Central Provident Fund (Amendment) Bill

This Act is the Central Provident Fund (Amendment) Act 2023 and comes into operation on a date that the Minister appoints by notification in the Gazette.

AMENDMENTS RELATING TO CPF SCHEMES PRIMARILY LIMITED TO CITIZENS AND PERMANENT RESIDENTS OF SINGAPORE

In the Central Provident Fund Act 1953 (called in this Act the principal Act), in section 2(1), after the definition of “additional interest”, insert —“ “applicable person” means —(a)a citizen or permanent resident of Singapore; or (b)for the purposes of a provision of this Act or subsidiary legislation made under this Act in which the term appears, any other person of a class prescribed by regulations made under section 77(1) for the purposes of that provision;”.

In the principal Act, in section 6 —(a)in subsections (4C), (4D), (4E)(a), (b) and (c), (4F), (4G), (4H) and (4I), replace “the effective date” wherever it appears with “1 April 2022”; and(b)delete subsection (6).

In the principal Act, in section 13 —(a)in subsection (1), after “subsections (7A),”, insert “(7B),”;(b)in subsections (7A) and (7G), replace “the effective date” with “1 April 2022”;(c)after subsection (7A), insert —“(7B) The Board may, on or after 1 April 2024, transfer any moneys standing in a member’s account in the Fund (other than a nominee account, if any) to the general moneys of the Fund in accordance with regulations made under section 77(1) if the Board is satisfied that the member is not an applicable person.”; (d)in subsection (7D), replace “the effective date” with “1 April 2022 or on or after 1 April 2024”;(e)after subsection (7D), insert —“(7E) Where the Board —(a)restores or transfers the sum of any initial transfers to a member’s account in the Fund under subsection (7C)(a) (called in this subsection and subsection (7F) S); and(b)is satisfied that while any part of S was standing to the credit of the member in the general moneys of the Fund, the member was not an applicable person, for any period, on or after 1 April 2024 (called in subsection (7F) the non‑applicable period),the amount of interest that the Board may pay under subsection (7C)(b) in respect of S must not exceed the reduced amount.(7F) In subsection (7E), the “reduced amount” in respect of S is B + C, where —(a)B is the amount that the Board determines under subsection (7C)(b) in respect of S for the period that any part of S was standing to the credit of the member in the general moneys of the Fund (excluding the non‑applicable period); and(b)C is the amount computed as if —(i)the reduced rate prescribed by regulations made under section 77(1) applies to S for the non‑applicable period that is before 1 April 2027 (if any); and(ii)the reduced rate applicable to S for the non‑applicable period that is on or after 1 April 2027 (if any) is nil.”; and(f)delete subsection (9).

“(7B) The Board may, on or after 1 April 2024, transfer any moneys standing in a member’s account in the Fund (other than a nominee account, if any) to the general moneys of the Fund in accordance with regulations made under section 77(1) if the Board is satisfied that the member is not an applicable person.”;

“(7E) Where the Board —(a)restores or transfers the sum of any initial transfers to a member’s account in the Fund under subsection (7C)(a) (called in this subsection and subsection (7F) S); and(b)is satisfied that while any part of S was standing to the credit of the member in the general moneys of the Fund, the member was not an applicable person, for any period, on or after 1 April 2024 (called in subsection (7F) the non‑applicable period),the amount of interest that the Board may pay under subsection (7C)(b) in respect of S must not exceed the reduced amount.

In subsection (7E), the “reduced amount” in respect of S is B + C, where —(a)B is the amount that the Board determines under subsection (7C)(b) in respect of S for the period that any part of S was standing to the credit of the member in the general moneys of the Fund (excluding the non‑applicable period); and(b)C is the amount computed as if —(i)the reduced rate prescribed by regulations made under section 77(1) applies to S for the non‑applicable period that is before 1 April 2027 (if any); and(ii)the reduced rate applicable to S for the non‑applicable period that is on or after 1 April 2027 (if any) is nil.”; and

In the principal Act, in section 15(2) —(a)in paragraph (a), insert “or” at the end; and(b)replace paragraphs (b) and (c) with —“(b)is not an applicable person.”.

In the principal Act, in section 15A, delete “or (c)”.

