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No. S 368

Central Provident Fund Act

(Chapter 36)

Central Provident Fund (Ministry of Defence Housing 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 (Ministry of Defence Housing 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 (Ministry of Defence Housing Scheme) Regulations (Rg 13) (referred to in these Regulations as the principal Regulations) is amended by inserting, immediately before the definition of “Minister for Finance”, 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;”.

Amendment of regulation 6A

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

(a)	by deleting the word “member” wherever it appears in paragraph (1) and in the regulation heading and substituting in each case the word “officer”; and
(b)	by deleting the words “a member” in paragraph (2) and substituting the words “an officer”.

Deletion and substitution of regulation 6B

4. Regulation 6B of the principal Regulations is deleted and the following regulation substituted therefor:

“Use of money in special account for payment of housing loan

6B.—(1) Where an officer, as owner of a flat purchased under the Ministry of Defence Housing Scheme, is liable to pay the monthly instalments of principal and interest towards a housing loan which has been obtained by him from the Government or the Minister for Finance to finance the purchase of the flat —

(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 officer 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authorise the whole or part of the amount standing to the credit of the officer in his special account to be withdrawn by him for the payment of such monthly instalments; and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 officer; 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 officer 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 an officer may withdraw under paragraph (1)(a) and (b) to pay such monthly instalments shall be determined by the Board.”.

Amendment of regulation 9

5. Regulation 9 of the principal Regulations is amended by deleting the words “sell, mortgage, transfer, assign the flat” and substituting the words “sell, transfer, assign or otherwise dispose of the flat or any of his estate or interest therein,”.

Deletion and substitution of regulations 10 and 11

6. Regulations 10 and 11 of the principal Regulations are deleted and the following regulations substituted therefor:

“Moneys withdrawn to be repaid to Board in certain circumstances

10. Notwithstanding regulation 12, all moneys withdrawn by an officer under these Regulations (including any moneys lent to the officer under section 14A of the Act which have not been repaid) together with any interest that would have accrued thereto if the withdrawal had not been made shall become due and payable to the Board on the occurrence of any of the following events:

(a)

the officer cancels his application to purchase the flat under the Ministry of Defence Housing Scheme;

(b)

the flat or any estate or interest therein is sold, transferred, assigned or otherwise disposed of —

(i)	by the Government or the Minister for Finance;
(ii)	by the officer without the prior written permission of the Board;
(iii)	by any other person with or without the prior written consent of the Board; or
(iv)	pursuant to an order of court;

(c)

if any mortgage or encumbrance, other than a mortgage executed by the officer in favour of the Board, the Government or the Minister for Finance, or any one or more of them, is created over the flat without the prior written consent of the Board;

(d)

if the officer has committed a breach of any of the terms and conditions imposed by the Board in connection with the withdrawal of moneys under these Regulations.

Regulations 9 and 10 not to apply in certain circumstances

11.—(1) Subject to paragraph (2) and regulation 12, regulations 9 and 10 shall not apply —

(a)

where all moneys withdrawn by the officer from the Fund (including any moneys lent to him under section 14A of the Act and withdrawn by him), together with any interest that would have accrued thereto if the withdrawal had not been made, have been repaid to the Board;

(b)

where the officer —

(i)	is entitled to withdraw the sum standing to his credit in the Fund under section 15 (2)(a), (3) or (4) of the Act;
(ii)	is not required to set aside any sum under section 15(6) of the Act;
(iii)	does not 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, under section 15 (7A)(a), (b) or (ba) of the Act;
(iv)	is not an undischarged bankrupt at the time of the sale, transfer, assignment or disposal of the flat or any of his estate or interest therein; and
(v)	is not making the sale, transfer, assignment or disposal of the flat or any of his estate or interest therein pursuant to an order of court; or

(c)

where the officer is entitled to withdraw the sum standing to his credit in the Fund under section 15 (2)(a), (b), (c) or (g), (3) or (4) of the Act and has complied with the requirements for such withdrawal.

(2) Notwithstanding paragraph (1)(b) and (c), any moneys lent to the officer under section 14A of the Act 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 continue to be due and payable to the Board on the occurrence of any event referred to in regulation 10(a) to (d).”.

Amendment of regulation 12

7. Regulation 12 of the principal Regulations is amended —

(a)

by inserting, immediately after the words “the Fund” in paragraph (1)(b), the word “of”; and

(b)

by deleting paragraphs (2) to (13) and substituting the following paragraphs:

“(2) Subject to paragraphs (3), (4) and (13), where the officer making the sale, transfer, assignment or disposal is below the age of 55 years at the time of the sale, transfer, assignment or disposal, he shall repay to his account in the Fund, in such manner as the Board may determine, whichever is the less of the following amounts:

(a)	the net proceeds of the sale, transfer, assignment or disposal;
(b)	all moneys withdrawn by him in connection with the purchase of the flat (including any moneys lent to him under section 14A of the Act in connection with such purchase 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.

