How much do you know of your CPF nomination?

It was meant to be a simple straight forward procedure to make a nomination for someone to inherit whatever savings that is left in your CPF upon your demise. And the nominee will simply be presented a cheque for all the cash balance and the account closed. Someone has raised a query on why some of the deceased’s CPF balance is being transferred to his Medisave Minimum Sum Account. I have made an enquiry with the CPF and awaiting their reply on this matter.

When I wrote an article posing this new development, I also discovered that actually there are many changes to the issue of making a nomination and the complexities on how the savings of a deceased will be distributed. Effective 1 Jan 2011, there is a new scheme called the Enhanced Nomination Scheme, ENS. According to CPF’s website, I quote,

‘Previously when a member passes away, the Board will distribute his CPF savings to his nominees as a lumpsum in cash according to the proportion indicated in his nomination form.

The new ENS option enables CPF members to transfer their CPF savings to their nominees’ CPF accounts when they pass away, subject to the prevailing Minimum Sum limit and Medisave Contribution Ceiling (MCC).’

I went through the explanations in the CPF website and am still confused by the number of variations that could take place once a member elected the ENS. I am also not sure how the Minimum Sum limit and Medisave Contribution Ceiling comes into play. I would need some time to try to figure out what these changes meant and how they would affect savings of a deceased when returned to the nominee/nominees.

What about those who made a nomination before 1 Jan 2011? As in the case mentioned above, how did the transfer into the Medisave Minimum Sum thing comes into play? Is it a voluntary choice or it is a change made by the CPF without the consent of the deceased and nominee? I am still not clear on this. If this is a new thing, that the Medisave balance will be transferred to a nominee’s Medisave, it will be a no ending transfer from one Medisave to another and to another. I am waiting for CPF Board to reply on this. And I hope this Medisave Minimum Sum does not affect those who made a simple nomination to receive all payments in cash, every cent of it without having to transfer some money into the Medisave Minimum Sum.

There may be people who for some reasons chose to have the balance of a deceased’s savings transfer to their CPF accounts and may subsequently also to their nominees CPF accounts. I can’t think of a good reason to want to do so.

This CPF nomination to receive the balance of a deceased’s savings is getting to be a very complicated matter indeed.

Kopi Level - Yellow


Anonymous said...

"This CPF nomination to receive the balance of a deceased’s savings is getting to be a very complicated matter indeed."

If not complicated, then where got money for govt to retain and also enough work for the well paid bureaucrats at CPF and other agencies to do, u tell me lah?

Anonymous said...

If not complicated, then civil servant nothing to do. Also mp not enough cases for appeal etc. the change will create a lot of work for many people

Ⓜatilah $ingapura⚠️ said...

whahahaha...more shit from the Comical Ponzi Festival (CPF) to confound the docile Sheeple.

But rest assured. Govts all over the world are doing similar things by tinkering with their old age pension systems. You work hard all your life paying your contribution. When it cums time for you to collect...surprise surprise...what yew thought was yewr money to control is not.

Yew will die one day. But the Comical Ponzi Festival will be celebrating itself forever. Yew are just ONE JOKE in an ongoing performance of COMEDY -- where the audience are laughing at a stream of jokes which flow seamlessly and endlessly one after another.

Got sense of humour? Or got incurable tumour?

Anonymous said...

We got screwed by government all the times. No surprise lah. We are like prostitutes. Got screwed and screwed until we lose our feelings. But I do hope they do not take things for granted. Once in 5 years, we have a chance to say our minds. More and more are ready for rebellion.

Anonymous said...

Do Yew get to live forever for coming up with clever Ponzi Schemes, one after another??? Can Yew sleep well in Sin?

What the Hell is wealth when it deprives others of better livings. And worse when Schemes cause much hardships.

Anonymous said...

Good one !

Matilah_Singapura !

Complicated Payment Made Simple. said...

Rb: // This CPF nomination to receive the balance of a deceased’s savings is getting to be a very complicated matter indeed. //

There COULD be one "SIMPLE" way to end this // complicated matter // in the end.

In the 1920s, an old man living in Germany controlled territory supposedly just collected his entire life govertment pension fund.

Though the amount of cash was HUGE, it could only BUY and WORTH a cup of coffee. That old man stoically did that, took his cup of coffee, sat at a corner and drank that cup of coffee bought with his entire pension fund that WAS SUPPOSED to last for his entire twightlight years.........


A //complicated matter// SIMPLIFIED?

"NO WORRIES" .........

The money ( cash ) will be available when YEW withdraw it. Piles of it .........

Make it able to buy 2 cups of coffee, will YEW?

At least the retiree no need to drink alone for one last time before walking into the sunset as stoically as he possibly can ...........

SIMPLE enough?


Kee chiu ..........

b said...

This is what will happen when the gov is controlled by one dominant party. They can suka suka change the rules of the game leaving the pheasants with nothing.

Anonymous said...

The trouble with Sinkies is that some smart guys must have asked for ENS because they want to transfer their savings to the CPF accounts of their nominees instead of receiving a check.

If you have no such intention, why bother to dabble with ENS, which is a trap set by the PAP to hold your money in perpetuity. Just stick to the simple nomination and die in peace.