retirement

Transcription

retirement

CENTRAL PROVIDENT FUND BOARD
CPF Building, 79 Robinson Road, Singapore 068897
www.cpf.gov.sg
AnnuAl
RePoRt
2012
SAVING FOR
RETIREMENT
Contents
03
Corporate
26
HealtHCare
18
review oF
operations
30
22
retirement
34
Home
ownersHip
workFare
FinanCial
statements
annexes
37
CpF serviCes
vision
A world-class social security organisation enabling Singaporeans to have a secure retirement
mission
To enable Singaporeans to have a secure retirement, through lifelong income, healthcare
2
Corporate
CHairman’s statement
Update on tHe Central provident FUnd and
insUranCe FUnds
The number of CPF members increased by 1% to 3.4 million, and
total CPF balances grew by 11% to $230.2 billion in December
2012. The cumulative amount withdrawn for housing and
other investments was $186.3 billion at end 2012. Members
continue to earn an interest rate of 4% p.a. on their savings
in the Special, Medisave and Retirement Accounts, and 2.5%
on Ordinary Account (OA) balances, which is essentially an onthe OA, earn an additional 1% aimed at helping members with
lower balances grow their CPF savings faster. Unlike many other
pensions systems, the interest rates in the CPF are risk-free, and
members are shielded from the volatility in investment returns.
As at December 2012, 616,000 and 3.5 million members were
insured under the Home Protection Scheme (HPS) and the
MediShield scheme respectively. In 2012, the HPS fund paid
out $89.8 million in claims to 1,100 members, and stood at $1.2
billion. The MediShield fund paid out $327.1 million in claims
to 283,000 claims in 2012, and stood at $0.5 billion.
Helping members’ savings last
While CPF members’ balances continue to grow, their retirement
needs are also increasing with improvements in life expectancy
and rising expectations of living standards in retirement. The
national annuity scheme, CPF LIFE, was hence introduced in
2009 to enable members to enjoy their retirement years without
having to worry about outliving their savings. CPF LIFE provides
members with a monthly payout for as long as they live, and
Scheme, which provides a monthly payout for about 20 years.
78,300 older members have voluntarily signed up for CPF LIFE
since it was introduced as an optional scheme in September
2009. This has effectively doubled the total number of annuities
in force in Singapore, including those offered by private
insurers. The CPF LIFE Fund currently stands at $3.3 billion, and
becomes the main decumulation scheme for members. All CPF
members who turn 55 from 1 January 2013 with at least $40,000
in their Retirement Account will be automatically enrolled into
CPF LIFE. About 70% of active CPF members turning 55 in 2013
are expected to be automatically enrolled. Members with less
than $40,000 in their Retirement Account can opt to join the
Members have a choice of two CPF LIFE plans – the Standard plan
which is the default plan that offers higher monthly payouts,
and the alternative Basic plan which offers lower payouts with
of CPF LIFE and make an informed choice on plan type, the
Board has an active schedule of publicity and education efforts
to reach out to members turning or nearing age 55.
4
Converting HoUsing eqUity to liFelong inCome
option of monetising their housing asset to obtain a higher
income stream in retirement. The Lease Buyback Scheme
residential property assets by selling part of the remaining
lease on their property to the Government and using the
proceeds to join CPF LIFE. 570 members have participated in
the LBS as at end-2012. This year, the LBS was enhanced with
the doubling of the cash bonus to $20,000. At the same time,
a new housing monetisation scheme, the Silver Housing Bonus
(SHB) was introduced. This scheme offers members a cash
the sales proceeds to purchase a CPF LIFE policy. With these
enhancements, members now have more options to convert
their housing equity to lifelong retirement income.
Helping older and low inCome CpF members
CPF contribution rates for older workers aged 50 to 65 were
raised in 2012. The total CPF contribution rate was raised
by 2.5% for members aged between 50-55, through a 2.0%
increase in employer CPF contribution and 0.5% increase in
employee CPF contribution. The total CPF contribution rate was
raised by 2.0% for members aged between 55-60, through a
1.5% increase in employer CPF contribution and 0.5% increase
in employee CPF contribution. Members aged between 6065 also enjoyed a 0.5% increase in their CPF contribution,
fully borne by their employers. This will help older members to
accumulate more for their retirement.
To help low-wage workers, the Government announced
at Budget 2013 that the CPF contribution rates for such
workers – which had been lowered in 2007 to enhance their
employability and increase their take-home pay – would be
raised to levels applicable to all other CPF members from
January 2014 onwards. This will help low-wage workers save
more for their retirement. At the same time, the Government
Supplement (WIS) scheme. WIS supplements the income
and retirement savings of older low-wage workers through
cash payouts and CPF contributions. From 2013 onwards,
maximum WIS payouts for individuals were increased by
25% to 50%, and the qualifying wage threshold was raised
to $1,900 per month so that more Singaporeans could
relevant policy and scheme enhancements and are not shortchanged by poor employment practices, the Board partnered
the Ministry of Manpower to launch the WorkRight Campaign
in 2012. The campaign aims to educate workers about their
employment rights under the CPF Act and the Employment Act,
while increasing enforcement efforts to ensure that employers
make CPF contributions for their employees.
Helping yoUnger members prepare For retirement
The percentage of active CPF members who met their Minimum
Sum at 55 has increased from 33.8% in 2008 to 48.7% in 2012.
A recent independent study done by the National University of
Singapore1 showed that new entrants to the workforce today
who are in the 30th income percentile and above will be able
to meet their Minimum Sum fully in cash upon turning 55.
The study also found that a male median-income earner
entering the workforce today would be able to save enough
through the CPF system to replace 70% of his last drawn income
at retirement. This is comparable to the income replacement
rate in OECD countries, and is within the range recommended
by the World Bank. The study also showed that income
replacement rates could be further enhanced through housing
monetisation, or after factoring in government transfers like
Workfare in the case of low-income CPF members.
the CPF as an effective means to secure retirement adequacy.
with its principal Ministries to further enhance the CPF as a
retirement system that meets the needs of its members.
ConClUsion and appreCiation
The progress we have made so far in helping Singaporeans
secure their retirement is a testament in no small part to
the dedication and hard work of the Board Members and
CPF staff. To them I would like to express my appreciation.
I would particularly like to thank the following Board Members
who have completed their terms on 30 June 2012: Mr John
Palmer, Mr Greg Seow, Dr Bart Broadman, Mr Law Song Keng,
Mr Lawrence Leow, Mr Low Kwok Mun, and Mr Lim Kuang Beng.
At the same time, I would like to welcome onboard 7 new Board
Members: Ms Luz Foo, Mr Sarjit Singh Gill, Ms Mimi Ho, Mr Lau Wing
Tat, Mr Ma Wei Cheng, Mr Ng Peng Wah, and Mr Teo Chee Khiang.
recipients to enjoy higher take-home pay and save more for
their retirement at the same time.
koH yong gUan
Chairman
1. Commissioned by the Ministry of Manpower
5
board members
mr koH yong gUan
mr aUgUstin lee
mr teo CHee kHiang
Chairman
Deputy Chairman
Professor (Practice)
Accounting
NUS Business School
National University of
Singapore
Master of Business
Administration, Catholic
University of Leuven,
Belgium
mr keitH tan
Director, Foreign
Economic Policy Division
Ministry of Trade and
Industry
(Government
Representative)
Master of Arts in
Management (Claremont
Graduate University, USA)
Bachelor of Arts (Honours)
in English (Princeton
University, USA)
6
Deputy Secretary
Ministry of Manpower
Master of Science in
Management, Stanford
University, USA
mr JoHn ng peng
waH
YTL PowerSeraya Pte.
Limited
(Employer Representative)
Industrial Engineering,
National University of
Singapore
Metallurgical Engineering,
Materials Science,
Carnegie-Mellon
University, USA
Accountant (Singapore)
Bachelor of Accountancy
(Honours), University of
Singapore
ms mary yeo
Vice President,
Supply Chain Operations
mr tUng siew
Hoong
Head, Fixed Income
Department
GIC Asset Management
Pte Ltd
Master of Social
Sciences in Statistics and
Economics, National
University of Singapore
ms Jessie yeo
Director, Industrial Relations
Mentoring Department
National Trade Union Congress
UPS Asia Group Pte Ltd
Executive Secretary, Metal
(Employer Representative) Industries Workers’ Union
Deputy Executive Secretary,
Master of Business
Singapore Port Workers Union
Administration,
(Employee Representative)
Northumbria University,
UK
mr ng How yUe
Second Permanent
Secretary
Ministry of Trade and
Industry
(Government
Representative)
Management, Sloan
Fellows Program, Stanford
University, USA
mr ma wei CHeng
General Secretary
Amalgamated Union of
Public Employees
(Employee
Representative)
Degree of Masters
of Law, University of
London, UK
mr laU wing tat
ms mimi Ho
mr sarJit singH gill
mr yee ping yi
Chairman,
The Asean Economic Community
Fund
Principal
Regulatory Professionals
Pte Ltd
Senior Partner
Shook Lin & Bok LLP
Central Provident Fund Board
Chartered Financial Analyst
Bachelor of Mechanical
Engineering (Honours) First Class,
Fellow of Society of Actuaries
Master of Arts in Mathematical
Statistics, Columbia University,
USA
Senior Counsel
Bachelor of Law (Honours),
Master of Business
Administration, Sloan School of
Management, MIT, USA
ms lUz Foo (Not pictured)
Executive Director (Insurance)
Monetary Authority of Singapore
Bachelor of Science (Honours) 2nd Upper, National University of Singapore
board members wHo Completed tHeir terms dUring tHe year
mr lawrenCe leow
Chairman & CEO
Crescendas Group
mr lim kUang beng
General Secretary
Singapore Industrial & Services Employees Union
dr bart broadman
Managing Director
Alphadyne Asset Management Pte Ltd
mr greg seow
Chairman
AMP Capital Investors (Singapore)
mr JoHn palmer
Chairman
The Toronto International Leadership Centre for Financial Sector Supervision
mr law song keng
Director
Asia Capital Reinsurance Group Pte Ltd
mr low kwok mUn
Executive Director (Complex Institutions)
Monetary Authority of Singapore
7
Ceo’s statement
increased by 2.0, 1.5 and 0.5 percentage points respectively for
employees aged between 50 to 55 years, 55 to 60 years and 60
to 65 years. The employee contribution rate was increased by
0.5 percentage points for those aged 50 to 60 years.
streamlining CpF top-up schemes
To make it easier for CPF members to make voluntary top-ups
into CPF accounts, we streamlined the top-up channels. Two
CPF top-up schemes - the Voluntary Contribution to Members’
Retirement Account Scheme and the Ordinary Account-toSpecial Account Transfer Scheme - were merged with the
Minimum Sum Topping Up (MSTU) Scheme. The merged
scheme allows CPF members to top up their own or their loved
ones’ CPF accounts using CPF savings or cash. The previous
top-up limit was also enhanced so that recipients could receive
more top-ups than before. Through these enhancements, we
aim to encourage more CPF members to make more voluntary
contributions towards retirement needs.
simplifying the CpF liFe scheme
2013, making it easier for CPF members to choose a plan that
best meets their needs.
The LIFE Standard Plan is the default plan and provides higher
monthly payouts to meet the needs of most CPF members.
The LIFE Basic Plan caters to CPF members who prefer a higher
bequest, with lower monthly payouts.
To help CPF members make an informed decision on the choice
of CPF LIFE Plan, we organised a number of classroom-style
talks for CPF members to understand CPF LIFE in a conducive
CPF members understand the features of CPF LIFE more clearly
and easily.
intensiFying oUr edUCational oUtreaCH to CpF
members and employers
Helping Singaporeans to save for retirement has always been
a core objective of the Central Provident Fund Board. Our
focus and our initiatives in 2012 continued to pave the way for
Singaporeans to secure a better retirement. We implemented
Expanding an informed CPF member and employer base
remains one of our top priorities. In 2012, the CPF Board
continued to educate CPF members and employers through
various channels and platforms to equip them with relevant
planning knowledge.
ramped up our enforcement efforts to ensure greater
outreach to CPF members and employers to increase awareness
of CPF schemes and rules.
reFining CpF poliCies and sCHemes
increasing CpF Contribution rates for older workers
The CPF contribution rates for older workers were raised from
1 September 2012 to help them accumulate more savings for
expanding the “are you ready?” initiative
Launched in 2011, “Are You Ready?” (AYR) is an initiative which
to make appropriate investment decisions. In 2012, we reached
out to 26,000 CPF members through our AYR talks and
seminars. We expanded our content to provide more in-depth
coverage of the various AYR topics. The online AYR checklist at
www.areyouready.sg now includes more than 60 different tips
and retirement planning.
8
To expand AYR to a larger audience, we ran print advertisements
and online campaigns through quizzes, an Instagram contest
Services Survey 2012, 10% of all CPF members have come into
contact with the AYR initiative since its launch. We will continue
AYR in 2013 to reach out to more members.
educating employers on CpF matters
To ensure that employers understand the importance of paying
their CPF contributions correctly and promptly, the CPF Board
actively targets employers in its outreach and education efforts
using different language mediums and formats. For example,
event which was well received by the participants. Some of our
e-Submission Seminars, which target employers who wish to
learn more about paying their CPF contributions electronically,
were held in Mandarin as well.
To reach out to more employers through industry networks, we
collaborated with employer associations such as the Singapore
National Employers Federation (SNEF) and Singapore Business
pUrsUing organisational exCellenCe
The CPF Board continues to strive for excellence as an
organisation. Our continued organisational emphasis on
innovation, people and service excellence has yielded
encouraging results, as evidenced by a number of organisation
awards we received in 2012.
issa good practices award
The International Social Security Association (ISSA) is a leading
international organisation that brings together national social
security organisations and agencies to exchange ideas and
Singapore Experience” and “Collection of CPF Contributions
through Electronic Submissions” at the ISSA Good Practice
in 2009, and our entries were selected from among 41 in the
has made in innovating our service initiatives.
rates for their members. Moving forward, we will continue to
enhance the content of the seminars we organise, and improve
the quality of our educational materials, to better cater to the
needs of employers.
ramping up our education and enforcement efforts
Last year, the Ministry of Manpower and the CPF Board stepped
up efforts to bring about stronger compliance with the CPF Act
and Employment Act (EA) using a two “e” approach covering
“education” and “enforcement”. We want to ensure that
employees, particularly the more vulnerable ones like low-wage
workers, enjoy their basic employment rights under the law.
Areas of focus include the payment of CPF contributions, ontime payment of salary, provision of paid annual and medical
leave, and adherence to working-hour requirements.
To raise awareness on workers’ employment rights under the
CPF Act and Employment Act, the “I Know My Employment
Rights, I Do It Right” marketing campaign was launched across
multiple media channels including print, television and radio.
Besides targeting workers, the campaign aimed to educate
employers on their legal obligations.
ramping Up oUr enForCement eFForts
In the area of enforcement, the CPF Board has stepped up
the number of inspections to deter errant and recalcitrant
employers from circumventing their CPF and EA obligations.
Greater attention was placed on industries like food and
beverage, retail, security and cleaning, where compliance with
the CPF Act and EA has traditionally been weaker. Our plan
is to increase the number of enforcement inspections ten-fold
from 500 to 5,000 annually.
pro-enterprise ranking
The CPF Board continued to be recognised for our businessfriendly practices by receiving a third place ranking in the
Pro-Enterprise Panel-Singapore Business Federation Awards
2012. This awards event was organised to recognise public
agencies which have been assessed to be pro-enterprise by
their customers. The favourable ranking is a testament of CPF
Board’s business-friendly environment and encourages us to
continue to be responsive to our customers’ needs.
singapore Human resource award
Organised yearly by the Singapore Human Resource Institute,
the Singapore Human Resource Awards aims to recognise
excellence in human capital management. The CPF Board was
among one of the 39 recipients of the award from both the
public and private sectors in 2012.
appreCiation
driving factor for the achievements of the CPF Board. In
this regard, I would like to express my deep appreciation to
all staff of the CPF Board who have given their best over the
years. I look forward to continuing to work closely with our
Singaporeans to have a secure retirement.
yee ping yi
9
Core management
(Seated from left to right)
mr soH CHin Heng
mr yee ping yi
mr don yeo
(Standing from left to right)
mr CHang long kiat
mr lo tak waH
mr teoH see leong
mr goH teCk soon
10
Senior Director (Housing & Healthcare)
Senior Director (Collection & Agency Services)
Director (Information, Infrastructure & Operations)
(Seated from left to right)
mr eng soon kHai
ms naina d parwani
mrs paUline lim
mr tey CHee keong
(Standing from left to right)
mr winston yean
mr ng HoCk keong
mr lim boon CHye
mr CHUa boon lee
mr derek tan
Director (Policy, Statistics & Research)
General Counsel
Director (Business Application Systems)
Director (Customer Relations)
Director (Finance & Planning)
Director (Enforcement)
Director (Accounts & Services Planning)
11
Corporate governanCe
board matters
The Board is the trustee of the Central Provident Fund and
oversees the management of the Fund as prescribed under the
Central Provident Fund Act (CPF Act). The Board is responsible
statements and investment plans. The Board monitors
organisational performance, ensures that Management has
adequate risk management policies and systems in place, and
provides advice to Management to ensure that the CPF Board
material transactions and decisions, including but not limited
to the sale of property.
board Composition and membersHip
The CPF Act provides for the appointment of 15 Board Members,
comprising the Chairman, Deputy Chairman, two Government
representatives, two Employer and Employee representatives
respectively, and up to seven other individuals. The Minister
for Manpower, with the President’s concurrence under Article
22A(1)(b) of the Singapore Constitution, appoints all the Board
Members. Board Members, including the Chairman and Deputy
Chairman, are appointed for a term of up to three years. The
Board comprises 15 members as at 31 December 2012.
All Board Members, with the exception of the Chief Executive
composition takes into account relevant expertise and experience
required for effective decision making and leadership. The
Board consists of members with core competencies in areas
such as insurance, investment and accounting. The Chairman
of the Board assesses the performance of the Board Members
For new members appointed to the Board, Management
new members depending on their specialised roles within the
Board. Board Members are given relevant information such
as an overview of the CPF Board and the Board’s powers and
obligations.
board meetings
Board meetings are scheduled quarterly for the purpose of,
statements, CPF Rules amendments and major projects. The
bylaws of the Board allow for Board Members to take part in the
meeting in person or via any means that allows the person to
participate actively in discussions such as video-conferencing.
Urgent matters requiring decision are circulated via e-mail by
the Board Secretariat. The Board met three times in 2012.
Board Members are provided with the necessary information
for them to effectively discharge their responsibilities at
each Board meeting. This includes regular reports on CPF
12
on a regular basis for the Board’s information. Board Members
may request additional information where necessary. Minutes
of Board meetings are documented for record, with matters
arising promptly followed up on and reported back at the
following Board meeting.
board Committees
In discharging its responsibilities, the Board is supported
by four Board Committees, namely the Audit Committee,
Insurance Schemes Committee, Investment Committee, and
Staff Committee, each commissioned with respective Terms of
Reference approved by the Board.
audit Committee
The Audit Committee of the Board comprises non-executive
and independent Board Members nominated based on their
expertise and experience with regard to discharging the
responsibilities of the Committee. In July 2012, Mr Teo Chee
Khiang succeeded Mr John Palmer as Chairman of the Audit
Committee. The membership of the Audit Committee was
changed in July 2012, with Mr Ma Wei Cheng and Mr Sarjit
Singh Gill succeeding Mr Lawrence Leow and Ms Jessie Yeo who
stepped down on 30 June 2012. Ms Mary Yeo and Mr Keith Tan
remained on the Audit Committee for 2012.
The Audit Committee assists the Board by providing an oversight
of activities carried out by Management, independent auditors
reporting, compliance with rules, regulations, corporate policies
and procedures. It reviews proposals put up by Management
and recommends the appointment of independent auditors to
the Board. It also reviews the independent auditors (excluding
the Auditor-General) auditing the accounts of the CPF Board
annually, including their independence and the nature,
extent and fees of non-audit services performed by them. In
addition, the Audit Committee oversees the adequacy and
effectiveness of the risk management framework put in place
by Management, and approves the CPF Board’s whistleblowing
policy and procedures.
The Audit Committee is kept updated by management and
independent auditors of the changes in the accounting
standards. In addition, it holds meetings with the independent
auditors and the internal auditors at least once a year, without
the presence of Management, to enable the auditors to raise
issues encountered in the course of their work directly to the
Committee. The Audit Committee met four times in 2012 and
urgent matters were approved by circulation.
investment Committee
The Investment Committee of the Board saw a change in
membership in July 2012, with Mr Greg Seow and Dr Bart
Broadman completing their terms on the Board. The Investment
Committee is chaired by Mr Tung Siew Hoong, and includes
three other members – Ms Celestine Khoo, Mr Lau Wing Tat
and Mr Yee Ping Yi. Both Mr Lau and Mr Yee are members of
the Board. Ms Khoo was co-opted to augment the expertise of
the committee.
The Investment Committee assists the Board with investment
matters relating to funds managed by the Board. It advises
the Board in setting the overall investment policy and
strategic asset allocation, and has decision-making authority
over the investment management strategy and structure,
the appointment of the investment consultant, custodian,
external fund managers and other third parties, the overall
approach to risk management, the rebalancing guidelines,
the implementation of tactical asset allocation and the
performance reporting framework.
The Insurance Schemes Committee oversees the
management of the Home Protection, MediShield and CPF
LIFE Schemes. The Committee helps to review the annual
valuation and actuarial studies, and recommend or approve
adjustments to the premiums and payouts. The Committee
manages the solvency and liquidity of the insurance funds
by determining the return objectives, risk tolerance level and
risk management framework.
The Investment Committee met four times in 2012. Urgent
matters were approved by circulation.
staff Committee
The Staff Committee of the Board is chaired by Mr Koh Yong
Guan and includes two members, Mr Augustin Lee and
Mr Yee Ping Yi.
insurance schemes Committee
In July 2012, Mr Greg Seow, Mr Law Song Keng and Mr Low
Kwok Mun completed their terms as Board Members and
members of the Insurance Schemes Committee. Mr Koh Yong
Guan continued to chair the Insurance Schemes Committee
Ms Mimi Ho, Ms Luz Foo and Mr Yee Ping Yi, are members of
the Board. Ms Lai Wei Lin (Director, Healthcare Finance Division,
The Insurance Schemes Committee met twice in 2012.
The Committee is the approving authority for key human resource
and remuneration policies as well as key appointments, promotion
and remuneration of senior executives. It meets once a year.
attendanCe at meetings
Board Members’ attendance at Board and Board Committee
meetings in 2012 is set out in the following table.
the Ministry of Health’s interest in the MediShield Fund.
board and board Committee meetings and attendance for the period 1 January to 30 June 2012
board members
board
audit Committee
investment
Committee
insurance schemes
Committee
staff Committee
No. of Meetings
No. of Meetings
No. of Meetings
No. of Meetings
No. of Meetings
Held
Attended
Held
Attended
Held
Attended
Held
Attended
Held
Attended
1
1
-
-
-
-
1
1
1
1
1
1
-
-
-
-
1
1
1
1
1
1
-
-
2
2
1
1
1
1
1
0
-
-
2
2
-
-
-
-
1
1
-
-
-
-
1
0
-
-
1
1
2
1
-
-
-
-
-
-
1
0
-
-
-
-
-
-
-
-
1
1
-
-
-
-
1
1
-
-
1
1
-
-
-
-
-
-
-
-
1
1
2
2
-
-
-
-
-
-
1
1
-
-
2
2
1
1
-
-
1
1
2
1
-
-
-
-
-
-
1
1
-
-
2
1
-
-
-
-
1
1
2
1
-
-
-
-
-
-
1
1
2
1
-
-
-
-
-
-
board Committees
Mr Koh Yong Guan
(Chairman)
First Appointed in 2005
Mr Augustin Lee
(Deputy Chairman)
Mr Yee Ping Yi
Dr Bart Broadman
Mr Law Song Keng
Mr Lawrence Leow
Mr Lim Kuang Beng
Mr Low Kwok Mun
Mr Ng How Yue
Mr John Palmer
Mr Greg Seow
Mr Keith Tan
Mr Tung Siew Hoong
Ms Jessie Yeo
Ms Mary Yeo
13
board and board Committee meetings and attendance for the period 1 July to 31 december 2012
board members
board
audit Committee
investment
Committee
insurance schemes
Committee
staff Committee
No. of Meetings
No. of Meetings
No. of Meetings
No. of Meetings
No. of Meetings
Held
Attended
Held
Attended
Held
Attended
Held
Attended
Held
Attended
2
2
-
-
-
-
1
1
-
-
2
1
-
-
-
-
1
1
-
-
2
1
-
-
2
2
1
1
-
-
2
1
-
-
-
-
-
-
-
-
2
2
2
1
-
-
-
-
-
-
2
2
-
-
2
2
-
-
-
-
2
2
-
-
-
-
-
-
-
-
2
2
2
2
-
-
-
-
-
-
2
0
2
2
-
-
-
-
-
-
2
2
2
2
-
-
-
-
-
-
2
2
2
2
-
-
-
-
-
-
2
2
-
-
-
-
1
1
-
-
2
2
-
-
-
-
1
1
-
-
2
2
-
-
2
2
-
-
-
-
2
2
-
-
-
-
-
-
-
-
board Committees
Mr Koh Yong Guan
(Chairman)
Mr Augustin Lee
(Deputy Chairman)
Mr Yee Ping Yi
Mr Ng How Yue
Mr Keith Tan
Mr Tung Siew Hoong
Ms Jessie Yeo
Ms Mary Yeo
Mr Teo Chee Khiang
Mr Ma Wei Cheng
Mr Sarjit Singh Gill
Ms Luz Foo
Ms Mimi Ho
Mr Lau Wing Tat
Mr John Ng
remuneration matters
Under the CPF Act, allowances of Board Members are
determined by the Minister and paid in line with the Public
Service Division’s guidelines on the payment of allowances by
Statutory Boards to its Board Members.
to the risk management processes established, and provides an
independent view to the Audit Committee and Management
on the risk management framework where required.
risk management and internal Controls
operational, IT and risk management systems are adequate
and effective.
risk management
The CPF Board has established a structured Board-wide
risk management framework to assess the soundness of its
risk management, internal control and compliance systems.
