CPF Changes 2011

Here's an update on the upcoming changes to the CPF system, effective 1 July 2011.


CPF Minimum Sum

From 1 July 2011, the prevailing MS will be revised to $131,000, up from $123,000.

Members who can set aside the MS fully in cash can apply to commence their monthly payouts of $1,170 when they reach their draw down age.


Medisave Minimum Sum

The Medisave Minimum Sum (MMS) will be raised to $36,000 from $34,500. Members will be able to withdraw their Medisave savings in excess of the MMS at or after age 55.



Medisave Contribution Ceiling

The Medisave Contribution Ceiling (MCC), is fixed at $5,000 above MMS and this would be increased correspondingly to $41,000, from $39,500.

The MCC is the maximum balance a member may have in his Medisave Account. any Medisave contribution in excess of the prevailing MCC will be transferred to the member’s Special Account if he is below age 55 or to his Retirement Account if he is above age 55 and has a MS shortfall.


CPF Interest Rates

The interest rates for the Ordinary Account is unchanged at 2.5% p.a.

An extra 1% interest will continue to be paid on the first $60,000 of a member’s combined balances, with up to $20,000 from the OA. The extra interest from the OA will go into the member’s Special or Retirement Account.

The Special Account, Medisave Account and Retirement Account interest rates remains at 4% p.a. until 31 Dec 2011. From then on, it will be based on the 12-month average yield of the 10-year Singapore Government Securities (10YSGS) plus 1% at the point of issuance, or 4%, whichever is the higher, adjusted yearly.


HDB Mortgage Loan Rate

The HDB mortgage loan rate remains unchanged at 2.6% (0.1% + CPF OA Interest Rate).


That's all for the CPF updates. Cheers!