BY Central Provident Fund Board 31 December 2012

Transcription

1 BY Central Provident Fund Board 31 December

2 Division of CPF related matrimonial assets What has not changed New housing refund policy What has changed Impact of changes 2

3 LM A person who is not a citizen of Singapore, has left or is about to leave Singapore and the States of Malaya permanently with no intention to return MA Medisave Account Member CPF Member, ie, has a CPF account MC A citizen of Malaysia who has left or is about to leave Singapore permanently for the States of Malaya MS Minimum Sum MSD Minimum Sum Deficiency OA Ordinary Account RA Retirement Account RMS Reduced Minimum Sum SA Special Account P+I Principal & Interest 3

4 Court s powers to make Transfer orders; Charging orders; and Od Orders relating lti to property and investments t NO amendments made to Part IIIA of CPF Act (relating to Division of CPF Related Assets in Matrimonial Proceedings) 4

5 Housing refund policy: Amount tto be refunded dto members CPF accounts upon sale or disposal of property 5

6 Current CPF Housing Refund Policy Below & above Principal & Interest (P+I) Lower of: P+I or Minimum Sum Deficiency (MSD) 6

7 New CPF Housing Refund Policy For Sale / Disposal On Or After 1 Jan 2013 Refund Principal i & Interest (P+I) for all members, regardless of age 7

8 Mbr A above 55 P+I = $120k *MSD = $20k CPF refunds: $20k NtSl Net Sales Proceeds: $160k Total CPF refunds: $140k Net Cash Proceeds: $20k Mbr B below 55 P+I = $120k CPF refunds: $120k

9 New Housing Refund Policy Mbr A above 55 P+I = $120k *MSD = $20k CPF refunds: $80k Net Sales Proceeds: $160k Total CPF refunds: $160k Net Cash Proceeds: 0 Mbr B below 55 P+I = $120k CPF refunds: $80k 9

10 Current New Refund of MSD to Retirement Refund of P+I generally to Account (55 & above) Ordinary & Special Accounts (all ages) CPF charge on property lapses: CPF charge on property lapses: All monies repaid All monies repaid Death of member Death of member Member suffering from Application for LM/MC terminal illness / disease withdrawal approved by Full MS / RMS met Board Qualify for LM/MC (Details in regulations) withdrawal 10

11 Note that the policy depends on the date of the completion of sale / disposal of the property. Date on which h Sl Sale and Purchase agreement was signed and date on which Option to Purchase was exercised are not relevant. 11

12 OA/SA MA RA Upon withdrawal Auto Transfer 12

13 New policy will affect only members aged 55 and above who sell ordispose property onorafter 1 Jan2013 Impact on Transfer / Charging gorders Higher refund amount where P+I+ MS Pledge is more than MSD Different CPF account for crediting of housing refunds OA/SA instead of RA for members aged 55 & above Subsequent automatic transfer of$to RA after 2 3 working days Transfer of $ to MA upon withdrawal Payment of balance of housing refunds to member Generally within 5 working days 13

14 Court orders made before 1 Jan 2013 where one party is aged 55 and above made on the basis of the current refund rules of MSD Applying the new refund policy may frustrate court s intent Parties may be adversely affected 14 14

15 The Board will allow appeals to refund sale proceeds based on MSD in certain circumstances for sale / disposal pursuant to Court Order in divorce cases for member aged 55 years or above at time of legal completion Court Order Order made under: s112 of the Women s Charter; or s52(3)(d) of the Administration of Muslim Law Act 15

16 Pursuant To Court Orders Made On Or Before 15 Feb 2013: Board will allow only MSD to be refunded (as opposed to P+I) if certain requirements are met 16

17 Guideline 1: Member is aged 55 and above as at date of Court Order Current rule is to apply if: Court tod Order generally states tt requisite iit refunds to parties CPF accounts (and not specifically P+I) OR Court Order states specifically MSD refund; and Board is aware of such Court Order *Parties may agree that new rule applies (i.e. both parties consent in writing) so long as Court Order does not state specifically MSD refund 17

