CPF - Another Singapore miracle

'When netizen Rahayu Bte Mazlan went to the Central Provident Fund (CPF) board to collect her late mother’s CPF money, she found that it did not receive any interest, even though her mother had passed away 31 years ago. According to her, it took them 31 years to review her mother’s account, and therefore after the review, the money did not accrue any interest.

Rahayu’s post was shared on Facebook page All Singapore Stuff. In her post, she shared a letter from the CPF Board and wrote, “My mum passed away in 1987. She nominated me as her beneficiary. Last wed, I received a letter from CPF that there is money in her CPF after CPF review”.
However, after going to CPF Board, Rahayu was advised differently. She wrote, “I went to CPF yesterday. I said that since they had kept my late mum’s money, they should pay interest. They say that that her case was after review so no interest. What I don’t understand is that why after 31 yrs then they review? What is going on with our CPF?”'

I read the above posted in social media. Can't remember which blog posted it. Apologies. Below are quotes from the ST.

'Thirty-one years after Rahayu Mazlan received payouts from the Central Provident Fund (CPF) following the death of her mother, the outstanding balance - under $2 - finally found its way to her.
The 51-year-old housewife had received a letter dated Oct 4 from the CPF Board stating that as part of its "regular reviews", it had found some leftover savings in her late mother's account since the last withdrawal in 1987.
CPF has asked her to submit a completed form and necessary documents by Nov 5 to claim it.

In response to The Sunday Times' queries, a CPF Board spokesman yesterday said that all of the deceased's CPF monies were disbursed within two months in 1987 - except for a "small residual amount" which had been retained for a specific housing-related transaction. "This amount continued to attract interest until it was deducted several months later for the transaction. The interest accrued - which amounted to less than $2 - remained unclaimed," the spokesman added.'

The facts, some money was left in Rahayu's mother's CPF account to settle a specific housing related transaction. This amount continued to receive interest which the ST article quoting CPF, for up to 7 years only. Reading from the above ST quote, the interest accrued was less than $2. Take it as that for 7 years. Not sure if this is correct. So Rahayu is claiming the interest for the subsequent 24 years, ie 31-7=24. I think, just my opinion, if CPF members are charged interest from borrowing their own savings to pay for properties and the number of years to pay for this interest, regardless of whether the person is 100 years old or 200 years old, there is no limit as to how many years a person has to pay interest on borrowing his CPF savings, then why when money kept in CPF would not enjoy interest after 7 years? Is there a discrepancy and is this fair?

Many people would say nevermind, so little money, a few dollars only. But to some it is a matter of principle. You deserve to be paid, then you should be paid, the amount is immaterial.

Why I said this is a miracle? In many countries, whatever is left in a savings account like this case would likely be forgotten or lost in the files. Only in super efficient and clean Singapore would the CPF ask a person to make a claim for $2. The MRT fare to CPF would cost more than that. Again it is not only a matter of principle but a matter of right. The money belong to Rahayu and she should make a claim for it. So she is also claiming for the extra years interest not paid.

A $2 claim after 31 years is a record and a miracle. How many people lost all their savings in their bank accounts because they forgot the $200 in their savings, thought very safe in the banks but all kena eaten up by the $2 monthly fee the banks charged them for having too little money in the account?  Got money in the bank account ended no money left and account closed by the banks. This is like cheating the small people on the street.

Here we have the CPF asking a person to claim for $2 after 31 years, no extra charges, no monthly fee for having too little money in the CPF. Now was that lucky? The CPF does not cheat small people of small money.