The Central Provident Fund (CPF) announced, on Jan 19, that it has closed the Special Accounts (SAs) for CPF members aged 55 years and above. Prime Minister Lawrence Wong, who was deputy prime minister (DPM) then, announced the closures of the SAs in his Budget 2024 speech on Feb 16, 2024.
The closure of the SA means CPF members’ savings, up to their cohort's full retirement sum (FRS), will be transferred to their retirement account (RA). Any remaining savings from the SA have been transferred to their ordinary accounts (OAs) where they will earn 2.5% interest per annum.
Members may also transfer these savings from their OA to their RA up to this year’s enhanced retirement sum (ERS) to earn the higher interest rate of 4% per annum. The transfer is not reversible. It can be made anytime but must be processed by January this year if they wish to earn the higher interest rate from the same month onwards.
Members will be notified of their SA closures via physical letters, e-mails and, or SMS from Jan 20.
In its release, the CPF also warned members to be “extra vigilant” against scammers who may pose as CPF Board staff, government officials or bank/insurance agents, or claim to be appointed by the CPF Board.
“Their tactics include asking for personal details, under the guise of advising on CPF or CPF-related insurance schemes or offering ways to earn higher returns through investments. Members should note that calls from CPF Board will be made only from 6227 1188 or 6202 3388, and should immediately end calls from any other number claiming to be from the CPF Board,” reads the statement.
Members will receive an SMS from gov.sg or an email from an address ending with @cpf.gov.sg or @e.cpf.gov.sg with callback details should they miss legitimate calls from the CPF.
The Edge Singapore spoke to United Overseas Bank (UOB)’s head of deposits and wealth management, Winston Lim, about topping up their CPF accounts and opting for the ERS in April 2024. More details here.
