The Ministry of Manpower announced in August 2003 that the MS will be raised gradually to reach $120,000 (in 2003 dollars) in 2013. The increase in MS, which includes an adjustment for inflation, is to ensure that Singaporeans set aside sufficient savings for their retirement. In line with this policy, from 1 July 2010, the prevailing CPF Minimum Sum (MS) will be revised to $123,000, up from $117,000. Members who can set aside the full MS will receive about $1,100 per month when they reach their draw down age1. The new MS will apply to CPF members who turn 55 from 1 July 2010 to 30 June 2011.
Medisave Minimum Sum and Medisave Contribution Ceiling
The Medisave Minimum Sum (MMS) will be raised to $34,500 from $32,000.
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 $5,000 above MMS and this would be increased correspondingly to $39,500, from $37,000.
As announced previously,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 Changes
To help Singaporeans save more for their medical and retirement needs, the Government will increase the employer CPF contribution rate by 1%. The increase will be done gradually in two steps to moderate the impact on employers. The first 0.5% increase will be implemented on 1 September 2010, and will be made into the Medisave Account (MA). The remaining 0.5% increase will be effected 6 months later on 1 March 2011, and will be made to the Special Account (SA).
CPF Contribution
Self Help Calculator http://www.cpf.gov.sg/cpf_info/Online/Contri.asp?prof=
No comments:
Post a Comment