Non-Singaporeans and non-permanent residents will have their Central Provident Fund (CPF) accounts automatically closed on Apr. 1, 2024, the CPF board said on Wednesday (Mar. 8).
Following this announcement, non-Singaporeans and non-PRs have up to Mar. 31, 2024 to transfer their CPF savings to their personal bank account.
Any remaining savings will cease to earn the prevailing CPF interest rate, but the remaining savings can still be transferred to their bank accounts at any time after that.
Non-Singaporeans and non-PRs who wish to continue saving in Singapore may consider other options such as the Supplementary Retirement Scheme or through the purchase of relevant commercial investment products.
The CPF board will individually notify non-Singaporeans and non-PRs of the change from March 2023.
The automatic closure of the CPF accounts is "the final step in ensuing that the CPF system focuses on its core objective of catering to the retirement, housing and healthcare needs of Singaporean citizens and permanent residents."
"The purpose of the CPF system is to help Singaporean citizens and permanent residents retire with peace of mind," the CPF board said.
Before 1987, CPF contributions were mandatory for all employees working in Singapore.
From 2003, non-Singaporeans and non-PRs were disallowed from making voluntary contributions to their CPF accounts.
Today, there are about 300,000 non-Singaporeans and non-PRs with CPF accounts.
They include non-Singaporeans and non-PRs who have received contributions from employers or made voluntary contributions before 2003, as well as former citizens and PRs who have since relinquished their citizenship or permanent residency.
Most have low CPF balances with more than two-thirds of them having less than S$5,000 in their CPF account.
Top photo via Google Maps