleting the words “section 15 (8) (b)” and substituting the words “section 15 (8) (e)”.

Amendment of Third Schedule

8. The Third Schedule to the principal Regulations is amended —

(a)	by deleting the words “Date of member attaining age 55” and substituting the words “Date of second member attaining age of 55 years”; and
(b)	by deleting the words “Date of spouse attaining age 55” and substituting the words “Date of first member attaining age of 55 years”. [G.N. Nos.S 348/98; S 651/98; S 298/99; S 315/2002; S 573/2003; S 654/2003; S 387/2004]

Made this 20th day of June 2006.

LEO YIP

Permanent Secretary,
Ministry of Manpower,
Singapore.

[MMS 5.2/85 V23; AG/LEG/SL/36/2005/26 Vol. 1]

(To be presented to Parliament under section 78(2) of the Central Provident Fund Act).

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