The closure, which was debated extensively earlier in 2024 after it was announced in Budget 2024, will result in members' SA savings being transferred to their Retirement Account (RA), up to the Full Retirement Sum (FRS) for their cohort. The remainder will be transferred to their Ordinary Account (OA).
Outlining the change during the debate on the CPF (Amendment) Bill on Oct 14, Manpower Minister Tan See Leng said CPF members will be notified when their SA is closed through a hard copy notification, as well as an e-mail or SMS where applicable.
He added that the principle behind closing the SA is to right-site CPF monies so that only CPF savings committed towards long-term retirement needs should earn the higher long-term interest rate, which is 4.14 per cent from Oct 1 to Dec 31, 2024, and at least 4 per cent from Jan 1 to Dec 31, 2025.
Members who have met the FRS will still be able to earn the higher long-term interest rate by voluntarily transferring their OA savings to the RA, he noted. It was previously announced that they can transfer up to the prevailing Enhanced Retirement Sum, which will be raised from three times to four times the Basic Retirement Sum from Jan 1, 2025.
Dr Tan said CPF members who want to retain the flexibility to withdraw their savings can also choose to leave the money in their OA and earn the lower OA interest rate of 2.5 per cent.
This story is from the October 15, 2024 edition of The Straits Times.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the October 15, 2024 edition of The Straits Times.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
Team Singapore athletes at Paris Games honoured in Parliament
Olympians and Paralympians 'fought hard in the toughest of arenas', says minister
NTUC central committee unaware of capital reduction plan: Desmond Tan
The labour movement's central committee did not know of the plan to return $1.85 billion to shareholders under the Allianz-Income deal before it was mentioned in Parliament on Oct 14, said NTUC deputy secretary-general Desmond Tan.
MPs raise concerns over info sharing, investor confidence
16 MPs speak for four hours on Bill to halt Allianz's planned offer for Income Insurance
New in Oct BTO launch: 'White flats', additional subsidies
The Oct 16 Build-To-Order (BTO) launch will feature several changes that will affect home buyers, including a new way of classifying flats, more options for singles and new open-concept \"white flats\".
Talent, tourists, new hubs: John Lee lays out ambitious HK revival plan
Given the myriad priority areas, analysts wonder if his economic measures lack focus
Prime, Plus flats launched with 6% to 9% subsidy clawback clause
They are among 8,573 homes offered for sale under new flat classification system
Parliament passes Bill enabling Govt to block Allianz-Income deal
The minister in charge of Singapore's financial regulator will have powers to block deals involving insurers that are run or substantially owned by cooperatives after Parliament passed new laws on Oct 16.
K-pop boy band Riize's Seunghan leaves two days after return
SEOUL - Just two days after announcing that he was rejoining K-pop boy band Riize, South Korean singer Seunghan (right) said on Oct 14 that he is leaving the group.
Stefanie Sun's concert tour kicks off in 2025
The decade-long wait for fans of Stefanie Sun will be over soon.
Theatre actor Shahid Nasheer hailed as bright talent of his generation
Theatre actor Shahid Nasheer died on the evening of Oct 14 at Gleneagles Hospital, following complications while being treated for leukaemia. He was 28.