1. How will the CPF changes affect members’ ability to service their monthly housing payments? 2. With the CPF changes, CPF members will have less savings in their CPF Ordinary Accounts to service their mortgage payments. What assistance measures are in place to help the affected members? 3. Since the CPF cut in 1999, I have been using my CPF Special Account savings for my monthly housing payments. Can I continue to use my Special Account savings? 4. What are the conditions for me to use the savings in my Special Account to pay my monthly housing payments? 5. From November 2003, how much can I use from the Special Account? 6. I will be receiving less CPF contributions due to the lowering of the salary ceiling to $5,500 in Jan 2004, $5,000 in Jan 2005 and $4,500 in Jan 2006. Am I allowed to use my Special Account savings? 7. How do I apply to use the Special Account? 8. Can I use the Special Account savings for the payment of purchase price of a property or capital repayment of my housing loan? 9. My husband and I are using CPF to pay our housing instalments. Must both Ordinary Account balances be exhausted before we can use our Special Account savings? 10. I am unemployed / self employed. Can I use my Special Account savings to pay my monthly housing instalments? 11. I am above 55 years old. Can I use my Special Account savings for my housing instalments? 12. Is the use of the Special Account savings restricted to one property? 13. Can I use the Special Account savings for HDB commercial properties? 14. Can I use the Special Account savings to buy a new private property or a new HDB flat? Can it be used for the downpayment as well? 15. I bought my property before 1 October 2003. When can I start using my Special Account savings? 16. Do I need to refund the amount withdrawn from my Special Account? 17. Will the Board inform me when my Special Account limit is changed? 18. When will the Board stop the use of Special Account savings?

	1.	How will the CPF changes affect members’ ability to service their monthly housing payments?
		The lower CPF contribution rates, increase in contribution to the Special Accounts and lower CPF salary ceiling will reduce the amount of CPF contributions going into the Ordinary Account.
	2.	With the CPF changes, CPF members will have less savings in their CPF Ordinary Accounts to service their mortgage payments. What assistance measures are in place to help the affected members?
		The Government will allow CPF members to use their Special Accounts to top up their monthly housing payments, to the extent that these payments are affected by the changes. This assistance measure is available for those who bought their properties before 1 October 2003, and have exhausted their Ordinary Account savings. In addition, the CPF changes are being implemented over several years so that members will have adequate time to adjust their financial plans.
	3.	Since the CPF cut in 1999, I have been using my CPF Special Account savings for my monthly housing payments. Can I continue to use my Special Account savings?
		Yes. You can continue to use your Special Account savings.
	4.	What are the conditions for me to use the savings in my Special Account to pay my monthly housing payments?
		From November 2003, you can use your Special Account savings for monthly housing payments, provided you meet the following conditions: Your property is bought before 1 October 2003; You are eligible to use your CPF savings to pay your monthly housing payments under the rules of the PHS/RPS/NRPS; Your Ordinary Account contribution is insufficient to meet the monthly housing payments; and The balance in your Ordinary Account has been depleted. The following dates are used to determine the date of purchase: For private properties, HUDC flats and non-residential properties Upon signing the Option to Purchase, or the Sale & Purchase Agreement, whichever is applicable. For HDB properties Flat bought direct from HDB : Date of signing the Agreement For Lease (i.e. date 20% downpayment is made)       Flat bought from open market : Date of signing the Sale & Purchase Agreement / Option to Purchase
