PAYING FOR COSTS OF MAIN UPGRADING PROGRAMME

Mrs Yu-Foo Yee Shoon asked the Minister for National Development whether he will allow children who are not staying with their retired parents to pay for their parents' share of the cost of the Main Upgrading Programme, using their Central Provident Fund savings.

Mr Lim Hng Kiang: Lessees need to pay their share of the upgrading cost only after the upgrading works are completed. They may pay by cash or from their CPF savings. Their children who are not staying with them can use cash to pay the upgrading cost on behalf of their parents.

The CPF Board only allows lessees of the flat to use their CPF savings to pay for the upgrading cost. To be able to use their children's CPF savings to pay the upgrading cost, parents must include their children as co-lessees of the flat. However, this is subject to the children being able to satisfy all the eligibility criteria to own a HDB flat.

The CPF Board allows children to top up their parents' Retirem ent Account if they and their parents qualify under the existing "CPF Topping-up the Minimum Sum Scheme". Their parents can then use part or all of the monthly income withdrawn from the Minimum Sum Scheme to pay for the monthly instalments of the upgrading cost.