The framework is based on the ISO 31000 standard, and entails
a rigorous and systematic process of identifying, evaluating,
controlling and reporting risks. Annual Risk Control and SelfAssessment (RCSA) exercises are carried out by the business
and corporate departments, with the more important Board
key risks reviewed and monitored on a quarterly basis by
Management and the Audit Committee. The Internal Audit
14
The Board has sought assurances from Management and
whistleblowing policy
The CPF Board has in place a whistleblowing programme that
encourages the reporting of suspected corporate wrongdoing.
Staff may disclose concerns through various secured and
protected channels manned by an independent external party
to preserve anonymity. Information provided will be treated
be surfaced to the Audit Committee and the Head of Internal
Audit and thoroughly investigated, with appropriate remedial
measures taken where warranted.
internal audit
The Internal Audit Division reports to the Audit Committee and
operates independently from the other Divisions of the CPF
Board to provide objective audit assurance to the Management
and Audit Committee that sound and adequate internal
controls exist in the CPF Board. The Internal Audit Division
adheres to the Institute of Internal Auditors’ Code of Ethics and
strives to meet or exceed the International Standards for the
Professional Practice of Internal Auditing set by the Institute of
Internal Auditors as appropriate.
The Internal Audit Division evaluates and contributes to the
improvement of governance, risk management and control
processes. The scope of the Division’s activities includes
reviewing and evaluating the adequacy, effectiveness and
system, ascertaining compliance with applicable Laws
& Regulations, Policies & Guidelines and Standards &
Procedures. It ascertains the accuracy, reliability and
of operations and programmes. In addition, the Internal
Audit Division performs any special audit or investigation
requested by the Audit Committee or Management.
made recommendations to the Audit Committee and the Board
on how to strengthen the CPF Board’s internal control system
and accounting procedures. Ernst & Young did not provide any
other non-audit services to the CPF Board in 2012.
aCCoUntability
Schedule of the Singapore Constitution. Under Article 22B(1)(a)
of the Singapore Constitution, the Board is required to present
its annual budget, including any supplementary budget, to the
President for his approval, together with a declaration as to
whether the budget is likely to draw on past reserves. Likewise,
under Article 22B(6) of the Singapore Constitution, the Board
must inform the President if any other proposed transaction by
the Board is likely to draw on past reserves. The budget, when
approved by the President, is published in the Government
Gazette. In addition, under Article 22B(1)(c) of the Singapore
Constitution, the Board is required to present to the President,
the statements show any draw on past reserves.
Separately, under Clause 6 of the Second Schedule of the CPF
external audit
Under the CPF Act, the accounts of the CPF Board are required
to be audited at least once annually by the Auditor-General
or any other auditor appointed by the Minister in consultation
with the Auditor-General. To assess the independence of the
appointed external auditor, the Audit Committee reviewed the
nature, extent and fees paid for non-audit services during the
statements to the Minister for Manpower, before presenting
Board are made available to CPF members and the general
public via the CPF website.
proFessional and etHiCal CondUCt
has not been impaired. The external auditors have also provided
Staff of the CPF Board are obliged to comply with practices that
The appointed external auditor expresses an opinion on
59(1) of the CPF Act, the Statutory Bodies and Government
Companies (Protection of Secrecy) Act (Chapter 319) and the
assessment of the risks of material misstatement, whether due
to fraud or error. In making the risk assessment, the external
auditor considers relevant internal controls and evaluates
the appropriateness of accounting policies used and the
auditor would also express an opinion on whether the CPF
Board’s receipts, expenditure, investment of monies and the
acquisition and disposal of assets are in accordance with the
provisions of the CPF Act. The appointed external auditor for
abide by the CPF Board’s Code of Conduct, which includes
guidelines on receiving gifts and entertainment from vendors
and any member of the public with whom staff are in contact
under the whistleblowing programme, staff of the CPF Board
are encouraged to report any suspected improper conduct.
15
organisation strUCtUre
AS AT 1 JAN 2013
CHieF exeCUtive oFFiCer
YEE PING YI
poliCy & bUsiness
planning groUp
serviCes groUp
Assistant CEO /
SOH CHIN HENG
LO TAK WAH
ColleCtion
& agenCy
serviCes
division
enForCement
division
CUstomer
relations
division
aCCoUnts
& serviCes
planning
division
Senior Director
Director
Director
Director
TEOH SEE LEONG
NG HOCK KEONG
TEY CHEE KEONG
LIM BOON CHYE
· Customer
Contact
Centre
· business
process &
services
planning
department
· agency projects · investigation
department
& Compliance
department
Senior Deputy
Director
Senior Deputy
Director
LIM LIN
BELINDA TEOH
Senior Deputy
Director
SALLY KOH
Deputy Director
HoUsing &
HealtHCare
division
retirement &
investment
division
Senior Director
Director
CHANG LONG KIAT SOH CHIN HENG
· Healthcare
schemes
department
· investment
schemes
department
Senior Deputy
Director
Senior Deputy
Director
MARGARET LIM
WU MEEI
poliCy,
statistiCs &
researCH
division
Director
Director
ENG SOON KHAI
LO TAK WAH
· Corporate
Communications
department
Deputy Director
JENNIFER TOH
STEPHANIE NG
· Collections
business
department
· recovery
department
Senior Deputy
Director
Senior Deputy
Director
SALLY SEAH
CHOO ENG
SENG
· member &
employer
education
department
Deputy
Director
JEFFREY PNG
· Collection
services
department
Deputy Director
SOH TSE MIN
· self-employed
scheme &
workfare
department
Deputy Director
JANICE LAI
· service Centre
& e-service
department
· member
accounts
services
department
· Home
protection
scheme
department
Deputy Director
Deputy
Director
SUN HUI YEE
IVY HO
· Housing
schemes
department
· lifelong
income
department
Senior Deputy
Director
DESMOND
CHEW
· retirement
schemes
department
Deputy
Director
Senior Deputy
Director
Senior Deputy
Director
JESS TEO
NGIAM SU
YING
TAN CHUI
LENG
· withdrawal
schemes
department
Senior Deputy
Director
CHUA HWEE
LENG
· management
information
department
Senior Deputy
Director
CHAN YOKE
FONG
· policy
department
Senior Assistant
Director
GREGORY CHIA
· policy studies
department
Senior Deputy
Director
RAMLAH MOIz
TYEBALLY
· research
department
Senior Assistant
Director
LOH BOON WEI
16
bUsiness
planning
division
aUdit
Committee
inFoComm teCHnology serviCes
groUp
Corporate development groUp
DON YEO
DON YEO
bUsiness
appliCation
systems
division
enterprise inFormation,
inFoComm
arCHiteCtUre inFrastrUCtUre teCHnology
& it revamp & operations
serviCes
division
division
division
Director
Director
PAULINE LIM
· employer
application
systems
department
Deputy
Director
Director
Deputy
Director
NEO BEE SIM
TAN CHENG
LEE
· information
& policy
management
department
Senior Deputy
Director
ANG MOY
GEK
· it revamp
department
· retirement,
insurance
& scheme
systems
department
Senior Deputy
Director
Deputy
Director
CHIA SWEE
FONG
Deputy
Director
ANG LENG
LENG
DEREK TAN
· Capability &
organisation
development
department
Principal IT
Consultant
CHANG CHEE
YUEN
LINDA MARIE
CHAN
· Human
resource
department
Deputy
Director
Senior Deputy
Director
Deputy
Director
MARY WEE
LEE NYEN
KONG
CHUA CHEW
HIANG
· operations
management
& services
department
Deputy
Director
investment
management
division
legal
serviCes
division
Chief Investment General Counsel
Director
Senior
Deputy
Director
· infrastructure
& resource
· Corporate
management
systems
department
department
GAN KENG
SWEE
· scheme
systems
department
· application
&
technology
services
department
FinanCe &
planning
division
Chief Human
Director
CHONG QUEY
LOW SAU CHAN GOH TECK SOON
LIM*
· enterprise
architecture
department
HUman
Capital
management
division
WINSTON YEAN CHUA BOON LEE
· Corporate
services
department
NAINA D.
PARWANI
internal
aUdit
division
Head of Internal
Audit
EILEEN TAY
· investment
management
department
Deputy
Director
Head of
Investment
TAN MUI
LENG
FAITH LEE
· Corporate
strategy
& risk
department
Deputy
Director
CAROLINE
LOH
· Finance
department
Financial
Controller
WOO SIEW
CHEONG
JACQUELINE
GIAN
· property
department
Senior Deputy
Director
Senior Deputy
Director
(Special
Projects)
PETER ANG
NG TzE
LEONG
* Joined CPF Board on 7 Jan 2013
17
review oF
operations
overview
CpF membersHip
As at 31 December 2012, CPF membership rose by 1.3% to 3,418,569. The number of active CPF members increased by 3.1% to
1,788,768.
CpF membersHip* as at 31 deCember
aCtive* CpF membersHip as at 31
deCember
2012
3,418,569
2012
1,788,768
2011
3,376,335
2011
1,735,422
2010
3,343,349
2010
1,700,385
2009
3,291,309
2009
1,644,610
2008
3,234,390
2008
1,610,135
* CPF member refers to a person (including selfemployed) who has a positive balance in any of his
CPF accounts.
* Active CPF member refers to a person who has at
least one contribution paid for him for the current
excludes self-employed persons who are not
employees concurrently.
19
CpF members’ balanCes
as at 31 deCember
amoUnt oF ContribUtions
ColleCted and Credited
dUring tHe year
2012
$230,157.7 m
2012
$26,048.4 m
2011
$207,545.5 m
2011
$24,628.4 m
2010
$185,888.0 m
2010
$21,992.7 m
2009
$166,804.0 m
2009
$20,124.9 m
2008
$151,307.1 m
2008
$20,293.6 m
CpF members’ balanCes
enForCement
In 2012, the total CPF members’ balances grew by 10.9% to
$230,157.7 million.
In September 2012, the Ministry of Manpower (MOM) and CPF
Board jointly implemented a new “WorkRight” initiative to
protect the basic employment rights of employees under the law.
CpF ContribUtions
Contributions to the CPF are made monthly by employees and
their employers. From 1 September 2012, the CPF contribution
rates for older workers aged above 50 to 65 years were raised
to help them better prepare for retirement. The employer CPF
contribution rates were increased by 2% for employees aged
above 50 to 55 years, 1.5% for employees aged above 55 to 60
years and 0.5% for employees aged above 60 to 65 years. The
employee CPF contribution rates were increased by 0.5% for
those aged above 50 to 60 years.
As at end 2012, 128,373 employers paid CPF contributions for
their employees. The amount of contributions collected and
credited into CPF members’ accounts during the year amounted
to $26,048.4 million, a 5.8% increase from 2011.
The average default rate for employers who failed to pay CPF
contributions on time in 2012 was 0.57%, as compared to
0.56% in 2011.
20
Under the WorkRight initiative, MOM and CPF Board adopt a
two-pronged approach covering education and enforcement.
A publicity campaign called “I Know My Employment Rights,
I Do It Right” was launched to raise awareness of the CPF Act
and the Employment Act (EA). The campaign comprised a
series of print, TV and radio advertisements, as well as media
stories to educate employees on their employment rights
and employers on their legal obligations. The campaign
also promoted a hotline (1800-221-9922) which allowed
employees and members of the public to report on CPF Act
or EA non-compliance.
In the area of enforcement, the number of onsite inspections
will be increased ten-fold from 500 in 2012 to about 5,000
per year by the end of 2014. More attention will be placed
on industries such as food and beverage, retail, security and
cleaning.
In 2012, the enforcement efforts of the CPF Board resulted in
the recovery of $293.0 million CPF contributions from 39,790
CpF members’ aCCoUnts
A CPF member has three accounts with the CPF Board before he turns 55 – the Ordinary, Special and Medisave Accounts. The
allocation of CPF contributions to CPF members’ accounts is as follows:
CpF Contribution and allocation rates from 1 september 2012*
ContribUtion rate
(% oF wage)
age groUp
by employer by employee
Credited into
(% oF wage)
total
ordinary
aCCoUnt
speCial
aCCoUnt
medisave
aCCoUnt
35 years & below
16
20
36
23
6
7
Above 35-45 years
16
20
36
21
7
8
Above 45-50 years
16
20
36
19
8
9
Above 50-55 years
14
18.5
32.5
13.5
9.5
9.5
Above 55-60 years
10.5
13
23.5
12
2
9.5
Above 60-65 years
7
7.5
14.5
3.5
1.5
9.5
Above 65 years
6.5
5
11.5
1
1
9.5
* For employees with monthly wages of $1,500 and above. For employees with monthly wages of less than $1,500, please refer to Annex D.
From age 55, another account is created for the CPF member - the Retirement Account. This account is used to set aside the CPF
member’s Minimum Sum, comprising monies transferred from his Special and/or Ordinary Account.
CpF witHdrawals
Withdrawals from CPF members’ balances increased 12.4% to
reach $11,726.7 million in 2012.
annUal witHdrawals*
2012
$11,726.7 m
2011
$10,436.5 m
2010
$9,617.3 m
2009
$10,719.1 m
2008
$10,966.3 m
* Include withdrawals under Section 15 and CPF Schemes
interest earned by CpF members
The Ordinary Account (OA) interest rate is calculated based on
20% of the savings rates of the major local banks. It is reviewed
quarterly to keep up with prevailing market interest rates. In
2012, the interest rate was 2.5% per annum for the OA.
Savings in the Special and Medisave Accounts (SMAs) are
invested in Special Singapore Government Securities (SSGS)
which earn an interest rate pegged to either the 12-month
average yield of 10-year Singapore Government Securities
(10YSGS) plus 1%, or 4%, whichever is higher, adjusted
quarterly. In 2012, the interest credited to the SMA was 4%
per annum.
New Retirement Account (RA) savings are invested in SSGS
of the 10YSGS plus 1% at the point of issuance, subject to a
minimum rate of 4%, adjusted yearly. The interest rate credited
to the RA is the weighted average interest rate of the entire
portfolio of these SSGS, adjusted yearly in January. In 2012, the
interest credited to the RA was 4% per annum.
Accounts was extended to 31 December 2012, in light of the
global economic conditions and exceptionally low interest
rate environment.
member’s combined balances, with up to $20,000 from the
OA. The total interest credited into CPF members’ accounts in
2012 amounted to $8,290.6 million, including $1,091.0 million
in extra interest.
21
retirement
retirement
witHdrawal at age 55
deFerment bonUs
When CPF members reach 55, they may withdraw their CPF in
the Ordinary and Special Accounts after setting aside the CPF
Minimum Sum. In addition, CPF members who are able to meet
the CPF Minimum Sum would have to set aside the Medisave
Required Amount (MRA) in their Medisave Account (MA) when
they make CPF withdrawals. CPF members with more than the
Medisave Minimum Sum can withdraw the excess amount in
their MA.
In light of increasing life expectancy in Singapore, the Minimum
Sum Draw-Down Age (DDA) has been raised progressively from
age 62 to 63 years in 2012 and will be further raised to 64 in
2015 and 65 in 2018. To help CPF members aged between 55
and 62 in 2012 who were affected by the change in DDA, a oneoff Deferment Bonus (D-Bonus) was given. As at 31 December
2012, a total of $322.1 million of D-Bonus was credited to the
RAs of 371,825 CPF members.
CPF members may withdraw their CPF annually on their
birthday or after they have stopped working for six months.
In 2012, $2,048.2 million was withdrawn. This was about 5.6%
more than the amount withdrawn in 2011.
In addition, CPF members who voluntarily defer their monthly
payments from their DDA till 65 will receive a Voluntary
Deferment Bonus (V-Bonus) for each year of deferment. As at
31 December 2012, a total of $101.5 million worth of V-Bonus
was credited into the RAs of 316,547 CPF members.
minimUm sUm sCHeme
CpF liFe
The Minimum Sum for CPF members who turned 55 between
1 July 2012 and 30 June 2013 was $139,000. Of this amount, at
least $69,500 must be in cash while the remaining $69,500 can
be pledged with a property.
In 2012, 35,182 active CPF members turned 55, of which 48.7%
were able to set aside their full Minimum Sum, either fully in
cash, or partly in cash and partly via a property pledge.
topping-Up oF tHe minimUm sUm
The Minimum Sum Topping Up (MSTU) Scheme was put in
place to encourage CPF members to make cash top-ups or
transfers from their CPF accounts to their own and their loved
ones’ Special and Retirement Accounts so that the recipients
can set aside more for their retirement. Recipients can draw
down the top-up monies in the form of monthly payouts under
the Minimum Sum Scheme or CPF LIFE.
In 2012, as part of an ongoing review to simplify processes
and make it easier for CPF members to boost their retirement
savings through top-ups, a number of CPF top up schemes
– including the Voluntary Contributions to the Retirement
Account (VC-RA) scheme and the Ordinary Account to Special
Account Transfer scheme - were merged into a single MSTU
scheme and the top-up limit was further liberalised.
There were 45,769 cash and CPF top-ups amounting to $246.7
million to the Retirement Accounts (RA) and Special Accounts
(SA) in 2012. This represented an increase of 19.7% and 14.4%
in the number of top ups and amount topped up to the RA/SA
respectively, compared to 2011.
Singapore has one of the highest life expectancies in the
world. About half of Singaporeans who are aged 65 today are
expected to live beyond 85, and one-third of them beyond 90.
To address the challenges of increasing life expectancy and an
ageing population, CPF members turning age 55 from 1 January
2013 are automatically included in CPF LIFE if they have at least
$40,000 in their Retirement Accounts (RA) at 55, or $60,000 at
their DDA (65). CPF members who are not auto-included can
apply to join CPF LIFE anytime before age 80.
LIFE Standard Plan and the LIFE Basic Plan. CPF members will
be assigned the LIFE Standard Plan as a default if they do not
choose a plan themselves.
Since CPF LIFE was made available in September 2009, more
than 78,000 CPF members have opted to join CPF LIFE, and
committed about $4.7 billion to the scheme. This has effectively
doubled the number of annuities in Singapore.
To enhance the payouts of older Singaporeans joining CPF LIFE,
the Government provided a bonus of up to $4,000, called the
LIFE Bonus (L-Bonus) to those born before 1963 who opted into
CPF LIFE. As at 31 December 2012, more than $170.7 million of
L-Bonus have been given to 74% of the CPF LIFE participants.
As at 31 December 2012, more than 28,000 CPF members
who have reached their DDA started receiving their CPF LIFE
monthly payouts. A total of $229.8 million has been paid to the
CPF LIFE participants in the form of monthly payouts since the
scheme was made available in September 2009.
23
transFer oF ordinary aCCoUnt (oa) savings to
speCial aCCoUnt (sa)
CPF members below 55 who want to set aside more cash for
retirement can transfer their CPF savings from the OA to the
SA, up to the prevailing Minimum Sum. In 2012, 15,919 CPF
members transferred $156.0 million to their SAs.
CpF investment sCHeme (CpFis)
Under the CPFIS, CPF members can invest eligible balances
from their OA and SA. After setting aside $20,000 and $40,000
in their OA and SA respectively, CPF members may invest
their remaining OA and SA savings (“investible savings”) in
bills, Statutory Board bonds, annuities, endowment insurance
policies, investment-linked insurance policies, unit trusts and
Exchange Traded Funds.
24
Under the CPFIS-Ordinary Account (CPFIS-OA) scheme,
CPF members can invest up to 35% of investible savings in
shares, corporate bond, and property fund, while up to 10%
can be invested in gold and Gold Exchange Traded Funds.
In addition, investible OA savings can be invested in fund
management accounts.
As at 31 December 2012, 896,275 CPF members invested a
total amount of $22,244.2 million of their OA savings under
the CPFIS-OA scheme. In comparison, as at 31 December 2011,
896,438 CPF members had invested a total of $23,876.7 million
under the CPFIS-OA scheme.
As at 31 December 2012, 440,829 CPF members had invested
$6,165.4 million of their SA savings under the CPFIS-Special
Account (CPFIS-SA) scheme. As at 31 December 2011,
466,581 CPF members had done so with $6,586.7 million
of SA savings.
witHdrawals Upon deatH, permanent disability
and otHer groUnds
for their children’s, spouses’ or their own tuition fees for approved
full-time government-subsidised local tertiary education. The
scheme was introduced to help lower-income families.
Upon a CPF member’s death, his savings will be paid to
made, the savings will be handed to the Public Trustee for
distribution according to the intestacy laws. CPF members
with certain medical conditions, such as permanent physical
or mental incapacity for work, can apply to withdraw their CPF
savings on medical grounds. During the year, $522.4 million
was withdrawn on these grounds. On the other hand, CPF
members who left Singapore and West Malaysia permanently
withdrew $541.5 million from the CPF.
During the year, more government-subsidised courses have
been included under the scheme, such as the full-time
degree programmes offered by LASALLE in partnership with
Goldsmith’s College.
In 2012, a total of 12,312 applications were processed under
the scheme, a decrease of 5.7% from 2011. The gross amount
withdrawn increased from $102.8 million to $105.7 million in
2012. The total amount repaid to lending members decreased
slightly from $79.0 million to $78.8 million in 2012.
edUCation sCHeme
The CPF Education Scheme is a loan scheme which enables CPF
members to use CPF savings from their Ordinary Account to pay
25
HealtHCare
HealtHCare
medisave
From 1 July 2012 to 30 June 2013, CPF members can
contribute up to $43,500 in their Medisave Accounts (MA).
Those who withdraw their CPF savings at or after age 55
need to set aside the Medisave Minimum Sum of $38,500
or the actual Medisave balance, whichever is lower, in their
MAs to meet their healthcare needs during retirement 1.
CPF members who are government pensioners under the
Fixed Amount on Ward Charges scheme (FAW) are not
required to maintain any savings in the MAs, whereas
government pensioners under the Co-Payment on Ward
Charges scheme (CPW) can maintain up to $13,050 (note:
equivalent to 30% of the prevailing Medisave Contribution
Ceiling of $43,500) in their MAs. These government
pensioners have to set aside $11,550 (note: equivalent to
30% of the Medisave Minimum Sum at $38,500) in their
MAs when they withdraw their CPF savings at age 55.
From 1 January 2012, a CPF member can withdraw up to $400 a year
from his Medisave Account to pay for his own or his dependant’s
approved chronic illness treatments, vaccinations and health
screening under the Medisave400 Scheme. The $30 deductible
and 15% co-payment features continue to apply to chronic illness
treatments only. This increase in the annual withdrawal limit keeps
pace with the higher costs of treatments and covers the growing
categories of chronic illnesses, vaccinations and health screenings
allowed under the Medisave Scheme.
Under the Medisave400 Scheme, CPF members can use their
Medisave to pay for approved pneumococcal vaccinations
received on or after 1 January 2012 by their children below the
age of 6 years (previously below the age of 5 years).
The annual Medisave withdrawals for direct medical expenses
increased from $721.7 million in 2011 to $767.4 million in 2012.
The number of withdrawals increased by 8.2% to 1,340,808.
annUal witHdrawals Under medisave sCHeme For
approved mediCal expenses
2012
$767.4 m
2011
$721.7 m
2010
$678.2 m
2009
$600.8 m
2008
$558.2 m
Scheme (PMIS), ElderShield Scheme and MediShield Scheme.