In the principal Act, in section 19 —(a)replace subsection (3) with —“(3) This section applies despite —(a)the relevant individual’s death on or after 1 April 2022; or(b)the Board’s receipt of the relevant individual’s application on or after 1 April 2022 to withdraw any sum from the Fund under section 15(2)(b) or (c) as in force before 1 April 2024 or section 15(2)(b) as in force on or after 1 April 2024.”; and(b)in subsection (4), delete the definition of “commencement date”.

“(3) This section applies despite —(a)the relevant individual’s death on or after 1 April 2022; or(b)the Board’s receipt of the relevant individual’s application on or after 1 April 2022 to withdraw any sum from the Fund under section 15(2)(b) or (c) as in force before 1 April 2024 or section 15(2)(b) as in force on or after 1 April 2024.”; and

In the principal Act, in section 19D(6)(b), after “section 15(2)(b) or (c)”, insert “as in force before 1 April 2024”.

In the principal Act, in section 20(1B) —(a)in paragraph (b), after “section 15(2)(b) or (c)”, insert “as in force before 1 April 2024 or section 15(2)(b) as in force on or after 1 April 2024”; and(b)replace paragraph (c) with —“(c)the person has applied to the Board to withdraw such portion of the amount payable on the member’s death out of the Fund as the person is nominated to receive, and the Board is satisfied that the person is not an applicable person for the purposes of section 15(2)(b);”.

In the principal Act, in section 22 —(a)after subsection (4A), insert —“(4B) Subsection (4C) applies where —(a)a member’s child or relative has given an undertaking under subsection (3) for the repayment of an amount to the member’s account in the Fund or payment of an amount to the Fund; and(b)the Board is satisfied that the member is an applicable person and that the member’s child or relative is not an applicable person.(4C) Subject to subsection (4D), if —(a)the member’s child or relative (as the case may be) withdraws the sum standing to his or her credit in the Fund under section 15(2)(b); or(b)any moneys are to be transferred from an account in the Fund of the member’s child or relative (as the case may be) to the general moneys of the Fund under section 13(7B),the Board may recover from the sum to be withdrawn or transferred (as the case may be) the whole or part of the amount repayable or payable pursuant to the undertaking given by the child or relative.(4D) An undertaking given, or a guarantee furnished, under subsection (3) for the repayment of an amount to the member’s account in the Fund or payment of an amount to the Fund is deemed to lapse when the Board is satisfied that the member has ceased to be an applicable person.”; and(b)in subsection (5), after “this Act”, insert “but subject to subsection (4D)”.

“(4B) Subsection (4C) applies where —(a)a member’s child or relative has given an undertaking under subsection (3) for the repayment of an amount to the member’s account in the Fund or payment of an amount to the Fund; and(b)the Board is satisfied that the member is an applicable person and that the member’s child or relative is not an applicable person.

Subject to subsection (4D), if —(a)the member’s child or relative (as the case may be) withdraws the sum standing to his or her credit in the Fund under section 15(2)(b); or(b)any moneys are to be transferred from an account in the Fund of the member’s child or relative (as the case may be) to the general moneys of the Fund under section 13(7B),the Board may recover from the sum to be withdrawn or transferred (as the case may be) the whole or part of the amount repayable or payable pursuant to the undertaking given by the child or relative.

An undertaking given, or a guarantee furnished, under subsection (3) for the repayment of an amount to the member’s account in the Fund or payment of an amount to the Fund is deemed to lapse when the Board is satisfied that the member has ceased to be an applicable person.”; and

In the principal Act, in section 24(2) —(a)after “14A,”, insert “22,”; and(b)after “24A,”, insert “27,”.

In the principal Act, in section 25(1) and (1A), after “member of the Fund”, insert “(being an applicable person)”.

In the principal Act, in section 26 —(a)in subsection (1), replace “The” with “Subject to regulations made under section 77(1), the”;(b)in subsection (1), after paragraph (a), insert —“(aa)on or after 1 May 2024, where —(i)the Board is satisfied that the member is not an applicable person; and(ii)the member has not instructed the Board to transfer the designated shares to the member’s securities account or to sell the designated shares;”;(c)in subsection (6)(a), delete “or” at the end;(d)in subsection (6), after paragraph (a), insert —“(aa)the designated shares are vested in the Board under subsection (1)(aa); or”;(e)in subsection (9), replace “the commencement date” with “1 April 2022”;(f)in subsection (14), delete the definition of “commencement date”; and(g)in subsection (14), in the definition of “relevant person”, replace “the commencement date” with “1 April 2022”.

