No. S 396
Central Provident Fund Act
(Chapter 36)
Central Provident Fund (Minimum Sum Scheme) (Amendment) Regulations 2009
In exercise of the powers conferred by section 77(1) 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 (Minimum Sum Scheme) (Amendment) Regulations 2009 and shall come into operation on 1st September 2009.
Amendment of regulation 3
2.  Regulation 3(1) of the Central Provident Fund (Minimum Sum Scheme) Regulations (Rg 16) (referred to in these Regulations as the principal Regulations) is amended —
(a)by deleting the definitions of “approved annuity” and “approved bank” and substituting the following definitions:
“ “annuity plan” has the same meaning as in section 27J of the Act;
“approved annuity” means an annuity, purchased from an insurer, which is approved by the Board;
“approved bank” means any bank approved by the Board;”; and
(b)by deleting the definitions of “minimum sum” and “monthly income” and substituting the following definitions:
“ “monthly income” means the income which a member is entitled —
(a)to withdraw monthly from the amount of his minimum sum deposited with an approved bank or in his retirement account under section 15(6C)(b)(i) of the Act; or
(b)to be paid monthly under an approved annuity purchased under section 15(6C)(b)(ii) of the Act,
after the member has attained the age of 60 years;
“relevant member” and “Scheme” have the same meanings as in section 27J of the Act.”.
Amendment of regulation 4
3.  Regulation 4(2) of the principal Regulations is amended by deleting the words “In the case of a married couple” and substituting the words “Where 2 members of the Fund are parties to a marriage and neither spouse is a relevant member”.
Amendment of regulation 7
4.  Regulation 7 of the principal Regulations is amended by inserting, immediately after the words “regulation 12” in paragraphs (2) and (2A)(ii), the words “, 12A or 13, as the case may be”.
Deletion and substitution of regulation 9 and new regulation 9A
5.  Regulation 9 of the principal Regulations is deleted and the following regulations substituted therefor:
“Approved bank or approved annuity
9.—(1)  The Board may, from time to time, approve —
(a)any bank with which a member may deposit the amount referred to in section 15(6C)(b) of the Act; or
(b)any annuity which a member may purchase from an insurer using the amount referred to in section 15(6C)(b) of the Act.
(2)  Any bank approved by the Board or any insurer whose annuity has been approved by the Board under paragraph (1) shall comply with the provisions of the Act, these Regulations and the terms, conditions and directions imposed or given by the Board relating to the minimum sum scheme.
Use of amount referred to in section 15(6C)(b) of Act
9A.—(1)  A member shall, if he desires to deposit the amount referred to in section 15(6C)(b) of the Act with an approved bank, use the whole of that amount at that time for such deposit.
(2)  A member may, if he desires to use the amount referred to in section 15(6C)(b) of the Act to purchase an approved annuity from an insurer, use the whole or any part of that amount at that time for such purchase.
(3)  A member referred to in section 27K(3) of the Act may, if the Board permits him to join the Scheme, withdraw the whole or any part of any amount referred to in section 15(6C)(b) of the Act which is deposited in his retirement account at that time to pay a premium under section 27L(1) of the Act for an annuity plan under the Scheme.
(4)  A relevant member may, if he desires to be issued with an additional annuity plan under the Scheme, withdraw the whole or any part of any amount referred to in section 15(6C)(b) of the Act which is deposited in his retirement account at that time to pay a premium under section 27L(1) of the Act for an additional annuity plan under the Scheme.”.
Deletion and substitution of regulations 10 and 11 and new regulation 11A
6.  Regulations 10 and 11 of the principal Regulations are deleted and the following regulations substituted therefor:
“Depositing amount referred to in section 15(6C)(b) of Act with approved bank
10.—(1)  A member who wishes to deposit the amount referred to in section 15(6C)(b) of the Act with an approved bank shall first open an account with that bank.
(2)  If the Board is satisfied that the member has opened an account with an approved bank, the Board shall transfer the amount referred to in section 15(6C)(b) of the Act and any top-up made to meet the shortfall under regulation 13A or under the Central Provident Fund (Minimum Sum Topping-Up Scheme) Regulations (Rg 3) to the member’s account in that bank.
(3)  The moneys standing to the credit of the account of the member in the approved bank shall bear interest at such rate as may be determined by the bank from time to time.
