GROWING MINIMUM SUM TOP-UP TRANSACTIONS OVER THE YEARS

Media Factsheet by:
Central Provident Fund Board
15 February 2011 --

Central Provident Fund (CPF) Board noted 29,975 transactions for its Minimum Sum Topping-Up (MSTU) Scheme in 2010. This marked a 24% increase from 2009, as well as a growth of about 36%¹ over the past five years. 

In 2010, the top-up amount totaled $250 million, representing an increase of 9% from $228.6 million in 2009.  Over the last five years, the top-up amount has increased by approximately 33%². (Breakdown of top-ups per year can be found in the Annex.)  

Top-Ups into parents’ Special or Retirement accounts were the most popular, with 58% of all top-ups made in 2010 going into parent’s accounts. Top-ups into one’s own account constituted 23% of all top-ups in 2010, while top-ups to spouses made up 16%.

The growing number of top-ups is testament to the growing popularity of the MSTU scheme, as more members understand how it helps them and their family members in saving for their retirement.  

Started in 1987, the MSTU Scheme aims to help members enhance their retirement savings, by encouraging them to top-up to their own, or family members’ Special or Retirement Accounts using their Ordinary Account savings³ or cash. Recipients can enjoy up to 5% interest on their CPF savings⁴, thus building up their retirement nest egg faster. Members who make cash top-ups into their own, and their family members’ Special or Retirement Accounts, can enjoy up to $14,000 tax relief per calendar year. 

In line with CPF Board’s efforts to encourage members to join the MSTU Scheme, the Board rolled out a ‘Tis The Season to Top Up’ Lucky Draw towards the end of 2010. Members who made top-ups of at least $100 from 1 November to 27 December 2010 stood a chance to win one of the top three prizes: $1,000 in shopping vouchers, and an additional $1,000 Top-Up into the MSTU recipient’s Special or Retirement Account. Another 30 qualifying members received $100 in shopping vouchers.

The top three prizes from the lucky draw went to:
• Mr Lim Choon Kok, 52 years old, who participated in this MSTU for the first time by topping up for his sibling.
• Mr Tan Wen He@Htwe Win, 40 years old, who has topped up his 72 year old mother’s Retirement Account annually since 2008.
• Mr Chia Pen Chueun, 51 years old, has also topped up his 74 year old mother’s Retirement Account annually since 2008.

Quote from Mr Tan Wen He@Htwe Win, “My brother first encouraged me to participate in the Minimum Sum Topping-Up scheme about 4 years ago. Since then, we have been topping up our Mother’s Retirement Account annually. We think this is a good way of helping my mother with her retirement needs, since she has always been a housewife, and do not have much CPF savings. Winning this draw is an added bonus and I will continue to top up my mother’s account for as long as I can.”

Quote from Mr Soh Chin Heng, Deputy Chief Executive Officer (Services Group), CPF Board: "We at the CPF are encouraged by the 30,000 top-ups totaling $250 million last year.  This demonstrates a growing awareness among members of the importance of building up their retirement savings, and it will help them and their loved ones have a secure retirement." 

PUBLIC ENQUIRIES

Members with enquiries may call the CPF Call Centre on 1800-227 1188.

Notes: