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Distribution and disposal of certain shares on death of member who dies on or after 1 January 1996 and has executed memorandum under section 25(1)

Central Provident Fund Act 1953

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—(1) Upon the death of a member of the Fund who has executed a memorandum under section 25(1), such shares or class of shares in any approved corporation as the Minister may designate belonging to the member at the time of his or her death which were purchased from moneys withdrawn under this Act, despite any written or other law, vest in the Board and do not form part of the estate of the deceased member. (2) The Board must, as soon as practicable and subject to such terms and conditions as the Board may impose, transfer the shares vested in the Board under subsection (1) to the person or persons nominated by the deceased member to receive in his or her or their own right such portions of the shares as indicated in the memorandum executed under section 25(1) and the receipt of such person or persons is a discharge to the Board in respect of the shares. (2A) Where any document or information is necessary for effecting the transfer of any shares vested in the Board under subsection (1) to the person nominated to receive those shares, the Board may, by notice to any person who possesses that document or information, require that person to furnish that document or information to the Board within such reasonable period as may be specified in the notice.(2B) Where a person nominated to receive any shares is entitled to receive any amount payable on the member’s death out of the Fund, the Board may deduct from that amount a sum for the payment of the whole or any part of any fee or charge in connection with the transfer of those shares to the nominated person.(3) Despite subsection (2), the Board may sell any shares vested in the Board under subsection (1), in such manner and at such time as may be prescribed by any regulations made under section 77(1), if —(a)the Board is for any reason unable to transfer those shares to the person nominated to receive those shares;(b)the nominated person has instructed the Board to sell those shares;(c)the nominated person is an undischarged bankrupt;(d)the nominated person has died;(e)the 7th anniversary of the day of the member’s death has passed; or(f)there exist such other circumstances as may be prescribed in those regulations.(4) Where the Board has sold, under subsection (3), any shares which a person is nominated to receive —(a)the Board may deduct a sum for the payment of the whole or any part of any fee or charge in connection with the sale of those shares from the proceeds of the sale of the shares; and(b)the Board must deal with the proceeds of the sale of the shares (after making any deduction under paragraph (a)) in accordance with subsections (4A), (4B), (4BA) and (4D).(4A) Where the memorandum executed by the deceased member under section 25(1) provides for payment in accordance with section 25(1)(a)(i) (whether or not the person nominated to receive the shares is a citizen or permanent resident of Singapore), or where the memorandum executed by the deceased member provides for payment in accordance with section 25(1)(a)(ii) but the person nominated to receive the shares is not a citizen or permanent resident of Singapore —(a)the Board must, as soon as practicable and after such application as the Board may require has been made to the Board, pay the proceeds of the sale of the shares (after making any deduction under subsection (4)(a)) —(i)subject to sub-paragraphs (ii) and (iii), to the nominated person;(ii)if the nominated person (not being a widow of the deceased member) is below 18 years of age at the time of the payment, to the Public Trustee; or(iii)where the nominated person has died —(A)to the personal representatives of the deceased nominated person; or(B)if to the best of the Board’s knowledge the deceased nominated person does not have any personal representatives, and if the proceeds of the sale of the shares do not exceed such amount as the Minister may, by notification in the Gazette, specify, to a proper claimant; and(b)the following is a discharge to the Board in respect of the shares sold under subsection (3):(i)the receipt of the nominated person for the proceeds of the sale of the shares, if paragraph (a)(i) applies;(ii)the receipt of the Public Trustee for the proceeds of the sale of the shares, if paragraph (a)(ii) applies; (iii)the receipt of the personal representatives of the deceased nominated person for the proceeds of the sale of the shares, if paragraph (a)(iii)(A) applies; or(iv)the receipt of the proper claimant for the proceeds of the sale of the shares, if paragraph (a)(iii)(B) applies.(4B) Where the memorandum executed by the deceased member under section 25(1) provides for payment in accordance with section 25(1)(a)(ii), and the person nominated to receive the shares is a citizen or permanent resident of Singapore —(a)the Board must, as soon as practicable and after such application as the Board may require has been made to the Board —(i)subject to sub-paragraph (ii), pay to the nominated person’s accounts in the Fund, in such manner as the member has specified in the memorandum, the proceeds of the sale of the shares (after making any deduction under subsection (4)(a)); or(ii)if those proceeds exceed such maximum amount as the Minister may determine, pay that maximum amount to the nominated person’s accounts in the Fund in such manner as the member has specified in the memorandum, and pay the excess —(A)subject to sub-paragraphs (B) and (C), to the nominated person;(B)if the nominated person (not being a widow of the deceased member) is below 18 years of age at the time of the payment, to the