	5.	From November 2003, how much can I use from the Special Account?
		From November 2003, you will be allowed to use your Special Account savings to meet the shortfalls in your monthly housing payments, to the extent that these payments are affected by the CPF changes. (Refer to conditions above.) You will be able to use at least $100 from your Special Account. If the reduction to your Ordinary Account contribution is less than $100 or you do not have any contribution for the past 15 months, you may use $100. October 2003:   Aged 35 & below Above 35 to 45 Above 45 to 50 Above 50 to 55 Bought property before 1 Jan 1999* (4+4)%** (6+3)% (6+4)% (6+4)% Only bought property between 1 Jan 1999 and 30 Sep 2003 4% 3% 4% 4% * If you bought a property before January 1999 and another property between January 1999 and September 2003, your Special Account (SA) limit is the combination of the 1999 and the 2003 SA limits. E.g. if the 1999 SA limit is $200, and the 2003 SA limit is $300, the total SA limit for the two properties is $500. ** Your 1999 SA limit will be adjusted to 4% of your November 1998 salary instead of 6%. We will then add in 2003 SA limit which is 4% of your August 2003 salary. If you move on to the next age group, we will use your August 2003 salary to recompute your SA limit. However, your new limit will not be less than your 2003 SA limit. January 2004: Reduction in salary ceiling to $5,500 If your salary is above $5,500, your OA contributions will be affected by the lowering of the salary ceiling. If the decrease in your OA contribution is greater than the increase in your take-home pay, we will increase the SA limit by the difference. However, if the increase in your take-home pay is greater than the decrease in your OA contribution, your SA limit will remain as the 2003 SA limit. Your SA limit may be revised upwards, but not downwards. E.g. Change in OA Change in take-home pay Change in SA limit Drop by $150 Increase by $80 Increase by $70 ($150-$80) Drop by $100 Increase by $100 No change January 2005: Change SA limit for those above 50 to 55 and reduction in salary ceiling to $5,000.   Aged 35 & below Above 35 to 45 Above 45 to 50 Above 50 to 55 Bought property before 1 Jan 1999* (4+4)% (6+3)% (6+4)% (6+6)% Only bought property between 1 Jan 1999 and 30 Sep 2003 4% 3% 4% 6% For members above 50-55, we will use your August 2003 salary to recompute your SA limit. If your salary is above $5,000, we will adjust your SA limit, taking into account the drop in your OA contribution and the increase in your take-home pay. If the decrease in your OA contribution is greater than the increase in your take-home pay, we will increase the SA limit by the difference. However, if the increase in your take-home pay is greater than the decrease in your OA contribution, your SA limit will remain, i.e. we will not lower your SA limit. Your SA limit may be revised upwards, but not downwards. January 2006: Change SA limit for those above 50 to 55 and reduction in salary ceiling to $4,500.   Aged 35 & below Above 35 to 45 Above 45 to 50 Above 50 to 55 Bought property before 1 Jan 1999* (4+4)% (6+3)% (6+4)% (6+8)% Only bought property between Jan 1999 and Sep 2003 4% 3% 4% 8% For members above 50-55, we will use your August 2003 salary to recompute your SA limit. If your salary is above $4,500, we will adjust your SA limit, taking into account the drop in your OA contribution and the increase in your take-home pay. If the decrease in your OA contribution is greater than the increase in your take-home pay, we will increase the SA limit by the difference. However, if the increase in your take-home pay is greater than the decrease in your OA contribution, your SA limit will remain, i.e. we will not lower your SA limit. Your SA limit may be revised upwards, but not downwards.
	6.	I will be receiving less CPF contributions due to the lowering of the salary ceiling to $5,500 in Jan 2004, $5,000 in Jan 2005 and $4,500 in Jan 2006. Am I allowed to use my Special Account savings?
		Yes, you are allowed to use your Special Account savings under these conditions: You have less CPF contributions due to the lower salary ceiling, Your property is bought before 1 October 2003, and You have used up all your Ordinary Account savings. However, the lowering of the salary ceiling also means that you have more take-home pay. We will adjust the SA limit, taking into account the drop in your OA contribution and the increase in your take-home pay. If the decrease in your OA contribution is greater than the increase in your take-home pay, we will increase the SA limit by the difference. However, if the increase in your take-home pay is greater than the decrease in your OA contribution, your SA limit will remain, i.e. we will not lower your SA limit. Your SA limit may be revised upwards, but not downwards.