In the principal Act, after section 26A, insert —“Withdrawal from investment schemes26B.—(1) This section applies where —(a)a member has —(i)a CPF Investment Account; or(ii)any securities purchased or acquired under an investment scheme introduced under Part II or III of the Investment Regulations; and(b)the Board is satisfied that the member is not an applicable person.(2) The Board may, on its own motion, declare that —(a)the member is authorised to withdraw all moneys standing to the member’s credit in the member’s CPF Investment Account, if any; and (b)all of the member’s securities mentioned in subsection (1)(a)(ii) (if any) are withdrawn from those investment schemes.(3) The member is not obliged to repay to the Fund —(a)any moneys withdrawn from the member’s CPF Investment Account pursuant to the Board’s declaration under subsection (2); or(b)any proceeds or benefits of any securities withdrawn pursuant to the Board’s declaration under subsection (2).(4) In this section —“CPF Investment Account” has the meaning given by the Investment Regulations;“Investment Regulations” means the Central Provident Fund (Investment Schemes) Regulations (Rg 9).”.

This section applies where —(a)a member has —(i)a CPF Investment Account; or(ii)any securities purchased or acquired under an investment scheme introduced under Part II or III of the Investment Regulations; and(b)the Board is satisfied that the member is not an applicable person.

“CPF Investment Account” has the meaning given by the Investment Regulations;

“Investment Regulations” means the Central Provident Fund (Investment Schemes) Regulations (Rg 9).”.

The Board may, on its own motion, declare that —(a)the member is authorised to withdraw all moneys standing to the member’s credit in the member’s CPF Investment Account, if any; and (b)all of the member’s securities mentioned in subsection (1)(a)(ii) (if any) are withdrawn from those investment schemes.

The member is not obliged to repay to the Fund —(a)any moneys withdrawn from the member’s CPF Investment Account pursuant to the Board’s declaration under subsection (2); or(b)any proceeds or benefits of any securities withdrawn pursuant to the Board’s declaration under subsection (2).

In this section —

In the principal Act, in section 27, delete subsection (2A).

In the principal Act, in section 27K, after subsection (5C), insert —“(5D) Where the Board is satisfied that a member is not a citizen or permanent resident of Singapore —(a)the Scheme ceases to apply to the member; and (b)the member’s annuity plan (if any) is deemed to be terminated,within the period prescribed in the relevant regulations.(5E) The period prescribed for the Scheme to cease or the annuity plan to be terminated under subsection (5D) may differ for different classes of members.”.

“(5D) Where the Board is satisfied that a member is not a citizen or permanent resident of Singapore —(a)the Scheme ceases to apply to the member; and (b)the member’s annuity plan (if any) is deemed to be terminated,within the period prescribed in the relevant regulations.

The period prescribed for the Scheme to cease or the annuity plan to be terminated under subsection (5D) may differ for different classes of members.”.

In the principal Act, in section 27L —(a)in subsection (5), after “amount to be refunded”, insert “(including any goodwill sum the Board may, in its discretion, determine)”; and(b)in subsection (7), replace “which the Board is liable to refund under” with “to be refunded mentioned in”.

In the principal Act, in section 29 —(a)in subsection (5)(a), delete “and” at the end;(b)in subsection (5), after paragraph (a), insert —“(aa)any member who is not a citizen or permanent resident of Singapore at the time the member is required to join the Scheme; and”;(c)in subsection (7), after “The Board may”, insert “, subject to such terms, conditions and restrictions as the Board may impose,”; and(d)after subsection (7), insert —“(8) Where the Board is satisfied that a member of the Scheme is not a citizen or permanent resident of Singapore, the member’s cover under the Scheme is deemed to be terminated at the time prescribed by regulations made under section 39.(9) The time prescribed for the termination under subsection (8) may differ for different classes of members.”.

“(8) Where the Board is satisfied that a member of the Scheme is not a citizen or permanent resident of Singapore, the member’s cover under the Scheme is deemed to be terminated at the time prescribed by regulations made under section 39.

The time prescribed for the termination under subsection (8) may differ for different classes of members.”.

In the principal Act, in section 77(1) —(a)in paragraph (ba), replace “13(7A), (7C), (7D) and (7G)” with “13(7A) to (7G)”; and(b)in paragraph (s), replace “as are” with “to prescribe anything that is required or permitted to be prescribed by regulations under this Act or that is”.