(4)  No member shall be entitled to deposit the amount referred to in section 15(6C)(b) of the Act in more than one account with any approved bank or banks at any one time unless approved by the Board.
Purchase of approved annuity with amount referred to in section 15(6C)(b) of Act
11.—(1)  Where a member elects to use the amount referred to in section 15(6C)(b) of the Act to purchase an approved annuity from an insurer, the Board shall, at the request of the member, forward to the insurer in payment for such purchase —
(a)the whole or any part of that amount and any top-up made to meet the shortfall under regulation 8 or under the Central Provident Fund (Minimum Sum Topping-Up Scheme) Regulations (Rg 3); and
(b)where the purchase price of the approved annuity exceeds that amount, any interest accrued on that amount.
(2)  Subject to paragraphs (3), (4), (5) and (6), a member who has used the amount of his minimum sum referred to in section 15(6C)(b) of the Act to purchase an approved annuity from an insurer shall, on attaining the age of 60 years, be entitled to be paid monthly a sum not exceeding the amount specified in regulation 14(1) from the approved annuity, until the moneys payable under the approved annuity are exhausted or until his death, whichever is the earlier.
(3)  The Board may —
(a)permit an insurer to pay a member referred to in paragraph (2) a monthly sum exceeding the amount specified in regulation 14(1), if the Board is satisfied that the total amount payable under the approved annuity is sufficient to support the payment of such a sum for the lifetime of the member; or
(b)in its discretion and subject to such terms and conditions as it may impose, authorise an insurer to pay a member referred to in paragraph (2) a monthly sum which is less than the amount specified in regulation 14(1).
(4)  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 4(2), the total amount which they may be paid monthly under any approved annuities purchased using the amount they have set aside jointly shall not exceed the amount specified in regulation 14(2), unless approved by the Board in any particular case.
(5)  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 4(2), and either member dies or the members are divorced, the amount that the surviving or divorced member may be paid monthly under any approved annuity purchased using the amount of his minimum sum referred to in section 15(6C)(b) of the Act shall not exceed the amount specified in regulation 14(1), unless approved by the Board in any particular case.
(6)  Subject to paragraph (7), where a member (not being a relevant member) is in receipt of any pension, annuity or other benefit, the income which the member receives from that pension, annuity or other benefit for the month in which he attains the age of 60 years (or for any month thereafter) is less than the amount specified in regulation 14(1), and the member has used the amount of his minimum sum referred to in section 15(6C)( b) of the Act to purchase an approved annuity from an insurer, the member shall be paid for that month, from the approved annuity, an amount that is equal to the difference between —
(a)the amount of the amount specified in regulation 14(1); and
(b)the amount of the income received from that pension, annuity or other benefit for that month.
(7)  The Board may permit an insurer to pay a member referred to in paragraph (6) a monthly sum exceeding the difference between the amounts referred to in paragraph (6)(a) and (b), if the Board is satisfied that the total amount payable under the approved annuity is sufficient to support the payment of such a sum for the lifetime of the member.
(8)  Where any payment in accordance with this regulation results in a balance of $100 or less being payable under any approved annuity, the Board may permit such balance to be paid together with the payment.
Payment of premium for annuity plan under Scheme
11A.—(1)  Where the Board has permitted a member referred to in section 27K(3) of the Act to join the Scheme, the Board shall, on the application of the member, deduct the premium payable by the member for an annuity plan under the Scheme from —
(a)the whole or any part of the amount referred to in section 15(6C)(b) of the Act and any top-up made to meet the shortfall under regulation 8 or under the Central Provident Fund (Minimum Sum Topping-Up Scheme) Regulations (Rg 3); and
(b)where the premium for the annuity plan exceeds that amount, any interest accrued on that amount.
(2)  Where a relevant member desires to be issued with an additional annuity plan under the Scheme, the Board shall, on the application of the member, deduct the premium payable by the member for the additional annuity plan from —
(a)the whole or any part of the amount referred to in section 15(6C)(b) of the Act and any top-up made to meet the shortfall under regulation 8 or under the Central Provident Fund (Minimum Sum Topping-Up Scheme) Regulations; and
(b)where the premium for the additional annuity plan exceeds that amount, any interest accrued on that amount.”.
