Need to Strike Balance Between Higher CPF Payouts and Longer Duration: MOM

Need to Strike Balance Between Higher CPF Payouts and Longer Duration: MOM
- The Straits Times, 04 November 2009

We thank Mr Richard Foo and Mr Johnny Sim for their letters on payouts under the CPF Minimum Sum (ST 27 Oct and ST Online 29 Oct).

2.   Mr Sim visited CPF Board on 15 Sept to enquire about the Minimum Sum Topping-Up Scheme on behalf of his mother. The Board replied to his mother on 22 Sept, and has since contacted Mr Sim to update him.

3.   Members who reach 55 years of age will have a Minimum Sum level specific to their age-cohort. Those who top up their CPF Retirement Account (RA) savings to the Minimum Sum applicable to their cohort will generally see a proportional increase in their CPF monthly payout. Top-ups beyond a member's cohort Minimum Sum will go towards extending the duration of the monthly payouts. There is a need to achieve a balance between higher payouts and longer duration to meet members' retirement needs.

4.   Members can consider joining CPF LIFE, which provides an income for life. It is offered to those who have turned 55, on an opt-in basis.

5.   We would like to invite Mr Richard Foo to contact Ms Sun Hui Yee, Senior Assistant Director (Minimum Sum) from CPF Board at (65)6229-3396, so we can look into his case.

CPF Minimum Sum: Allow higher payouts 
- The Straits Times, 27 October 2009 

I refer to the payouts involving the Central Provident Fund (CPF) Minimum Sum. I understand that any amount over the prevailing Minimum Sum will not generate a higher payout, but instead will prolong the period of payout.

In other words, any amount above the previous Minimum Sum of $84,500 will not pay more than $668, assuming zero amount is set aside for property pledge, even if I top up my Minimum Sum to $117,000.

The current Minimum Sum is $117,000 and the payout is $1,040.

As we are allowed to top up our previous Minimum Sum of $84,500 to the prevailing Minimum Sum of $117,000, I see no reason why we should not get a higher payout of $1,040, rather than $668 and a prolonged period of payout.

No word from CPF Board about higher payout request
- The Straits Times Online, 29 October 2009 

Like Mr Richard Foo in his letter on Tuesday, 'CPF Minimum Sum: Allow higher payouts', I broached the question of higher payouts with the CPF Board. I believe many Singaporeans are in the same situation since the Government raised the CPF Minimum Sum to $117,000.

Here are the details of my case:

I topped up my mother's CPF Retirement Account some years back to about $14,000. She was paid $297 a month.

I am contemplating topping up her Retirement Account to the maximum $117,000 to provide for her retirement and asked the CPF Board's Bishan branch about a month ago to allow the monthly drawn-down amount to be increased to $1,040 a month from $297.

To date, I have not received any reply or even an acknowledgement from the CPF Board.