CPF accounts belonging to neither Singapore residents nor PRs to be closed robotically after March 31, 2024

SINGAPORE – About 300,000 Central Provident Fund (CPF) accounts belonging to foreigners who’re neither Singapore residents or everlasting residents will probably be required to shut by March 31, 2024.

These accounts have been arrange earlier than 2003 – when non-citizens or everlasting residents have been disallowed from making voluntary contributions to their CPF accounts. After the deadline, they are going to be shut down robotically.

In a press release on Wednesday, the CPF Board stated: “Any remaining financial savings will stop to earn the prevailing CPF rate of interest. The remaining financial savings can nonetheless be transferred to their financial institution accounts at any time after that.”

A few of these CPF accounts occur to incorporate individuals who have relinquished their citizenship or everlasting residency.

Most of them have low balances, and greater than 200,000 of them have lower than $5,000 accrued through the years, as Singapore adopted varied adjustments in its CPF contribution coverage for foreigners.

Earlier than 1987, CPF contributions have been obligatory for all workers working within the nation, no matter nationality.

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That ultimately moved to a system the place these on work permits may make CPF contributions voluntarily, as an alternative of getting to make obligatory contributions to their CPF accounts.

This was later prolonged to all foreigners working in Singapore in 1995, no matter the kind of work go they held, earlier than they have been stopped from making any voluntary contributions in 2003.

Foreigners who plan to proceed saving in Singapore can contemplate different choices, together with the Supplementary Retirement Scheme or business funding merchandise, stated the assertion.

For extra info, folks can discuss with the CPF Board web site at cpf.gov.sg/AccountClosure

This text was first revealed in The Straits Occasions. Permission required for copy.