Deletion and substitution of regulation 12 and new regulation 12A
7.  Regulation 12 of the principal Regulations is deleted and the following regulations substituted therefor:
“Payment from amount deposited with approved bank or in retirement account, in general
12.—(1)  Where a member is not a relevant member, and any amount of his minimum sum is deposited with an approved bank or in his retirement account under section 15(6C)(b)(i) of the Act, he may, subject to paragraphs (2), (3), (4) and (5) and regulations 12A and 13, on attaining the age of 60 years and at every monthly interval thereafter, be paid from the amount so deposited and any interest accruing thereon, the amount specified in regulation 14(1).
(2)  Where a member is or becomes a relevant member, and any amount of his minimum sum is deposited with an approved bank or in his retirement account under section 15(6C)(b)(i) of the Act, he may, subject to paragraphs (3), (4) and (5), in either the month in which he attains the age of 60 years or the month after he becomes a relevant member, whichever month is later, and at every monthly interval thereafter, be paid from the amount so deposited and any interest accruing thereon, an amount (in dollars) computed in accordance with the formula “(A / N) + D”, where —
(a)“A” is the difference between —
(i)the balance (in dollars) of the amount so deposited and any interest accruing thereon at the first time when an annuity plan is issued to the member; and
(ii)the aggregate amount (in dollars) of —
(A)all payments received by the member under this paragraph prior to the payment the amount of which is being computed; and
(B)any other withdrawals from the amount so deposited and any interest accruing thereon that are made after the annuity plan referred to in sub-paragraph (i) is issued to the member;
(b)“N” is the larger of 60 or the total number of months in the period —
(i)beginning with (and including) either the month in which the member attains the age of 60 years or the month after the annuity plan referred to in sub-paragraph (a)(i) is issued to him, whichever month is later; and
(ii)ending with (and including) the month in which the member will attain the age of 90 years; and
(c)“D” is an additional amount (in dollars) which is payable at the discretion of the Board, taking into account —
(i)the balance of the amount so deposited and any interest accruing thereon;
(ii)any additional amount which may be credited to the member’s account with the approved bank or retirement account after the annuity plan referred to in sub-paragraph (a)(i) is issued to him; and
(iii)any interest which may accrue on the additional amount referred to in sub-paragraph (ii).
(3)  Where, prior to becoming a relevant member, a member has deposited any amount of his minimum sum with an approved bank under section 15(6C)(b)(i) of the Act, upon becoming a relevant member, the member may, subject to paragraphs (4) and (5), on the date on which he attains the age of 60 years and at every monthly interval thereafter, be paid from the amount so deposited and any interest accruing thereon, the amount specified in regulation 14(1).
(4)  For the purposes of this regulation, the basic monthly income shall be payable to a member until the amount of his minimum sum deposited with an approved bank or in his retirement account under section 15(6C)(b)(i) of the Act (including any interest accruing thereon) has been exhausted or until his death, whichever is the earlier.
(5)  Where any payment in accordance with this regulation results in a balance of $100 or less in the amount of the member’s minimum sum deposited with the approved bank or in his retirement account under section 15(6C)( b)(i) of the Act and any interest accruing thereon, the Board may permit such balance to be paid together with the payment.
Payment from amount deposited with approved bank or in retirement account, where 2 members have set aside jointly 1.5 times the minimum sum
12A.—(1)  This regulation applies 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 4(2), and that amount is deposited under section 15(6C)(b)(i) of the Act —
(a)with an approved bank; or
(b)in either or both of their respective retirement accounts.
(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 4(2), the total amount which they may withdraw monthly from the amount they have set aside jointly shall not exceed the amount specified in regulation 14(2), unless 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 4(2), and either member dies or the members are divorced, the amount that the surviving or divorced member may withdraw monthly from the amount of his minimum sum deposited with an approved bank or in his retirement account under section 15(6C)(b)(i) of the Act shall not exceed the amount specified in regulation 14(1), unless approved by the Board in any particular case.
(4)  Where any payment in accordance with this regulation results in a balance in the minimum sum of $100 or less, the Board may permit such balance to be paid together with the payment.”.