Public Trustee; or(C)where the nominated person has died —(CA)to the personal representatives of the deceased nominated person; or(CB)if to the best of the Board’s knowledge the deceased nominated person does not have any personal representatives, and if the excess does not exceed such amount as the Minister may, by notification in the Gazette, specify, to a proper claimant; and(b)the following is a discharge to the Board in respect of the shares sold under subsection (3):(i)the receipt of the nominated person for the proceeds of the sale of the shares, if paragraph (a)(i) or (ii)(A) applies;(ii)the payment of the amount referred to in paragraph (a)(ii) to the nominated person’s account and the receipt of the Public Trustee for the balance of the proceeds of the sale of the shares referred to in paragraph (a)(ii), if paragraph (a)(ii)(B) applies; (iii)the payment of the amount referred to in paragraph (a)(ii) to the nominated person’s account and the receipt of the personal representatives of the deceased nominated person for the balance of the proceeds of the sale of the shares referred to in paragraph (a)(ii), if paragraph (a)(ii)(C)(CA) applies; or(iv)the payment of the amount referred to in paragraph (a)(ii) to the nominated person’s account and the receipt of the proper claimant for the balance of the proceeds of the sale of the shares referred to in paragraph (a)(ii), if paragraph (a)(ii)(C)(CB) applies.(4BA) Where the memorandum executed by the deceased member under section 25(1) provides for payment in accordance with section 25(1)(a)(iii) (whether or not the deceased member is a citizen or permanent resident of Singapore at the time of his or her death, whether or not the person nominated to receive the shares is a citizen or permanent resident of Singapore, and whether or not the certification under section 25(1C) issued in respect of the person remains in force) —(a)the Board must, as soon as practicable, pay to the member’s nominee ordinary account the proceeds of the sale of the shares (after making any deduction under subsection (4)(a));(b)the Board must pay the amount of those proceeds from the member’s nominee ordinary account —(i)subject to sub-paragraphs (ii) and (iii), to the nominated person in accordance with the sub‑paragraph of section 20(1)(b)(iii) or (1A)(c) that applies to the nominated person;(ii)to the Public Trustee, if —(A)the nominated person (not being a widow of the deceased member) is below 18 years of age at the time of the payment; and(B)such portion of the amount payable on the member’s death out of the Fund to the nominated person as the memorandum indicates does not exceed such amount as the Minister may determine under section 25(1)(a)(iii)(C); or(iii)where the nominated person has died —(A)to the personal representatives of the deceased nominated person; or(B)if to the best of the Board’s knowledge the deceased nominated person does not have any personal representatives, and if the proceeds of the sale of the shares do not exceed such amount as the Minister may, by notification in the Gazette, specify, to a proper claimant; and(c)the following is a discharge to the Board in respect of the shares sold under subsection (3):(i)the receipt of the nominated person for the amount of those proceeds, if paragraph (b)(i) applies;(ii)the receipt of the Public Trustee for the amount of those proceeds, if paragraph (b)(ii) applies;(iii)the receipt of the personal representatives of the deceased nominated person for the proceeds of the sale of the shares, if paragraph (b)(iii)(A) applies; or(iv)the receipt of the proper claimant for the proceeds of the sale of the shares, if paragraph (b)(iii)(B) applies.(4C) Subsections (4A), (4B) and (4BA) do not affect any recourse which any person may have against a proper claimant for any amount paid to the proper claimant under subsections (4A)(a)(iii)(B), (4B)(a)(ii)(C)(CB) and (4BA)(b)(iii)(B), respectively.(4D) Where the Board is for any reason unable to deal with the proceeds of the sale of the shares (after making any deduction under subsection (4)(a)) in accordance with subsection (4A) or (4B), the Board must pay those proceeds into the general moneys of the Fund.(4E) To avoid doubt, subsection (4D) does not preclude the Board from dealing with the proceeds of the sale of the shares (after making any deduction under subsection (4)(a)) in accordance with subsection (4A) or (4B) after those proceeds have been paid into the general moneys of the Fund.(4F) For the purposes of subsection (4B)(a)(ii), the Minister may determine different maximum amounts for different classes of persons nominated to receive the shares.(5) In this section —“child” means a legitimate child and includes any child adopted by virtue of an order of court under any written law for the time being in force in Singapore, Malaysia or Brunei Darussalam;“parent” includes an adoptive parent;“proper claimant” means a person who —(a)claims to be entitled to the proceeds of the sale of a deceased nominated person’s portion of the shares vested in the Board under subsection (1) or the balance thereof as executor of the deceased nominated person; or(b)claims to be entitled to the proceeds of the sale of a deceased nominated person’s portion of the shares vested in the Board under subsection (1) or the balance thereof (whether for his or her own benefit or not), and is the widower, widow, child, grandchild, parent, brother, sister, nephew, niece, grandparent, uncle or aunt of the deceased nominated person.(6) A memorandum executed under section 25(1) by any member of the Fund, if valid immediately before 1 January 1996, is deemed to apply to any shares designated under subsection (1). (7) This section does not apply to any member of the Fund who died before 1 January 1996.

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