(3) Notwithstanding paragraph (2) but subject to paragraphs (4) and (13), where the officer making the sale, transfer, assignment or disposal —

(a)	is below the age of 55 years at the time of the sale, transfer, assignment or disposal; and
(b)	sells, transfers, assigns or disposes of the flat to an immediate family member without consideration or for a consideration below the market value of the flat,

he shall, unless the Board otherwise directs, repay to his account in the Fund, in such manner as the Board may determine, all moneys withdrawn by him in connection with the purchase of the flat (including any moneys lent to him under section 14A of the Act in connection with such purchase 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.

(4) Notwithstanding paragraphs (2) and (3) but subject to paragraph (13), where the officer making the sale, transfer, assignment or disposal —

(a)	is required to do so pursuant to an order of court; and
(b)	is below the age of 55 years at the time of the sale, transfer, assignment or disposal,

he shall repay to his account in the Fund, in such manner as the Board may determine, such of the following amounts as may be required by the Board:

(i)	the net proceeds of the sale, transfer, assignment or disposal;
(ii)	all moneys withdrawn by him in connection with the purchase of the flat (including any moneys lent to him under section 14A of the Act in connection with such purchase 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;
(iii)	all moneys withdrawn by him in connection with the purchase of the flat (including any moneys lent to him under section 14A of the Act in connection with such purchase and withdrawn by him which have not been repaid);
(iv)	any moneys lent to him under section 14A of the Act in connection with the purchase of the flat 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.

(5) Subject to paragraphs (6), (8) and (10) to (13), where the officer making the sale, transfer, assignment or disposal —

(a)	has attained the age of 55 years at the time of the sale, transfer, assignment or disposal; and
(b)	is required to set aside a minimum sum under section 15(6) of the Act,

he shall repay to his account in the Fund, in such manner as the Board may determine, whichever is the less of the following amounts:

(i)

the net proceeds of the sale, transfer, assignment or disposal;

(ii)

the aggregate of —

(A)	the amount of the minimum sum or any deficiency thereof which he is required to set aside, including any interest that would have accrued thereto; and
(B)	any moneys lent to him under section 14A of the Act in connection with the purchase of the flat 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.

(6) Notwithstanding paragraph (5) but subject to paragraphs (11) and (13), where the officer making the sale, transfer, assignment or disposal —

(a)	was adjudicated a bankrupt before attaining the age of 55 years;
(b)	has attained the age of 55 years and remains an undischarged bankrupt at the time of the sale, transfer, assignment or disposal; and
(c)	is required to set aside the sums under section 15(6) of the Act,

he shall repay to his account in the Fund, in such manner as the Board may determine, whichever is the less of the following amounts:

(i)

the net proceeds of the sale, transfer, assignment or disposal;

(ii)

the higher of —

(A)

all moneys withdrawn by him in connection with the purchase of the flat (including any moneys lent to him under section 14A of the Act in connection with such purchase 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; or

(B)

the aggregate of —

(I)	the sums, or any deficiency thereof, which he is required to set aside under section 15(6) of the Act, including any interest that would have accrued thereto; and
(II)	any moneys lent to him under section 14A of the Act in connection with the purchase of the flat 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.

(7) Subject to paragraph (13), where the officer making the sale, transfer, assignment or disposal —

(a)	was adjudicated a bankrupt before attaining the age of 55 years;
(b)	has attained the age of 55 years and remains an undischarged bankrupt at the time of the sale, transfer, assignment or disposal; and
(c)	is not required to set aside any sum under section 15(6) of the Act,

he shall repay to his account in the Fund, in such manner as the Board may determine, whichever is the less of the following amounts:

(i)	the net proceeds of the sale, transfer, assignment or disposal;
(ii)	all moneys withdrawn by him in connection with the purchase of the flat (including any moneys lent to him under section 14A of the Act in connection with such purchase 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.

(8) Notwithstanding paragraph (5) but subject to paragraphs (12) and (13), where the officer making the sale, transfer, assignment or disposal —

(a)	was adjudicated a bankrupt at a time when he had attained the age of 55 years;
(b)	remains an undischarged bankrupt at the time of the sale, transfer, assignment or disposal; and
(c)	is required to set aside a minimum sum under section 15(6) of the Act,

he shall repay to his account in the Fund, in such manner as the Board may determine, whichever is the less of the following amounts:

(i)

the net proceeds of the sale, transfer, assignment or disposal;

(ii)

the aggregate of —

(A)	the amount of the minimum sum or any deficiency thereof which he is required to set aside, including any interest that would have accrued thereto; and
(B)	any moneys lent to him under section 14A of the Act in connection with the purchase of the flat 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.