	7.	How do I apply to use the Special Account?
		Please refer to the table below for the procedures. Types of property Ownership status Private and Commercial Properties HDB flats HUDC Properties Co-owner of property and currently using CPF No need to apply. Deduction of Special Account is automatic. No need to apply. Deduction of Special Account is automatic. No need to apply. Deduction of Special Account is automatic. Co-owner of property - and 1) CPF usage stopped; or 2) has applied to use CPF but has yet to commence usage To complete and submit RPS Form 4B via financier so as to re-commence or commence the CPF monthly instalment deductions. Flats financed with HDB loan: Approach the HDB branch office managing your flat personally to complete CPF application form (HPS/9). Flats financed with bank loan: Complete and submit Form HBL/3. RPS members to complete and submit RPS Form 4B via financier. PHS members to complete and submit CPF application Form HPS/11 via financier. Co-owner of property and never applied to use CPF To complete and submit Form RPS/1A for private property and NRPS/1A for commercial property. Flats financed with HDB loan: Approach the HDB branch office managing your flat personally to complete CPF application form (HPS/9). Flats financed with bank loan: Where there are no other co-owners who ever used CPF towards the property, complete and submit Form HBL/1. Where there is another co-owner using CPF towards the payment of the flat, complete and submit Form HBL/3. Where there are no other co-owners who ever used CPF towards the property; or where there is another co-owner using CPF under the Residential Properties Scheme,complete and submit Form RPS/1A. Where another co-owner is using CPF under the HDB-HUDC Housing Scheme, to complete and submit Form HPS/11. Not co-owner Not eligible to use Special Account savings if property was not bought before 1 Oct 2003. Not eligible to use Special Account savings if property was not bought before 1 Oct 2003. Not eligible to use Special Account savings if property was not bought before 1 Oct 2003. Owners of private properties (including HUDC flats) and commercial properties who are applying to use their CPF for the first time will have to engage a lawyer as legal documentation is required. After the legal documentation has been completed, the CPF Board will release your Ordinary Account savings for the monthly instalment payments and the legal costs incurred. The Special Account savings can only be used after the balance in the Ordinary Account has been exhausted. It cannot be used to pay the legal fees. For HDB flats financed with bank loans, the Board will engage a lawyer to act for the Board to process these applications to service a bank loan, if HDB is not acting for the purchasers.
	8.	Can I use the Special Account savings for the payment of purchase price of a property or capital repayment of my housing loan?
		No. The use of the Special Account savings is to help members meet the shortfalls in their monthly housing payments due to the CPF changes. As such, it cannot be used for purposes other than monthly instalment payments e.g. capital repayments or progress payments.
	9.	My husband and I are using CPF to pay our housing instalments. Must both Ordinary Account balances be exhausted before we can use our Special Account savings?
		No. The use of a member’s Special Account savings does not depend on the Ordinary Account balance of the co-owner. The member may use his Special Account savings if the balance in his Ordinary Account is depleted.
	10.	I am unemployed / self employed. Can I use my Special Account savings to pay my monthly housing instalments?
		The use of the Special Account savings is to help members meet the shortfall in their monthly housing payments arising from the CPF changes. Unemployed and self-employed members are not directly affected by these events. However, as a concession, the use of the Special Account savings is extended to all CPF members. Unemployed / Self-employed members may use a fixed sum of $100 each month from their Special Account savings to top up the shortfall in their monthly instalments. This limit will also apply to members whose Special Account limit is less than $100.
	11.	I am above 55 years old. Can I use my Special Account savings for my housing instalments?
		Members above 55 years old are not affected by the change in contribution rates. In addition, they are able to withdraw their OA and SA savings. If you have bought your property between 1 January 1999 and 30 September 2003, you will not be able to use your Special Account savings. If you have bought your property before January 1999, you can continue to use your Special Account savings up to the 1999 SA limit, if the balance in your Ordinary Account has been depleted.
	12.	Is the use of the Special Account savings restricted to one property?
		No, you can use your Special Account savings as long as the property is bought before 1 October 2003. However, the total amount that can be used from the Special Account cannot exceed the shortfall in your monthly instalment payments, or the Special Account limit, whichever is lower.
	13.	Can I use the Special Account savings for HDB commercial properties?
		Yes, if the property was bought before 1 October 2003.
	14.	Can I use the Special Account savings to buy a new private property or a new HDB flat? Can it be used for the downpayment as well?
		No. The use of the Special Account savings is to help members meet the shortfall in the housing loan payments arising from the CPF changes.
	15.	I bought my property before 1 October 2003. When can I start using my Special Account savings?
		The CPF changes will take effect from 1 October 2003. You may start using your Special Account savings, up to the new Special Account limit from November 2003, after the balance in your Ordinary Account has been depleted.
	16.	Do I need to refund the amount withdrawn from my Special Account?
		If you sell your property, you are required to refund the CPF savings withdrawn from your Special Account, including the accrued interest. The interest computed will be based on the interest rate for the Ordinary Account.
	17.	Will the Board inform me when my Special Account limit is changed?
		The Board will inform when you first use your Special Account. For subsequent changes to your Special Account limit, the Board will not be informing you as the revised Special Account limit will not be lower than the 2003 Special Account limit.
	18.	When will the Board stop the use of Special Account savings?
		The Special Account savings are meant for members’ old age needs. Therefore, the use of the Special Account savings is a temporary measure. The need to use the Special Account savings will be reviewed. Members will be informed once a date has been set.

FOR ENQUIRIES, PLEASE CALL THE CPF CALL CENTRE AT 1800-227-1188.