This action is part of a strategy to prioritize the retirement, housing, and healthcare needs of Singaporeans and PRs.
SINGAPORE: Starting from April 1, 2024, the Central Provident Fund (CPF) accounts of individuals who are neither Singaporean citizens nor permanent residents will be automatically closed. This marks the final stage of efforts to align the CPF system with its primary goal of addressing the retirement, housing, and healthcare needs of Singaporeans and permanent residents, according to the CPF Board on March 8.
Since 2003, foreign workers have been prohibited from contributing to CPF. However, approximately 300,000 non-citizens and non-PRs still maintain CPF accounts. These individuals include those who made voluntary contributions or received employer contributions prior to 2003, as well as individuals who have since given up their Singaporean citizenship or permanent residency.
The majority of these individuals hold low CPF balances, with over two-thirds having less than S$5,000 in their accounts, the CPF Board reported. These members must transfer their CPF savings to a personal bank account by March 31, 2024. After this date, their accounts will be closed automatically, and any remaining funds will no longer earn the CPF interest rate.
The CPF Board stated that the remaining balances could still be transferred to a bank account at any time after this deadline. For those who are non-Singaporeans or non-permanent residents wishing to continue saving in Singapore, alternative options such as the Supplementary Retirement Scheme are available.
Starting in March 2023, the CPF Board will notify affected members using the contact details they have on file. Singapore citizens and permanent residents will not be impacted by this decision.
