4/24/2014

Your CPF savings absolutely safe even after you die

Many of you have dutifully made a nomination for your CPF savings upon your death and feeling very comfortable and secure about it, believing that your nominated beneficiary will enjoy a windfall as a result. This is what the CPF Board says when it happens,
 

‘If a valid nomination had been made, the beneficiaries will receive the deceased’s CPF monies and assets, which include the following:
 

a) CPF savings in the Ordinary, Special, Medisave and Retirement Accounts, if any.
b) Discounted SingTel (ST) shares, if any.’
 

So, feeling very good and assured that your money will go to the person you willed to receive them. Yes, your beneficiary will receive the money left in your CPF. But he/she will not be able to on a shopping spree and say what a nice chap you are. Only the CPF will be smiling. He/she can only smile at the CPF statement saying your money has been moved into his/her account from your account. There is a debit and a credit. No cash transfer!
 

Get the picture? They don’t get a cash cheque. They will get a paper transfer, and depending on their age, their MSS, they might not be able to touch the money, don’t ever think of spending it. Your CPF savings will remain in the CPF, from one account to another account, and remain there, absolutely safe, untouchable. This is what is going to your last few dollars in your CPF savings after you saved for a life time. No one is going to spend it.
 

Is this good news or bad news? Should the money of a deceased be cashed out, a cheque sent to the beneficiary to enjoy the last few dollars the loving spouse or parents willed to them? Why should it remain in the CPF, albeit in the beneficiary’s account?
 

How can you let this happen? How can you accept the govt doing this to your life savings even after you pass away?
 

What does this mean? What is happening? Your CPF not your money? CPF, please clarify and confirm on this and please inform the people when this change was made, and by who?

PS. I hope I am wrong on this.TRE or any aggregator, please do not post this in your site until more details are available. It is confirmed that the Medisave portion is not returned according to Alex Tan.

Kopi Level - Green

34 comments:

Anonymous said...

How can you let this happen?
RB

Then how can the PAP be the only party which is ready to be govt, u tell me lah?

jjgg said...

Rb..hopefully your information is correct and if it is then it will become the mother of all game changers..there will be complete mistrusts in the present government and rightly so..so how do we get the fat cats to respond?

Anonymous said...

Then how can the PAP be the only party which is ready to be govt, u tell me lah?
Anon 8:40 am

Tiok. This is the first and foremost question all Sinkies should ask and answer, before asking other questions.

If answer is can, then anything bad for daft Sinkies can happen. I mean daft Sinkies only because can or cannot, smart Sinkies will still have it good.

Anonymous said...

Don't worry RB. The ghost of these deceased persons will come back and haunt the PAP in the next election. They will not sleep well at night. Something will be shouting into their ears with "KNNBCCB, die already and you still want to keep my money ! You will lose real ugly ! "

Anonymous said...

RB, u sure or not? My understanding is that the beneficiary will get the cash. Nobody has informed me that the rule has changed or it was always been like that? Knn really upset if it's true

Anonymous said...

This is an irresponsible article. It's not true that CPF balances are transferred to the CPF accounts of the beneficiaries.

The balance is paid by cheque or bank transfer to beneficiaries accounts.

Anonymous said...

They will tell you : "sorry ah, your money all lost when the mat saleh banks we bought went under" paiseh paiseh

Anonymous said...

Your article is wrong. You'll get a cheque.

Anonymous said...


anonymous 8.54 am and 8.55 am ......both of you are correct.

FEAR NOT FEAR NOT.

The beneficiary will get cash UNLESS the your nomination is the "ENHANCED NOMINATION".

Check with CPF.

Cheers.

Chua Chin Leng aka redbean said...

Hi everyone, I hope I am wrong. It used to be a cheque, like CPF used to return all your money on reaching 55.

I just received a note from someone who just lost his wife after a long and costly hospitalisation and probably thinking that the money in the CPF could alleviate the outfront payment.

He was shock to receive his CPF statement showing a fairly big sum creditted to his MSS.

I have checked with another source and he confirmed that this is now the case.

Everyone please check with the CPF if there is any change in this ruling. I hope I am WRONG on this. I hope CPF can clarify on this to put everyone at ease.

For those who are sure that it is payment by cheque, please confirm that these are recent payments and not in the past.

Anonymous said...

Can the government suka suka change cpf rulings?
Hope whats reveal here is incorrect.

Anonymous said...


at present,
it is correct that the
beneficiary will get cash....

in future,
this ruling, I am not sure,
may be changed by future govt....

hope for the best....

Anonymous said...


The best is to ask the CPF!

Anonymous said...

That is why most people just use their contributions to buy homes, every cent squeeze out of CPF, no matter how expensive, rather than keep the money in their CPF account. You never know what other rules may come into the picture in years down the road. Of course there is nothing they can do about MSS or medisave.

And that is also why some people just try to make use of their medisave to stay in highe class wards when they are sick. Can't blame them though.

Matilah_Singapura said...

Hahaha..fucking dumb assholes -- still believe that the money yew dutifully "contribute" to CPF is "yours".

Cash out yewr CPF? Unless you give up your mega-million dollar citizenship, yew have no chance of "cashing out" -- neither in life, nor in death.

Anonymous said...

"How can you let this happen?"

Because 60% voted for the PAP. 40% did not want this to happen and they voted opposition. Blame the 60%.

If you are one of the 60%, please accept the fact, quietly, meekly and stfu.

