Singapore legislation
Section 27K
Section 27K
Establishment of Lifelong Income Scheme
(1)
The Board is authorised to establish and maintain a Lifelong Income Scheme for the purpose of providing, to every relevant member who has an annuity plan that is in force, a monthly income for the remainder of the relevant member’s life, starting in or after the month in which the relevant member attains the relevant age applicable to the relevant member.
(2)
Subject to subsections (3) to (5A) and the relevant regulations, the Scheme applies to every member who —
attains 55 years of age, on or after 1 January 2013; and
on an assessment date applicable to the member, satisfies all of the following requirements:
the member is a citizen or permanent resident of Singapore;
the member is entitled under section 15(2)(a), (3) or (4) to withdraw any sum standing to the member’s credit in the Fund and would be required to comply with section 15(6)(a) if the member were to make such a withdrawal;
the amount standing to the member’s credit in the member’s retirement account is not less than such amount as may be prescribed in the relevant regulations for the purposes of this sub-paragraph.
(2A)
[Deleted by Act 6 of 2016]
(3)
The Scheme —
does not apply to an excluded member; or
if the member is a relevant member, ceases to apply when the member becomes an excluded member.
(4)
The Board may, on such terms and conditions as the Board may impose, approve a member’s application to be an excluded member.
(5)
Despite subsections (2), (3) and (4), the Board may, on such terms and conditions as the Board may impose, approve a member’s application to join the Scheme if the member —
has attained such age as may be prescribed in the relevant regulations, or such earlier age as the Board may permit in a particular case; and
is a citizen or permanent resident of Singapore.
(5A)
Despite subsections (2), (3) and (4), the Scheme —
applies to a member whose application to join the Scheme has been approved under subsection (5); and
ceases to apply to that member only when the Board’s approval under subsection (5) is cancelled under subsection (5B).
(5B)
The Board may cancel an approval given under subsection (4) or (5) —
if the member does not comply with any terms or conditions imposed by the Board; or
in any other circumstances prescribed by the Minister in the relevant regulations.
(5C)
Where the Board cancels an approval given under subsection (4) or (5), the Board may specify the time (on or after the time of occurrence of the circumstances, referred to in subsection (4) or (5), as the case may be, which gave rise to the cancellation) that the cancellation takes effect.
(6)
Subject to subsection (7), sections 27N and 27P and the relevant regulations, where a relevant member has paid a premium and an annuity plan has been issued to him or her, then for so long as the annuity plan remains in force and he or she is alive, the Board must pay to him or her such monthly income as the Minister may determine, starting in or after the month in which the relevant member attains the relevant age applicable to him or her.
(7)
The Board is not required to pay a relevant member an amount due to the relevant member under subsection (6) if, at the time the amount is due, the relevant member fails to satisfy the Board, in accordance with the relevant regulations, that he or she is alive.
(8)
Subject to sections 27N and 27P, no monthly income paid to a relevant member under subsection (6) is —
liable to be attached, sequestered or levied upon for or in respect of any debt or claim;
subject to any set-off of any nature for any debt owing by the relevant member; or
to pass to the Official Assignee on the bankruptcy of the relevant member.
(9)
In this section —
Definition
“assessment date” means —
for a member who attains 55 years of age on or after 1 January 2013 but before 1 May 2016, the date the member attains 55 years of age or any other time prescribed in the relevant regulations for the purposes of subsection (2)(b); or
for a member who attains 55 years of age on or after 1 May 2016, the time prescribed in the relevant regulations for the purposes of subsection (2)(b);
Definition
“excluded member” means a member —
who belongs to any class of members prescribed under the relevant regulations for the purposes of subsection (3); or
whose application under subsection (4) has been approved by the Board and the approval remains in force.