Deletion and substitution of regulation 13
8.  Regulation 13 of the principal Regulations is deleted and the following regulation substituted therefor:
“Payment from amount deposited with approved bank or in retirement account, where member has pension, annuity or other benefit or approved annuity
13.—(1)  Where a member (not being a relevant member) is in receipt of any pension, annuity or other benefit, the income which the member receives from that pension, annuity or other benefit for the month in which he attains the age of 60 years (or for any month thereafter) is less than the amount specified in regulation 14(1), and any amount of his minimum sum is deposited with an approved bank or in his retirement account under section 15(6C)(b)(i) of the Act, the member shall be paid for that month, from the amount so deposited and any interest accruing thereon, an amount that is equal to the difference between —
(a)the amount of the amount specified in regulation 14(1); and
(b)the amount of the income received from that pension, annuity or other benefit for that month.
(2)  Where a member (not being a relevant member), at any time after attaining the age of 55 years, has used any amount of his minimum sum to purchase an approved annuity, and has any amount of his minimum sum remaining in his retirement account under section 15(6C)(b)(i) of the Act, the amount which the member shall be paid each month from the amount remaining in his retirement account and any interest accruing thereon shall be the higher of the following:
(a)an amount computed in accordance with the formula “230R/30,000”, where R is the difference between the amount of his minimum sum referred to in section 15(6C)(b) of the Act and the amount used to purchase the approved annuity; or
(b)$100.”.
Amendment of regulation 14
9.  Regulation 14 of the principal Regulations is amended —
(a)by deleting the words “12(1), (3) and (4) and 13” in paragraph (1) and substituting the words “11(2), (3), (5) and (6), 12(1) and (3), 12A(3) and 13(1)”;
(b)by deleting the words “regulation 12(2)” in paragraph (2) and substituting the words “regulations 11(4) and 12A(2)”; and
(c)by deleting paragraph (3).
Deletion and substitution of regulation 15
10.  Regulation 15 of the principal Regulations is deleted and the following regulation substituted therefor:
“Termination of account with approved bank or surrender of approved annuity
15.—(1)  Where a member, who has deposited the amount referred to in section 15(6C)(b) of the Act in an account with an approved bank, closes the account and does not open another account with another approved bank or does not purchase an approved annuity from an insurer, the approved bank in which the account was opened shall immediately transfer all the moneys in that account to the member’s retirement account.
(2)  Where a member surrenders his approved annuity and does not purchase another approved annuity or does not open an account with an approved bank, the insurer from whom the approved annuity was purchased shall immediately transfer all the moneys representing the surrender value of the approved annuity to the member’s retirement account.
(3)  Where a member who has been exempted under section 15(8)(e) of the Act from setting aside the minimum sum surrenders the pension, annuity or other benefit and does not purchase an approved annuity or does not open an account with an approved bank, the member shall transfer all the moneys representing the surrender value of the pension, annuity or other benefit or, where the surrender value of the pension, annuity or other benefit is more than the minimum sum applicable to him, an amount equal to the value of the minimum sum to his retirement account.”.
Amendment of regulation 16
11.  Regulation 16 of the principal Regulations is amended —
(a)by deleting the words “his minimum sum” and substituting the words “the amount referred to in section 15(6C)(b) of the Act”; and
(b)by deleting the words “the minimum sum set aside by him” and substituting the words “that amount”.
Amendment of regulation 18
12.  Regulation 18 of the principal Regulations is amended —
(a)by deleting the words “minimum sum to be deposited” in paragraph (a) and substituting the words “amount referred to in section 15(6C)(b) of the Act for deposit”;
(b)by deleting the words “minimum sum” in paragraph (b) and substituting the words “amount referred to in section 15(6C)(b) of the Act”;
(c)by inserting, immediately after paragraph (b), the following paragraph:
“(ba)under regulation 11A(1) or (2);”; and
(d)by deleting the words “minimum sum” in the regulation heading and substituting the words “amount referred to in section 15(6C)(b) of Act, etc.”.
Amendment of regulation 19
13.  Regulation 19 of the principal Regulations is amended by deleting the words “minimum sum” in paragraphs (a) and (b) and substituting in each case the words “amount referred to in section 15(6C)(b) of the Act”.
[G.N. Nos. S 503/2007; S 707/2007]

Made this 29th day of August 2009.

LEO YIP
Permanent Secretary,
Ministry of Manpower,
Singapore.
[MMS 5.2/85v33; AG/LEG/SL/36/2005/16 Vol. 1]
(To be presented to Parliament under section 78(2) of the Central Provident Fund Act).
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