- POSTED: 13 Dec 2013 11:39
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The Central Provident Fund (CPF) Board will distribute S$29 million of surplus from its Dependants' Protection Scheme (DPS) to members who had active covers when DPS was privatised on 17 September 2005.
SINGAPORE: The Central Provident Fund (CPF) Board will distribute S$29 million of surplus from its Dependants' Protection Scheme (DPS) to members who had active covers when DPS was privatised on 17 September 2005.
In a statement on Friday morning, the board said the rebate will be credited to the members' CPF Ordinary Account on 15 December 2013.
CPF members who are eligible for the rebates can check the amount at the CPF online services portal.
The board also said the Medisave Required Amount (MRA) will be S$40,500 from 1 January 2014, up from the current S$38,500.
On the same date, MRA will be merged into the Medisave Minimum Save (MMS), and be adjusted together.
MRA was introduced in 2003 as a 10-year phasing in of the MMS requirement.
The aim was to minimise the impact of the requirement on Singaporeans nearing the CPF withdrawal age.
With the adjustment in January 2013, the MRA would be fully phased in.
MMS was introduced in 1984 so that Singaporeans may set aside enough money to meet their healthcare expenses, especially after their retirement.
Also announced on Friday, CPF members will continue to earn a risk-free interest rate of four per cent on their Special and Medisave Accounts (SMA) from 1 January to 31 March 2014, and on their Retirement Account (RA) from 1 January to 31 December 2014.
Savings in SMA earn either four per cent or the 12 month average yield of 10-year Singapore government securities plus one per cent, whichever is higher.
The interest rate on SMA savings is adjusted quarterly, and from 1 December 2012 to 30 November 2013, it worked out to be 2.93 per cent.
CPF Board is therefore keeping the SMA interest rate payable to CPF members from 1 January 2014 to 31 March 2014 at the current floor of per cent.