1. If the member has met his Minimum Sum, but has less than the Medisave Required Amount (MRA) in his MA, he will be required to set aside the MRA with part of
his OA/SA balances before withdrawal.
27
perCentage oF aCtive CpF
members* wHo met tHe medisave
minimUm sUm at age 55
2012
59.1%
2011
58.9%
2010
59.3%
2009
60.5%
2008
59.6%
average balanCe in tHe medisave
aCCoUnts oF aCtive CpF members*
at age 55
2012
$31,571
2011
$29,928
2010
$28,265
2009
$26,472
2008
$25,353
*Excludes pensioners
*Excludes pensioners
28
medisave For tHe selF-employed
Self-employed persons are required to contribute to Medisave
based on their annual net trade income. In 2012, self-employed
persons contributed a total of $518.1 million to CPF. Of this
amount, $394.5 million were contributions to the Medisave
Account, while the remaining amount comprised voluntary
contributions to the Ordinary and Special Accounts. These
contributions will help self-employed persons save for their
medical, old age and housing needs.
CPF members who wish to have higher insurance coverage
can buy Medisave-approved enhancement plans from private
insurers. The private insurers have integrated their enhancement
plans with MediShield as Integrated Plans and act as a single
point of contact to collect premiums and process claims.
Premiums for MediShield and Integrated Plans can be paid
using Medisave, subject to a maximum of $800 per insured
person per policy year. For insured persons aged 81 years and
above, the withdrawal limit is $1,150 per insured person per
policy year.
medisHield
MediShield, a basic medical insurance scheme, targeted at
Class B2 and C wards in the restructured hospitals, provides
against high medical expenses arising from prolonged or
serious illnesses.
The annual premiums for MediShield range from $33 to $1,123,
depending on the insured’s age.
The annual claim limit and lifetime claim limit are $50,000 and
$200,000 respectively.
Heightened awareness among Singaporeans on the importance
of medical insurance, coupled with ongoing exercises to promote
MediShield to youths, parents with newborns and working
adults, has led to an increase in the proportion of the population
covered under the healthcare scheme.
As at 31 December 2012, there were 3,542,898 CPF members
and dependants who were covered under MediShield and
Integrated Plans, representing a 92.8% coverage of our resident
population. During the year, $327.1 million was approved to
meet 283,259 claims.
29
Home
ownersHip
Home ownersHip
pUbliC HoUsing sCHeme
or bank loans, and to pay their housing loans. During the year, $6,271.9 million was withdrawn by 562,015 CPF members to
whichever is lower.
private properties sCHeme
Under the Private Properties Scheme, CPF members can use their CPF savings to buy private properties and HDB’s executive
condominiums, and to pay their housing loans. During the year, $4,986.5 million was withdrawn by 164,704 CPF members to pay
for their private properties and HDB’s executive condominiums. The CPF Withdrawal Limit is 120% of the VL.
annUal witHdrawal (gross)
Under pUbliC HoUsing sCHeme
annUal witHdrawal (gross)
Under private properties sCHeme
2012
$8,977.5 m
2012
$4,986.5 m
2011
$8,791.5 m
2011
$4,688.8 m
2010
$8,839.2 m
2010
$4,790.2 m
2009
$7,824.1 m
2009
$4,410.4 m
2008
$7,584.7 m
2008
$3,915.2 m
31
perCentage oF aCtive CpF members
aged 21 and above (singapore
nriC Holders) wHo CUrrently
own pUbliC HoUsing properties
boUgHt witH CpF savings as at 31
deCember*
perCentage oF aCtive CpF members
aged 21 and above (singapore
nriC Holders) wHo CUrrently
own properties (pUbliC/private)
boUgHt witH CpF savings as at 31
deCember*
2012
95.1%
2012
64.7%
2011
94.9%
2011
63.6%
2010
94.7%
2010
62.7%
2009
94.8%
2009
63.1%
2008
94.5%
2008
63.8%
* The percentage is derived from the number of active
CPF members aged 21 and above (Singapore NRIC
holders) who currently own public housing properties.
* The percentage is derived from the number of active
CPF members aged 21 and above (Singapore NRIC
holders).
Using CpF For mUltiple properties
Family proteCtion
CPF members who already own a property bought with their
CPF savings and wish to buy another property with CPF will
only be able to do so after setting aside half of the prevailing
Minimum Sum in their Ordinary and/or Special Accounts. As at
31 December 2012, 46,118 CPF members set aside half of the
prevailing Minimum Sum before using their CPF savings to buy
another property.
dependants’ proteCtion sCHeme
CpF reFUnd Upon sale oF property
CPF members are required to refund the amount of CPF
savings they have withdrawn plus the accrued interest
when they sell their properties. For CPF members aged 55
and above, the required CPF refund is their Minimum Sum
shortfall or the amount of savings they have withdrawn plus
accrued interest, whichever is lower. During the year, $3,233.4
million and $2,603.7 million, from the sale of property under
the Public Housing Scheme and Private Properties Scheme
respectively, were refunded to CPF members’ accounts.
The Dependants’ Protection Scheme (DPS) is an opt-out term
insurance scheme that provides CPF members and their families
become permanently incapacitated, or die before age 60.
DPS is administered by the Great Eastern Life Assurance
Company Limited (Great Eastern Life) and NTUC INCOME
Insurance Co-operative Limited (NTUC INCOME). The sum
assured for DPS is $46,000. DPS members pay an annual
premium of between $36 and $260, depending on their age,
using savings in their Ordinary and/or Special Account(s).
As at 31 December 2012, 1,947,326 CPF members were covered
under the scheme, compared to 1,923,090 in 2011. The total
sum assured increased from $95,899.1 million in 2011 to
$96,831.5 million in 2012.
During the year, a total of 2,922 claims were approved and paid. Of
these, 1,990 were for death cases and 932 for permanent incapacity
cases. The total claim amount approved was $149.4 million,
compared to $142.1 million for 2,789 approved claims in 2011.
32
Home proteCtion sCHeme
The Home Protection Scheme (HPS) is a compulsory mortgage-reducing insurance scheme to protect the families of CPF members
their families against losing their homes in the event of the insured members’ permanent incapacity or death.
As at December 2012, 615,762 CPF members were covered for a total assured sum of $85,690.5 million. The membership decreased
by 2.5% compared to 2011. A total of 1,074 claims amounting to $89.8 million were approved. This comprised 678 claims for death
cases and 396 for permanent incapacity cases.
CUmUlative nUmber oF members
Covered Under Hps as at 31
deCember
2012
615,762
2011
631,296
2010
641,182
2009
650,748
2008
659,113
year
remaining
sUm assUred
2012
$85,690.5 m
2011
$84,196.2 m
2010
$83,178.9 m
2009
$80,964.5 m
2008
$79,101.9 m
33
workFare
workFare
workFare inCome sUpplement sCHeme
Workfare Income Supplement (WIS) is paid to Singaporeans
to encourage them to work and to improve their retirement
adequacy. Workers aged 35 and above, who earn an average
gross monthly income of not more than $1,700 and live in
properties with Annual Value of $13,000 or below, are eligible
for WIS of up to $2,800 for work done in 2012.
From 2012, WIS payments are made four times a year to
eligible employees to help them meet their daily expenses,
while encouraging them to be engaged in regular work.
Employees receive their WIS in the form of cash and CPF.
For work done in 2012, self-employed persons (SEPs) will
receive their WIS payment once a year in their Medisave
Accounts. As part of the government’s efforts to support
persons with disabilities (PWDs), WIS was also extended in
2012 to PWDs aged below 35 (i.e. do not meet the age
criterion) who meet all other WIS eligibility criteria.
As at 31 December 2012, WIS payments totalling $402.6 million
were made to 340,776 Singaporean workers for their work done
in 2011, and another $277.9 million were made to 345,410
workers for their work done for January to September 2012. WIS
payments of $690,000 were also made to 1,512 PWDs for work
payment will be made on 1 March of the following year.
The Workfare Training Support (WTS) scheme was introduced
to complement WIS by encouraging workers to upgrade their
skills through training. Under the WTS scheme, eligible WIS
recipients can receive Training Commitment Award (TCA) of
up to $400 a year when they complete the requisite training.
The CPF Board administers the TCA payment on behalf of the
Singapore Workforce Development Agency. In total, 12,262
WIS recipients received $3.2 million in TCA payments in 2012.
In the 2011 Budget, the government announced that a oneoff Workfare Special Bonus (WSB) would be given out to WIS
recipients who have worked in 2010, 2011 and 2012 to ensure
2010. Employees would receive their WSB fully in cash, while
SEPs would receive half their WSB in cash and half in their
Medisave Accounts. In 2012, a total of $100.7 million in WSB
was given out to 340,267 WIS recipients for work done in 2011.
35
tHe CpF valUes tree
take CHarge, CHange & innovate
do my best
We take personal responsibility for making improvements in
our work, big or small, to help our teams, departments and
the CPF Board save cost, add value, improve productivity and
provide better service to customers.
We are committed to excellence both as individuals and as a
team to make a difference to our customers, the CPF Board
and the nation.
praCtise liFelong learning
FoCUs on CUstomers
We have our customers’ interests at heart and strive to
delight them.
36
We continuously learn and apply new skills and knowledge to
meet the challenges of our work and environment.
CpF
serviCes
CpF serviCes
CpF website serviCes (www.cpf.gov.sg)
The CPF homepage received over 22.6 million hits in 2012. Of the 52.2 million transactions performed last year on the electronic
service platforms of the CPF Board, 48.7 million were online transactions.
CpF website Homepage Hit
online transaCtion volUme
60
60
50
50
40
30
20
19.5
21.5
20.7
22.7
22.6
39.8
44.0
46.4
48.7
2011
2012
30
20
10
10
2008
38
(million)
(million)
40
41.5
2009
2010
2011
2012
2008
2009
2010
To enhance user experience and ease of navigation, the CPF
homepage was re-designed in 2012. A number of more
regularly accessed web pages were enhanced to provide better
usability for visually impaired CPF members.
The my cpf portal, integrated with a customer relationship
management system, allows the CPF Board to deliver more
personalised services and targeted messages to CPF members.
Under my cpf portal, CPF members can access their CPF account
balances, and other online services, such as My Messages, and
My Statement.
eleCtroniC serviCes For employers
Employers can conveniently submit their employees’ CPF
contribution details using the e-submission service on my cpf
portal. In addition to this e-submission channel, employers
can e-submit the contribution details via AXS stations across
the island.
As at 31 December 2012, 71.2% of all employers submitted
their employees’ CPF contribution details electronically. In
terms of employee count, 94.7% of all employees have their
CPF contribution details submitted electronically.
CpF mobile serviCes
To create convenience for our CPF members, CPF mobile
services were introduced to provide greater accessibility of CPF
e-services.
“CPF Tools”, an iPhone application, allows CPF members with
iPhones or iPads to view their account balances, contribution
histories and important messages relating to the CPF schemes
they are participating, via their CPF Phone PIN.
Mobile SingPass was introduced in 2012 as an additional
authentication mechanism for “CPF Tools”. With mobile
SingPass, members with SingPass no longer need a separate
CPF Phone PIN to access their account via “CPF Tools”. During
the year, more than 1.7 million transactions were performed via
this application.
Call Centre
In 2012, the CPF Call Centre handled 725,100 calls from
CPF members and employers. Of these, 128,700 calls were
enquiries on national projects, such as the GST Voucher
Scheme and Workfare Income Supplement Scheme. Besides
a voicemail service, the CPF Call Centre has an SMS service
for customers to leave messages for Customer Service
Executives to call them back regarding their CPF matters. The
voicemail service and SMS service received about 7,300 and
8,300 responses respectively from customers in 2012.
ClUb 55
caters to the needs of senior citizens. A team of dedicated and
multi-lingual Customer Service Executive provides advisory
services to senior citizens aged 54 and above. In 2012, more than
e-appointment system
The e-appointment system allows a CPF member to make an
appointment with a Customer Service Executive for advisory
on complex CPF transactions based on a choice of date and
this service.
CpF serviCes on island-wide selF-serviCe kiosks
serviCe FeedbaCk
The availability of self-service kiosks island-wide has made
it easier for CPF members to carry out their transactions.
In 2012, close to 473,700 transactions were performed
via the AXS stations and more than 31,000 CPF payment
transactions were performed via Self-Service Automated
Machines (SAM). The CPF Board collected close to 17,600
CPF payment transactions via iNETS Kiosks.
The CPF Board conducts annual surveys to gather feedback
from CPF members and employers on its electronic service,
counter, telephone and other services. In 2012, the survey
results revealed that 85.2% of CPF members and 90% of
39
member serviCes sUrvey
100
90
80
70
85.2%
78.6%
60
63.9%
66.7%
50
40
30
20
10
14.7%
19.4%
18.5%
13.4%
1.9%
1.4%
1.4%
0.9%
somewhat
2011
2012
employer serviCes sUrvey
100
90
80
86.4%
90.0%
70
69.7%
60
70.4%
50
40
30
20
10
16.7%
19.6%
12.2%
9.1%
somewhat
2011
2012
The CPF Board received over 40,000 feedback forms under the “Share Your Views with Us” Programme
40
member and employer edUCation
The CPF Board’s educational efforts were geared towards
helping CPF members and employers understand the various
CPF schemes; and how they could contribute to and grow their
CPF savings for retirement.
180 events reaching out to 37,000 CPF members and employers
were organised via the CPF Board’s “Are You Ready?” (AYR)
initiative. The AYR objective is to encourage Singaporeans to
variety of tools, talks and games.
The CPF Board continued to hold monthly talks for employers,
such as the Employer Classroom and the e-Submission Seminars,
to brief new employers on their roles and responsibilities
relating to CPF. To provide more information to employers on
the change in CPF contribution rates, talks and direct mailers
were sent to employers to equip them with the necessary
96% of the participants surveyed indicated that they found
the CPF Board’s outreach events useful, applicable and wellpresented.
The CPF Board published its regular newsletter, InTouch with
CPF, in the four main language dailies – The Straits Times,
Lianhe zaobao, Berita Harian and Tamil Murasu. The Minimum
Sum Topping-Up Scheme – which encourages CPF members to
top up their own or their loved ones’ CPF accounts to enhance
their retirement savings – was a key theme in InTouch with CPF.
In December 2012, CPF Board launched its inaugural online
magazine “In Touch”. The magazine brings CPF members’
thoughts and stories to life, while giving readers a peek at what
goes on behind the scenes in the CPF Board.
The CPF Board continued to use online and social media
extensively for its public education outreach. The IM$avvy
its Facebook page had 29,000 fans in 2012.
demand, additional sessions were conducted in Mandarin and
these were well-received. In addition, the CPF Board revamped
the Employers’ Guide to CPF on its website.
41
CPF online calculators, used by CPF members to perform
with more than 7 million hits. In addition, the CPF Board
conducted regular e-marketing outreach to more than
870,000 subscribers via an email alert service. CPF members
could subscribe to receive regular updates via Facebook,
Twitter, FriendFeed and RSS feeds.
As part of the “Are You Ready?” initiative, the CPF Board
invited to submit ideas using photographs to depict the
About 750 photographic entries were received and winners
were selected via public voting on Facebook and a panel of
judges. In addition, 15,000 entries were received for three
online quiz contests which tested CPF members’ knowledge
about CPF matters.
Together with the Ministry of Manpower, the CPF Board
embarked on two key publicity campaigns in 2012 to sustain
and enhance awareness of Workfare. Advertisements were run
(WIS) Scheme, which targets eligible Singaporeans aged 35
and above, earning $1,700 or less. The advertisements featured
The WorkRight initiative was launched in September 2012 with
the aim of educating targeted workers and employers on their
rights and legal obligations under the Employment Act and CPF
Act. Leveraging on media channels such as television, radio,
and print, the key areas of focus include timely payment of
CPF contributions and salaries, overtime payments, provisions
of paid annual and sick leave, and adherence to working hour
requirements, among others. The campaign was nominated for
The Laurels Local Viewers’ Choice Award 2013.
national edUCation
The CPF Board remained an active participant in the Learning
Journey Programme coordinated by the Ministry of Education
to help students understand Singapore’s nation building efforts.
Through this programme, students from secondary schools,
Institutes of Technical Education, polytechnics and junior
colleges learn about various CPF schemes, the role of CPF in
42
the CPF Board reached out to more than 20 schools and over
2,500 students through the Learning Journey programme, and
the annual “Innovate!” competition with Ngee Ann Polytechnic
where students submitted creative ideas to publicise the “Are
You Ready?” initiative.
agenCy serviCes
The CPF Board provides key agency services to the government
and other organisations, acting as the collecting agent for the
Foreign Worker Levy (FWL), Skills Development Levy (SDL)
and the Community Chest’s Social Help and Assistance Raised
by Employees (SHARE) donations. The CPF Board collects
contributions made to the Chinese Development Assistance
Council (CDAC) Fund, Eurasian Community Fund (ECF),
Mosque Building and MENDAKI Fund (MBMF) and Singapore
Indian Development Association (SINDA) Fund.
The CPF Board conducts the annual Occupational Wages
Survey for the Ministry of Manpower, and administers the
Edusave Pupils Fund and Post Secondary Education Account
Funds for the Ministry of Education, and the National Service
Recognition Award for the Ministry of Home Affairs and the
Ministry of Defence. It also administers the GovernmentPaid Maternity Leave and the Government-Paid Childcare
Leave claims on behalf of the Ministry of Social and Family
Development.
In 2012, the CPF Board administered the Goods and Services
Tax (GST) Voucher Scheme for the Ministry of Finance and the
enhanced Special Employment Credit Scheme for the Ministry
of Manpower.
gst voUCHer
The GST Voucher scheme, introduced in 2012, is a permanent
scheme to help lower and middle-income households with
their expenses, in particular, with what they pay in GST. The GST
Voucher comprises three components – Cash, Medisave Top-up
and U-Save Rebate. The CPF Board administers two components,
namely the GST Voucher – Cash and the GST Voucher – Medisave.
As at 31 December 2012, 1.3 million Singapore citizens received
$332.3 million in cash, and 333,700 Singapore citizens received
$99.0 million in their Medisave.
speCial employment Credit
The Special Employment Credit (SEC) Scheme was introduced
in 2011 to provide employers with continuing support to
hire older low-wage Singaporeans. In 2012, employers who
employed Singaporeans aged above 50 and earning up to
$4,000 a month, and those who hired eligible persons with
disabilities were entitled to receive SEC.
A total of $230.7 million of SEC was paid to 85,000 employers
hiring 383,000 eligible employees on their payroll for the period
January to June 2012. Payment for the period July to December
2012 will be made to employers in March 2013.
Practises Award Ceremony 2012 in Seoul, Korea. Two of
CPF Board’s entries – “Service Standards for Members and
Beneficiaries – The Singapore Experience” and “Collection
of CPF Contributions through electronic submissions”,
received the Certificate of Merit with Special Mention and
the Certificate of Merit respectively. The CPF Board’s entries
were selected among 41 entries from 16 members in the
Asia and Pacific region.
The CPF Board was awarded the iCMG Enterprise & IT
Architecture Excellence Award 2012 in Bangalore, India, in
July 2012. This international award recognises and rewards
members who have put forth exceptional effort towards the
Enterprise and IT Architecture.
it initiatives
Technology continues to be a key enabler that we leverage
to deliver consistent and quality services to our customers.
Recent initiatives include the completion of business process
re-engineering as part of the Enterprise Architecture (EA)
programme, and the modernisation of existing IT systems to
support business needs.
The CPF Board received a Singapore Human Resource Award
conferred by the Singapore Human Resource Institute
– Leading HR Practices Award in Talent Management,
Retention and Succession Planning. This award recognises
the CPF Board for efforts placed on talent identification,
management and retention, as well as on related
programmes to nurture potential successors to ensure
business continuity.
enterprise architecture (ea) programme
The EA initiative enables the CPF Board to adopt a structured
approach towards aligning the organisation’s processes,
information and IT assets to support changing business needs.
It also provides the opportunity to tap on new technologies
In recognition for the CPF Board’s outstanding contribution to
the labour movement, the CPF Board received the Plaque of
Commendation Award from the National Trade Union Congress.
through the development of reusable service components. This
business changes and improve the quality of service delivery.
In 2012, the review of key business processes – to streamline
The CPF Board received third placing in the Pro-Enterprise
Panel – Singapore Business Federation (PEP-SBF) Awards. The
Pro-Enterprise Ranking survey assesses government agencies
with regulatory functions on how business-friendly they are,
and this award recognises public agencies which have been
exceptionally pro-enterprise.
moving forward – was completed.
modernisation efforts
As part of the ongoing effort to ensure sustainability of IT assets,
the CPF Board is in the midst of modernising its Member and
Employer Systems. This initiative will be carried out in phases
over the next few years.
The CPF Board was awarded the prestigious Safety and Security
Watch Group Cluster Award for the CPF Robinson Building.
This recognises the CPF Board’s efforts and contributions in
security measures.
organisational exCellenCe
At the international level, the CPF Board received two awards
at the International Social Security Association (ISSA) Good
consistently demonstrated high standards of service excellence.
43
innovation programmes
At the CPF Board, staff are actively encouraged to contribute
staff contributed 2,886 ideas, of which 54% were implemented.
The CPF Board’s Work Improvement Teams (WITs) programme
has remained active for the past 32 years. In 2012, 147 WITs
completed 129 projects.
In 2012, the CPF Board organised the annual Innovation
Week in July to celebrate innovation in the organisation.
Based on the theme ‘Kampong Days’, staff participated in
a carnival featuring games and innovations from the past,
innovation workshops, and attended learning visits to other
organisations. Staff also participated in Innovation Showtime!,
an event which showcased their best innovations during the
year. At the event, the top four WOW Idea teams contended
for the WOW Idea award.
The PS21 ExCEL Awards recognises outstanding individuals and
impact at work through their suggestions and innovations. For
culture in the organisation.
44
the Singapore Innovation Class (I-Class) which recognises
organisations that have achieved the business excellence niche
standard for innovation. The assessment team found the CPF
Board to have put in place well-deployed approaches and
initiatives in pursuit of innovation and recommended that the
In the CPF Board, the Smart Regulation Committee oversees
the challenge to cut red-tape and simplify processes and
rules affecting services to customers and productivity of staff.
In 2012, a total of 42 rules were reviewed, of which 26 were
improved and 8 removed.
staFF reCognition and awards
As part of CPF Board’s efforts to recognise and encourage
staff who embody the CPF values, the CPF Board has a
number of staff awards such as the Idea of the Month and
Year Awards. These awards are presented to staff who live
out the values of Take Charge, Change and Innovate, while
the Star Ambassador Award, CARATS Award and Best ROSE
Award are presented to staff for their excellent customer
service. The most prestigious award, the Staff Excellence
Award, was given out to 16 staff in 2012. This award is
presented to staff who have excellent overall performance in
work and exemplify the CPF values.
ContribUting to tHe CommUnity
international relations
The CPF Board plays an active role as a good corporate citizen,
contributing to charities and participating in community
projects to help enrich the lives of the less privileged in our
community.
The CPF Board is one of the founding members of the ASEAN
Social Security Association (ASSA), which seeks to promote the
development of social security in the region in consonance
with the aspirations, laws and regulation of its member
countries. ASSA provides a forum for member institutions to
exchange views and experiences on social security issues. Its
members comprise 19 social security institutions from nine
ASEAN countries, namely, Brunei, Cambodia, Indonesia, Lao
PDR, Malaysia, Philippines, Singapore, Thailand and Vietnam.
CommUnity CHest
Staff continued to give strong support to the Community Chest
and participated actively in the SHARE programme where
staff contributed a portion of their monthly income to the
Community Chest. Staff participation rate increased to 95% in
2012 from 94% in 2011. The SHARE donation from CPF staff
amounted to $72,655, an increase of $3,901 over 2011.
This strong staff support and commitment earned the CPF
Board the SHARE Programme Platinum Award for the 19th
consecutive year in 2012. The award is given by the Community
Chest in recognition of the CPF Board’s efforts in raising funds
for people in need.
At the 29th ASSA Board Meeting held in Bali, Indonesia
in September 2012, the CPF Board presented at the Good
Practices Sharing session its Fraud Control and Prevention
framework, and shared the importance of fraud control
in the organisation, fraud control policy and fraud risk
management.
On the international front, the CPF Board participated in a
number of activities and events organised by the International
Social Security Association (ISSA).
CommUnity serviCe programme
adopted Home
Since 2010, St John’s Home for Elderly Persons was “adopted”.
