CPF MINIMUM SUM SCHEME (Extension to purchase of HDB flat for parents)

The following question stood in the name of Mr Chng Hee Kok -

Mr Chng Hee Kok: To ask the Minister for Labour if he will extend the Central Provident Fund minimum sum topping-up scheme to include the purchase of a Housing and Development Board flat for parents.

Mr Abdullah Tarmugi (Siglap): Question No. 6, Sir.

The Minister for Labour (Mr Lee Yock Suan): Mr Speaker, Sir, under the CPF Topping-Up Scheme, CPF members are allowed to top-up the minimum sum accounts of their parents with their CPF savings or cash. The objective is to provide those parents who have little or no CPF at age 55 with some minimum funds to live on after age 60. There are two main conditions for the scheme:

Firstly, the children must retain double the minimum sum in their own CPF accounts after they transfer some of their CPF savings to their parents' accounts; and

Secondly, they can top-up no more than the difference between the minimum sum and their parents' CPF balances at age 55.

Any extension of the Topping-Up Scheme must comply with these requirements.

CPF members are allowed to retain their minimum sum in the form of properties. Therefore, I see no objection if parents, whose CPF minimum sum accounts have been topped up, decide to do likewise. There will be a charge on the property to ensure that the minimum sum is returned to the parent's CPF account if the property is sold. Upon his death, an appropriate share of the minimum sum will be returned to the CPF accounts of those children who contributed the funds.

I have asked the CPF Board to finalize the details of such an extension to the Topping-Up Scheme. I see no difficulty if the parent has reached age 55 as required under the Topping-Up Scheme.