18 Guideline 2: Member is below 55 years as at date of Court Order but is aged 55 and above on the date of legal completion New rule is to apply by default But to allow current refund rule to apply upon appeal and if: Court Order generally states requisite refunds to parties CPF accounts (and not specifically P+I); and Both parties consent in writing to refund of MSD for the member aged 55 years and above. 18

19 Current Law Currently, court can order Spouse A to transfer property (other than by way of sale) to Spouse B with no /partial CPF refunds to Spouse A s account ( Initial Transfer ) Upon future disposal by Spouse B, Spouse B to refund to own CPF account: Spouse A s and Spouse B s refunds ( Subsequent q Disposal ) ) Amount that Spouse A had to refund to his CPF account at time of Initial Transfer had there not been such court order 19

20 Spouse A Initial Transfer made 55 & above on or after 1 January 2013 Spouse B Make following refunds to Upon Subsequent her own CPF Account: Requisite Disposal Her Requisite Refund Refund Spouse A s Requisite IMPACT: Refund Under the new refund policy, Spouse A s Requisite Refund should be P+I instead of Minimum Sum Deficiency (MSD) 20

21 Exception Board will apply current refund rules & treat Spouse A s Requisite it Rf Refund as MSD (notpi) P+I) where: Court order for Initial Transfer is made on or before 15 Feb 2013; Initial Transfer takes place on or after 1 Jan 2013; and Spouse A (outgoing owner) is aged 55 or above at time of completion of Initial Transfer Effect: Upon Subsequent Disposal, Spouse B will refund her own P+I and Spouse A s MSD, all to be credited to Spouse B s CPF accounts only (no change to latter) 21

22 New refund rules requiring P+I will be applied by default in all cases where property is sold / disposed of Exceptions to above will be allowed by the Board for sale/disposal of propertypursuantto pursuant to Court Order Parties or their solicitors should apply to the Board for MSD to be refunded before date of legal completion If based on the Board s guidelines, consent is required, parties to provide written consent when appealing to the Board 22

23 Legislative Amendments Giving Effect To Above Policy Change 23

24 New CPF Housing Refund Policy (Amendments) Main changes to sections 21, 21A and 21B of CPF Act & Housing Regs Charge on immovable property to secure repayment of withdrawals from Fund 21. (1) Where in accordance with any regulations made under section 77, a member of the Fund has on or after 1st June 1981 withdrawn any money standing to his credit in the Fund for all or any of the following purposes: (a) to make payment, either full or partial, towards the purchase or acquisition of an immovable property; (b) to repay pyor to make periodic py payments towards the repayment py of any loan taken by the member to finance or re finance the purchase or acquisition of an immovable property; (c) () to repay pyany loan or to reimburse any cost, fee or other expense pursuant to regulations made under section 77(1)(i); 24

25 Charge on immovable property to secure repayment of withdrawals from Fund d(continued) t (ca) to pay any improvement contribution due (i) to the Housing and Development Board in respect of upgrading g works carried out under Part IVA of the Housing and Development Act (Cap. 129); or (ii) to a Town Council constituted under the Town Councils Act (Cap. 329A) in respect of upgrading g works carried out under Part IVA of that Act, including costs, fees or other incidental expenses arising from such works; (d) to pay any costs, fees or other expenses incurred (i) for the purchase or acquisition of an immovable property; (ii) for obtaining a loan to finance or re finance such purchase or acquisition; and (iii) in connection with withdrawals of any money from the Fund, there shall hllbeacharge on themember sestateorinterest tt t tin the immovable property to secure the repayment of the money withdrawn from the Fund including the whole or such part, as the Board may determine, of the interest that would have been payable thereon if the withdrawal had not been made and to secure the payment of the minimum sum into the member sretirement account. 25

