Martin Lee @ Sg
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Changes to CPF Top-Up Schemes

Have you ever been confused over the various CPF top-up schemes?

Currently, a member may top up his Retirement Account (RA) under the Minimum Sum Top Up (MSTU) scheme. He may also top up his RA by making what is known as a Voluntary Contribution (VC).

For a top-up to the SA, a member can do so using his Ordinary Account (OA) savings under the OA-to-SA Transfer Scheme, or he could make a top-up using cash through the MSTU Scheme.

All the different CPF top-up schemes have their own terms and conditions and also their own top-up limits.

Unless you are working for CPF, most people would be confused with all these schemes.

And if you do a top-up using cash, you might also be eligible for a tax relief.

Starting from 1st Jan 2013, all the CPF top-up schemes will be simplified and merged into the existing MSTU scheme. The change was one of many CPF changes announced by Acting Minister for Manpower Tan Chuan-Jin a few days ago.

A salient point is that the alignment of the CPF top-up limit will also mean that you can make/receive a higher top-up amount before you hit the ceiling. For details of the changes to the CPF top-up schemes, you can refer to this media release:

Simplifying CPF Top-Ups

Other changes involving CPF schemes that were announced include:

  1. Being able to make cash top-ups to your parents-in-law and grand-parents-in-law.
  2. Having a minimum age of 16 before you can make a CPF nomination.
  3. Changes to the CPF housing refund policy after you sell your house.

Details of these changes can be found here:

The CPF (Amendment) Bill 2012 Second Reading Speech by Acting Minister for Manpower Tan Chuan-Jin

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