Staff visited the Home in April, August, October and December
last year. Besides raising funds for the Home, staff entertained
the residents with sing along sessions and games, and
presented gifts.
As part of its international engagement efforts, the CPF Board
received close to 300 visitors from foreign national provident
funds, and government bodies, in the course of the year.
Fund raising
Staff in the CPF Board played an active role in fund raising
activities and events that contributed to charities and
community causes to improve the lives of the less fortunate. In
2012, staff supported activities such as SANA donation draw,
massage sessions by masseurs from the Singapore Association
of the Visually Handicapped (SAVH), SPCA Furry Friends FundRaising, ComChest Heartstrings Walk, Yellow Ribbon Prison
Run, Wear-A-Yellow-Ribbon Project and Wear the Pink Ribbon
Campaign. A charity bazaar was organised and all proceeds
were donated to Mainly I Love Kids (M.I.L.K) Fund.
45
FinanCial
statements
YEAR ENDED 31 DECEMBER 2012
statement by tHe members oF tHe board
are drawn up so as to give a true and fair view of net assets of the funds managed by the Board as at 31 December 2012,
On behalf of the Board
Koh Yong Guan
Chairman
Yee Ping Yi
4 April 2013
STATEMENT BY THE MEMBERS OF THE BOARD · 1
independent aUditor’s report For tHe FinanCial year ended 31 deCember 2012
independent aUditor’s report
TO THE MEMBERS OF THE CENTRAL PROVIDENT FUND BOARD
(the “Board”), which comprise the statement of net assets of funds managed by the Board as at 31 December 2012, the
in accordance with the provisions of the Central Provident Fund Act, (Chapter 36, 2001 Revised Edition) (the “Act”)
and Statutory Board Financial Reporting Standards, and for such internal controls as management determines are
due to fraud or error.
auditor’s responsibility
accordance with Singapore Standards on Auditing. Those standards require that we comply with ethical requirements
material misstatement.
statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of
in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating
opinion.
opinion
with the provisions of the Act and Statutory Board Financial Reporting Standards so as to present fairly, in all material
respects, the net assets of the funds managed by the Board as at 31 December 2012 and the changes in these fund
other matter
2 · INDEPENDENT AUDITOR’S REPORT
report on other legal and regulatory requirements
management’s responsibility for compliance with legal and regulatory requirements
Management is responsible for ensuring that the receipts, expenditure, investment of moneys and the acquisition
and disposal of assets, are in accordance with the provisions of the Act. This responsibility includes implementing
accounting and internal controls as management determines are necessary to enable compliance with the
provisions of the Act.
auditor’s responsibility
statements. We conducted our audit in accordance with Singapore Standards on Auditing. We planned and performed
the compliance audit to obtain reasonable assurance about whether the receipts, expenditure, investment of moneys
and the acquisition and disposal of assets are in accordance with the provisions of the Act.
Our compliance audit includes obtaining an understanding of the internal control relevant to the receipts, expenditure,
investment of moneys and the acquisition and disposal of assets; and assessing the risks of material misstatement
effectiveness of the entity’s internal control. Because of the inherent limitations in any accounting and internal control
system, non–compliances may nevertheless occur and not be detected.
on management’s compliance.
opinion
In our opinion:
(a) the receipts, expenditure, investment of moneys and the acquisition and disposal of assets by the Board during
the year are, in all material respects, in accordance with the provisions of the Act; and
(b) proper accounting and other records have been kept, including records of all assets of the Board whether
purchased, donated or otherwise.
Ernst & Young LLP
Public Accountants and
Singapore
4 April 2013
INDEPENDENT AUDITOR’S REPORT · 3
statement oF net assets oF FUnds
AS AT 31 DECEMBER 2012
note
2012
2011
S$’000
S$’000
Central provident Fund
total assets
Property, plant and equipment
3
106,754
109,134
Intangible assets
4
36,115
42,488
Investment properties
5
59,500
185,300
Asset held for sale
6
181,190
–
Investments
7
229,795,988
207,143,587
Staff loans
8
–
59
Debtors and other receivables
9
2,146,060
1,932,801
Cash and cash equivalents
10
417,397
582,154
232,743,004
209,995,523
total liabilities
Creditors, accruals and provisions
11
233,087
229,448
Net assets of the Central Provident Fund
19
232,509,917
209,766,075
Home Protection Fund
22
1,176,636
941,820
MediShield Fund
22
507,284
436,123
Dependants’ Protection Residual Fund
22
43,887
44,163
Lifelong Income Fund
22
–
–
23
3,900,000
1,642,219
insurance Funds
net assets
other Funds
Net assets of trust funds
4 · FINANCIAL STATEMENTS
statement oF CHanges in FUnd balanCes
FOR THE YEAR ENDED 31 DECEMBER 2012
note
2012
2011
S$’000
S$’000
209,766,075
187,944,579
At 1 January
add:
Contributions (net of refunds) by members
12
24,749,006
22,865,047
Government grants to members
13
1,152,941
1,521,348
146,452
242,018
8,459,150
7,609,979
25,122
108,595
55,390
13,811
7,392
10,153
Dividends from Special Discounted Shares
Income from investments
Net change in fair value of investment properties
14
5
Interest income from bank deposits
Other operating income
15
92,191
76,486
34,687,644
32,447,437
11,726,662
10,436,503
less:
Withdrawals (net of refunds) by members
16
General and administrative expenditure
17
5,882
5,808
Other operating expenditure
18
211,258
183,630
11,943,802
10,625,941
22,743,842
21,821,496
232,509,917
209,766,075
230,157,671
207,545,500
Net increase in the Central Provident Fund
At 31 December
19
represented by:
Members’ accounts
General moneys of the Fund
Accumulated surplus
Fair value reserve
19
47,762
47,610
2,169,581
2,063,184
134,903
109,781
232,509,917
209,766,075
FINANCIAL STATEMENTS · 5
statement oF CasH Flows
note
2012
2011
S$’000
S$’000
Net increase in the Central Provident Fund
Adjustments for:
Depreciation and amortisation
22,743,842
21,821,496
22,407
(25,122)
(55,390)
1
–
(8,459,150)
(7,392)
14,219,196
21,008
(108,595)
(13,811)
2
1
(7,609,979)
(10,153)
14,099,969
9,487
12,757
(672,761)
(21,792,117)
59
(8,223,379)
(394)
(13,214)
(365,621)
(21,103,529)
11
(7,382,778)
8,184,114
(39,265)
7,388,216
5,438
Dividend received
net cash used in investing activities
(5,069)
(6,846)
18,119
(284,156)
2,413
127,859
45,623
5,542
(96,515)
(6,261)
(7,298)
–
(159,741)
16,350
–
42,664
2,830
(111,456)
net decrease in cash and cash equivalents
Cash and cash equivalents as at 1 January
Cash and cash equivalents as at 31 december
(135,780)
480,808
345,028
(106,018)
586,826
480,808
18
Net change in fair value of investment properties
Property, plant and equipment written off
Intangible assets written off
Cash generated before changes in operating assets and liabilities
Changes in operating assets and liabilities:
Debtors and other receivables
Net placement of advance deposits
Net acquisition of special issues of Singapore Government securities
Net repayment of staff loans
Cash used in operations
Interest received from held-to-maturity investments and bank
deposits
net cash (used in) / from operating activities
Payments for purchase of property, plant and equipment
Payments for purchase of intangible assets
Deposit received for asset held for sale
6 · FINANCIAL STATEMENTS
10
notes to tHe FinanCial statements
1.
domicile and activities
The Central Provident Fund Board (the “Board”) is a statutory board established under the Central Provident
Fund (“CPF”) Act (Chapter 36, 2001 Revised Edition) (the “Act”) under the purview of the Ministry of Manpower
(the “Ministry”). As a statutory board, the Board is subject to the directions of the Ministry. It is also required
to implement policies and policy changes as determined by the supervisory ministry and other Government
ministries such as the Ministry of Finance from time to time.
Funds managed by the board
As set out in the Act, the Board is the trustee of the CPF and the administrator of the Home Protection Fund,
MediShield Fund, Dependants’ Protection Residual Fund and Lifelong Income Fund.
The Board’s principal activities include the collection of CPF contributions, the processing of withdrawals of
CPF savings by members under the various schemes and the administration of the Home Protection Fund,
MediShield Fund, Dependants’ Protection Residual Fund and Lifelong Income Fund (collectively known as the
“Insurance Funds”).
During the year ended 31 December 2012, the Board was appointed as the trustee of Trust Fund for the Special
Employment Credit Scheme and Trust Fund for the Workfare Special Bonus Scheme and manages them together
with Deferment Bonus Fund, CPF LIFE Bonus Fund and other Trust Funds (collectively known as the “Trust Funds”).
Details of Trust Funds are disclosed in Note 23.
The Central Provident Fund is established by the Act. It is Singapore’s national social security savings scheme
jointly supported by employees, employers and the Government. All contributions authorised under this Act are
paid into the CPF and all payments authorised under this Act are paid out of the CPF.
insurance Funds
(a) The Home Protection Fund is set up under section 33 of the Act to account for premiums received, claims
paid for home insurance cover and operating expenditures incurred under the Home Protection Insurance
Scheme.
(b)
The MediShield Fund is set up under section 56 of the Act to account for premiums received, claims paid for
medical insurance cover and operating expenditures incurred under the MediShield Scheme.
(c)
The Dependants’ Protection Insurance Scheme is set up under section 41 of the Act. It was privatised on 17
September 2005. The balance of the dissolved Dependants’ Protection Fund is retained in the Dependants’
Protection Residual Fund to meet any liabilities under the Dependants’ Protection Insurance Scheme that
arose prior to its privatisation. The Board will review the use of any remaining balance in the Dependants’
Protection Residual Fund after all liabilities under the Dependants’ Protection Insurance Scheme prior to its
privatisation have been met.
(d) The Lifelong Income Fund is set up under section 27N of the Act to account for premiums received, claims
paid and operating expenditures incurred under the Lifelong Income Scheme. The Lifelong Income Fund is
designed to distribute 100% of its net assets to the insured members via monthly payouts starting from the
annuity payout start age of each individual insured member for as long as the member is alive. Investment
of moneys by the Lifelong Income Fund is governed by section 27N(3) of the Act.
NOTES TO THE FINANCIAL STATEMENTS · 7
The assets and liabilities of the Insurance Funds are subject to the requirements of the Act and CPF Regulations
governing the Insurance Funds. These assets and liabilities are segregated from each other and from those of the
CPF and can only be withdrawn in accordance with the relevant legislation.
2.1
basis of preparation
In its capacity as trustee and administrator of the respective funds, the Board has no assets and liabilities and
transactions are reported under the respective funds. The Board does not separately have any assets or liabilities.
of the Act and Statutory Board Financial Reporting Standards (“SB-FRS”). SB-FRS includes Statutory Board Financial
Reporting Standards, Interpretations of SB-FRS and SB-FRS Guidance Notes as promulgated by the Accountant-
policies below.
nearest thousand (S$’000), unless otherwise stated.
estimates and assumptions that affect the application of accounting policies and the reported amounts of assets,
liabilities, income and expenses. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates
are recognised in the period in which the estimates are revised and in any future periods affected.
Note 22.7 – Valuation of insurance contract liabilities
year are included in the following notes:
Note 5 – Valuation of investment properties
Note 22.7 – Valuation of insurance contract liabilities
prepared. Existing circumstances and assumptions about future developments, however, may change due to
assumptions when they occur.
2.2
basis of recognising contributions, withdrawals, government grants, interest and other income
By virtue of sections 12 and 13 of the Act, contributions are recognised when received and credited directly to the
members’ accounts.
Government grants to members are recognised when received and credited to the members’ accounts.
Withdrawals by members are recognised when authorised and debited from the members’ accounts.
Penalty interest on late contributions is recognised when received.
8 · NOTES TO THE FINANCIAL STATEMENTS
Interest payable to members is recognised as it accrues based on the Act and CPF Regulations.
Interest income from investments and bank deposits are recognised as they accrue, using the effective interest
method.
Dividend income from investments is recognised when the shareholder’s right to receive payments has been
established.
Investment income comprise gains less losses related to trading assets and liabilities, and include all realised and
unrealised fair value changes, interest, dividends and foreign exchange differences.
Agency fees and income from other services provided are recognised when the services have been rendered.
Rental income arising from operating leases on property, plant and equipment and investment properties is
accounted for on a straight-line basis over the lease terms.
2.3
operating expenditures
By virtue of the Act, all operating expenditures incurred by the Board and relating to the CPF, Home Protection
Fund, MediShield Fund, Dependants’ Protection Residual Fund and Lifelong Income Fund are charged to the
respective funds when incurred.
2.4
insurance contracts
Insurance contracts issued under the Home Protection Insurance Scheme, MediShield Scheme and Lifelong Income
Scheme work on the principle of risk transfer. Insurance contracts are those contracts under which the Insurance
The Board is not required to unbundle any insurance contract as the accounting policy recognises all insurance
fund balances of the Insurance Funds.
2.5
insurance contracts – recognition and measurement
(a)
premiums
Premiums from insured members are recognised on their respective due dates. Premiums not received on the
due date are recognised as revenue with the corresponding outstanding premiums receivable reported in the
statement of net assets of the Insurance Funds.
Claims include surrenders, deaths and other claim events. Surrenders are recorded when the obligation
Annuity payouts from the Lifelong Income Fund are recognised when due.
(c)
insurance contract liabilities
are recognised. The liability is determined using assumptions considered to be appropriate for the policies in
force. Other than the Dependants’ Protection Residual Fund, the actuarial valuation basis is determined by the
Board based on the advice of Board’s independent actuarial advisers. Management estimates the insurance
contract liabilities for the Dependants’ Protection Residual Fund (refer to Note 22.7).
2.6
property, plant and equipment
Property, plant and equipment are measured at cost less accumulated depreciation and impairment losses.
Cost includes expenditure that is directly attributable to the acquisition of the assets. Dismantlement, removal
or restoration costs are included as part of the cost of property, plant and equipment if the obligation for
dismantlement, removal or restoration is incurred as a consequence of acquiring or using the asset.
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate,
by the Board and the cost of the asset can be measured reliably. The costs of the day-to-day servicing of property,
plant and equipment are recognised as an expense as incurred.
purchase.
Construction-in-progress is not depreciated as these assets are not yet available for use. Depreciation is calculated
on a straight-line basis to write off the depreciable amount of the property, plant and equipment over their
estimated useful lives. The estimated useful lives are as follows:
Leasehold land
Buildings
Building renovation and improvement
Machinery and equipment
period of the lease
50 years or period of the lease, whichever is shorter
remaining life of the building
4 to 10 years
Data processing equipment
3 to 5 years
prospectively, if appropriate. Fully depreciated assets are derecognised when they are disposed.
expected from its use or disposal. Any gain or loss on de-recognition of the asset is included in the statement of
changes in fund balances in the year the asset is derecognised.
2.7
intangible assets
Intangible assets consist mainly of computer software and development costs for various computer application
and which can be reliably measured is recognised as a capital improvement and added to the original cost of the
software. Costs associated with maintaining computer software are recognised as an expense when incurred.
Intangible assets are measured at cost less accumulated amortisation and accumulated impairment losses.
Amortisation is calculated on a straight-line basis to write off the cost of the intangible assets over their estimated
useful lives ranging from 3 to 5 years from the date they are available for use. No amortisation is provided for
intangible assets under development.
prospectively, if appropriate. Fully amortised assets are derecognised when they are disposed of.
2.8
investment properties
Investment properties are commercial properties held either to earn rental income or capital appreciation or both
and are occupied less than 10% by the Board.
Investment properties are initially measured at cost, including transaction costs. Subsequent to initial recognition,
period. Gains or losses arising from changes in the fair values of investment properties are included in the
statement of changes in fund balances in the year in which they arise.
Investment properties are subjected to renovations or improvements at regular intervals. The costs of major
renovations and improvements are capitalised. The costs of the day-to-day servicing of investment properties are
recognised as expenses when incurred.
Investment properties are derecognised when either they have been disposed of or when the investment property
loss on the retirement or disposal of an investment property is recognised in the statement of changes in fund
balances in the year of retirement or disposal.
Accounting policy for rental income from investment properties is set out in Note 2.2.
The Board assesses at each reporting date whether there is an indication that an asset may be impaired. If any
indication exists, or when an annual impairment testing for an asset is required, the Board makes an estimate of
the asset’s recoverable amount.
An asset’s recoverable amount is the higher of an asset’s fair value less costs to sell and its value in use and is
of those from other assets or groups of assets. Where the carrying amount of an asset exceeds its recoverable
amount, the asset is considered impaired and is written down to its recoverable amount. In assessing value in use,
the asset. In determining fair value less costs to sell, recent market transactions are taken into account, if available.
Impairment losses are recognised in the statement of changes in fund balances.
An assessment is made at each reporting date as to whether there is any indication that previously recognised
impairment losses may no longer exist or may have decreased. If such indication exists, the Board estimates the
asset’s recoverable amount. A previously recognised impairment loss is reversed only if there has been a change
in the estimates used to determine the asset’s recoverable amount since the last impairment loss was recognised.
If that is the case, the carrying amount of the asset is increased to its recoverable amount. That increase cannot
exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been
recognised previously. Such reversal is recognised in the statement of changes in fund balances unless the asset is
measured at revalued amount, in which case the reversal is treated as a revaluation increase.
2.10
asset held for sale
rather than through continuing use. This condition is regarded as met only when the sale is highly probable and
the asset is available for immediate sale in its present condition. Management must be committed to the sale,
which should be expected to qualify for recognition as a completed sale within one year from the date of the
investment properties set out in Note 2.8.
2.11
lease
When the Board is the lessee
Operating lease payments are recognised as an expense on a straight-line basis over the lease term.
When the Board is the lessor
Leases where the Board effectively retains substantially all the risks and rewards of ownership of the asset are
Accounting policy for rental income is set out in Note 2.2.
2.12
Financial instruments
The funds initially recognise loans and receivables, and deposits on the date that they originated.
initially on the trade date, which is the date that the funds become a party to the contractual provisions of
Financial assets and liabilities are offset and the net amount presented in the statement of net assets of funds
when, and only when, the funds have legal rights to offset the amounts and intend either to settle on a net
basis or to realise the assets and settle the liabilities simultaneously.
following categories:
or loss if the funds manage such investments and make purchase and sale decisions based on their fair
value in accordance with the Board’s documented risk management or investment strategy. Attributable
or loss are measured at fair value, and changes therein are recognised in the statement of changes in
fund balances.
assets are measured at amortised cost using the effective interest method, less any impairment losses.
for sale. It would also prevent the fund from classifying investment securities as held-to-maturity for the
securities and advance deposits placed with the Accountant–General through the Monetary Authority of
Singapore.
(iii) loans and receivables
not quoted in an active market. Subsequent to initial recognition, loans and receivables are measured at
amortised cost using the effective interest method, less any impairment losses.
Loans and receivables comprise cash and cash equivalents, staff loans, debtors and other receivables.
changes in fund balances and presented in the fair value reserve, except that impairment losses, foreign
exchange gains and losses and interest calculated using the effective interest method are recognised in
the statement of changes in fund balances.
securities and debt securities.
initially on the trade date, which is the date that the funds become a party to the contractual provisions of
Financial assets and liabilities are offset and the net amount presented in the statement of net assets when,
and only when, the funds have legal rights to offset the amounts and intend either to settle on a net basis or
to realise the assets and settle the liabilities simultaneously.
liabilities are recognised initially at fair value plus any directly attributable transaction costs.
interest method. Gains and losses are recognised in the statement of changes in fund balances when the
liabilities are derecognised, and through the amortisation process.
rate risk exposures. Hedge accounting is not adopted.
Derivatives are recognised initially at fair value, attributable transaction costs are recognised as expenses
when incurred. Subsequent to initial recognition, derivatives are measured at fair value, and changes therein
are recognised in the statement of changes in fund balances.
(d)
Fair value measurement
Fair value is the amount for which an asset could be exchanged, or a liability settled, between knowledgeable,
willing parties in an arm’s length transaction on the measurement date.
When available, the funds measure the fair value of an instrument using quoted prices in an active market
for that instrument. A market is regarded as active if quoted prices are readily and regularly available and
represent actual and regularly occurring market transactions on an arm’s length basis. If a market for a
i.e. the fair value of the consideration given or received, unless the fair value of the instrument is evidenced
by comparison with other observable current market transactions in the same instrument (i.e. without
inputs used in making the measurements. The fair value hierarchy has the following levels:
from prices). This category includes instruments valued using: quoted market prices in active markets for
similar instruments; quoted prices for identical or similar instruments in markets that are considered less
from market data.
where the valuation technique includes inputs not based on observable data and unobservable inputs have
indicates that a loss event has occurred after the initial recognition of the asset, and that the loss event has a
(a)
loans and receivables and held-to-maturity investment securities
The funds consider evidence of impairment for loans and receivables and held-to-maturity investment
and held-to-maturity investment securities with similar credit risk characteristics.
In assessing collective impairment, the funds use historical trends of the probability of default, the timing
of recoveries and the amount of loss incurred, adjusted for management’s judgment as to whether current
economic and credit conditions are such that the actual losses are likely to be greater or less than suggested
by historical trends.
asset’s original effective interest rate.
or held-to-maturity investment securities. Interest on the impaired asset continues to be recognised. When
amount was charged to the allowance account, the amounts charged to the allowance account are written off
If in a subsequent period, the amount of the impairment loss decreases and the decrease can be related
objectively to an event occurring after the impairment was recognised, the previously recognised impairment
loss is reversed to the extent that the carrying amount of the asset does not exceed its amortised cost at the
reversal date. The amount of reversal is recognised in the statement of changes in fund balances.
adverse effect that have taken place in the technological, market, economic or legal environment in which
the issuer operates, and indicates that the cost of the investment in equity instrument may not be recovered;
be evaluated against the original cost of the investment and ‘prolonged’ against the period in which the fair
value has been below its original cost.
cost (net of any principal repayment and amortisation) and its current fair value, less any impairment loss
previously recognised in the statement of changes in fund balances, is transferred from fair value reserve and
recognised in the statement of changes in fund balances. Reversals of impairment losses in respect of equity
instruments are not recognised in the statement of changes in fund balances; increase in their fair value after
impairment are recognised directly in the fair value reserve.
for impairment is the cumulative loss measured as the difference between the amortised cost and the current
fair value, less any impairment loss on that investment previously recognised in the statement of changes
in fund balances. Future interest income continues to be accrued based on the reduced carrying amount of
value of a debt instrument increases and the increases can be objectively related to an event occurring after
the impairment loss was recognised in the statement of changes in fund balances, the impairment loss is
reversed in the statement of changes in fund balances.
2.14
Cash and cash equivalents comprise bank deposits, cash and bank balances. For the purpose of the statement of
2.15
Foreign currencies
Transactions in foreign currencies are measured and recorded on initial recognition in Singapore Dollars at
exchange rates at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies
at the end of the reporting period are translated to Singapore dollars at the exchange rate at that date. The foreign
currency gain or loss on monetary items is the difference between amortised cost in the functional currency at
the beginning of the year, adjusted for effective interest and payments during the year, and the amortised cost in
foreign currency translated at the exchange rate at the end of the reporting year.
Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are
translated to Singapore dollars at the exchange rate at the date that the fair value was determined. Nonmonetary items in a foreign currency that are measured in terms of historical cost are translated using the
exchange rate at the date of the transaction. Foreign currency differences arising on translation are recognised
in the statement of changes in fund balances.
2.16
provisions
Provisions are recognised when the funds have a present obligation (legal or constructive) as a result of a past
event, and it is probable that the funds will be required to settle that obligation. Provisions are estimated based
on the best estimate of the expenditures required to settle the obligations, taking into consideration the time
value of money.
provision is reversed.
Contributions on the Board’s employees’ salaries are made to the CPF as required by law. The CPF contributions
are recognised as compensation expense in the period when the employees rendered their services.
service is provided. A liability is recognised for the amount expected to be paid under short-term cash bonus if
the funds have a present legal or constructive obligation to pay this amount as a result of past service provided by
the employee, and the obligation can be estimated reliably.
Employees’ leave entitlements
Employees’ entitlements to annual leave are recognised when they accrue to the employees. A liability is recognised
for leave earned by the employees as a result of services rendered up to the reporting date.
2.18
trust Funds
Trust Funds are funds to which the Board acts as a custodian, trustee, manager or agent but does not exercise
control over the funds.
The assets and liabilities of these funds held in trust are presented as a line item at the bottom of the statement
Note 3, Accounting and Disclosures for Trust Funds.
The receipt and disbursement items relating to these funds are accounted for directly in these funds on a cash
basis, in which funds received and disbursements made by the funds are accounted for and taken up in the
statement of receipts and disbursements when received, instead of when earned, and when paid, instead of when
incurred respectively.
