Yip Hon Weng on Central Provident Fund (Amendment) Bill
Despite a prohibition on CPF contributions from foreigners since 2003, about 300,000 individuals who are neither Singapore citizens nor Permanent Residents remain in the CPF system. Among them are those who continued to receive contributions or made voluntary contributions, as well as people who had relinquished citizenship or permanent residency. Making these points in Parliament on Monday (Nov 6), MP Yip Hon Weng asked if active steps were taken to encourage these individuals to close their accounts. He wanted to know how much the CPF Board expects to pay out when the accounts are made to close next year and how much of that amount is accrued interest. Mr Yip also asked how many people are expected to transition to the Supplementary Retirement Scheme (SRS). He noted that SRS contributions are entitled to income tax relief while withdrawals are subject to income tax. He asked if the economic benefits of this policy outweigh the incentives given to foreigners to grow their retirement accounts in Singapore.
Despite a prohibition on CPF contributions from foreigners since 2003, about 300,000 individuals who are neither Singapore citizens nor Permanent Residents remain in the CPF system. Among them are those who continued to receive contributions or made voluntary contributions, as well as people who had relinquished citizenship or permanent residency. Making these points in Parliament on Monday (Nov 6), MP Yip Hon Weng asked if active steps were taken to encourage these individuals to close their accounts. He wanted to know how much the CPF Board expects to pay out when the accounts are made to close next year and how much of that amount is accrued interest. Mr Yip also asked how many people are expected to transition to the Supplementary Retirement Scheme (SRS). He noted that SRS contributions are entitled to income tax relief while withdrawals are subject to income tax. He asked if the economic benefits of this policy outweigh the incentives given to foreigners to grow their retirement accounts in Singapore.
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