Photo of James’ injured leg
James (not his rea name) is a 58 year old Singaporean who has been a security guard for more than 10 years.
In debt due to road accident
Last year in August, he suffered an injury to his right leg when he was hit by a taxi in a neighbouring country.
He had difficulty paying for his medical bills in Singapore of about $3,000, and was also unable to work on and off for a few months because of the injury.
Consequently, he borrowed and now owes about $9,000 to three banks and moneylenders, and about $5,000 to illegal moneylenders.
Liquidate CPF investment
As he was finding it increasingly difficult to service his debts, he cashed in his CPF insurance policy to return the policy proceds of about $90,000 to his CPF account.
Can withdraw excess CPF
He went to the CPF Board to withdraw about $50,000 plus due to him, after setting aside his CPF Minimum Sum.
But, must wait until next birthday
The CPF Board informed him that as CPF account holders are only allowed to withdraw their excess CPF on their birthday, he will have to wait util his next birthday on 20 December, 2012.
He explained to the CPF officer his dire financial circumstances, but to no avail. The CPF Board wrote to him restating their policy in regards to his withdrawal request.
Seek MP’s help
He then went to see his single constituency Member of Parliament (MP) who wrote an appeal for him to the CPF Board.
Appeal rejected
However, the CPF Board replied rejecting his appeal.
CPF Board: “I refer to your appeal on 17 August 2012 through your Member of Parliament.
However, whilst we understand the difficulties you are facing, we are unable to allow you to withdraw your CPF savings now.
Members who have previously withdrawn their CPF upon reaching 55 may apply for a subsequent withdrawal of their CPF savings (including new contributions) yearly after their 55th birthday, i.e. on or after their 56th, 57 th birthday and so on if they are receiving working contributions”
Does “on or after their 56th, 57th birthday and so on” mean that if one does not withdraw on the birthday, one can withdraw after the birthday?
If this is the case, why is it that those who don’t withdraw on their birthday can withdraw after their birthday midway without having to wait for the next birthday, whilst people like James can’t withdraw midway in between birthdays?
Seek NCMP’s help
He then went to seek help from his Non-Constituency MP (NCMP), who referred him to our financial counseling volunteers.
Why CPF policy so inflexible?
Why is it that the CPF Board cannot be flexible for Singaporeans in dire financial difficulty to withdraw their excess CPF other than on their birthday?
Does it make a very big difference to the CPF Board to allow such requests? Is it operationally very difficult to enable such requests?
I may not survive till my next birthday
As James put it – “It’s my money that I can withdraw. So, why force me to wait? I might not survive till my next birthday in about three months time!”
Leong Sze Hian
