Koh Poh Koon on Central Provident Fund (Amendment) Bill

Non-residents in Singapore will have their participation in CPF schemes terminated, so that the system and its resources can be better focused on the core objective of helping residents meet their retirement, housing and healthcare needs. That was one of the aims of a Bill which was moved for a second reading in Parliament on Monday (Nov 6) by Senior Minister of State for Manpower Koh Poh Koon. He said this is the final step in a process that has been underway over the years. The CPF accounts of non-residents will be closed from 1 April 2024. CPF savings that are not transferred to bank accounts by this date will be moved to the general monies of the Fund and no longer earn the prevailing CPF interest rate. For a transitional period of three years, the funds will earn interest based on the three-month average of the three local banks’ savings account interest rates. From 1 April 2027, no interest will be earned. Non-residents’ participation in CPF schemes such as CPF Life will also cease from April next year. The Bill also aims to streamline the administration of CPF schemes to improve service delivery. This includes making access to information easier for nominees and beneficiaries after a member’s death, clarifying that the CPF Board can process CPF transactions on or after a member’s death and giving the Board more flexibility to determine the form of notice to attend court and send certain documents electronically.