Singapore legislation
Section 6
Section 6
Establishment of Central Provident Fund
(1)
For the purposes of this Act, there is established a fund called the Central Provident Fund —
into which are to be paid all contributions authorised under this Act; and (b)out of which are to be met all payments authorised to be paid under this Act.
(2)
The Board is the trustee of the Fund and all moneys belonging to the Fund may be —
deposited in a bank or banks approved by the Board;
invested in accordance with the standard investment power of statutory bodies as defined in section 33A of the Interpretation Act 1965; or
used for the purchase of any property and for the construction of buildings for the purposes of the Board or for letting to derive income therefrom and the Board may dispose of all or any part of the property or buildings.
(3)
[Omitted as spent]
(4)
Subject to subsections (4C) to (4I), the Board must pay to a member of the Fund interest —
at such intervals, and on the amount standing to the credit of the member in the Fund at such time, as the Board may determine; and
at such rate per annum as the Board may from time to time declare by notification in the Gazette, being a rate of interest which —
is not less than 2.5% per annum; and
may exceed 2.5% per annum if the Minister for Finance so approves.
(4A)
For the purposes of subsection (4), the Board may declare different rates of interest for different parts of the amount standing to the credit of a member in the Fund.
(4B)
The Board may, in its discretion, pay to a member of the Fund interest in addition to that referred to in subsection (4) —
at such intervals as the Board may determine —
on the whole or such part, as the Board may determine, of the amount standing to the credit of the member in the Fund at such time as the Board may determine; and
if the member belongs to such class of members as the Minister may prescribe by regulations made under section 27Q, on the whole or such part, as the Board may determine, of the aggregate at such time as the Board may determine of —
the amount of any premium paid by the member under section 27L; and
the interest that would have been payable thereon, if that amount had been standing to the credit of the member in his or her retirement account; and
at such rate per annum, and subject to such terms and conditions, as the Board may, with the approval of the Minister for Finance, determine.
(4C)
Where a member of the Fund died before 1 January 2004, the Board may cease to pay interest on any amount standing to the credit of the deceased member in the Fund —
in any case where that amount is transferred to the general moneys of the Fund on or before 31 December 2010, after 31 December 2010;
in any case where that amount is transferred to the general moneys of the Fund after 31 December 2010, with effect from the date of the transfer; or
in any case where that amount has not been transferred to the general moneys of the Fund, after the later of the following dates:
31 December 2010; (ii)the date on which the Board is notified, in such manner as may be prescribed in any regulations made under section 77(1), of the member’s death.
(4D)
Where a member of the Fund dies on or after 1 January 2004, the Board may cease to pay interest on any amount standing to the credit of the deceased member in the Fund that is not in any nominee account maintained for the deceased member —
in any case where that amount is transferred to the general moneys of the Fund on or before the 7th anniversary of the day of the member’s death, after the 7th anniversary of the day of the member’s death;
in any case where that amount is transferred to the general moneys of the Fund after the 7th anniversary of the day of the member’s death, with effect from the date of the transfer; or
in any case where that amount has not been transferred to the general moneys of the Fund, after the later of the following dates:
the 7th anniversary of the day of the member’s death; (ii)the date on which the Board is notified, in such manner as may be prescribed in any regulations made under section 77(1), of the member’s death.
(4E)
Subject to subsections (4C) and (4D), the Board may suspend the payment of interest on any amount standing to the credit of a member in the Fund after that amount is transferred to the general moneys of the Fund.
(4F)
Where any shares belonging to a deceased member that are vested in the Board under section 26(1) or 26A(1) are sold by the Board, the Board shall not pay any interest on any proceeds of the sale of those shares that are paid into the general moneys of the Fund under section 26(4D) or 26A(9) (as the case may be), even though those proceeds constitute an amount standing to the credit of the deceased member in the Fund.
(4G)
Where any shares belonging to a member that are vested in the Board under section 26B(1) are sold by the Board, the Board must suspend the payment of interest on any proceeds of the sale of those shares that are paid into the general moneys of the Fund under section 26B(3)(b), even though those proceeds constitute an amount standing to the credit of the member in the Fund.
(4H)
Where any shares belonging to a member are vested in the Board under section 26B(1), the Board must suspend the payment of interest on any dividends, returned paid‑up share capital or other moneys in respect of those shares that are paid into the general moneys of the Fund under section 26B(5), even though the dividends, capital or other moneys constitute amounts standing to the credit of the member in the Fund.
(4I)
Where the Board has paid any dividends, returned paid‑up share capital, proceeds of sale or other moneys in respect of any shares belonging to a deceased member into the general moneys of the Fund under section 26D(1), the Board shall not pay any interest on the dividends, capital, proceeds or other moneys even though the dividends, capital, proceeds or other moneys constitute amounts standing to the credit of the deceased member in the Fund.
(5)
If the Board is at any time unable to pay any sum which the Fund is required to pay under this Act, the sum required to be so paid is to be charged on and advanced to the Board from the Consolidated Fund and the Board must as soon as practicable repay to the Government the sum so advanced.