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In 1997, CPF membership rose by 1.5% to 2,781,958. This figure includes 1,224,195 active members and 209,780 self-employed persons who made contributions under Medisave for the Self-Employed Scheme.
Total savings in the Fund grew by 9.8%, up from $72,566.6 million in 1996 to $79,657.4 million by end of 1997.
In 1997, the CPF contribution rate remained at 40% of wages for those age 55 & below, with employers and employees contributing 20% each. Those between age 56 to 60 contributed 20%, with employers and employees contributing 7.5% and 12.5% respectively. Those between age 61 to 65 contributed 15% and those above 65 years contributed at 10%, with equal contributions from employers and employees.
The maximum monthly contribution payable for all age groups was based on a salary ceiling of $6,000 a month.
Non-pensionable officers in the public sector contributed the same rate as private sector employees. For pensionable officers in the public sector, the contribution rate was 30% with equal contributions from employers and employees, subject to a maximum monthly contribution of $1,400 by the employers and $1,200 by the employees.
A CPF member maintains three accounts with the Board - Ordinary, Medisave and Special Accounts. At age 55, he also has a Retirement Account under the Minimum Sum Scheme.
Of the total contribution of 40%, 30% is credited to the member's Ordinary Account, 6% to his Medisave Account and 4% to his Special Account. However, members above 35 years are required to contribute 7% to his Medisave Account, while those above 45 years are required to contribute 8%. For these members, the contributions into their Ordinary Accounts are reduced to 29% and 28% respectively.
Savings in the Ordinary Account can be used for housing, approved investments, CPF insurance, tertiary education and topping-up parents' Retirement Accounts. Medisave can be used for hospitalisation expenses, Hepatitis B vaccinations, chemotherapy, radiotherapy, approved outpatient treatments and approved medical insurance premiums. The Special Account is meant for old age and contingencies.
Contributions amounting to $15,873.8 million was collected and credited into members' accounts during the year. Withdrawals from the fund totaled $11,456.5 million in 1997, compared to $10,529.6 million the previous year.
CPF members receive a market-related interest rate on their CPF savings. The CPF interest rate is a simple average of the 12-month deposit and month-end savings rates of the four major local banks, subject to a minimum rate of 2.5% as stipulated in the CPF Act. It is revised every six months. The interest rates for January to June 1997 were 3.48% for both the Ordinary and Medisave Accounts and 4.73% for the Special & Retirement Accounts. For July to December 1997, the interest rates remained unchanged.
In 1997, interest credited into members' accounts amounted to $2,692.6 million. |