Strengthening family support for older Singaporeans - By allowing more members to make CPF transfers

1. To better support CPF members who are providing for their parents and grandparents, the Ministry of Manpower is amending the CPF Act to allow more CPF members to make CPF transfers to their parents and grandparents.
2. This change in the CPF transfer rules is part of a series of enhancements to the Retirement Sum Topping-Up (RSTU) Scheme , which aim to improve the retirement adequacy of CPF members. It will provide CPF members more flexibility to help themselves and their family members plan for retirement.
3. Today, CPF members need to set aside the Full Retirement Sum (FRS) with their CPF savings before they can transfer Ordinary Account savings in excess of FRS to their parents and grandparents. With the amendment to the CPF Act, the threshold will be lowered from the FRS to the Basic Retirement Sum (BRS) (or half the FRS), if they have enough CPF savings inclusive of property pledge/charge to meet at least the FRS. This concession will give members who are providing for their parents and grandparents more options to strengthen their parents’ and grandparents’ retirement adequacy.
4. The CPF Amendment Bill 2017 will be introduced for its First Reading at the Parliament sitting on 02 October 2017 (Please refer to Annex). More details will be released at the Second Reading of the Bill in November 2017.