(9) Subject to paragraph (13), where the officer making the sale, transfer, assignment or disposal —

(a)	was adjudicated a bankrupt at a time when he had attained the age of 55 years;
(b)	remains an undischarged bankrupt at the time of the sale, transfer, assignment or disposal; and
(c)	is not required to set aside a minimum sum under section 15(6) of the Act,

he shall repay to his account in the Fund, in such manner as the Board may determine, whichever is the less of the following amounts:

(i)	the net proceeds of the sale, transfer, assignment or disposal;
(ii)	any moneys lent to him under section 14A of the Act in connection with the purchase of the flat 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.

(10) Notwithstanding paragraph (5) but subject to paragraphs (11), (12) and (13), where the officer making the sale, transfer, assignment or disposal —

(a)	is required to do so pursuant to an order of court;
(b)	has attained the age of 55 years at the time of the sale, transfer, assignment or disposal; and
(c)	is required to set aside a minimum sum under section 15(6) of the Act,

he shall repay to his account in the Fund, in such manner as the Board may determine, whichever is the less of the following amounts:

(i)

the net proceeds of the sale, transfer, assignment or disposal;

(ii)

the aggregate of —

(A)	the amount of the minimum sum or any deficiency thereof which he is required to set aside, including any interest that would have accrued thereto; and
(B)	any moneys lent to him under section 14A of the Act in connection with the purchase of the flat 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.

(11) Notwithstanding paragraphs (5), (6) and (10) but subject to paragraph (13), where the officer making the sale, transfer, assignment or disposal —

(a)	is required to do so pursuant to an order of court;
(b)	was adjudicated a bankrupt before attaining the age of 55 years;
(c)	has attained the age of 55 years and remains an undischarged bankrupt at the time of the sale, transfer, assignment or disposal; and
(d)	is required to set aside the sums under section 15(6) of the Act,

he shall repay to his account in the Fund, in such manner as the Board may determine, whichever is the less of the following amounts:

(i)

the net proceeds of the sale, transfer, assignment or disposal;

(ii)

the higher of —

(A)

all moneys withdrawn by the officer in connection with the purchase of the flat (including any moneys lent to him under section 14A of the Act in connection with such purchase 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; or

(B)

the aggregate of —

(I)	the sums, or any deficiency thereof, which he is required to set aside under section 15(6) of the Act, including any interest that would have accrued thereto; and
(II)	any moneys lent to him under section 14A of the Act in connection with the purchase of the flat 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.

(12) Notwithstanding paragraphs (5), (8) and (10) but subject to paragraph (13), where the officer making the sale, transfer, assignment or disposal —

(a)	is required to do so pursuant to an order of court;
(b)	was adjudicated a bankrupt at a time when he had attained the age of 55 years;
(c)	remains an undischarged bankrupt at the time of the sale, transfer, assignment or disposal; and
(d)	is required to set aside the sums under section 15(6) of the Act,

he shall repay to his account in the Fund, in such manner as the Board may determine, whichever is the less of the following amounts:

(i)

the net proceeds of the sale, transfer, assignment or disposal;

(ii)

the aggregate of —

(A)	the sums, or any deficiency thereof, which he is required to set aside under section 15(6) of the Act, including any interest that would have accrued thereto; and
(B)	any moneys lent to him under section 14A of the Act in connection with the purchase of the flat 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.

(13) Notwithstanding paragraphs (2) to (12), where the officer making the sale, transfer, assignment or disposal —

(a)	withdraws the sum standing to his credit in the Fund under section 15(2)(d), (e) or (f) of the Act; or
(b)	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 to his account in the Fund, in such manner as the Board may determine, all moneys withdrawn by him under these Regulations in connection with the purchase of the flat (including any moneys lent to him under section 14A of the Act in connection with such purchase 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, or such part thereof as may be determined by the Board.

(13A) In this regulation, “net proceeds”, in relation to any flat which is sold, transferred, assigned or disposed of, means any positive difference between —

(a)

the consideration for the sale, transfer, assignment or disposal of the flat, or, if the Board so elects, the value of the flat at the time of the sale, transfer, assignment or disposal as assessed by the Board; and

(b)

the aggregate of the following amounts paid in the following order:

(i)	any amount under a housing loan from the Government or the Minister for Finance which has not been repaid; and
(ii)	any amount which, under any written law, is to be paid to any other person in priority to the Fund.”.

[G.N. Nos. S 89/99; S650/2001; S 223/2004]

Made this 20th day of June 2006.

LEO YIP

Permanent Secretary,
Ministry of Manpower,
Singapore.

[MMC 19.1/74 V2; AG/LEG/SL/36/2005/23 Vol. 1]

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