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Written Answer by Mr Lim Swee Say on Property Pledge and Topping Up of Spouses' CPF

Employment practices
Notice Paper No. 96 Of 2016 For The Sitting On Or After 15 March 2016
Question No. 80 For Written Answer

MP: Ms. Foo Mee Har

To ask the Minister for Manpower (a) in 2016 so far, what is the number of CPF members who choose to pledge their properties in order to withdraw their Retirement Account savings above their Basic Retirement Sum; and (b) how much of the amount withdrawn has been used to top up their spouses' CPF accounts.

Answer

  1. CPF members aged 55 and above can withdraw their Retirement Account savings above their Basic Retirement Sum if they have a sufficient existing charge1  on their property. Those who do not have a sufficient existing property charge can still make such a withdrawal after making a pledge on their property. This property charge or pledge does not affect the ownership of the property and is intended to ensure that the member’s Retirement Account is restored up to the Full Retirement Sum if the property is sold in the future.
  2. In January and February 2016, 1,200 CPF members withdrew their Retirement Account savings above their Basic Retirement Sum through a property charge or pledge. 700 of them turned 55 in January and February 2016 and became eligible to make such withdrawals. These members had withdrawn their Retirement Account savings in cash. We do not track whether any of them subsequently make cash top-ups to their spouses' CPF accounts.
  3. CPF members can also directly transfer their CPF savings above their Basic Retirement Sum to their spouse’s Special or Retirement Account, without the need for a property charge or pledge.

FOOTNOTE

  1. A property charge is created when a member withdraws savings from his OA to finance the purchase of his property and pay his housing loan instalments.