2.19
related parties
(a) A person or a close member of that person’s family is related to the Board if that person:
(i)
has control or joint control over the Board;
(iii) is a member of the key management personnel of the Board.
(b) An entity is related to the Board if any of the following conditions applies:
(i)
the entity and the Board are members of the same group (which means that each parent, subsidiary and
fellow subsidiary is related to the others).
(ii) one entity is an associate or joint venture of the other entity (or an associate or joint venture of a member
of a group of which the other entity is a member).
(iii) both entities are joint ventures of the same third party.
(iv) one entity is a joint venture of a third entity and the other entity is an associate of the third entity.
related to the Board. If the Board is itself such a plan, the sponsoring employers are also related to the
Board;
personnel of the entity (or of a parent of the entity).
Singapore Government.
2.20
standards issued but not yet effective
The Board has not adopted the following standards and interpretations that have been issued but are not yet
effective:
eFfective for annual
periods beginning
on or after
description
Amendments to SB-FRS 1 Presentation of Items of Other Comprehensive Income
1 July 2012
Revised SB-FRS
1 January 2013
SB-FRS 113 Fair Value Measurement
1 January 2013
Amendments to SB-FRS 107 Disclosures – Offsetting Financial Assets and Financial
Liabilities
1 January 2013
Improvements to SB-FRSs 2012
1 January 2013
-
Amendment to SB-FRS 1 Presentation of Financial Statements
1 January 2013
-
Amendment to SB-FRS 16 Property, Plant and Equipment
1 January 2013
-
Amendment to SB-FRS 32 Financial Instruments: Presentation
1 January 2013
Revised SB-FRS 27 Separate Financial Statements
1 January 2013
Revised SB-FRS 28 Investments in Associates and Joint Ventures
1 January 2013
SB-FRS 111 Joint Arrangements
1 January 2013
SB-FRS 112 Disclosure of Interests in Other Entities
1 January 2013
SB-FRS 110 Consolidated Financial Statements
1 January 2014
Amendments to SB-FRS 32 Offsetting Financial Assets and Financial Liabilities
1 January 2014
The Board expect that the adoption of the standards and interpretations above will have no material impact on
3.
property, plant and equipment
leasehold
land
building
machinery Furniture
data
renovation and
and
and
processing Constructionbuildings improvement equipment
equipment in-progress
S$’000
S$’000
S$’000
total
S$’000
S$’000
S$’000
S$’000
S$’000
32,423
99,439
18,330
59,407
929
23,193
1,053
234,774
–
–
–
1,134
143
3,088
1,221
5,586
Cost
At 1 January 2011
Additions
Disposals/written off
–
–
–
(129)
(20)
(4,088)
–
(4,237)
Transfer
–
–
–
534
–
–
(534)
–
Transfer to investment
properties
–
–
–
–
–
–
(789)
(789)
Adjustment
–
–
(65)
–
–
–
–
(65)
235,269
32,423
99,439
18,265
60,946
1,052
22,193
951
Additions
At 31 December 2011
–
–
34
50
45
6,343
943
7,415
–
–
–
(72)
(2)
(2,419)
–
(2,493)
Transfer
At 31 December 2012
–
–
1,131
287
–
–
(1,418)
–
32,423
99,439
19,430
61,211
1,095
26,117
476
240,191
6,961
45,563
5,667
47,728
674
14,588
–
121,181
323
2,631
692
2,301
58
3,184
–
9,189
accumulated depreciation
At 1 January 2011
Depreciation for the year
At 31 December 2011
Depreciation for the year
At 31 December 2012
–
–
–
(129)
(20)
(4,086)
–
(4,235)
7,284
48,194
6,359
49,900
712
13,686
–
126,135
323
2,631
724
2,383
72
3,661
–
9,794
–
–
–
(72)
(1)
(2,419)
–
(2,492)
7,607
50,825
7,083
52,211
783
14,928
–
133,437
Carrying amount
At 1 January 2011
25,462
53,876
12,663
11,679
255
8,605
1,053
113,593
At 31 December 2011
25,139
51,245
11,906
11,046
340
8,507
951
109,134
At 31 December 2012
24,816
48,614
12,347
9,000
312
11,189
476
106,754
Depreciation charges amounting to $172,000 (2011: $173,000) and $4,000 (2011: $4,000) were allocated to Home
Protection Fund and MediShield Fund respectively. The remaining depreciation charge of $9,618,000 (2011: $9,012,000)
was accounted for under the Central Provident Fund.
4.
intangible assets
Computer
software /
application
system
Computer
software /
application
system under
development
total
S$’000
S$’000
S$’000
Cost
At 1 January 2011
59,975
121
60,096
Additions
9,282
3,671
12,953
Disposals / written off
(894)
–
(894)
479
(479)
–
68,842
3,313
72,155
525
5,982
6,507
(357)
–
(357)
Transfer
At 31 December 2011
Additions
Transfer
218
(218)
–
69,228
9,077
78,305
At 1 January 2011
18,473
–
18,473
Amortisation charge for the year
12,087
–
12,087
(893)
–
(893)
At 31 December 2011
29,667
–
29,667
Amortisation charge for the year
At 31 December 2012
accumulated amortisation
12,880
–
12,880
(357)
–
(357)
At 31 December 2012
42,190
–
42,190
Carrying amount
At 1 January 2011
41,502
121
41,623
At 31 December 2011
39,175
3,313
42,488
At 31 December 2012
27,038
9,077
36,115
Amortisation charges amounting to $3,000 (2011: $3,000) and $88,000 (2011: $88,000) were allocated to Home
Protection Fund and MediShield Fund respectively.
The remaining amortisation charge of $12,789,000 (2011: $11,996,000) was accounted for under the Central
Provident Fund.
5.
note
At 1 January
Changes in fair value
Transfer from construction-in-progress
2012
2011
S$’000
S$’000
185,300
170,700
55,390
13,811
3
–
789
6
(181,190)
–
59,500
185,300
9,097
7,166
2,646
2,386
98
95
At 31 December
The following amounts are recognised in the statement of changes in fund balances:
Rental income and service charges from investment properties
Direct operating expenditure (including repairs and maintenance)
arising from investment properties that:
- generate rental income
- did not generate rental income
valuers at year end. The fair value is based on market values, being the estimated amount for which a property
could be exchanged on the date of valuation between a willing buyer and a willing seller.
The valuations are based on the Investment (Income Approach) Method which takes into consideration the
future income stream in the form of the estimated net rental and car park revenues capitalised at an appropriate
investment yield. A comparison of the valuations derived is made against relevant market transactions under the
Direct Market Comparison Method for reasonableness.
6.
asset held for sale
note
2012
2011
S$’000
S$’000
At 1 January
5
At 31 December
–
–
181,190
–
181,190
–
The Board has entered into a Sale and Purchase Agreement with an external party to dispose the investment
property at 79 Anson Road on 13 December 2012. The disposal is completed subsequent to the year end in
February 2013. The carrying amount of the property as at 31 December 2012 is valued at fair value less cost to sell
which is equivalent to the net consideration from the sale.
7.
investments
note
2012
2011
S$’000
S$’000
Special issues of Singapore Government securities
- Floating rate
(a)
195,430,957
177,883,143
- Fixed rate
(b)
23,606,687
19,362,384
Advance deposits
(c)
9,079,828
8,407,067
228,117,472
205,652,594
Singapore Government securities
542,788
605,640
Statutory Board bonds
447,092
491,556
Corporate bonds
491,383
314,252
Equity securities
197,253
79,545
229,795,988
207,143,587
Quoted investments:
Board to meet its interest and other obligations. They do not have quoted market values and the Board
cannot trade them in the market. The interest rates of 2.50%, 3.50%, 4.00% and 5.00% (2011: 2.50%, 3.50%,
4.00% and 5.00%) per annum for the securities are pegged to the rates at which the Board pays interest to
the members of CPF.
Accounts of members. The effective interest rate on these securities is 4.00% (2011: 4.00%) per annum.
(c) The advance deposits are deposits placed with the Accountant-General through the Monetary Authority of
(2011: 2.50%) per annum on the advance deposits is pegged to the rate at which the Board pays interest for
the Ordinary Accounts of members.
8.
staff loans
2012
2011
S$’000
S$’000
Amount receivable
9.
- within 1 year
–
10
- after 1 year
–
49
–
59
debtors and other receivables
2012
2011
S$’000
S$’000
Debtors
- non-scheme
- scheme
11,889
17,677
2,836
7,839
2,112,223
1,890,291
15,363
14,549
Accrued interest receivable
- special issues of Singapore Government securities and advance
deposits
- other investments
Deposits paid
Prepayments
86
86
3,663
2,359
2,146,060
1,932,801
Debtors - scheme includes all receivable amounts linked to the various CPF schemes.
The Board believes that no impairment allowance is necessary for debtors and other receivables as these are mainly
due from ministries and Government-linked companies. These balances are not past due and usually settled within
6 months from the invoice date.
10.
note
2012
2011
S$’000
S$’000
Cash at bank
212,587
243,354
Bank deposits
204,810
338,800
Cash at bank managed by the Board on behalf of other ministries
23.5
417,397
582,154
(72,369)
(101,346)
345,028
480,808
The weighted average effective interest rates per annum relating to cash and cash equivalents are 0.01% to 2.91%
(2011: 0.01% to 3.00%).
11.
note
Amount due to other ministries for cash at bank managed by the
Board
10
2012
2011
S$’000
S$’000
72,369
101,346
Sundry creditors and other payables
25,577
20,889
Creditors - scheme
73,333
72,252
Deposits for asset held for sale
18,119
–
5,470
4,597
12,200
8,768
Security, renovation and rental deposits received
Accrued expenditure
Provisions
26,019
21,596
233,087
229,448
Creditors - scheme include all payable amounts linked to the various CPF schemes. Creditors, accruals and
provisions are usually paid within 6 months from the invoice date.
12.
Contributions (net of refunds) by members
note
Contributions credited in the year
2012
2011
S$’000
S$’000
24,796,117
22,909,374
Less: Refund of contributions:
- Section 75 of CPF Act
(a)
(34,127)
(30,744)
- Regulations 11 and 17
CPF (Self-Employed Persons) Regulations
(b)
(1,138)
(1,802)
- Other refunds
(c)
(11,846)
(11,781)
24,749,006
22,865,047
(a) Refunds under section 75 of the CPF Act (Chapter 36, 2001 Revised Edition) refer to refunds of excess
contributions on additional wages.
(b) Refunds under regulations 11 and 17 of the CPF (Self–Employed Persons) Regulations (Rg 25, 2007 Revised
Edition) refer to refunds of excess contributions to Medisave Account and voluntary contributions paid in
excess of the voluntary contributions limit, respectively.
(c) Other refunds refer mainly to refunds under section 74 of the CPF Act (Chapter 36, 2001 Revised Edition) for
contributions paid in error and excess voluntary contributions under regulation 8(1) of CPF Regulations (Rg
15, 1998 Revised Edition).
13.
government grants to members
note
CPF Housing Grant Scheme
Home Ownership Plus Education Scheme
Medisave Top-Up
(a)
2012
2011
S$’000
S$’000
467,005
461,655
9,968
11,226
99,330
496,446
Senior Citizens’ Bonus Scheme
–
61
393,622
313,621
8,563
13,620
Deferment Bonus Scheme
70,991
66,188
CPF LIFE Bonus Scheme
10,523
17,221
Workfare Income Supplement Scheme
Workfare Special Bonus Scheme
National Service Recognition Award Scheme
92,939
141,310
1,152,941
1,521,348
(a) Medisave Top-Up includes grants under the ‘Grow & Share’ Package, and GST Voucher Scheme.
14.
income from investments
note
2012
2011
S$’000
S$’000
8,277,119
7,448,867
Interest income from held-to-maturity investments
- special issues of Singapore Government securities
- advance deposits
121,155
114,603
8,398,274
7,563,470
- Singapore Government securities
15,953
17,688
- Statutory Board bonds
15,495
16,317
- corporate bonds
15,369
9,741
8,517
(67)
Interest income from available-for-sale investments
Net gain / (loss) on disposal of available-for-sale investments
transferred from fair value reserve
19
Dividend income
15.
5,542
2,830
8,459,150
7,609,979
other operating income
note
Agency, consultancy and data processing fees
Rent, service charges and car park receipts
(a)
Penalty interest on late contributions
Miscellaneous revenue
(b)
2012
2011
S$’000
S$’000
56,262
45,198
22,561
19,279
12,236
10,985
1,132
1,024
92,191
76,486
(a) Rental income is derived from the leasing of space in investment properties and buildings under property,
leases are also granted.
At the reporting date, future minimum lease receivables under non-cancellable operating leases are as follows:
2012
2011
S$’000
S$’000
Receivable
16.
- within 1 year
15,886
20,177
- after 1 year but within 5 years
22,649
37,892
38,535
58,069
withdrawals (net of refunds) by members
note
2012
2011
S$’000
S$’000
3,112,171
2,909,439
Sections 15 and 25 of CPF Act
(a)
Amount restored from general moneys of the Fund
(b)
43
62
Public Housing Scheme
(c)
5,703,106
5,464,271
Home Protection Insurance Scheme
(c)
86,965
88,744
Residential Properties Scheme
(c)
2,290,577
1,346,657
Medisave Scheme
(c)
767,376
721,684
Minimum Sum Scheme
(c)
386,288
374,249
Dependants’ Protection Insurance Scheme
(c)
191,908
188,427
Education Scheme
(c)
25,110
22,033
MediShield Scheme
(c)
446,668
429,797
Private Medical Insurance Scheme
(c)
384,595
335,462
ElderShield Scheme
(c)
241,795
305,159
Lifelong Income Scheme
(c)
295,783
440,441
Non–residential Properties Scheme
(c)
(17,129)
(32,006)
Investment Scheme
(c)
(2,163,153)
(2,137,765)
Special Discounted Shares Scheme
(c)
(25,441)
(20,151)
11,726,662
10,436,503
(a) Withdrawals under sections 15 and 25 of the CPF Act (Chapter 36, 2001 Revised Edition) mainly refer to
withdrawals by members who have attained the age of 55 years and by members who have left or are about
to leave Singapore and West Malaysia permanently, as well as on grounds of death.
(b) The amount restored and paid out from general moneys of the Fund refers to the amount restored to
members’ CPF subsidiary accounts and subsequently paid out to members / other persons entitled to the
moneys (e.g. members’ nominees) upon application made under the CPF Act.
(c) The details and operations of the schemes are disclosed in the Act and CPF Regulations.
17.
general and administrative expenditure
Included in general and administrative expenditure is the following item:
Rental expense for equipment
18.
2012
2011
S$’000
S$’000
3,147
2,685
other operating expenditure
(a)
2012
2011
S$’000
S$’000
126,844
111,757
Computer software and supplies
28,370
18,311
Depreciation and amortisation
22,407
21,008
Professional and other charges
11,452
10,853
Maintenance of buildings and equipment
8,150
7,593
Printing and postage
5,008
5,253
Public utilities
4,307
4,095
Property tax
3,364
2,975
Publicity and campaigns
1,356
1,785
211,258
183,630
2012
2011
S$’000
S$’000
staff administering Central provident Fund
Employer’s CPF contribution
Staff welfare and training
Board members’ allowance
14,384
11,746
3,944
4,142
549
508
19.
movement in net assets of the Central provident Fund
note
At 1 January 2012
Contribution (net of refunds) by
members
Dividends from Special Discounted
Shares
Change in fair value of availableNet change in fair value of
Withdrawals (net of refunds) by
members
General and administrative
expenditure
Interest credited to members
Transferred to general moneys of the
Fund
Transferred to statement of changes
in fund balances on disposal of
47,610
2,063,184
109,781
209,766,075
12
13
24,749,006
1,152,941
–
–
–
–
–
–
24,749,006
1,152,941
14
146,452
–
–
–
–
8,459,150
–
–
146,452
8,459,150
–
–
–
33,639
33,639
15
–
–
–
–
–
–
55,390
7,392
92,191
–
–
–
55,390
7,392
92,191
16
(11,726,662)
–
–
–
(11,726,662)
18
–
–
8,290,586
–
–
–
(5,882)
(211,258)
(8,290,586)
–
–
–
(5,882)
(211,258)
–
(152)
152
–
–
–
–
230,157,671
–
47,762
–
2,169,581
(8,517)
134,903
(8,517)
232,509,917
185,887,975
40,476
2,014,942
1,186
187,944,579
12
13
22,865,047
1,521,348
–
–
–
–
–
–
22,865,047
1,521,348
14
242,018
–
–
–
–
7,609,979
–
–
242,018
7,609,979
–
–
–
108,595
108,595
15
–
–
–
–
–
–
13,811
10,153
76,486
–
–
–
13,811
10,153
76,486
16
(10,436,503)
–
–
–
(10,436,503)
18
–
–
7,472,749
–
–
–
(5,808)
(183,630)
(7,472,749)
–
–
–
(5,808)
(183,630)
–
(7,134)
207,545,500
7,134
47,610
–
2,063,184
–
109,781
–
209,766,075
5
14
Net change in fair value of
Withdrawals (net of refunds) by
members
expenditure
Interest credited to members
Transferred to general moneys of the
Fund
At 31 December 2011
total
S$’000
207,545,500
At 31 December 2012
At 1 January 2011
Contribution (net of refunds) by
members
Dividends from Special Discounted
Shares
Net change in fair value of available-
general
moneys of accumulated Fair value
the Fund
surplus
reserve
S$’000
S$’000
S$’000
members’
accounts
S$’000
5
members’ accounts
Members’ accounts refer to moneys of the Fund standing to the member’s credit, that are accounted for in subsidiary
general moneys of the Fund
The Reserve Account is set up under regulations 7(2) and 7(3) of the CPF Regulations (Rg 15, 1998 Revised Edition).
With the amendment to CPF Act and relevant CPF Regulations which took effect from 1 January 2011, Reserve
Account is currently known as the general moneys of the Fund, pursuant to section 2(1) of the CPF Act.
All unclaimed moneys which match the conditions stipulated under these regulations were transferred from
members’ balances to this account. The balance in this account is refundable to members or their nominees upon
application made under regulation 7(5).
accumulated surplus
Fair value reserve
until the investment is derecognised or impaired.
20.
21.
Future capital expenditure
2012
2011
S$’000
S$’000
Amount approved and contracted for
10,369
11,861
Amount approved but not contracted for
19,136
183,650
29,505
195,511
Financial risk management of the CpF
overview
Risk management is integral to the operation of the CPF managed by the Board. The Board has a system of controls
in place to create an acceptable balance between the cost of risks occurring and the cost of managing the risks. The
Board continually monitors the CPF’s risk management process to ensure that an appropriate balance between risk
conditions and the Fund’s activities.
market risk
Market risk is the risk that changes in market prices, such as interest rates, equity prices and foreign exchange
management is to manage and control market risk exposures within acceptable parameters, while optimising the
return on risk.
Sensitivity analysis
The analysis below is performed for reasonably possible movements in key variables with all other variables
remaining constant.
impact on fund balance
2012
2011
S$’000
S$’000
Change in variables
Equity price
+10%
19,725
7,955
-10%
(19,725)
(7,955)
interest rate risk
The CPF is exposed to interest rate risk as a result of investments in debt securities and interest payable on
members’ accounts placed with the CPF.
In the management of the interest rate risk of the CPF, the interest rates of the investments in special issues of
Singapore Government securities and advance deposits are pegged to the rates at which the Board pays interest
to its members. These interest rates are affected by changes in the market interest rates and reset every quarter.
affected by changes in the market interest rates and reset yearly. The Ordinary Account of members is subject to
Sensitivity analysis
The analysis below is performed for reasonably possible movements in key variables with all other variables
remaining constant.
impact on fund balance
2012
2011
S$’000
S$’000
+50bps
(53,781)
(147,095)
-50bps
53,781
147,095
Change in variables
Interest rate
effective interest
rate
(per annum)
Special issues
of Singapore
Government
securities
Advance
deposits
Singapore
Government
securities
years to maturity
later than one year but
not later than one year
2012
2011
2012
2011
2012
2011
2012
2011
%
%
S$’000
S$’000
S$’000
S$’000
S$’000
S$’000
2.5 – 5.0
2.5 – 5.0
12,288,201
12,176,987
48,792,804
48,847,946
157,956,639
136,220,594
2.5
2.5
9,079,828
8,407,067
–
–
–
–
3.0 – 4.0
3.0 – 4.0
–
–
–
–
542,788
605,640
Statutory Board
bonds
3.1 – 4.0
2.2 – 4.9
–
3,718
187,868
189,009
259,224
298,829
Corporate bonds
2.9 – 5.2
2.9 – 4.9
4,550
–
40,700
45,530
446,133
268,722
Cash and cash
equivalents
0.1 – 2.9
0.1 – 3.0
295,397
334,754
122,000
247,400
–
–
21,667,976
20,922,526
49,143,372
49,329,885
159,204,784
137,393,785
liquidity risk
In the management of liquidity risk, the Board monitors and maintains a level of cash and bank balances deemed
can be readily sold or redeemed when the need arises.
Foreign exchange risk
The monetary assets and liabilities of the CPF are denominated primarily in Singapore dollars. Accordingly, CPF does not
Credit risk
amount of those assets at the reporting date.
The CPF is exposed to minimal credit risk apart from sovereign risk, as most of the investments are in nontradeable special issues of Singapore Government securities and majority of receivable balances at the reporting
date is made up of accrued interest receivable arising from the special issues of Singapore Government securities.
Other than investments in special issues of Singapore Government securities, the CPF is also exposed to credit risk
issuer default on the securities.
The Board manages credit risk actively through the setting of minimum credit rating requirements and investment
limits for issuers within the approved investment guidelines. These limits are reviewed regularly with ongoing
monitoring and reporting undertaken at various levels.
not
rated **
S$
million
aaa*
S$
million
aa*
S$
million
a*
S$
million
total
S$
million
–
–
–
–
–
–
219,038
9,080
219,038
9,080
543
–
–
543
–
–
163
163
–
–
110
110
–
447
218
228,783
543
447
491
229,599
–
–
–
–
–
–
197,246
8,407
197,246
8,407
606
–
148
754
–
–
100
100
–
–
30
30
–
492
36
206,181
606
492
314
207,065
2012
Advance deposits
Corporate bonds
2011
Advance deposits
Corporate bonds
*
**
Based on public ratings assigned by external ratings agency including S&P.
No rating was performed by external ratings agencies.
(a)
are considered as Level 1 in the fair value hierarchy (Note 2.12).
(b)
approximate of fair value
The carrying amount of advance deposits is estimated to approximate their fair values at the year-end in view
of short term nature.
The carrying amount of the special issues of Singapore Government securities approximate their fair values
due to the investment arrangements made with the Singapore Government.
and other receivables, staff loans and creditors, accruals, and provisions are assumed to approximate their fair
values because of short period of maturity.
