Central Provident Fund (Non-Residential Properties Scheme) (Amendment) Regulations 2006

No. S 366

Central Provident Fund Act

(Chapter 36)

Central Provident Fund (Non-residential Properties Scheme) (Amendment) Regulations 2006

In exercise of the powers conferred by section 77(1)(h) 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 (Non-Residential Properties Scheme) (Amendment) Regulations 2006 and shall come into operation on 1st July 2006.

Amendment of regulation 2

2. Regulation 2(1) of the Central Provident Fund (Non-Residential Properties Scheme) Regulations (Rg 10) (referred to in these Regulations as the principal Regulations) is amended by inserting, immediately before the definition of “loan”, the following definitions:

“ “approved annuity” means an annuity for life, purchased from an insurer, which is approved by the Board;

“approved bank” means any bank approved by the Board;

“bank” has the same meaning as in the Banking Act (Cap. 19);

“insurer” means any person registered under the Insurance Act (Cap. 142) to carry on insurance business in Singapore;”.

New regulation 2A

3. The principal Regulations are amended by inserting, immediately after regulation 2, the following regulation:

“Scheme applicable only if application made before 1st July 2006

2A.—(1) Subject to paragraph (2), unless a member has, before 1st July 2006, made an application for the withdrawal of money under these Regulations in respect of a property, no money standing to the credit of that member in the Fund shall be withdrawn under these Regulations in respect of that property.

(2) Where —

(a)	a member who is a joint-owner of a property makes an application, on or after 1st July 2006, for the withdrawal of money under these Regulations in respect of that property;
(b)	any other joint-owner of that property has, before 1st July 2006, made an application for the withdrawal of money under these Regulations in respect of that property; and
(c)	the Board has authorised the whole or part of the amount standing to the credit of that other joint-owner in the Fund to be withdrawn under these Regulations in respect of that property,

the Board may, subject to such terms and conditions as it may impose, authorise the whole or part of the amount standing to the credit of that member in the Fund to be withdrawn under these Regulations in respect of that property.”.

Deletion and substitution of regulation 5B

4. Regulation 5B of the principal Regulations is deleted and the following regulation substituted therefor:

“Use of money in special account for payment of loan

5B.—(1) Where a member, as owner of a property, is liable to pay the monthly instalments of principal and interest towards a loan —

(a)

if the liability to pay arises on or after 1st February 1999, the Board, with the approval of the Minister, may —

(i)	on the application of the member or if it considers necessary; and
(ii)	subject to such terms and conditions as it may impose,

authorise the whole or part of the amount standing to the credit of the member in his special account to be withdrawn by him for the payment of such monthly instalments; and

(b)

if the liability to pay arises on or after 1st July 2006, the Board may —

(i)	on the application of the member; and
(ii)	subject to such terms and conditions as it may impose,

authorise the whole or part of any amount standing to the credit of the member in his special account which had been transferred from his medisave account under section 13(6) of the Act to be withdrawn by him for the payment of such monthly instalments.

(2) The total amounts which a member may withdraw under paragraph (1)(a) and (b) to pay such monthly instalments shall be determined by the Board.”.

Deletion and substitution of regulation 16

5. Regulation 16 of the principal Regulations is deleted and the following regulation substituted therefor:

“Conditions for disposal of property

16.—(1) The Board may, in its discretion and subject to such terms and conditions as it may impose, permit a member who has withdrawn moneys under these Regulations in respect of a property (including any moneys lent to him under section 14A of the Act in respect of the property and withdrawn by him which have not been repaid) to sell, transfer, assign or otherwise dispose of the property or any of his estate or interest therein to any person —

(a)

if the Board is satisfied that adequate arrangements have been made to secure the repayment into the member’s account in the Fund of —

(i)	all moneys withdrawn by him (including any moneys lent to him under section 14A of the Act in respect of the property and withdrawn by him which have not been repaid) and the interest that would have accrued thereto if the withdrawal had not been made; or
(ii)	the net proceeds of the sale, transfer, assignment or disposal, as the case may be,

whichever is the less; or

(b)

where the member —

(i)	withdraws the sum standing to his credit in the Fund under section 15 (2)(d), (e) or (f) of the Act; or
(ii)	withdraws the minimum sum or any part thereof from his account with an approved bank or his retirement account, or surrenders his approved annuity from an insurer, under section 15 (7A)(a), (b) or (ba) of the Act,

if the member repays into his account in the Fund all moneys withdrawn by him (including any moneys lent to him under section 14A of the Act in respect of the property and withdrawn by him which have not been repaid) and the interest that would have accrued thereto if the withdrawal had not been made, or such part thereof as may be determined by the Board.

(2) Where a member who has withdrawn money under these Regulations in respect of a property —

(a)

sells, transfers, assigns or otherwise disposes of the property or his estate or interest therein with the permission of the Board under paragraph (1)(a); and

(b)

either —

(i)	withdraws the sum standing to his credit in the Fund under section 15 (2)(d), (e) or (f) of the Act; or
(ii)	withdraws the minimum sum or any part thereof from his account with an approved bank or his retirement account, or surrenders his approved annuity from an insurer, under section 15 (7A)(a), (b) or (ba) of the Act,

he shall repay into his account in the Fund all moneys withdrawn by him (including any moneys lent to him under section 14A of the Act in respect of the property and withdrawn by him which have not been repaid) and the interest that would have accrued thereto if the withdrawal had not been made, or such part thereof as may be determined by the Board.”.

Amendment of regulation 18

6. Regulation 18 of the principal Regulations is amended —

(a)

by deleting the words “Subject to paragraph (2), all moneys withdrawn by a member under these Regulations” in paragraph (1) and substituting the words “Subject to paragraphs (2), (3) and (4), all moneys withdrawn by a member under these Regulations in respect of a property (including any moneys lent to him under section 14A of the Act in respect of the property and withdrawn by him which have not been repaid)”; and

(b)

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

“(3) Subject to paragraph (4), all moneys withdrawn by a member under these Regulations in respect of a property (other than any moneys lent to him under section 14A of the Act in respect of the property and withdrawn by him which have not been repaid), together with any interest that would have accrued thereto if the withdrawal had not been made, shall cease to be payable to the Board —

(a)	on the death of the member; or
(b)	when the member is entitled to withdraw the amount standing to his credit in the Fund under section 15(2), (3) or (4) of the Act and has complied with the requirements for such withdrawal.

(4) Subject to paragraph (2), where —

(a)

any event mentioned in paragraph (1) occurs; and

(b)

the member —

(i)	withdraws the sum standing to his credit in the Fund under section 15(2)(d), (e) or (f) of the Act; or
(ii)	withdraws the minimum sum or any part thereof from his account with an approved bank or his retirement account, or surrenders his approved annuity from an insurer, under section 15(7A)(a), (b) or (ba) of the Act,

[G.N. Nos. S 87/99; S562/99; S107/2001; S 183/2005; S359/2005]

Made this 20th day of June 2006.

LEO YIP

Permanent Secretary,
Ministry of Manpower,
Singapore.

[MMS 2.3/80 V2; AG/LEG/SL/36/2005/25 Vol. 1]

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

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