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New CPF Changes in 2010

Minister for Manpower Gan Kim Yong announced the following measures in his speech at the Committee of Supply debate on 11 March 2010 as part of the government’s continuing efforts to improve the CPF system.

Facilitating Automatic Inclusion in CPF LIFE
From 2013, CPF members born in 1958 or later with at least $40,000 in their Retirement Account (RA) at age 55 will be automatically included in CPF LIFE. Those with less than $40,000 will not be automatically included at 551. Such members may subsequently have significant RA inflows between 55 and DDA2. To help these members participate in CPF LIFE and enjoy an income for as long as they live, such members will be automatically included at DDA if they have $60,0003 in their RA then.
1 However, they could opt to join the scheme if they wish to.
2 Age at which members are allowed to withdraw their CPF savings in the form of monthly payouts. The DDA for members who turned 55 from 1999 to 2004 is 62. This has been gradually increased to 65 for those who turned 55 in 2009.
3 This is equivalent in value to $40,000 at age 55, compounded at 4% over 10 years.
Frequently Asked Questions
Raising the Threshold for CPF Investment Scheme-Special Account Investment
From 1 July 2010, the first $40,000 of members’ Special Account balances will no longer be allowed to be used for investments. Given the higher risk-free interest rate on the Special Account, it is better to be more conservative than to subject these savings to the uncertainty of CPFIS returns.
There is no change to the requirement for members to set aside $20,000 in the Ordinary Account before they can invest their Ordinary Account monies.
Frequently Asked Questions
Allowing Payout Adjustments for Minimum Sum Scheme
Members can now apply for an upward adjustment in their CPF monthly income provided that their adjusted payouts can last at least 20 years from their Draw Down Age, or at least another 5 years, whichever ends later (See Example). This will be implemented by July 2010.
This option is not limited to only MS top-up recipients, but also for older members with large balances in their Retirement Accounts.
Frequently Asked Questions
Refining CPF Nomination Rules
In response to public feedback from members that they would like to use their CPF monies to better provide for the retirement and healthcare adequacies of their nominees, members will be allowed to transfer their CPF monies to their nominees’ CPF accounts upon their demise.
The change to the CPF nomination system will be effective from January 2011. More details will be released at a later date.
Frequently Asked Questions
Special Needs Savings Scheme
Ministry of Community Development, Youth & Sports (MCYS) is working with Ministry of Manpower and CPF Board on a new CPF scheme called the Special Needs Savings Scheme.
Parents would be able to nominate their disabled children to receive monthly disbursements from the parents’ CPF savings after the parents have passed on. Parents can nominate any number of eligible children and determine the level of monthly payouts to be paid, subject to the floor payout of $250, to each child upon the parents’ demise. The disabled who require assistance in at least one activity of daily living4 and children in Special Education schools would be eligible. The details of the scheme will be announced later when implementation details have been finalised.
4 There are 6 ADLs: i) washing; ii) dressing; iii) feeding; iv) toileting; v) mobility; and vi) transferring.
MCYS Media Release
Special Needs Savings Scheme (Centre for Enabled Living)
Enhancements to Workfare Income Supplement Scheme (WIS)
The WIS Scheme aims to supplement the wages and CPF savings of Singapore workers aged 35 and above. It will be enhanced and will apply to work done from 1 January 2010.
The key enhancements are that the WIS qualifying average monthly income will be increased to $1,700, up from $1,500 previously; and the maximum WIS payment will be increased from $2,400 to $2,800 a year.
Also, the first six-month work period will now be assessed independently of the end-of-year annual assessment. Once a recipient is assessed to be eligible for a mid-year WIS payment, that payment received will be the final amount.
WIS Factsheet
Frequently Asked Questions
Other CPF-Related Changes
Refinement to the Public Assistance Scheme
Presently, needy Singaporeans who are unable to work owing to old age, illness or disability and have no means of subsistence and have little or no family support can seek help under the Public Assistance (PA) scheme.
From 1 July 2010, CPF members who meet all other PA criteria, but who are receiving a small stream of monthly CPF payouts (i.e. lower than the PA allowance for a 1-person household i.e. $360 per month), under the Minimum Sum Scheme or CPF LIFE, can be considered for the PA scheme.
The Community Development Councils (CDCs) will assess each applicant’s eligibility based on the PA criteria. If eligible, they will be given a cash grant that takes into account the CPF payouts they are already receiving. Needy Singaporeans may approach their CDCs if they wish to apply for the PA scheme.
Public Assistance Scheme

Example of Minimum Sum Payout Adjustment:
Member aged 64 in July 2010

Cohort Draw Down Age


Retirement Account cash balance


Top-up amount in July 2010


Retirement Account cash balance after top-up


Under Current Top-Up Rules



Estimated payout end age


If Member Opts for Upward Payout Adjustment

Re-computed payout


Increment in payout


Estimated payout end age


* This is the maximum payout for this member’s cohort under current top-up rules

 Last Updated on: Thursday, June 30, 2011 at 5:48 PM
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