Although the Board believes that its estimates of fair value are appropriate, the use of different methodologies or
assumptions could lead to different measurements of fair value.
of funds, are as follows:
at fair
value
at amortised cost
other
note
availablefor-sale
Held-tomaturity
loans and
receivables
S$’000
S$’000
S$’000
liabilities
total
carrying
amount
year end
fair value
estimate
S$’000
S$’000
S$’000
31 december 2012
Investments
- special issues of Singapore
Government securities
–
219,037,644
–
–
219,037,644
219,037,644
- advance deposits
–
9,079,828
–
–
9,079,828
9,079,828
1,481,263
–
–
–
1,481,263
1,481,263
197,253
–
–
–
197,253
197,253
8
–
–
–
–
–
–
Debtors and receivables
9
–
–
2,146,060
–
2,146,060
2,146,060
10
–
–
417,397
–
417,397
417,397
1,678,516
228,117,472
2,563,457
–
232,359,445
232,359,445
–
–
–
(233,087)
(233,087)
(233,087)
- special issues of Singapore
Government securities
–
197,245,527
–
–
197,245,527
197,245,527
- advance deposits
–
8,407,067
–
–
8,407,067
8,407,067
1,411,448
–
–
–
1,411,448
1,411,448
79,545
–
–
–
79,545
79,545
- other debt securities
- equity securities
Staff loans
11
31 december 2011
Investments
- other debt securities
- equity securities
Staff loans
8
–
–
59
–
59
59
Debtors and receivables
9
–
–
1,932,801
–
1,932,801
1,932,801
10
11
–
–
582,154
–
582,154
582,154
1,490,993
205,652,594
2,515,014
–
209,658,601
209,658,601
–
–
–
(229,448)
(229,448)
(229,448)
22.
insurance Funds
Home protection Fund
note
total assets
Investments
Insurance and other
receivables
Accrued interest receivable
- Bank deposits
- Cash and bank balances
total assets
22.4
2012
S$’000
2011
S$’000
medishield Fund
2012
S$’000
2011
S$’000
dependants’
protection
residual Fund
2012
S$’000
lifelong income Fund
2011
S$’000
2012
S$’000
2011
S$’000
1,697,760
1,576,810
1,723,286
1,459,426
–
–
3,310,372
2,992,384
39,837
7,403
52,680
10,936
24,354
5,563
46,013
7,945
–
44
8
29
–
40,353
–
35,372
62,754
24,594
1,832,348
85,046
4,416
1,729,888
91,628
31,719
1,876,550
118,867
5,856
1,638,107
44,000
1,931
45,975
44,500
2,023
46,560
–
50
3,350,775
–
50
3,027,806
750,096
103,823
749,467
109,796
1,179,551
400,782
978,362
380,399
1,000
–
1,000
–
3,027,451
–
2,552,138
–
(176,472)
2,373
(11,861)
–
16,323
(52,085)
(181,664)
14,440
(16,596)
–
21,817
28,707
(18,805)
23,886
31,695
(318,184)
9,536
25,058
(13,391)
23,782
33,349
(288,022)
7,404
57,668
–
–
–
–
–
–
–
–
–
–
–
–
(15,238)
126,797
(2,821)
(55,928)
270,061
–
(12,863)
111,382
(2,841)
(48,155)
427,790
–
(11,403)
(21,141)
–
–
–
–
–
–
(8,526)
–
612,268
(12,736)
58,006
750,096
–
–
1,333,519
–
–
1,179,551
–
–
1,000
–
–
1,000
–
–
3,350,322
–
–
3,027,451
41,181
571,087
612,268
49,707
700,389
750,096
101,337
1,232,182
1,333,519
72,669
1,106,882
1,179,551
100
900
1,000
100
900
1,000
77,189
3,273,133
3,350,322
66,123
2,961,328
3,027,451
21,709
(89,825)
87,120
19,004
19,399
(91,095)
93,405
21,709
5,807
(315,163)
315,140
5,784
4,509
(281,132)
282,430
5,807
1,088
(66)
–
1,022
1,494
(399)
(7)
1,088
–
(14,383)
14,383
–
–
(12,142)
12,142
–
24,440
655,712
1,176,636
16,263
788,068
941,820
29,963
1,369,266
507,284
16,626
1,201,984
436,123
66
2,088
43,887
309
2,397
44,163
453
3,350,775
–
355
3,027,806
–
The assets of the Insurance Funds are current assets.
total liabilities
(i) Insurance contract
liabilities
At 1 January
Valuation premium
Liabilities released for
payments on death and
other terminations
Accretion of interest
Other movements
Expected claims
New business
Change in valuation basis
Effect of minimum values
on reserves
Change in incurred but
not reported claims
Premium revision
At 31 December
Current portion
Non-current portion
(ii) Claims intimated or
admitted but not paid
At 1 January
Claims paid
Claims incurred
At 31 December
(iii) Sundry creditors and
other payables
total liabilities
net assets
The claims intimated or admitted but not paid, and sundry creditors and other payables are all current liabilities.
22.1
Changes in insurance Funds balances
note
At 1 January
Add:
Insurance premiums
Net investment gain/(loss)
Interest income from bank
deposits
Less:
Claims
Payouts
Surrenders
Return of insurance
premium
Professional and other
charges
Computer software and
supplies
expenditure
Printing and postage
Depreciation and
amortisation
Publicity and campaigns
Maintenance of buildings
and equipment
Net change in insurance
contract liabilities
At 31 December
22.3
2012
S$’000
2011
S$’000
2012
S$’000
2011
S$’000
2012
S$’000
2011
S$’000
2012
S$’000
2011
S$’000
941,820
911,594
436,123
530,110
44,163
44,122
–
–
129,661
109,151
134,289
46,722
421,297
134,689
404,732
(3,027)
–
–
–
–
270,061
126,797
427,790
111,382
186
–
238,998
132
–
181,143
161
–
556,147
136
–
401,841
271
31
302
172
168
340
–
–
396,858
–
–
539,172
87,120
–
42,696
93,405
–
45,541
315,140
–
–
282,430
–
–
72
–
–
(7)
–
–
14,383
55,928
855
12,142
48,155
721
–
–
–
–
15
21
–
–
5,836
3,387
5,226
3,194
9,508
3,272
7,520
3,029
368
–
187
–
1,844
722
1,827
835
1,599
1,853
2,431
972
117
90
176
179
904
283
625
151
345
226
410
181
6
–
8
–
74
5
(6)
5
175
8
176
8
92
–
92
–
–
–
–
–
–
–
–
–
2
109
4
5
–
–
–
1
(137,828)
4,182
1,176,636
629
150,917
941,820
153,968
484,986
507,284
201,189
495,828
436,123
–
578
43,887
–
299
44,163
322,871
396,858
–
475,313
539,172
–
Employer’s CPF contribution
medishield Fund
dependants’
protection
residual Fund
medishield Fund
dependants’
protection
residual Fund
2012
2011
2012
2011
2012
2011
2012
2011
S$’000
S$’000
S$’000
S$’000
S$’000
S$’000
S$’000
S$’000
378
381
388
382
–
–
79
101
activities
Change in net assets
Adjustment for:
Interest and dividend income
Changes in operating assets and
liabilities:
Investments
Insurance and other receivables
Insurance contract liabilities
Claims intimated or admitted but
not yet paid
Sundry creditors and other
payables
Cash (used in) / from operations
Interest received
Dividend received
net cash (used in) / from
operating activities
net (decrease) / increase in cash
and cash equivalents
Cash and cash equivalents as at
1 January
Cash and cash equivalents as at
31 december
medishield Fund
dependants’
protection
residual Fund
2012
S$’000
2011
S$’000
2012
S$’000
2011
S$’000
2012
S$’000
2011
S$’000
2012
S$’000
2011
S$’000
234,816
30,226
71,161
(93,987)
(276)
41
–
–
(44,346)
190,470
(44,250)
(14,024)
(40,229) (38,491)
30,932 (132,478)
(271)
(547)
(172) (126,797) (111,382)
(131) (126,797) (111,382)
(18,909)
23,196
201,189
–
8
–
– (317,988) (462,438)
(5)
–
145
–
322,871
475,313
(120,950)
12,812
(137,828)
38,826 (263,860)
31,134
21,551
629
153,968
(2,705)
2,310
(23)
1,298
(66)
8,177
(50,024)
43,272
4,638
(82,721)
(23,846)
34,793
9,084
13,337
(44,095)
29,962
12,757
(62,975)
11,321
26,259
12,831
(2,114)
20,031
(1,376)
(2,114)
20,031
89,462
87,348
(406)
–
–
(243)
(848)
256
–
(161)
98
(703) (121,816)
169
121,816
–
–
355
(98,007)
98,007
–
50,411
(592)
(534)
–
–
(1,376)
50,411
(592)
(534)
–
–
69,431
124,723
74,312
46,523
47,057
50
50
89,462
123,347
124,723
45,931
46,523
50
50
22.3
net investment gain / (loss)
medishield Fund
2012
2011
2012
2011
2012
2011
S$’000
S$’000
S$’000
S$’000
S$’000
S$’000
39,553
35,290
27,419
25,449
126,797
111,382
4,607
8,828
12,649
12,906
–
–
Net fair value gain / (loss)
73,666
8,443
104,197
(43,281)
–
–
Net foreign exchange
gain / (loss)
(3,045)
1,564
(2,486)
8,968
–
–
Interest income
Dividend income
22
43
12
5
–
–
Fund management fees
(5,652)
(7,446)
(7,102)
(7,074)
–
–
109,151
46,722
134,689
(3,027)
126,797
111,382
The net fair value gain/(loss) includes both the realised and unrealised fair value gain/(loss) and realised and
disclosed under “Net foreign exchange gain/(loss)”.
22.4
investments
medishield Fund
2012
2011
2012
2011
S$’000
S$’000
S$’000
S$’000
debt securities
Denominated in Singapore dollars
758,269
960,084
490,235
601,339
Denominated in US dollars
210,408
178,694
175,454
137,636
Denominated in other currencies
539,904
279,013
484,291
277,422
1,508,581
1,417,791
1,149,980
1,016,397
61,640
46,950
138,138
99,512
equity securities
Denominated in Singapore dollars
Denominated in US dollars
67,895
59,064
286,792
173,652
Denominated in other currencies
60,000
51,588
149,297
170,024
189,535
157,602
574,227
443,188
medishield Fund
2012
2011
2012
2011
S$’000
S$’000
S$’000
S$’000
83
882
165
280
(23)
(21)
(52)
(16)
65
10
72
9
(225)
–
(325)
–
derivatives
Interest-rate futures contracts purchased
- with positive fair value
- with negative fair value
Interest-rate futures contracts sold
Forward foreign exchange contracts
5,790
12,852
6,203
11,378
(6,516)
(12,772)
(7,409)
(12,037)
Interest-rate and credit default swaps
3,373
809
2,545
421
(2,734)
(343)
(1,899)
(194)
–
Interest-rate options
25
–
24
(194)
–
(245)
–
(356)
1,417
(921)
(159)
1,697,760
1,576,810
1,723,286
1,459,426
Investments included debt securities issued by statutory boards of $673,522,000 (2011: $804,704,000) and
$427,566,000 (2011: $511,877,000) for Home Protection Fund and MediShield Fund respectively.
mismatch that would otherwise arise from measuring assets and liabilities or recognising the gains and losses on
in the statement of changes in fund balances.
2012
2011
S$’000
S$’000
Lifelong Income Fund
- special issues of Singapore Government securities
- advance deposits
3,308,335
2,989,523
2,037
2,861
3,310,372
2,992,384
The Lifelong Income Fund invested jointly with the CPF in special issues of Singapore Government securities. The
Fund’s interest and other obligations. They do not have quoted market values and cannot be traded in the market.
The effective interest rate on these securities is 4.00% (2011: 4.00%) per annum.
The advance deposits are deposits placed with the Accountant-General through the Monetary Authority of
Singapore to purchase special issues of Singapore Government securities. The effective interest rate on the
advance deposits is 2.50% (2011: 2.50%) per annum.
Under this investment arrangement with the Singapore Government, the carrying amounts recorded at the
In view of this, the carrying amounts of investments in special issues of Singapore Government securities and
advance deposits approximate their fair values.
Investments in these securities are readily redeemable and highly liquid. As such these are deemed to be current assets.
22.5
Financial derivatives
2012
2011
S$’000
S$’000
Interest-rate futures contracts
- future contracts purchased
- future contracts sold
Interest-rate and credit default swaps
22.6
61,961
20,306
1,351,135
179,510
34,869
32,233
8,169
3,187,070
63,298
2,593
medishield Fund
2012
2011
S$’000
S$’000
83,953
24,801
1,830,677
137,464
36,357
11,156
7,521
1,999,663
38,542
1,426
risk management of insurance contracts
(i)
The risks arising from insurance policies issued under the Home Protection Insurance Scheme are death
and permanent incapacity risks of a relatively homogeneous portfolio of mortgage reducing term insurance
Protection Fund.
The objectives in managing these risks are:
(a) to ensure that all legitimate claims of insured members are met;
(c) to ensure that the Home Protection Insurance Scheme is operated in accordance with the Act, the
Home Protection Insurance Scheme regulations and the operating policies of the Home Protection
Insurance Scheme.
(ii) The policies, processes and methods for managing insurance risks are:
(a) to maintain a relatively large portfolio. Experience shows that the larger the portfolio of similar insurance
policies, the smaller the relative variability in the expected outcome;
(b) to manage the Home Protection Fund and insurance contract portfolio in accordance with sound
(c) to adopt an underwriting strategy to recognise and select the insurance risks accepted so that the claim
experience is unlikely to deteriorate;
(d) to review regularly its experience, adequacy of premiums and reserves by the Home Protection Fund’s
actuarial adviser;
(f) exclude claims arising from war or an warlike operations or participation in any riot.
The insurance contract portfolio’s experience, fund solvency and premium adequacy are reviewed by the
actuarial adviser of the Home Protection Insurance Scheme annually using the Risk-Based Capital Framework
issued by the Monetary Authority of Singapore (“MAS”) for the valuation of liabilities and establishment of
capital requirement rules for insurers. The actuarial adviser also projects the short and medium term solvency
position of the Home Protection Fund annually and reports the results to the Board.
(iii) The terms and conditions of insurance contracts that have a material effect on the amount, timing and
(a) mortality and permanent incapacity risks for policies where single premiums have been charged up front.
The Board does not have the right to increase the premiums for these policies based on its mortality
experience. This increases the Home Protection Fund’s exposure if the experience is worse than what was
assumed; and
Syndrome (“SARS”) or widespread changes in lifestyle could result in earlier and/or more claims than
expected.
(iv) The Home Protection Fund has no major exposure to concentration of risks, other than that the insured
members are residing in Singapore.
medishield Fund
(i)
The risks arising from insurance policies issued under the MediShield Scheme are those of a relatively
homogeneous portfolio of health insurance policies.
(a) to ensure that all legitimate claims of insured members are met;
(b) to ensure that the MediShield Fund is solvent at all times; and
(c) to ensure that the MediShield Fund is operated in accordance with the Act, MediShield Scheme regulations
and the operating policies of the MediShield Scheme.
(a) to manage the MediShield Fund and insurance contract portfolio in accordance with sound actuarial,
(b) to adopt an underwriting strategy to recognise and select the insurance risks accepted so that the claim
experience is unlikely to deteriorate;
(c) to review regularly its experience, adequacy of premiums and reserves by the MediShield Fund’s actuarial
adviser; and
The insurance contract portfolio’s experience, fund solvency and premium adequacy are reviewed by the
actuarial adviser of the MediShield Fund annually using the Risk–Based Capital Framework issued by the
Monetary Authority of Singapore (“MAS”) for the valuation of liabilities and establishment of capital requirement
rules for insurers and the actuarial adviser reports the results to the Board.
(iii) The terms and conditions of the MediShield Scheme that have a material effect on the amount, timing and
amount payable depends on the cost incurred by the insured member in respect of any particular event
(b) the renewal of each insurance policy is guaranteed until the insured member reaches age 85, unless the
insured member decides to discontinue cover; and
(c) premium discounts which are determined from time to time are offered to insured members from the age
of 71 to 85 and the amount of discount depends on the age at entry to the MediShield Scheme.
concentration is a direct result of the MediShield Scheme consisting of a single medical insurance product. The
shared characteristics of the risks insured by the MediShield Fund include:
(a)
(b)
hospitalisation as the prime insured event;
all insured events occurring within Singapore; and
(v) With the exception of continuing outpatient treatments, the amounts of almost all claims are known within
one year of the event occurring. For continuing outpatient treatments, each individual claim amount is known
within a year, but liabilities to pay for the further treatments may continue for several years.
(i)
The risks arising from insurance policies issued under the Lifelong Income Scheme are mortality and interest
the location of the risk insured by the Lifelong Income Fund.
(a) to ensure that all legitimate payments of insured members are met;
(c) to ensure that the Lifelong Income Fund is operated in accordance with the Act, Lifelong Scheme
regulations and the operating policies of the Lifelong Income Scheme.
(a) to adjust payouts to insured members so that the pool of policies bears all mortality risk and interest
rate risk;
(b) to invest in special issues of Singapore securities that earn an appropriate interest rate to cover expenditure
and interest credits for insured members;
(c) to review regularly its experience to adjust payout levels as appropriate; and
The Lifelong Income Scheme enables payouts to be adjusted over time to take account of variation in the
experience for mortality and net interest credited, so removing that risk from the Fund as a whole. The
insurance contract portfolio’s experience and fund solvency are reviewed by the actuarial adviser of the
Lifelong Income Scheme annually based on the principles of the Risk–Based Capital Framework issued by the
Monetary Authority of Singapore (“MAS”) for the valuation of liabilities.
(iii) The terms and conditions of the Lifelong Income Scheme that have a material effect on the amount, timing,
(a) the provision that monthly income payments to a member be made while members are alive after the
member’s payout age, and cease when the member dies;
(b) the provision for net investment returns from the assets of the scheme to be allocated among members;
and
(iv) The Lifelong Income Fund has no major exposure to concentration risk other than that the vast majority of
insured members are residing in Singapore.
dependants’ protection residual Fund
The Dependants’ Protection Scheme was privatised on 17 September 2005. Accordingly, the Dependants’ Protection
Residual Fund does not bear any risk for insurance contracts issued after that date. However, the Dependants’
Protection Residual Fund is still required to bear the risk arising from insurance contracts issued under the Dependants’
Protection Scheme prior to privatisation. The main risk is that of Permanent Incapacity (“PI”) of insured members.
Dependants’ Protection Residual Fund until all liabilities arising prior to privatisation are met.
22.7
insurance contract liabilities
The insurance contract liabilities of the Home Protection Fund, MediShield Fund and Lifelong Income Fund are
determined by the Board based on the advice of Board’s independent actuarial advisers. The insurance contract
liabilities are valued using the methodology prescribed for insurers in Singapore as stated in the Insurance
(Valuation and Capital) Regulations issued by the Monetary Authority of Singapore.
In respect of insurance contracts within the Home Protection Fund and MediShield Fund, the Board values the
assumptions. Additional provision is required in the valuation assumptions to allow for any adverse deviation
from the best estimate experience. The level of additional provision is reviewed periodically by the independent
The Lifelong Income Scheme is designed to distribute 100% of its net assets to the insured members via monthly
payouts starting from the annuity payout start age of each individual insured member for as long as the member
lives. All risks are shared by the insured members. Therefore, for the insurance contracts issued by the Lifelong
Income Fund, the insurance contract liabilities are valued as the total net assets held in the Lifelong Income Fund
value in aggregate is not affected by future interest rates, expenditure, withdrawals or mortality rates.
Insurance contract liabilities for the Dependants’ Protection Residual Fund are established for claims that have
incurred but which have not been reported to the Central Provident Fund Board as at 31 December 2012 on
coverage that had ceased to be active on or before 16 September 2005 and were not transferred to any of the two
appointed insurers. These claims may be admitted at a later date after 31 December 2012.
The assumptions used for the valuation of the Home Protection Fund and MediShield Fund are based on those
prescribed in the valuation regulations issued by the MAS that apply to insurers in Singapore. Valuation assumptions
not prescribed by the MAS are set according to experience studies or common market practice.
The assumptions used for the valuation of the Dependants’ Protection Residual Fund are based on management’s
assessment after reviewing historical data and making judgments on the number and amount of claims.
The key assumptions used are:
(a) Mortality and permanent incapacity rates
Mortality and permanent incapacity rates are set based on experience studies carried out on the Home
Protection Fund.
(b) Expense loadings
Expense assumptions are set based on an analysis of expense experience of the Home Protection Fund. Such
a study is conducted on an annual basis. Consideration is also given to the expense budget that is approved
for the following year.
(c) Lapse rates
Lapse rates are set based on experience studies carried out on the Home Protection Insurance Scheme. Such
experience studies are conducted on an annual basis.
(d) Valuation discount rate
The valuation discount rates are prescribed by the MAS as matching to the Singapore Government Bond
between 10 to 15 years. The Singapore Government Bond prices and yields are published on the Singapore
Government securities website.
(e) The following table presents the sensitivity of the value of the insurance contract liabilities to movements in
the assumptions used:
2012
2011
Change
in
variable
increase
in
liability
Change
in
variable
increase
in
liability
%
S$’000
%
S$’000
Worsening of claim rates
+10
57,206
+10
72,933
Shift in risk-free yield curve
–0.5
9,366
–0.5
13,597
Worsening of base expense level
+10
6,490
+10
5,022
Change in lapse rates
–10
10,105
–10
16,248
medishield Fund
The variability of insurance results will affect the value of insurance liabilities from year to year. Such variations, from
the valuation assumptions, are normal and are to be expected in an insurance portfolio. The material variables are:
(a) mortality and lapse rates;
(b) claim frequency per person covered;
(c) average claim amount per claim;
(e) cessation rates for patients with outpatient claims in payments;
(f) the premium rates; and
(g) the discount rate used for calculating the value of liabilities, which is based on the risk free yield curve.
Data used to determine assumptions regarding claim amount, claim frequency, cessation of outpatient treatment,
lapse and mortality are sourced from annual reviews of MediShield Fund’s experience, augmented by periodic
augmented by MediShield Fund’s experience. Data to determine the discount rate assumed is widely published.
(a) Mortality and lapse rates
The mortality assumptions are based on applying MediShield Fund’s experience to the published Singapore
mortality table “Singapore Actuarial Society Mortality Investigation 1997 – 2002”. Lapse and mortality
a rolling weighted average of past experience with allowance for underlying trends.
(b) and (c) Claim frequency and average claim size
forces that may operate in the future to affect this outcome.
(e) Cessation rates for outpatient treatment
years. The cessation rates vary by the duration that the claimant has been receiving outpatient treatment.
(f) Premium rates
Premiums are assumed not to increase until experience requires it. The MediShield Fund has no shareholders,
time to time in relevant laws and regulations, and can be changed by those laws and regulations.
(g) Valuation discount rate
The valuation discount rate is prescribed by the MAS and effectively assumes the Singapore Government
after 15 years, and an interpolation of the 10-year Singapore Government Bond yields are published on the
Singapore Government securities website.
The following table presents the sensitivity of the value of the insurance contract liabilities to movements in
the assumptions:
2012
2011
Change
in
variable
increase
in
liability
Change
in
variable
increase
in
liability
%
S$’000
%
S$’000
medishield Fund
Increase in average new claim size
+10
155,704
+10
132,881
Increase in new claim frequency
+10
155,704
+10
132,881
+1 p.a.
85,462
+1 p.a.
74,769
–25
328,219
–25
288,056
+1 p.a.
168,181
+1 p.a.
145,425
–0.5 p.a.
97,371
-0.5 p.a.
106,273
–50
40,206
–50
38,352
Reduction in cessation rates of outpatient claims
Shift in risk-free yield curve
Change in lapse rates
The key assumptions used are the maximum claim size under the Dependants’ Protection Insurance Scheme
claims relating to the pre-privatisation period after the next 10 years. A decrease of 10% in maximum claim size or
number of expected claims will result in a decrease in the insurance contract liabilities by S$100,000.
22.8
Financial risk management of insurance Funds
market risk
Market risk, such as interest rate risk, foreign currency risk and equity price risk, arises from the investments in
global and local debt securities, equities and derivatives when the market values of assets and liabilities do not
of the Home Protection Fund and the MediShield Fund, it is not possible to hold assets that will perfectly match
the policy liabilities.
Given the nature of the Lifelong Income Scheme where there is no minimum payout guarantees and payouts are
adjusted in response to changes in interest rates, all market risk is borne by the insured members. Accordingly,
there is no exposure to market risk for the Lifelong Income Fund.
its net assets are held in cash and deposits.
Asset-liability decisions are considered by the Board with an objective of limiting the extent to which solvency can
be affected by adverse market and interest rate movements. Market risk is actively managed through the setting
of investment policy and asset allocation within the approved risk tolerance limits. The investment policy includes
by investing the assets of the Home Protection Fund and MediShield Fund in different asset classes and various
markets. The assets of the Lifelong Income Fund are 100% invested in special issues of Singapore Government
securities, advance deposits and cash. The Dependants’ Protection Residual Fund only invests in cash. The Board
regularly monitors the Home Protection Fund’s and MediShield Fund’s exposure to different asset classes to satisfy
itself that these exposures are within the approved ranges.
performance. The major classes of derivatives are as follows:
entry;
of entry and lapsing on the maturity date; and
rates or other assets.
Approved guidelines detail the permissible derivative instruments and their risk limits. Ongoing monitoring
and reporting are undertaken at various levels to ensure that investment activities are in accordance with the
investment guidelines.
interest rate risk
Income Fund’s exposure to interest rate risk is entirely borne by the insured members.
