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Source:
www.cpf.gov.sg |
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REMINDER - UPCOMING CPF
CHANGES FROM 1 JANUARY 2007 |
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The Board would like to remind CPF members
of the following changes to the CPF schemes which will take effect from
1 January 2007. |
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MEDISAVE REQUIRED AMOUNT |
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CPF members who turn 55 and are able
to meet the CPF Minimum Sum are required to set aside a Required
Amount in their Medisave Account when they make a CPF withdrawal. |
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If members have less than the Required
Amount in their Medisave Accounts, their Ordinary and/or Special
Account balances in excess of the Minimum Sum will be used to top
up the Required Amount. |
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The requirement for members to set
aside the Required Amount in their Medisave Account is to enable
members to have enough savings to meet their healthcare needs
during old age. |
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From 1 January 2007, the Required
Amount will be raised from the current $8,300 to $11,500, after
adjusting for inflation. The Required Amount will increase by
$2,500 (in 2003 dollars) each year until it reaches $25,000 (in
2003 dollars) on 1 January 2013. |
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HOUSING WITHDRAWAL LIMIT |
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The cap on the CPF withdrawal limit
for the purchase of private residential properties and HDB flats
financed with bank loans will be reduced from the current 132% to
126% of the Valuation Limit, and thereafter, by another 6
percentage points to 120% on 1 January 2008. |
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This is to encourage prudence in the
use of CPF savings for properties so that members will have enough
savings in their CPF accounts to meet their retirement needs. |
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PUBLIC ENQUIRIES |
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For more details, please log on to
www.cpf.gov.sg or call the CPF
Call Centre at 1800 - 227 1188. |
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Source:
www.cpf.gov.sg News Release 19
Dec 2006 |
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- - - - - - - - - - - - - - - - |
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CHANGES TO THE CPF INVESTMENT
SCHEME FROM 1 JANUARY 2007 |
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The Board would like to announce the
following changes to the CPF Investment Scheme (CPFIS) which will
take effect from 1 January 2007: |
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SINGAPORE GOVERNMENT TREASURY
BILLS |
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CPF members will be allowed to use
their Ordinary Account or Special Account savings to invest in
Singapore Government Treasury Bills (T-Bills) from 1 January 2007.
Those who wish to invest in T-Bills should approach the bond
dealers1 included under the CPFIS. |
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1
The bond dealers included
under the CPFIS are DBS, OCBC and UOB. |
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FIXED DEPOSITS UNDER CPF
INVESTMENT SCHEME ¨C SPECIAL ACCOUNT (CPFIS-SA) |
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Fixed Deposits under CPFIS-SA will be
distributed to the estate of the deceased instead of the CPF
nominee(s) upon the passing of the member from 1 January 2007.
This treatment is similar to the other investments under the CPFIS. |
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GOLD |
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CPF Board will include Gold Exchange
Traded Funds (ETFs) as a new product under the existing investment
category of gold from 1 January 2007. |
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The Gold ETFs will be subject to the
existing investment limit for gold of 10%. Product providers will
need to apply to the Board for evaluation for inclusion under
CPFIS. |
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PUBLIC ENQUIRIES |
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For more details, please log on to
www.cpf.gov.sg or call the CPF
Call Centre at 1800 - 227 1188. |
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Source:
www.cpf.gov.sg News Release 29
Dec 2006 |
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- - - - - - - - - - - - - - - - |
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Lower charges on new CPF
investments in funds under CPF Investment Scheme (CPFIS) to
benefit members |
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High sales charges and expense ratios
erode investment returns. CPF Board will be implementing the
following changes for new investments in funds (unit trusts and
investment-linked insurance products) using CPF monies:- |
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a) Sales Charges From 1 July 07, sales
charges must not exceed 3%. |
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b) Expense Ratios From 1 Jan 08,
expense ratios1 must not be higher than that shown in Annex A. The
Board will review these ratios from time to time. |
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Funds that are unable to meet either
of the above criteria will not be allowed to take in new CPF
monies. |
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CPF members who have already invested
in such funds will not be required to redeem their investments.
However, if they wish to switch from these funds to other CPFIS
funds, they can do so free of charge within a stipulated
timeframe. The insurers and fund management companies will notify
members of their options and facilitate the switching. |
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The Board would like to remind members
that charges on their investments are only one of the factors
affecting returns. Members must also take into account their
investment objective and risk appetite and adopt a long term view
when they are making their investments. |
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PUBLIC ENQUIRIES |
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For queries, please visit
www.cpf.gov.sg or call CPF
Call Centre at 1800-227-1188. |
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Annex A |
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Risk Categories2
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Expense Ratios Criterion (%)
[Rounded off to the nearest 0.05] |
| Higher risk
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1.95
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| Medium to
High Risk |
1.75
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| Low to Medium
Risk |
1.15
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| Lower Risk
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0.65
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Annex B |
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Background Information |
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In December 2005, CPF Board announced
that it would tighten the admission criteria for funds seeking to
be included under CPFIS. From 1 Feb 2006, new funds must meet the
following criteria for inclusion under CPFIS: |
a. Top 25
percentile in their global peer group
b. Expense ratio lower than median of existing CPFIS funds in its
risk category.
c. Preferably have a track record of at least 3 years. |
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CPF Board will publish on its website
two lists of funds - List A and List B - to keep members informed
of existing funds which have and have not met the new admission
criteria respectively. CPF Board encourages existing funds
admitted before 1 Feb 2006 to qualify for List A by applying to be
evaluated under the new criteria. |
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Funds that meet the new funds
admission criteria following evaluation after 1 Feb 2006 (List A
funds) are as follows: |
Unit Trusts
1. Aberdeen Asian Smaller Companies Fund
2. DWS Asian Small/ Mid Cap Fund
3. Lion Capital Singapore Fixed Income Investment |
Investment-Linked Insurance Products
1. GE GreatLink Global Technology Fund |
1The
expense ratio will be based on the fund¡¯s audited expenses for its
latest financial year.
2Risk
categories are:
a. Higher risk - Funds that invest in equities.
b. Medium to high risk ¨C Funds that invest in a mixture of
equities and bonds.
c. Low to medium risk ¨C Funds that invest in fixed income products
or bonds.
d. Lower risk ¨C Funds that invest in money market products. |
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Source:
www.cpf.gov.sg News Release 28
Dec 2006 |
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Important
Notice |
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Our FrontPage
Editions are a historical record of our Web site and reflect
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time. We do not and will not update the links and stories on
these FrontPages even if they have become obsolete. |
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FrontPage Edition: Mon 1 January 2007
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