cpf to raise

SINGAPORE : From July 1, the prevailing CPF Minimum Sum will be revised to S$123,000, up from the current S$117,000.

The Ministry of Manpower (MOM) said members who can set aside the full minimum sum will receive about S$1,100 per month when they reach their draw down age.

The new minimum sum will apply to CPF members who turn 55 from July this year till June next year.

MOM said the minimum sum will be raised gradually to reach S$120,000 (in 2003 dollars) in 2013.

The increase, which includes an adjustment for inflation, is to ensure that Singaporeans set aside sufficient savings for their retirement.

Also from July 1, the Medisave Minimum Sum (MMS) will be raised to S$34,500 from S$32,000.

The CPF Board said members will be able to withdraw their Medisave savings in excess of the MMS at or after 55 years old.

The maximum balance a member may have in his Medisave Account, known as the Medisave Contribution Ceiling (MCC) is fixed at S$5,000 above the MMS. This will correspondingly be increased to S$39,500, from S$37,000.

Any Medisave contribution in excess of the prevailing MCC will be transferred to the member's Special Account if he is below 55 years old.

It will be transferred to his Retirement Account if he is above 55 and has a Medisave shortfall.

MOM said the revisions to the MMS and MCC, which have been adjusted for inflation, are to ensure that Singaporeans have sufficient savings to meet their hospitalisation expenses.