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

No. S 373

Central Provident Fund Act

(Chapter 36)

Central Provident Fund (New 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 (New Minimum Sum Scheme) (Amendment) Regulations 2006 and shall come into operation on 1st July 2006.

Amendment of regulation 2

2. The Central Provident Fund (New Minimum Sum Scheme) Regulations (Rg 31) (referred to in these Regulations as the principal Regulations) are amended by renumbering regulation 2 as paragraph (1) of that regulation, and by inserting immediately thereafter the following paragraph:

“(2) Notwithstanding paragraph (1), 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) Subject to paragraph (3), where —

(a)	2 members of the Fund are parties to a marriage;
(b)	the Board permits them to set aside jointly an amount which is 1.5 times the minimum sum; and
(c)	one member (referred to in this regulation as the first member) has already set aside an amount in full satisfaction of the minimum sum applicable to him,

the other member (referred to in this regulation as the second member) shall set aside an amount which is 0.5 times the minimum sum applicable to him under regulation 4.

(3) Where the 2 members of the Fund wish to vary the amount already set aside by the first member under paragraph (2), the amount which the second member shall set aside under that paragraph shall be varied accordingly.

(4) 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.

(5) 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.

(6) 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 (5), 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.

(7) 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 each of them may be paid from the amount they have set aside jointly shall be determined in the following manner:

(a)

in the case where one member (referred to in this paragraph as the first member) attained the age of 55 years before 1st July 2004 and the other member (referred to in this paragraph as the second member) attained the age of 55 years on or after 1st July 2004 —

(i)

the amount which the second member may be paid on the date he attains the applicable age, and at every monthly interval thereafter, shall be the amount computed in accordance with the formula set out in the second or third column of the Second Schedule, or the amount set out in the second column of the Third Schedule, as the case may be; and

(ii)

the amount which the first member may be paid on the date he attains —

(A)	the age of 60 years, if he attained the age of 55 years before 1st January 1999 or 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,

and at every monthly interval thereafter, shall be determined by the Board after taking into consideration the written law relating to the minimum sum to be set aside by him; and

(b)

in the case where both members attain the age of 55 years on or after 1st July 2004, the amount which each of them may be paid on the date which each attains the applicable age, and at every monthly interval thereafter, shall be the amount computed in accordance with the formula set out in the second or third column of the Second Schedule, or the amount set out in the second column of the Third Schedule, as the case may be.

(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 —

(a)

(i)

the amount which the surviving or divorced second member may be paid from the amount set aside by him on the date he attains the applicable age, and at every monthly interval thereafter, shall be the amount computed in accordance with the formula set out in the second or third column of the Second Schedule, or the amount set out in the second column of the Third Schedule, as the case may be; and

(ii)

the amount which the surviving or divorced first member may be paid from the amount set aside by him as the minimum sum on the date he attains —

(A)	the age of 60 years, if he attained the age of 55 years before 1st January 1999 or 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,

and at every monthly interval thereafter, shall be determined by the Board after taking into consideration the written law relating to the minimum sum to be set aside by him; and

(b)

in the case where both members attain the age of 55 years on or after 1st July 2004, the amount which the surviving or each divorced member may be paid from the amount set aside by him as the minimum sum on the date he attains the applicable age, and at every monthly interval thereafter, shall be the amount computed in accordance with the formula set out in the second or third column of the Second Schedule, or the amount set out in the second column of the Third Schedule, as the case may be.”; and

(b)

by deleting paragraph (6).

Amendment of regulation 18

6. 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)”.

Deletion and substitution of Third Schedule

7. The Third Schedule to the principal Regulations is deleted and the following Schedule substituted therefor:

“THIRD SCHEDULE

Regulation 9(1), (2) and (3)

Monthly amount payable to member with 100% of the minimum sum applicable to him in cash:

First column

Second column

Date on which a member attains the age of 55 years

Basic monthly income payable

(a) On or after 1st July 2004 but before 1st July 2005

$668

(b) On or after 1st July 2005 but before 1st July 2006

$711

$750.”.

[G.N. No. S 263/2005]

Made this 20th day of June 2006.

LEO YIP

Permanent Secretary,
Ministry of Manpower,
Singapore.

[MMS 5.2/85 V22; AG/LEG/SL/36/2005/27 Vol. 1]

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

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