Central Provident Fund (Amendment No. 2) Bill

by inserting, immediately after the definition of “ “member of the Fund” or “member” ”, the following definition:“ “minimum sum” means the sum referred to in section 12(6);”; and

by inserting, immediately after the definition of “ordinary account”, the following definition:“ “retirement account” means the account referred to in section 12(6);”.

by deleting the words “A member” in the first line of subsection (2) and substituting the words “Subject to this section, a member”;

by inserting, immediately after the word “employment” in subsection (2)(d), the words “at any time before he attains the age of 55 years”;

by inserting, immediately after the words “unsound mind” in subsection (2)(e), the words “at any time before he attains the age of 55 years”;

by deleting the words “A member” in the first line of subsection (3) and substituting the words “Subject to subsection (6), a member”;

by inserting, immediately after the words “subsection (3)” in the first line of subsection (4), the words “but subject to subsection (6)”; and

by inserting, immediately after subsection (5), the following subsections:“(6) Subject to subsection (8), a member of the Fund who is entitled to withdraw the sum standing to his credit in the Fund under subsection (2)(a) shall at the time of such withdrawal —

deposit a prescribed sum (referred to in this Act as the minimum sum) with an approved bank or in a retirement account with the Board; or

purchase an approved annuity from an insurer with such minimum sum.(7) A member who attains the age of 60 years shall be entitled to withdraw from the minimum sum deposited with an approved bank or in a retirement account and any interest accruing thereon in accordance with regulations made under this Act.(8) A member need not deposit the minimum sum with an approved bank or in a retirement account or use the minimum sum to purchase an approved annuity from an insurer if the Board is satisfied that —

the member is suffering from a terminal illness or disease;

the member on his retirement will receive a pension, annuity or other benefit as may be approved which will provide him with a monthly income of not less in value than the amount prescribed by the Minister; or

the member has attained the age of 55 years before 1st January 1987.(9) Where a member or his spouse or both of them jointly own any immovable property of a value equal to or exceeding the minimum sum, the Board may permit the member to withdraw the minimum sum from his account with an approved bank or his retirement account or to surrender his approved annuity, if the member or his spouse or both of them, as the case may be, agree to the creation of a charge on the immovable property owned by him or his spouse or by them jointly, to secure the payment to the Board of the minimum sum for any of the purposes mentioned in subsection (6).(10) Where a member or his spouse or both of them jointly own any immovable property sold by a Housing Authority or by a lessee of a Housing Authority, the Board may permit the member to withdraw the minimum sum or part thereof from his account with an approved bank or his retirement account or to surrender his approved annuity, if the member or his spouse or both of them, as the case may be, give an undertaking to refund to the Board an amount equal to the minimum sum or part thereof which he is required to set aside for the purposes of subsection (6) in the event the property is sold or otherwise disposed of.(11) Where a member has withdrawn any money from the Fund for the purchase of an immovable property from a Housing Authority or from a lessee of a Housing Authority pursuant to regulations made under section 45 and the sum standing to the credit of the member in the Fund at the time he attains the age of 55 years is less than the minimum sum, the member shall, in the event the property is sold or otherwise disposed of, refund to the Board from the proceeds of sale or other disposition, an amount sufficient to cover the deficiency in the minimum sum.(12) No moneys deposited in an account with an approved bank or in a retirement account under subsection (6) and no withdrawals made by a member from the said account with an approved bank or from a retirement account and no payments received by a member from an approved annuity purchased with the minimum sum shall be liable to be attached, sequestered or levied upon for or in respect of any debt or claim whatsoever, and the same shall not pass to the Official Assignee on the bankruptcy of such member, and if the member is adjudicated a bankrupt or is declared insolvent by a court the same shall be deemed not to form part of his after-acquired property.(13) In this section, “Housing Authority” has the same meaning as in section 19.”.

a member to transfer such portion of the sum standing to his credit in the Fund as may be prescribed to the retirement account of his parent to be applied by the parent; or

any person to voluntarily maintain a minimum sum with the Board or to pay money into his parent’s retirement account,for any of the purposes mentioned in section 12(6).Moneys transferred to parent’s retirement account to be returned to member’s account on death of parent12D. Any moneys transferred by a member to his parent’s retirement account or paid by any person into his parent’s retirement account under section 12C shall be deemed to be contributions for the purposes of this Act, and shall not form part of the moneys payable out of the Fund on the death of the parent, and on the death of the parent, any money so transferred or paid or the balance thereof, shall be returned to the account from which it was transferred or to the account of the person who made the payment.”.

by inserting, immediately after the word “made” in the twenty-eighth line of subsection (1), the words “and to secure the payment of the minimum sum into the member’s retirement account”;

by inserting, immediately after subsection (2), the following subsection:“(2A) Any charge created over any immovable property under subsection (1) from 1st June 1981 to 31st December 1986 (both dates inclusive) shall unless the Board otherwise decide be deemed to have secured the payment of the minimum sum into a member’s retirement account.”;

by inserting, immediately after subsection (5), the following subsection:“(5A) The repayment of the minimum sum to the Board, if it is secured by a charge on the member’s estate or interest on the immovable property under subsection (1), shall rank after the claims of a mortgagee or chargee other than the Board prior to the date when the member is required to deposit a prescribed sum in accordance with section 12(6).”;

by inserting, immediately after the word “Fund” in the fifth line of subsection (8), the words “or if the Board is satisfied of the occurrence of any of the events mentioned in section 14A(e)”; and

by inserting, immediately after the word “section” in the first line of subsection (10), the words “and section 14A”.

the charge shall be subject to all prior statutory rights and charges of any public authority over the immovable property and to all encumbrances registered or notified prior to the date of the notification of the charge;

upon lodgement by the Board with the Registrar of an instrument (which shall be in such form as the Registrar may require) for the purpose of registering or notifying the charge and the acceptance of the instrument by the Registrar, the Board shall have —

the power of sale and all other powers relating or incidental thereto as if the Board is a registered mortgagee; and

the power to sell, assign and dispose of all rights, benefits and interests under the agreement for the sale and purchase of the immovable property;

the charge shall extend to all the rights, benefits and interest of the member or his spouse or both, as the case may be, under his or their agreement for sale and purchase of the immovable property;

the Registrar shall not be concerned to enquire into the regularity or validity of the charge, and shall, on acceptance of the instrument to register or notify the charge, register or notify the charge in the appropriate register maintained by the Registrar under the Land Titles Act (Cap. 276), the Land Titles (Strata) Act (Cap. 277) or the Registration of Deeds Act (Cap. 281), as the case may be;

the charge shall on the application of the member or any other person having an interest in the property be cancelled if the Board is satisfied of the occurrence of any one of the following events:

the death of the member;

if the member is suffering from a terminal illness or disease;

if the member has complied with the requirements of section 12(6);

if the minimum sum set aside by the member under section 12(6) has been exhausted on account of withdrawals made by him under section 12(7); or

if the member satisfies any of the grounds for withdrawals under section 12(2)(b) or (c).”.