Thursday, August 23, 2007
The Central Provident Fund (Abbreviation: CPF; Chinese: 公积金, Pinyin: Gōngjījīn) is a compulsory comprehensive social security savings plan which aims to provide working Singaporeans with a sense of security and confidence in their old age. It is administered by the Central Provident Fund Board, a statutory board under the Ministry Of Manpower. The CPF was started on 1 July 1955. The overall scope and benefits of the CPF encompass the following:
Working Singaporeans and their employers make monthly contributions to the CPF and these contributions go into three accounts:
As a social security plan, some of its policies have encountered criticisms, some of which are against social security in general and its compulsory nature, as well as the policy in management of the money.
Schooling children will later on have their outstanding funds in their Edusave account deposited into their CPF account.
Ordinary Account - the savings can be used to buy a home, pay for CPF insurance, investment and education.
Special Account - for old age, contingency purposes and investment in retirement-related financial products.
Medisave Account - the savings can be used for hospitalisation expenses and approved medical insurance.
Posted by gigihong07 at 9:20 AM