Second Minister for Manpower Josephine Teo yesterday (Nov 6) enacted a new CPF law encouraging Singaporeans to sacrifice their CPF funds by transferring them to their parents. The new law passed by the 91% PAP majority in Parliament will no longer require Singaporeans to meet the Minimum Sum of S$166,000 in order to make transfers to their parents’ accounts. Only half of the Min Sum, at S$83,000, will be required if there is an ongoing property mortgage.
More “dead money” for CPF
The latest CPF law will entrap more “dead money” and disallow cash withdrawal for those who meet the S$166,000 Min Sum. Excess funds after meeting the Min Sum will now channel towards the elderly Singaporeans’ CPF accounts who are much poorer and unable to meet the S$166,000 Min Sum. By transferring CPF money, the government can also save on direct assistance on Silver Support or other welfare programs for the elderly poor.
The move is part of corrupted Prime Minister Lee Hsien Loong’s plot to delay cash withdrawal and lessen the burden on GIC, where he is Chairman, and Temasek Holdings, where his wife is CEO. In the past 14 years of Lee Hsien Loong’s premiership, CPF saw the most numerous number of changes including doubling of the Min Sum from S$80,000 to S$166,000 today, and extending Withdrawal Age from 55 to 62.
CPF pays the lowest interest rates in the world at 2.5%, as compared to other retirement funds in the world.