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Written Answer by Minister for Manpower Mrs Josephine Teo to PQ on Contribution Limit for MRSS

Employment practices

NOTICE PAPER NO. 230 OF 2021 FOR THE SITTING ON 2 February 2021

QUESTION NO. 37 FOR WRITTEN ANSWER TO QUESTIONS FOR ORAL ANSWER NOT ANSWERED BY END OF QUESTION TIME

MP: Ms Carrie Tan

To ask the Minister for Manpower (a) whether the Government’s matched contributions under the Matched Retirement Savings Scheme apply to top-ups made by non-family members; and (b) whether the tax reliefs provided to those who top up the CPF accounts of their loved ones can be extended to non-related persons who may choose to do so for someone. 

Answer:

  1. The Matched Retirement Savings Scheme (MRSS) was announced in Budget 2020 and launched earlier this year. Under this scheme, the Government will match cash top-ups to eligible recipients’ Retirement Accounts, up to $600 per year. Anyone can provide such top-ups. Singapore citizens and permanent residents who make cash top-ups for their loved ones may be eligible for up to $7,000 of tax relief per year. Employers who make cash top-ups on their employees’ behalf will also enjoy an equivalent amount of tax deduction. Tax reliefs are not available for top-ups from other non-related parties. However, they can contribute to beneficiaries through a charity with Institutions of Public Character (IPCs) status and be eligible for a tax deduction of 250%.

  2. We will continue to review the scheme to ensure that it remains relevant to members.