The investments in debt securities are as follows:
Carrying amount
(at fair value)
percentage of total
investment of the
insurance Funds
2012
2011
2012
2011
S$’000
S$’000
%
%
1,508,581
1,417,791
88.9
89.9
MediShield Fund
1,149,980
1,016,397
66.7
69.6
The carrying amounts of debts securities are analysed as follows:
effective interest
rate (per annum)
years to maturity
within 1 year
between 1 and 5 years more than 5 years
2012
2011
2012
2011
2012
2011
2012
2011
%
%
S$’000
S$’000
S$’000
S$’000
S$’000
S$’000
at fair value
denominated in sgd
1.0 – 5.8
0.3 – 4.9
1,753
65,680
215,097
283,067
541,419
611,337
MediShield Fund
0.8 – 4.3
0.4 – 4.6
36,770
34,764
315,094
374,011
138,371
192,564
denominated in Usd
0.0 – 8.8
0.0 – 8.8
33,366
69,368
44,658
24,712
132,384
84,614
MediShield Fund
0.0 – 8.3
0.0 – 7.0
26,029
37,359
35,495
24,706
113,930
75,571
denominated in other
currencies
0.0 – 14.0 0.1 – 24.9
42,706
1,141
151,306
68,910
345,892
208,962
MediShield Fund
0.0 – 14.0 0.1 – 24.9
24,142
1,179
118,591
68,151
341,558
208,092
than 1 year. The carrying amounts and effective interest rates of the bank deposits are as follows:
effective interest rate
(per annum)
years to maturity
less than 1 year
2012
2011
2012
2011
%
%
S$’000
S$’000
0.0 – 0.7
0.0 – 0.9
52,318
81,200
MediShield Fund
0.0 – 0.9
0.0 – 0.9
81,184
110,800
Dependants’ Protection Residual Fund
0.4 – 0.7
0.3 – 0.8
44,000
44,500
0.0 – 0.1
0.0 – 0.2
10,436
3,846
MediShield Fund
0.0 – 0.1
0.0 – 0.2
10,444
8,067
denominated in sgd
denominated in Usd
Foreign currency risk
The Home Protection Fund and MediShield Fund are exposed to foreign exchange risk as a result of global
investments. Hedging policies are put in place to mitigate these risks, where necessary. The sensitivity analysis for
possible movements in key currencies with all other variables held constant is detailed in the sensitivity analysis
below. As the Lifelong Income Fund only invests in Singapore dollar denominated special issues of Singapore
Government securities and advance deposits with the Monetary Authority of Singapore and cash, it is not exposed
to any foreign exchange risk. Similarly, as the Dependants’ Protection Residual Fund has only Singapore dollar
denominated cash and deposits, it is not exposed to foreign exchange risk.
The following table presents the Home Protection Fund’s and MediShield Fund’s major currency exposures as of
medishield Fund
2012
2011
2012
2011
S$’000
S$’000
S$’000
S$’000
–
–
121,980
40,551
Brazilian Real
76,415
34,249
85,738
44,339
Mexican Peso
67,765
36,560
62,943
36,690
Korean Won
24,011
13,650
–
–
USD
equity price risk
The Home Protection Fund and MediShield Fund are exposed to equity securities price risk because of the
are affected by, amongst others, changes in market prices as a result of changes in the global economic conditions,
to the investee corporations.
investments in equity securities, the Home Protection Fund and MediShield Fund diversify their portfolios across
different markets and industries whenever it is appropriate.
The Dependants’ Protection Residual Fund and Lifelong Income Fund are not exposed to equity securities price risk.
There is no impact on the net assets of the Lifelong Income Fund as any changes resulting from movements in interest
rates will result in a corresponding change in the insurance contract liabilities, so that total assets equal total liabilities.
sensitivity analysis
The analysis below is presented for possible movements in key variables with all other variables remaining constant.
2012
2011
S$’000
S$’000
Change in variables:
Equity prices
+10%
-10%
Foreign currency
+5%
Brazilian Real
Mexican Peso
Korean Won
USD
-5%
Brazilian Real
Mexican Peso
Korean Won
USD
Interest rate
+50 bps
-50 bps
medishield Fund
2012
2011
S$’000
S$’000
18,954
(18,954)
15,760
(15,760)
57,423
(57,423)
44,319
(44,319)
3,820
3,388
1,201
–
1,712
1,828
683
–
4,287
3,147
–
6,099
2,217
1,834
–
2,028
(3,820)
(3,388)
(1,201)
–
(1,712)
(1,828)
(683)
–
(4,287)
(3,147)
–
(6,099)
(2,217)
(1,834)
–
(2,028)
(50,836)
50,836
(45,995)
45,995
(31,697)
31,697
(27,714)
27,714
Concentration risk
An analysis of the concentration of the Home Protection Fund’s and MediShield Fund’s investments:
percentage of
investments
2012
2011
%
%
2012
S$’000
2011
S$’000
debt securities
Singapore
United States
Brazil
United Kingdom
Germany
Others
735,432
175,625
83,447
53,581
54,764
405,732
895,441
177,797
50,483
46,314
45,531
202,225
43
10
5
3
3
24
57
11
3
3
3
13
equity securities
Singapore
United States
United Kingdom
Japan
Canada
Others
57,973
71,540
12,244
11,083
6,021
30,674
46,976
58,946
10,786
10,040
5,637
25,217
3
4
1
1
0
2
3
4
1
1
0
1
(299,318)
(50,630)
349,592
892
266
259
(17)
(3)
21
0
0
0
debt securities
Singapore
United States
Brazil
Germany
Mexico
Others
468,136
159,352
85,716
52,110
58,170
326,496
561,515
142,409
46,148
43,807
28,363
194,155
27
9
5
3
3
19
38
10
3
3
2
13
equity securities
Singapore
United States
United Kingdom
Japan
China
Others
133,886
172,593
30,952
26,836
–
209,960
99,553
159,094
26,006
23,007
14,351
121,177
8
10
2
2
–
12
7
11
2
2
1
8
derivatives
Japan
European Union
Others
(57,734)
(167,355)
224,168
131
109
(399)
(3)
(10)
13
0
0
0
derivatives
United States
Japan
Others
medishield Fund
The Lifelong Income Fund’s investments are concentrated in special issues of Singapore Government securities,
Credit risk
The Home Protection Fund and MediShield Fund are exposed to credit risk through (i) investments in cash and
debt securities and (ii) exposure to counterparty’s credit in derivatives transactions. For the two types of exposures,
rating. The Lifelong Income Fund has minimal credit risk in respect of investments in special issues of Singapore
Government securities and advance deposits with the Monetary Authority of Singapore.
Financial assets that are neither past due nor impaired
Other than the Lifelong Income Fund, the Insurance and other receivables that are neither past due nor impaired
Scheme and MediShield Scheme. Cash and cash equivalents, investment securities and derivatives that are neither
credit ratings and no history of default. No impairment has been provided for the insurance and other receivables.
These balances are not past due and usually settled within a year.
The Board manages credit risk actively through the setting of minimum credit rating requirements and investment
limits for issuers and counterparties within the approved investment guidelines. These limits are reviewed as and
when necessary. Ongoing monitoring and reporting are undertaken at various levels to ensure that all investment
activities are in accordance with the investment guidelines.
The Home Protection Fund’s and MediShield Fund’s exposure to credit risk relating to their debts securities and
2012
Other Government bonds
Government Mortgage Backed securities
Corporate bonds
Total
2011
Corporate bonds
Total
aaa*
S$
million
aa*
S$
million
a*
S$
million
bbb*
S$
million
not
rated**
S$
million
total
S$
million
489.4
–
312.4
9.0
37.7
0.1
–
848.6
–
–
55.4
–
31.2
0.2
–
86.8
–
–
138.7
–
53.8
0.5
–
193.0
–
–
156.8
–
5.8
–
–
162.6
–
184.1
30.5
–
3.0
–
(0.4)
217.2
489.4
184.1
693.8
9.0
131.5
0.8
(0.4)
1,508.2
558.2
–
306.9
4.5
56.8
0.9
–
927.3
–
–
30.2
–
53.4
–
–
83.6
–
–
66.4
–
35.3
–
–
101.7
–
–
53.3
–
0.9
–
–
54.2
44.2
187.4
4.7
–
7.7
7.0
1.4
252.4
602.4
187.4
461.5
4.5
154.1
7.9
1.4
1,419.2
aaa*
S$
million
aa*
S$
million
a*
S$
million
bbb*
S$
million
not
rated**
S$
million
total
S$
million
medishield Fund
2012
Corporate bonds
Total
286.8
–
–
–
–
286.8
–
–
–
–
140.8
140.8
312.0
40.5
118.7
128.4
30.7
630.3
4.4
–
–
–
–
4.4
12.1
33.8
33.4
2.7
4.8
86.8
0.4
0.2
0.3
–
–
0.9
–
–
–
–
(0.9)
(0.9)
615.7
74.5
152.4
131.1
175.4
1,149.1
2011
Corporate bonds
Total
*
**
395.6
–
–
–
–
395.6
–
–
–
–
116.3
116.3
259.0
28.5
69.6
49.1
5.7
411.9
0.6
–
–
–
–
0.6
26.9
32.5
15.5
–
9.1
84.0
1.0
–
–
–
7.0
8.0
–
–
–
–
(0.2)
(0.2)
683.1
61.0
85.1
49.1
137.9
1,016.2
Based on public ratings assigned by external rating agencies including S&P, Moody’s or Fitch.
Based on internal ratings of fund managers that are equivalent to S&P rating of “AAA to AA–”.
liquidity risk
In the management of liquidity risk of the Insurance Funds, the Board seeks to ensure that even under adverse
conditions, the Insurance Funds have access to the funds necessary to cover for claims and surrenders. The Board
of the Insurance Funds can be readily sold or redeemed when the need arises.
maturities. For liabilities arising from insurance contracts, the disclosure is the estimated timing of net cash
not later
than one year
S$’000
later than
one year and
not later than
later than
S$’000
S$’000
total
S$’000
2012
Claims intimated or admitted but not paid
Total
99,298
19,004
24,440
142,742
188,116
–
–
188,116
324,854
–
–
324,854
612,268
19,004
24,440
655,712
2011
Total
83,581
21,709
16,263
121,553
194,950
–
–
194,950
471,565
–
–
471,565
750,096
21,709
16,263
788,068
medishield Fund
2012
Total
101,337
5,784
29,963
137,084
550,028
–
–
550,028
682,154
–
–
682,154
1,333,519
5,784
29,963
1,369,266
2011
Total
72,669
5,807
16,626
95,102
491,289
–
–
491,289
615,593
–
–
615,593
1,179,551
5,807
16,626
1,201,984
2012
Total
100
1,022
66
1,188
400
–
–
400
500
–
–
500
1,000
1,022
66
2,088
2011
Total
100
1,088
309
1,497
400
–
–
400
500
–
–
500
1,000
1,088
309
2,397
2012
Total
77,189
453
77,642
426,099
–
426,099
2,847,034
–
2,847,034
3,350,322
453
3,350,775
2011
Total
66,123
355
66,478
396,894
–
396,894
2,564,434
–
2,564,434
3,027,451
355
3,027,806
In the management of liquidity risk for the Lifelong Income Fund, there is a level of cash maintained deemed
using valuation techniques.
The Home Protection Fund and MediShield Fund use widely recognised valuation models for determining the
that use only observable data and require little management judgment and estimation. Observable prices and
model inputs are usually available in the market for listed debt and equity securities. Availability of observable
market prices and model inputs reduces the need for management judgment and estimation and also reduces the
uncertainty associated with determination of fair values.
that otherwise could not be corroborated to market observable data. The Board applied various due-diligence
procedures, as considered appropriate, to validate these non-binding broker quotes for reasonableness, including
comparing the fair value calculated by the custodian and investment manager.
2012
Debt securities
Equity securities
Interest rate futures contracts
Interest-rate swaps
Credit default swaps
2011
Debt securities
Equity securities
Interest-rate swaps
level 1
S$’000
level 2
S$’000
level 3
S$’000
total
S$’000
1,005,977
189,535
(100)
(726)
–
–
–
–
1,194,686
464,273
–
–
–
999
66
–
(169)
465,169
38,331
–
–
–
–
–
(426)
–
37,905
1,508,581
189,535
(100)
(726)
999
66
(426)
(169)
1,697,760
1,097,565
157,602
871
80
–
–
–
1,256,118
300,236
–
–
–
191
–
–
300,427
19,990
–
–
–
–
275
–
20,265
1,417,791
157,602
871
80
191
275
–
1,576,810
level 1
S$’000
medishield Fund
2012
Debt securities
Equity securities
Interest-rate swaps
2011
Debt securities
Equity securities
Interest-rate swaps
level 2
S$’000
level 3
S$’000
total
S$’000
623,640
574,227
(140)
(1,206)
–
–
–
–
1,196,521
506,072
–
–
–
781
89
–
(221)
506,721
20,268
–
–
–
–
–
(224)
–
20,044
1,149,980
574,227
(140)
(1,206)
781
89
(224)
(221)
1,723,286
725,181
443,188
273
(659)
–
–
–
1,167,983
283,049
–
–
–
238
–
–
283,287
8,167
–
–
–
–
(11)
–
8,156
1,016,397
443,188
273
(659)
238
(11)
–
1,459,426
The following table shows a reconciliation from the beginning balances to the ending balances for fair value
measurements in Level 3 of the fair value hierarchy.
At 1 January 2011
Gains or losses included in changes in fund balances for the
period presented in net investment gains
Purchases
Sales
Settlements
Transfers into Level 3
Transfers out of Level 3
At 31 December 2011
Purchases
Sales
Settlements
At 31 December 2012
debt
securities
S$’000
Credit
default
swaps
S$’000
115,188
(121)
115,067
2,273
13,762
(111,233)
–
–
–
220
252
(76)
–
–
–
2,493
14,014
(111,309)
–
–
–
19,990
275
20,265
7
29,164
(10,830)
–
–
–
38,331
928
(1,332)
–
–
–
(297)
(426)
935
27,832
(10,830)
–
–
(297)
37,905
total
S$’000
debt
securities
S$’000
medishield Fund
At 1 January 2011
Purchases
Sales
Settlements
At 31 December 2011
Purchases
Sales
Settlements
At 31 December 2012
Credit
default
swaps
S$’000
total
S$’000
27,126
(46)
27,080
(274)
7,209
(25,894)
–
–
–
8,167
20
28
(13)
–
–
–
(11)
(254)
7,237
(25,907)
–
–
–
8,156
13
16,097
(4,009)
–
–
–
20,268
487
(700)
–
–
–
–
(224)
500
15,397
(4,009)
–
–
–
20,044
Although the Board believes that its estimates of fair value are appropriate, the use of different methodologies
or assumptions could lead to different measurements of fair value. The favourable and unfavourable effects of
using reasonably possible alternative assumptions which include default rates have been calculated by adjusting
the interest rate assumptions within a range of possible alternatives. For fair value measurements in the Level 3
category, changing the assumptions used to reasonably possible alternative assumptions would have the following
effects:
debt
securities
S$’000
impact on net assets of:
2012
+100bps
-100bps
Credit
default
swaps
S$’000
(1,587)
1,587
–
–
medishield Fund
+100bps
-100bps
(720)
720
–
–
2011
+100bps
-100bps
(554)
554
–
–
medishield Fund
+100bps
-100bps
(125)
125
–
–
equivalents, insurance and other receivables, sundry creditors and other payables are assumed to approximate
their fair values due to the short period to maturity.
Fair value
through
liabilities
total
carrying
amount
Fair value
S$’000
S$’000
S$’000
other
loss
loans and
receivables
S$’000
S$’000
31 december 2012
Investments
- debt securities
- equity securities
- derivatives
1,508,581
–
–
1,508,581
1,508,581
189,535
–
–
189,535
189,535
(356)
–
–
(356)
(356)
–
39,837
–
39,837
39,837
Accrued interest receivables
–
7,403
–
7,403
7,403
–
87,348
–
87,348
87,348
1,697,760
134,588
–
1,832,348
1,832,348
–
–
(24,440)
(24,440)
(24,440)
31 december 2011
Investments
- debt securities
- equity securities
- derivatives
1,417,791
–
–
1,417,791
1,417,791
157,602
–
–
157,602
157,602
1,417
–
–
1,417
1,417
–
52,680
–
52,680
52,680
–
10,936
–
10,936
10,936
–
89,462
–
89,462
89,462
1,576,810
153,078
–
1,729,888
1,729,888
–
–
(16,263)
(16,263)
(16,263)
Fair value
through
liabilities
S$’000
total
carrying
amount
S$’000
Fair value
S$’000
–
–
–
24,354
5,563
123,347
153,264
–
–
–
–
–
–
–
–
(29,963)
1,149,980
574,227
(921)
24,354
5,563
123,347
1,876,550
(29,963)
1,149,980
574,227
(921)
24,354
5,563
123,347
1,876,550
(29,963)
–
–
–
46,013
7,945
124,723
178,681
–
–
–
–
–
–
–
–
(16,626)
1,016,397
443,188
(159)
46,013
7,945
124,723
1,638,107
(16,626)
1,016,397
443,188
(159)
46,013
7,945
124,723
1,638,107
(16,626)
other
total
carrying
amount
S$’000
Fair value
S$’000
other
loss
S$’000
loans and
receivables
S$’000
1,149,980
574,227
(921)
–
–
–
1,723,286
–
1,016,397
443,188
(159)
–
–
–
1,459,426
–
medishield Fund
31 december 2012
Investments
- debt securities
- equity securities
- derivatives
31 december 2011
Investments
- debt securities
- equity securities
- derivatives
loans and
receivables
S$’000
liabilities
S$’000
31 december 2012
31 december 2011
–
44
45,931
45,975
–
–
–
–
–
(66)
–
44
45,931
45,975
(66)
–
44
45,931
45,975
(66)
8
29
46,523
46,560
–
–
–
–
–
(309)
8
29
46,523
46,560
(309)
8
29
46,523
46,560
(309)
The carrying amounts of special issues of Singapore Government securities and advance deposits in the Lifelong
Income Fund approximate their fair values due to the investment arrangement with the Singapore Government
carried at fair value in the statements of net assets at 31 December are represented in the following table:
other
Held-tomaturity
S$’000
loans and
receivables
S$’000
liabilities
S$’000
total
carrying
amount
S$’000
Fair value
S$’000
31 december 2012
Investments
- special issues of
- advance deposits
31 december 2011
Investments
- special issues of
- advance deposits
23.
3,308,335
2,037
–
–
3,310,372
–
–
–
40,353
50
40,403
–
–
–
–
–
–
(453)
3,308,335
2,037
40,353
50
3,350,775
(453)
3,308,335
2,037
40,353
50
3,350,775
(453)
2,989,523
–
–
2,989,523
2,989,523
2,861
–
–
2,992,384
–
–
35,372
50
35,422
–
–
–
–
–
(355)
2,861
35,372
50
3,027,806
(355)
2,861
35,372
50
3,027,806
(355)
net assets of trust funds
Deferment Bonus Fund
CPF LIFE Bonus Fund
Trust Fund for the Special Employment Credit Scheme
Trust Fund for the Workfare Special Bonus Scheme
Other Trust Funds
note
2012
S$’000
2011
S$’000
23.1
23.2
23.3
23.4
23.5
866,708
630,255
2,190,558
140,110
72,369
3,900,000
915,191
625,682
–
–
101,346
1,642,219
only transactions handled by the Board.
23.1
deferment bonus Fund
The Deferment and (Voluntary) Deferment Bonus Fund (“DV Bonus Fund”) was set up in 2008 and was constituted
under a Trust Deed for the purpose of a scheme which provides for bonus payouts to help CPF members cope
with the later drawdown age for the minimum sum and to encourage CPF members to voluntarily defer their
drawdown age.
The Board was appointed as the trustee of the DV Bonus Fund, with effect from 29 June 2011, by the Government
under the Deferment Bonus Fund Trust Deed and relevant Supplementary Deed.
The DV Bonus Fund receives funds from the Government and interest income on advance deposits placed with
the Accountant–General through the Monetary Authority of Singapore as well as making payment of Deferment
Bonus and (Voluntary) Deferment Bonus to eligible CPF members and operating expenditure incurred for the
administering of the DV Bonus Fund.
The trust period of the DV Bonus Fund ends on 31 January 2024. At the expiration of the trust period, all remaining
assets of the fund shall be returned to the Government pursuant to the Deferment Bonus Fund Trust Deed.
note
Fund balance
2012
2011
S$’000
S$’000
866,708
915,191
866,696
915,174
12
17
866,708
915,191
Represented by:
Advance deposits with Monetary Authority of Singapore
Funds held by the CPF Board
net assets
23
note
receipts
Interest income from advance deposits
disbursements
Payment of Deferment Bonus and Voluntary Deferment Bonus
to members
Agency fee paid to CPF Board
Professional fees
net disbursement during the period
Deferment Bonus Fund as at 1 January 2012 and 29 June 2011
deferment bonus Fund as at 31 december
23.2
23
2012
S$’000
period from
29/6/2011
to
31/12/2011
S$’000
23,106
9,724
(70,991)
(559)
(39)
(71,589)
(34,517)
(346)
(30)
(34,893)
(48,483)
915,191
866,708
(25,169)
940,360
915,191
CpF liFe bonus Fund
The CPF LIFE Bonus Fund (“LIFE Bonus Fund”) was set up in 2009 and was constituted under a Trust Deed for the
purpose of helping eligible senior Singaporean citizens participate in Lifelong Income Scheme by providing a
bonus, paid into their CPF Retirement Accounts and/or as premiums for their CPF LIFE Annuity Plans.
The Board was appointed as the trustee of the LIFE Bonus Fund, with effect from 29 June 2011, by the Government
under the CPF LIFE Bonus Fund Trust Deed and relevant Supplementary Deed.
The LIFE Bonus Fund receives funds from the Government and interest income on advance deposits placed with
the Accountant–General through the Monetary Authority of Singapore as well as making payment of CPF LIFE
Bonus to eligible CPF members and operating expenditure incurred for the administering of LIFE Bonus Fund.
The trust period of the LIFE Bonus Fund ends on 1 May 2020. At the expiration of the trust period, all remaining
assets of the fund shall be returned to the Government pursuant to the CPF LIFE Bonus Fund Trust Deed.
note
Fund balance
2012
2011
S$’000
S$’000
630,255
625,682
630,255
625,682
630,255
625,682
Represented by:
net assets
23
note
2012
period from
29/6/2011
to
31/12/2011
S$’000
S$’000
receipts
15,767
6,597
(10,492)
(7,527)
(675)
(995)
(25)
(27)
disbursements
Payment of CPF LIFE Bonus to members
Professional fees
Interest expense
net receipt / (disbursement) during the period
CPF LIFE Bonus Fund as at 1 January 2012 and 29 June 2011
CpF liFe bonus Fund as at 31 december
23.3
23
(2)
(2)
(11,194)
(8,551)
4,573
(1,954)
625,682
627,636
630,255
625,682
trust Fund for the special employment Credit scheme
The Trust Fund for the Special Employment Credit Scheme (“SEC Trust Fund”) was set up in 2012 and was constituted
hire older Singaporean workers and to boost the employability of these older Singaporean workers.
The Board was appointed as the trustee of the SEC Trust Fund, with effect from 8 March 2012, by the Government
under the Trust Deed to Trust Fund for the Special Employment Credit Scheme and relevant Supplementary Deed.
The SEC Trust Fund receives funds from the Government and interest income on advance deposits placed with
the Accountant–General through the Monetary Authority of Singapore as well as making payment of Special
administration of the SEC Trust Fund.
The trust period of the SEC Trust Fund ends on 31 August 2018. At the expiration of the trust period, all remaining
assets of the fund shall be returned to the Government pursuant to the Trust Deed to Trust Fund for the Special
Employment Credit Scheme.
note
2012
S$’000
Fund balance
2,190,558
Represented by:
2,190,186
net assets
372
23
note
2,190,558
period from
8/3/2012 to
31/12/2012
S$’000
receipts
Funds from Government
2,421,909
124
2,422,033
disbursements
Special Employment Credit disbursed
(230,365)
(1,110)
(231,475)
net receipt during the period
2,190,558
Trust Fund for the Special Employment Credit Scheme as at 8 March 2012
trust Fund for the special employment Credit scheme as at 31 december
23.4
–
23
2,190,558
trust Fund for the workfare special bonus scheme
The Trust Fund for the Workfare Special Bonus Scheme (“WSB Trust Fund”) was set up in 2012 and was constituted
residing in Lower Value Properties as a bonus for engaging in regular and productive work.
The Board was appointed as the trustee of the WSB Trust Fund, with effect from 13 March 2012, by the Government
under the Trust Deed to Trust Fund for the Workfare Special Bonus Scheme.
The WSB Trust Fund receives funds from the Government and interest income on advance deposits placed with the
Accountant–General through the Monetary Authority of Singapore as well as making payment of Workfare Special
WSB Trust Fund.