Only if you are one of the 40%, do you have a valid reason to complain.

rex said...

redbean..you have made an error that cost dearly on your reputation. i just spoken to an expert will writer and he confirmed twice with me that the nominee beneficiary of cpf getw CASH CHEQUE NOT TO HIS FPF ACCOUNT. Yesrs ago i called cpf board and the answer same as today.
Though you hae some disclaimer clause in your article, you are well known to be q reasonable smart writer who would have facts checked somehow before writing. You are causing unnecessary stress to PAP and they gonna nail you. i suggest you retract this article and also at TRS/TRE and make it disappear totqlly like MH370.

jjgg said...

So long as we know what the actual practice is, we can always adjust ...eg u can always leave your loot to a non cpf account holder like your Pinoy maid or a migrated quitter hehe

Chua Chin Leng aka redbean said...

Hi rex, I say I wish I am wrong. I have emailed to CPF to confirm on this and will do the necessary amendment or write another piece on this if I am wrong.

This is a case that I would like to be wrong.

Cheers.

rex said...

redbean you should check before you write. u should do your due diligence. dont make a case for the papist to discredit your excellent reputation in political analysis and the fine art of satire. i support you all the way. be careful those sharks have teeth.

Alex Tan said...

Chua u got it wrong this time, only the Medisave portion will be transferred. The OA and SA is received in cash. Updated as of 2014, my uncle passed away and my mom got it, I was the one who oversee the entire administration of distribution

Chua Chin Leng aka redbean said...

Hi Alex, thanks for the clarification. So there is some money that is still not returned, the Medisave portion. And this is about the sum creditted to the person mentioned's MSS. Why should it be?

This is still unacceptable. Everything must be paid to the beneficiary. The CPF/govt has no right to hold on to anyone's money.

I am still waiting for CPF's reply on this.

Virgo49 said...

Mr RB, not too long ago, a Minister brought up the subject of allowing a decease's CPF monies to be transfer to the beneficiaries CPF's account.

Till now no further news on this.

Many of us reaching age 55 after settling the prevailing minimum sum mostly out of fear that the PAPies might amend the rules of withdrawal quickly take out whichever balance we can salvage from the account to the Banks etc.

I, myself do so. My spouse still keeps all the balance CPF O/As, S/A and whatever As in her CPF's account earning 4 to 5%. Also, now they allowed any time withdrawal besides the annual one time withdrawal before your birthday.

However, have to be alert for any news of rules to be change to the withdrawal if not taken all out in full. Even at aged 55, any shares that you have invested before your drawn out date have to be refunded to the Board before you can withdraw the balance. This is for them to top up your Minimum Sum if you have not top up enough.

If you were to withdraw all and now wants to transfer back for the interest, the way is for your children to put them back under their names for the income tax rebate. But it will be for your retirement account and cannot be withdraw again. Locked with extra keys.

They might change the rules that any beneficiaries below the age 55 would have decease's CPF monies credited to their account instead of issuing them a cheque.

Do not pray pray, this might happen after the coming GE if the PAP is still the ruling government.

One word of advice, always opted for hard-copies CPF Statements or print out periodically your loved ones accounts in order to reconcile the payouts in the event that they pass on.

The CPF Board will only give a lump sum figure to the beneficiary/beneficiaries according to the nomination and a Court Order ought to be taken if you all want to know the breakdown.

This is for one and all to reconcile the monies as left over.

Cheers

Anonymous said...

Our CPF savings may not be safe even while you are still alive...as the $ borrowed is not guaranteed against any form of collateral.

Am the first batch of citizens subject to the minimum sum scheme, and only God know that i am able to receive the payouts...as "stories" will certainly changing from time to time.

Anonymous said...

I have second thought of selling my flat because most of the proceeds will go back to my CPF a/c for the minimum sum required and when I reach 55 years old not much is left to withdraw. So think before you sell your flat if you are reaching 55 years old, it is better to rent out your flat rather then get your sales proceeds tuck in CPF a/c. Also, you won't have money to buy new flat once your cpf money transfer to minimum sum a/c.

Anonymous said...

They will quietly make one small change at a time. Over time you have all the changes without even knowing what happens. Now for a start Medisave goes to Medisave of beneficiary. What's next?

Boiling a frog in a kettle.

Anonymous said...

Hahaha

"Now for a start Medisave goes to Medisave of beneficiary. What's next?"

The obvious answer is the money goes to the hospitals when the time comes. If not, will be kept in perpetuality until the hospitals ask your descendents to hand it over eventually.

b said...

The questions are -
did they change the cpf t&c?
can they change the cpf t&c?
who can change the cpf t&c?
do they have to inform the public?
what can they change?

Anonymous said...


hi b (3.35pm)...........

no.....
yes.....
the govt....
yes.....
everything/anything.....

hope you like it......

Anonymous said...


CPF tel no: 1800 227 1188

Anonymous said...

Actually, the CPF money in the OA,SA&MA are guaranteed by G. Only the part of $ in the RA that is used to buy the life annuity is not guaranteed.They can stop or reduce payment if the fund is insolvent or insufficient.

Anonymous said...

Why make the distinction on the medisave account? When one kicks the bucket all money is useless to that person already so why still withhold the money for what? What is the rationale and justification? U tell me lar?

Chua Chin Leng aka redbean said...

I have just made a follow up post on this. I have checked with CPF and they have confirmed that for those who made a nomination under the old system, it will be paid in cash, no medisave into CPF of nominees medisave unless the deceased has opted to do so under the Enhanced Nomination Scheme.

In the case mentioned above, it is likely that his wife must have made such a change. See if I can confirm with that person.

But beware of the new ENS.

Anonymous said...

So what if u pass away without making any nomination. Will your OA/SA be paid in cash? Medisave will be transferred to CPF of your dependent. But if your spouse or dependednt has max their medisave account, will then the money be refunded back in cash. There are 2 questions here.

Pls let me know. thanks