CPF Special Account for members 55 and older to close by January 2025

The Parliament has passed the CPF (Amendment) Bill.

By the second half of January 2025, the Special Account (SA) for CPF members aged 55 and above will be closed, following the passage of the CPF (Amendment) Bill in Parliament.

Minister for Manpower Tan See Leng said the government will notify all affected CPF members via hard copy letters, and email or SMS where applicable.

The CPF Board, for its part, has enhanced its Retirement Dashboard on their website to allow members to view the estimated amounts that will be transferred from their SA to their Retirement Account (RA) and Ordinary Account (OA). 

In his speech at the parliament, Tan also addressed concerns about the closure's effect on the computation of interest, as well as ongoing payments and contributions.

Tan said SA savings transferred to RA  up to the Full Retirement Sum (FRS) will earn RA interest, whilst the remaining SA savings will go to the OA to earn OA interest. 

Members can transfer OA savings to the RA up to the Enhanced Retirement Sum (ERS) within the same month for higher retirement payouts.

Meanwhile, incoming CPF contributions will go to the RA up to the FRS, with any excess allocated to the OA. 

According to Tan, members can retain their CPF Investment Scheme-Special Account (CPFIS-SA) investments until they choose to sell or until they mature after their SA closes. 

The proceeds will go to their Retirement Account up to the FRS, with any excess going to their OA.

"Members may continue to use their OA monies to invest under the CPF Investment Scheme-Ordinary Account (CPFIS-OA). This is consistent with the approach for CPFIS today. Members need to have set aside their FRS after turning 55 before they can invest under CPFIS," Tan added.

With the passage of the CPF (Amendment) Bill, the Home Protection Scheme (HPS) will be expanded to cover members with more serious pre-existing health conditions. 

From mid-2025, it will also extend to those with less severe conditions, such as certain types of stroke and heart disorders. 

Tan said previously rejected HPS applicants will be notified and can reapply for reconsideration.