CPF INTEREST RATE FOR SPECIAL, MEDISAVE AND RETIREMENT ACCOUNTS (SMRA) FROM 1 JANUARY 2009 TO 31 MARCH 2009
	News Release by: Central Provident Fund Board 9 December 2008 --
	From 1 January this year, interest rate for savings in the Special, Medisave and Retirement Accounts (SMRA) is pegged to the 12-month average yield of the 10-year Singapore Government Security (10YSGS) plus 1%. The average yield of the 10YSGS over one year, from 1 December 2007 to 30 November 2008, plus 1% works out to be 3.79%.
	To help CPF members adjust to the floating SMRA rate, the Government will maintain the 4% floor rate till 31 Dec 2009 if the 10YSGS yield plus 1% is below 4%. After that, the 2.5% floor rate will apply for all CPF accounts.
	Hence, the SMRA interest rate paid from 1 January 2009 to 31 March 2009 will be 4% (floor rate).
	Additional Interest of 1% An additional 1% interest will be paid on the first $60,000 of a member’s combined balances, with up to $20,000 from the Ordinary Account (OA). The additional interest received on the OA will go into the member’s Special or Retirement Account to enhance his retirement savings.
	The CPF interest rate will continue to be reviewed quarterly. Improving returns on CPF savings is one of the key changes introduced to help Singaporeans improve their retirement adequacy.
	For the computation of the CPF interest rate for SMRA and the 10YSGS yield, please refer to Annex A.
	MEDISAVE REQUIRED AMOUNT
	Since 1 January 2004, CPF members who turn 55 and are able to meet the CPF Minimum Sum are required to set aside a Required Amount in their Medisave Account when they make a CPF withdrawal. If members have less than the Required Amount in their Medisave Accounts, their Ordinary and/or Special Account balances in excess of the Minimum Sum will be used to top up the Required Amount.
	The requirement for members to set aside the Required Amount in their Medisave Account is to enable them to have enough savings to meet their healthcare needs during old age.
	From 1 January 2009, the Required Amount will be raised from the current $14, 000 to $18,000, after adjusting for inflation. The Required Amount will increase by $2,500 (in 2003 dollars) each year until it reaches $25,000 (in 2003 dollars) on 1 January 2013.
	Public Enquiries For more information, please visit www.cpf.gov.sg or call the CPF Call Centre at 1800-227-1188.
	Annex A
	Computation of Special, Medisave and Retirement Accounts (SMRA) Interest Rates for January 2009 to March 2009 Average yield of 10-Year SGS from Dec 07 to Nov 08 2.79% (Note 1) Plus 1% 1.00% Computed SMRA Interest Rate for Jan 09 to Mar 09 3.79% SMRA Interest Rate (Jan 09 to Mar 09)   4.00% (Note 2)
	Note:
	1. Source: Yields of 10-Year Singapore Government Securities are obtained from www.sgs.gov.sg
	2. A floor of 4% for the SMRA rate will be maintained for two years from 1 January 2008. It will be lifted after 2 years, and the 2.5% floor rate will apply for all CPF accounts thereafter.
	10-Year SGS Yield from December 2007 to November 2008