26 S21(7) The repayment of the minimum sum to the Board, if it is secured by a charge on the member s estate tt or interest ton the immovable property under subsection (1), shall rank after the claims of a mortgagee or chargee other than the Board prior to the date when the member is required to deposit a prescribed sum in accordance with section 15(6). S21(10) A charge under subsection (1) shall continue in force until (a) all moneys secured by the charge (i) have been repaid to the Fund; or (ii)are no longer required by any regulations made under section 77(1) to be repaid to the Fund; or (b) theboardis satisfied oftheoccurrence occurrence ofanyofthe events mentioned in section 15(15)(e), in which event the member or any other person having an interest in the immovable property shall be entitled to have the charge cancelled. 26

27 S21(10) A charge under subsection (1) on a member s estate or interest in an immovable property shall continue in force until, and the member or any other person having an interest in the immovable property shall be entitled to have the charge cancelled in the event that, all moneys secured by the charge (a) have been repaid to the Fund; or (b) are no longer required by any regulations made under section 77(1) to be repaid to the Fund. S21(10A) Without prejudice to subsection (10), where there is a charge under subsection (1) on a member s estate or interest in an immovable property, and the Board is satisfied of the occurrence of any event prescribed in any regulations made under section 77(1) for the purposes of this subsection, the member or any other person having an interest t in the immovable property may, with the approval of the Board, have the charge cancelled. 27

28 Amendments to Regulations: 1. CPF (Approved Housing Schemes) Rgs 2. CPF (Residential Properties Scheme) Rgs 3. CPF (Approved HDB HUDC Housing Scheme) Rgs 4. CPF (Ministry of Defence Housing Scheme) Rgs 5. CPF (Non Residential Properties Scheme) Rgs 6. CPF (Approved Middle Income Housing Scheme) Rgs 7. CPF (Division of Fund Related Assets in Matrimonial Proceedings) Rgs. 28

29 S15(4) Notwithstanding subsection (3) but subject to subsection (6), the Board may allow a member who has attained the age of 55 years (a) at any time, to withdraw the sum standing to his credit in the Fund, if the member satisfies the Board that he has been unemployed throughout the period of 6 months immediately preceding the date on which he makes an application for the withdrawal of any sum of money standing to his credit in the Fund; and (b) within such time as the Board may permit, to withdraw the whole or any part of the amount of any money secured by a charge under subsection (9), (9A), (11E) or (11F) or section 21(1), 21A(1), 21B(1), 27C(1)(v)(A) or (B), 27D(1)(v)(B), 27DA(1)(v), 27E(1)(iv) or 27F(1)(iv), or by an undertaking given under subsection (10) or (10A), that is paid, repaid or refunded into his account in the Fund. 29

30 S15(6CA) For the purposes of subsections (6)(a) and (6C), the Board shall, if required by any regulations made under section 77(1), transfer from the sum standing to the credit of a member in the Fund to his retirement account, towards the maintenance of the minimum sum, such amount at such time as may be prescribed in those regulations. S15(6CB) For the purposes of subsection (6CA), different amounts and times may be prescribed for different classes of members. 30

31 Amendments to Regulations: 1. CPF (New Minimum Sum Scheme) Rgs 2. CPF (Revised Minimum Sum Scheme) Rgs 3. CPF (Minimum Sum Scheme) Rgs 4. CPF (Minimum SumTopping Topping Up UpScheme) Rgs 5. CPF (Topping Up of Special Account) Rgs 6. CPF (Topping Up of Medisave Account) Rgs 31

32 Mainly section 15 & Amendments to Regulations: 1. CPF (New Minimum Sum Scheme) Rgs 2. CPF (Revised Minimum Sum Scheme) Rgs 3. CPF (Minimum Sum Scheme) Rgs 4. CPF (Minimum Sum Topping Up Scheme) Rgs 5. CPF (Topping Up of Special Account) Rgs 6. CPF (Topping Up of Medisave Account) Rgs 32