The trust period of the WSB Trust Fund ends on 30 June 2017. At the expiration of the trust period, all remaining
assets of the fund shall be returned to the Government pursuant to the Trust Deed to Trust Fund for the Workfare
Special Bonus Scheme.
note
2012
S$’000
Fund balance
140,110
Represented by:
140,107
3
net assets
23
note
140,110
period from
13/3/2012
to
31/12/2012
S$’000
receipts
Funds from Government
245,551
375
245,926
disbursements
Workfare Special Bonus disbursed
(104,367)
(1,449)
(105,816)
net receipt during the period
140,110
Trust Fund for the Workfare Special Bonus Scheme as at 13 March 2012
–
trust Fund for the workfare special bonus scheme as at 31 december
23
140,110
23.5
other trust Funds
Other Trust Funds are set up to account for funds received from the Government for which the Board acts as
an administrator and are held in trust by the Board for the Ministry of Manpower, Ministry of Finance and other
note
Fund balance
Represented by:
Cash at bank held in trust by CPF Board
net assets
101,346
10
72,369
101,346
23
72,369
101,346
1,025,235
32
1,025,267
566,652
43
566,695
(1,054,244)
(553,371)
(28,977)
101,346
72,369
13,324
88,022
101,346
disbursements
Disbursement to members of public
24.
2011
S$’000
72,369
receipts
Funds received from ministries
Interest income
net (disbursement) / receipt during the year
Other Trust Funds as at 1 January
other trust Funds as at 31 december
2012
S$’000
23
related party transactions
The Board is a statutory board established under the CPF Act (Cap. 36, 2001 Revised Edition). As a statutory
board, Government ministries including statutory boards under their purview and Government-related entities are
deemed related parties to the Board.
key management compensation
Key management personnel of the Board are those persons having the authority and responsibility for planning,
directing and controlling the activities of the fund. The members and core management of the Board are considered
to be key management personnel.
Key management personnel compensation comprised:
other related party transactions
on terms agreed between the parties involved are as follows:
2012
2011
S$’000
S$’000
5,707
5,450
218
166
Expenses incurred for services rendered
Statutory boards
2012
S$’000
2011
S$’000
7,156
3,357
agency fees income
The Board handles agency work on behalf of the various ministries. These agency income are included as part of
agency, consultancy and data processing fees disclosed in Note 15.
2012
S$’000
2011
S$’000
29,403
16,391
2,872
23,343
13,441
2,568
2012
S$’000
2011
S$’000
Sales
Purchases
272,169
149,435
174,399
547,288
medishield Fund
Sales
Purchases
196,628
114,047
255,464
371,703
Ministries
Insurance Funds
Trust Funds
insurance Funds
Trading of debt securities issued by statutory boards
25.
Public Accountants.
26.
events occurring after the reporting period
December 2013.
Sale of investment property
Central Provident Fund Board has entered into Sale and Purchase Agreement on 13 December 2012 to sell its
investment property at 79 Anson Road Singapore 079906 for a consideration of approximately $181 million. The
value (equivalent to the consideration of the sale) as at 31 December 2012. There is no gain or loss recognised as
at the completion of the sale.
January 2013. The revised premiums have been based on independent external consultant advice to the Ministry of
Board on 4 April 2013.
annexes
annex a
rates oF CpF ContribUtions, 1955 – 2012
starting
Jul 1955
Sep 1968
Jan 1970
Jan 1971
Jul 1972
Jul 1973
Jul 1974
Jul 1975
Jul 1977
Jul 1978
Jul 1979
Jul 1980
Jul 1981
Jul 1982
Jul 1983
Nov 1983
Apr 1984
Jul 1984
Jul 1985
Apr 1986
Jul 1988
Jul 1989
Jul 1990
Jul 1991
Jul 1992
Jul 1993
age oF employee
55 years & below
Above 55 - 60 years
Above 60 - 65 years
Above 65 years
55 years & below
Above 55 - 60 years
Above 60 - 65 years
Above 65 years
55 years & below
Above 55 - 60 years
Above 60 - 65 years
Above 65 years
55 years & below
Above 55 - 60 years
Above 60 - 65 years
Above 65 years
35 years & below
Above 35 - 55 years
Above 55 - 60 years
Above 60 - 65 years
Above 65 years
35 years & below
Above 35 - 45 years
Above 45 - 55 years
Above 55 - 60 years
Above 60 - 65 years
Above 65 years
1 · ANNEXES
ContribUtion
Credited into
rate
(% of wage)
(% of wage)
by
by
ordinary speCial medisave
employer employee aCCoUnt aCCoUnt aCCoUnt
5
5
6.5
6.5
8
8
10
10
14
10
15
11
15
15
15
15
15.5
15.5
30
1
16.5
16.5
30
3
20.5
16.5
30
7
20.5
18
32
6.5
20.5
22
38.5
4
22
23
40
5
23
23
40
6
23
23
40
6
23
23
40
6
25
25
40
4
6
25
25
40
4
6
10
25
29
6
12
24
30
6
11
20
25
6
9
19
22
6
8
18
20
6
15
23
30
2
6
12
16
22
6
8
13
15
6
6
11
11
6
16.5
23
30
3.5
6
12.5
12.5
19
6
7.5
7.5
9
6
5
5
4
6
17.5
22.5
30
4
6
12.5
12.5
19
6
7.5
7.5
9
6
5
5
4
6
18
22
30
4
6
18
22
29
4
7
12.5
12.5
18
7
7.5
7.5
8
7
5
5
3
7
18.5
21.5
30
4
6
18.5
21.5
29
4
7
18.5
21.5
28
4
8
7.5
12.5
12
8
7.5
7.5
7
8
5
5
2
8
total
(% of
wage)
10
13
16
20
24
26
30
30
31
33
37
38.5
42.5
45
46
46
46
50
50
35
36
31
28
26
38
28
21
17
39.5
25
15
10
40
25
15
10
40
40
25
15
10
40
40
40
20
15
10
ordinary
wage
Ceiling
($)
500
2,307.69
1,875
1,500
2,000
3,000
4,000
5,000
6,000
6,000
6,000
6,000
6,000
6,000
6,000
starting
Jul 1994
Jan 1999
Apr 2000
Jan 2001
Oct 2002
Oct 2003
Jan 2004
Jan 2005
Jan 2006
age oF employee
35 years & below
Above 35 - 45 years
Above 45 - 55 years
Above 55 - 60 years
Above 60 - 65 years
Above 65 years
35 years & below
Above 35 - 45 years
Above 45 - 55 years
Above 55 - 60 years
Above 60 - 65 years
Above 65 years
35 years & below
Above 35 - 45 years
Above 45 - 55 years
Above 55 - 60 years
Above 60 - 65 years
Above 65 years
35 years & below
Above 35 - 45 years
Above 45 - 55 years
Above 55 - 60 years
Above 60 - 65 years
Above 65 years
35 years & below
Above 35 - 45 years
Above 45 - 55 years
Above 55 - 60 years
Above 60 - 65 years
Above 65 years
35 years & below
Above 35 - 45 years
Above 45 - 55 years
Above 55 - 60 years
Above 60 - 65 years
Above 65 years
35 years & below
Above 35 - 45 years
Above 45 - 55 years
Above 55 - 60 years
Above 60 - 65 years
Above 65 years
35 years & below
Above 35 - 45 years
Above 45 - 50 years
Above 50 - 55 years
Above 55 - 60 years
Above 60 - 65 years
Above 65 years
35 years & below
Above 35 - 45 years
Above 45 - 50 years
Above 50 - 55 years
Above 55 - 60 years
Above 60 - 65 years
Above 65 years
ContribUtion
Credited into
rate
(% of wage)
(% of wage)
by
by
20
20
30
4
6
20
20
29
4
7
20
20
28
4
8
7.5
12.5
12
8
7.5
7.5
7
8
5
5
2
8
10
20
24
6
10
20
23
7
10
20
22
8
4
12.5
8.5
8
2
7.5
1.5
8
2
5
7
12
20
24
2
6
12
20
23
2
7
12
20
22
2
8
4.5
12.5
9
8
2.5
7.5
2
8
2.5
5
7.5
16
20
26
4
6
16
20
23
6
7
16
20
22
6
8
6
12.5
10.5
8
3.5
7.5
2.5
8.5
3.5
5
8.5
16
20
26
4
6
16
20
23
6
7
16
20
22
6
8
6
12.5
10.5
8
3.5
7.5
2.5
8.5
3.5
5
8.5
13
20
22
5
6
13
20
20
6
7
13
20
18
7
8
6
12.5
10.5
8
3.5
7.5
2.5
8.5
3.5
5
8.5
13
20
22
5
6
13
20
20
6
7
13
20
18
7
8
6
12.5
10.5
8
3.5
7.5
2.5
8.5
3.5
5
8.5
13
20
22
5
6
13
20
20
6
7
13
20
18
7
8
11
19
15
7
8
6
12.5
10.5
8
3.5
7.5
2.5
8.5
3.5
5
8.5
13
20
22
5
6
13
20
20
6
7
13
20
18
7
8
9
18
12
7
8
6
12.5
10.5
8
3.5
7.5
2.5
8.5
3.5
5
8.5
total
(% of
wage)
40
40
40
20
15
10
30
30
30
16.5
9.5
7
32
32
32
17
10
7.5
36
36
36
18.5
11
8.5
36
36
36
18.5
11
8.5
33
33
33
18.5
11
8.5
33
33
33
18.5
11
8.5
33
33
33
30
18.5
11
8.5
33
33
33
27
18.5
11
8.5
ordinary
wage
Ceiling
($)
6,000
6,000
6,000
6,000
6,000
6,000
5,500
5,000
4,500
ANNEXES · 2
starting
age oF employee
35 years & below
Above 35 - 45 years
Above 45 - 50 years
Jul 2007
Above 50 - 55 years
Above 55 - 60 years
Above 60 - 65 years
Above 65 years
35 years & below
Above 35 - 45 years
Above 45 - 50 years
Sep 2010 Above 50 - 55 years
Above 55 - 60 years
Above 60 - 65 years
Above 65 years
35 years & below
Above 35 - 45 years
Above 45 - 50 years
Mar 2011 Above 50 - 55 years
Above 55 - 60 years
Above 60 - 65 years
Above 65 years
35 years & below
Above 35 - 45 years
Above 45 - 50 years
Sep 2011 Above 50 - 55 years
Above 55 - 60 years
Above 60 - 65 years
Above 65 years
35 years & below
Above 35 - 45 years
Above 45 - 50 years
Sep 2012* Above 50 - 55 years
Above 55 - 60 years
Above 60 - 65 years
Above 65 years
ContribUtion
Credited into
rate
(% of wage)
(% of wage)
by
by
14.5
20
23
5
6.5
14.5
20
21
6
7.5
14.5
20
19
7
8.5
10.5
18
13
7
8.5
7.5
12.5
11.5
8.5
5
7.5
3.5
9
5
5
1
9
15
20
23
5
7
15
20
21
6
8
15
20
19
7
9
11
18
13
7
9
8
12.5
11.5
9
5.5
7.5
3.5
9.5
5.5
5
1
9.5
15.5
20
23
5.5
7
15.5
20
21
6.5
8
15.5
20
19
7.5
9
11.5
18
13
7.5
9
8.5
12.5
11.5
0.5
9
6
7.5
3.5
0.5
9.5
6
5
1
0.5
9.5
16
20
23
6
7
16
20
21
7
8
16
20
19
8
9
12
18
13
8
9
9
12.5
11.5
1
9
6.5
7.5
3.5
1
9.5
6.5
5
1
1
9.5
16
20
23
6
7
16
20
21
7
8
16
20
19
8
9
14
18.5
13.5
9.5
9.5
10.5
13
12
2
9.5
7
7.5
3.5
1.5
9.5
6.5
5
1
1
9.5
total
(% of
wage)
34.5
34.5
34.5
28.5
20
12.5
10
35
35
35
29
20.5
13
10.5
35.5
35.5
35.5
29.5
21
13.5
11
36
36
36
30
21.5
14
11.5
36
36
36
32.5
23.5
14.5
11.5
* Contribution and allocation rates for employees with monthly wages exceeding $1,500. For employees with
monthly wages not exceeding $1,500, please refer to Annex D.
3 · ANNEXES
ordinary
wage
Ceiling
($)
4,500
4,500
4,500
5,000
5,000
annex b
CpF interest rates, 2003 – 2012
CpF interest rate per annUm (%)
year
ordinary
aCCoUnt
medisave
aCCoUnt
speCial
aCCoUnt
retirement
aCCoUnt
Jan – Dec 2003
2.50
4.00
4.00
4.00
Jan – Dec 2004
2.50
4.00
4.00
4.00
Jan – Dec 2005
2.50
4.00
4.00
4.00
Jan – Dec 2006
2.50
4.00
4.00
4.00
Jan – Dec 2007
2.50
4.00
4.00
4.00
Jan – Dec 2008
2.50
4.00
4.00
4.00
Jan – Dec 2009
2.50
4.00
4.00
4.00
Jan – Dec 2010
2.50
4.00
4.00
4.00
Jan – Dec 2011
2.50
4.00
4.00
4.00
Jan – Dec 2012
2.50
4.00
4.00
4.00
annex C
membersHip, ContribUtions & members’ balanCes, 2003 - 2012
year end
nUmber oF members
(‘000)
total ContribUtion
($’000)
total balanCes
($’000)
2003
2,978
15,869,972
103,539,568
2004
3,018
15,320,105
111,873,821
2005
3,049
16,105,105
119,787,538
2006
3,100
16,547,062
125,803,762
2007
3,163
18,185,002
136,586,858
2008
3,234
20,293,636
151,307,064
2009
3,291
20,124,892
166,804,016
2010
3,343
21,992,739
185,887,975
2011
3,376
24,628,413
207,545,500
2012
3,419
26,048,399
230,157,671
ANNEXES · 4
annex d
CpF ContribUtions in respeCt oF private seCtor employees
(From 1 september 2012)
age oF employee
35 years and below
above 35-50
above 50-55
above 55-60
above 60-65
above 65
Total CPF
Employee’s share of
Employee’s
contributions
CPF contributions
total wages for (Employer’s share &
for the calendar
the calendar Employee’s share) for
month
month
the calendar month
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
(10)
(11)
(12)
(13)
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Exceeding
$50 but not
exceeding
$500
16% of the
employee’s total
wages for the month
Nil
0.1063 of the
difference between
the employee’s total
wages for the month
and $50
Nil
0.093
Nil
0.0697
Nil
0.0465
Nil
0.0431
Nil
Exceeding
$500 but not
exceeding
$750
a. 16% of the
employee’s total
wages for the
month; and
a. Nil
c. 0.1063 of the
difference
between the
employee’s total
wages for the
month and $50;
and
c. Nil
0.093
Nil
0.0697
Nil
0.0465
Nil
0.0431
Nil
b. 0.48 of the
difference
between the
employee’s total
wages for the
month and $500
b. 0.48 of the
difference
between the
employee’s total
wages for the
month and $500
d. 0.48 of the
difference
between the
employee’s total
wages for the
month and $500
d. 0.48 of the
difference
between the
employee’s total
wages for the
month and $500
0.444
0.444
0.312
0.312
0.18
0.18
0.12
0.12
a. 16% of the
employee’s total
wages for the
month; and
a. Nil
c. $74.475 and
0.2171 of the
difference
between the
employee’s total
wages for the
month and $750;
and
c. Nil
$65.10
and
0.1756
Nil
$48.825
and
0.1155
Nil
$32.55
and
0.0583
Nil
$30.225
and
0.0541
Nil
b. $120 and 0.24
of the difference
between the
employee’s total
wages for the
month and $750
b. $120 and 0.24 of d. $120 and 0.24
of the difference
the difference
between the
between the
employee’s total
employee’s total
wages for the
wages for the
month and $750
month and $750
d. $120 and 0.24
of the difference
between the
employee’s total
wages for the
month and $750
$111
and
0.222
$111
and
0.222
$78
and
0.156
$78
and
0.156
$45
and
0.09
$45
and
0.09
$30
and
0.06
$30
and
0.06
a. 16% of the
employee’s total
wages for the
month; and
a. Nil
c. $172.20 and 0.226 c. Nil
of the difference
between the
employee’s total
wages for the
month and $1,200;
and
$144.12
and
0.2196
Nil
$100.80
and
0.189
Nil
$58.80
and
0.154
Nil
$54.60
and
0.143
Nil
b. $120 and 0.24
of the difference
between the
employee’s total
wages for the
month and $750
b. $120 and 0.24
of the difference
between the
employee’s total
wages for the
month and $750
d. $120 and 0.24
of the difference
between the
employee’s total
wages for the
month and $750
d. $120 and 0.24
of the difference
between the
employee’s total
wages for the
month and $750
$111
and
0.222
$111
and
0.222
$78
and
0.156
$78
and
0.156
$45
and
0.09
$45
and
0.09
$30
and
0.06
$30
and
0.06
a. 36% of the
employee’s
Ordinary Wages
for the month up
to $1,800; and
a. 20% of the
employee’s
Ordinary Wages
for the month
up to $1,000;
and
c. 36% of the
employee’s
Ordinary Wages
for the month up
to $1,800; and
c. 20% of the
employee’s
Ordinary Wages
for the month
up to $1,000;
and
32.5%
max
$1,625
18.5%
max
$925
23.5%
max
$1,175
13%
max
$650
14.5%
max
$725
7.5%
max
$375
11.5%
max
$575
5%
max
$250
b. 36% of the
Additional Wages
payable to the
employee in the
month
b. 20% of the
Additional
Wages payable
to the employee
in the month
d. 36% of the
Additional Wages
payable to the
employee in the
month
d. 20% of the
Additional
Wages payable
to the employee
in the month
32.5%
18.5%
23.5%
13%
14.5%
7.5%
11.5%
5%
Not
exceeding
$50
Exceeding
$750 but not
exceeding
$1,200
Exceeding
$1,200
but not
exceeding
$1,500
Exceeding
$1,500
5 · ANNEXES
annex e
CpF ContribUtions in respeCt oF government pensionable employees and pensionable employees in
designated statUtory bodies
age oF employee
50 years and below
Employee’s total
wages for the
calendar month
(1)
Exceeding $0.01
above 50-55
Total CPF contributions
(Employer’s share & Employee’s
share) for the calendar month
Employee’s share of CPF
contributions for the calendar
month
(2)
(3)
b. a further 15% of the
employee’s Ordinary
Wages excluding the nonpensionable variable payment
and non-pensionable
component; and
20% of the non-pensionable
variable payment and nonpensionable component
for the month subject to a
maximum of $1,000; and
c. 36% of any Additional Wages
payable
above 60-65
above 65
(4)
(5)
(6)
(7)
(8)
(9)
(10)
(11)
10.5%
Nil
7.875%
Nil
5.25%
Nil
4.875%
Nil
14%
max
$700
Nil
10.5%
max
$525
Nil
7%
max
$350
Nil
6.5%
max
$325
Nil
13.875%
13.875%
9.75%
9.75%
5.625%
5.625%
3.75%
3.75%
maximum of $1,000; and
18.5%
max
$925
18.5%
max
$925
13%
max
$650
13%
max
$650
7.5%
max
$375
7.5%
max
$375
5%
max
$250
5%
max
$250
c. 20% of any Additional Wages
payable
32.5%
18.5%
23.5%
13%
14.5%
7.5%
11.5%
5%
a. 12% of the employee’s
a. Nil
Ordinary Wages excluding
the non-pensionable variable
payment and non-pensionable
component; and
maximum of $800; and
above 55-60
Nil
b. 15% of the employee’s
Ordinary Wages excluding
the non-pensionable variable
payment and non-pensionable
component; and
ANNEXES · 6
annex F
CpF ContribUtions in respeCt oF government non-pensionable employees and non-pensionable
employees in designated statUtory bodies and aided sCHools
age oF employee
35 years and below
above 35-50
above 50-55
above 55-60
above 60-65
above 65
Total CPF
Employee’s share of
Employee’s
contributions
CPF contributions
total wages for (Employer’s share &
for the calendar
the calendar Employee’s share) for
month
month
the calendar month
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
(10)
(11)
(12)
(13)
Not exceeding
$50
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Exceeding
$50 but not
exceeding
$500
16% of the employee’s
total wages for the
month
Nil
Nil
0.093
Nil
0.0697
Nil
0.0465
Nil
0.0431
Nil
Exceeding
$500 but not
exceeding
$750
a. 16% of the
employee’s total
wages for the
month; and
c. 0.1063 of the
c. Nil
difference between
the employee’s
total wages for the
month and $50;
and
0.093
Nil
0.0697
Nil
0.0465
Nil
0.0431
Nil
b. 0.48 of the
b. 0.48 of the
difference between
difference
the employee’s
between the
total wages for the
employee’s total
month and $500
wages for the
month and $500
d. 0.48 of the
d. 0.48 of the
difference between
difference
the employee’s
between the
total wages for the
employee’s total
month and $500
wages for the
month and $500
0.444
0.444
0.312
0.312
0.18
0.18
0.12
0.12
a. 16% of the
employee’s total
wages for the
month; and
a. Nil
c. $74.475 and 0.2171 c. Nil
of the difference
between the
employee’s total
wages for the
month and $750;
and
$65.10
and
0.1756
Nil
$48.825
and
0.1155
Nil
$32.55
and
0.0583
Nil
$30.225
and
0.0541
Nil
b. $120 and 0.24
of the difference
between the
employee’s total
wages for the
month and $750
b. $120 and 0.24
d. $120 and 0.24
of the difference
of the difference
between the
between the
employee’s total
employee’s total
wages for the
wages for the
month and $750
month and $750
$111
and
0.222
$111
and
0.222
$78
and
0.156
$78
and
0.156
$45
and
0.09
$45
and
0.09
$30
and
0.06
$30
and
0.06
$144.12
and
0.2196
Nil
$100.80
and
0.189
Nil
$58.80
and
0.154
Nil
$54.60
and
0.143
Nil
$111
and
0.222
$111
and
0.222
$78
and
0.156
$78
and
0.156
$45
and
0.09
$45
and
0.09
$30
and
0.06
$30
and
0.06
36% of the
a. 20% of the
c. 36% of the
c. 20% of the
32.5%
employee’s
employee’s
employee’s
employee’s
max
Ordinary Wages for
Ordinary Wages
Ordinary Wages for
Ordinary Wages
$1,625
the month up to
for the month up
the month up to
for the month up
$1,800; and
to $1,000; and
$1,800; and
to $1,000; and
18.5%
max
$925
23.5%
max
$1,175
13%
max
$650
14.5%
max
$725
7.5%
max
$375
11.5%
max
$575
5%
max
$250
36% of the
Additional Wages
payable to the
employee in the
month
18.5%
23.5%
13%
14.5%
7.5%
11.5%
5%
Exceeding
$750 but not
exceeding
$1,200
Exceeding
a. 16% of the
$1,200 but
employee’s total
not exceeding
wages for the
$1,500
month; and
b. $120 and 0.24
of the difference
between the
employee’s total
wages for the
month and $750
Exceeding
$1,500
7 · ANNEXES
a. Nil
0.1063 of the
difference between
the employee’s total
wages for the month
and $50
d. $120 and 0.24
of the difference
between the
employee’s total
wages for the
month and $750
a. Nil
c. $172.20 and 0.226 c. Nil
of the difference
between the
employee’s total
wages for the
month and $1,200;
and
b. $120 and 0.24
of the difference
between the
employee’s total
wages for the
month and $750
d. $120 and 0.24
of the difference
between the
employee’s total
wages for the
month and $750
b. 20% of the
d. 36% of the
Additional Wages
Additional Wages
payable to the
payable to the
employee in the
employee in the
month
month
d. $120 and 0.24
of the difference
between the
employee’s total
wages for the
month and $750
d. 20% of the
32.5%
Additional Wages
payable to the
employee in the
month
annex g
witHdrawals Under seCtion 15 and seCtion 25 oF tHe CpF aCt – 2012
groUnd For witHdrawal
nUmber
amoUnt ($m)
245,645
2,048.2
4,865
362.5
811
33.1
25
1.4
Death
18,472
487.9
Malaysian Citizen
10,173
179.0
279,991
3,112.1
55 Years and Above
Leaving Singapore and West Malaysia
Permanent Incapacity
Unsound Mind
total
annex H
distribUtion oF CpF members’ balanCes by age groUp and sex as at 31 deCember 2012
male
age
groUps
(years)
Female
balanCes
($’000)
nUmber
nUmber
not speCiFied
balanCes
($’000)
total
balanCes
($’000)
nUmber
nUmber
balanCes
($’000)
Up to 20
56,576
48,218
56,244
67,265
-
-
112,820
115,483
>20 - 25
114,632
732,012
121,947
1,463,692
1
0*
236,580
2,195,705
>25 - 30
123,723
4,112,847
128,918
5,271,792
-
-
252,641
9,384,638
>30 - 35
148,315
8,882,045
155,347
9,532,861
3
16
303,665
18,414,922
>35 - 40
163,037
13,915,684
163,692
14,009,962
28
166
326,757
27,925,813
>40 - 45
173,840
18,254,820
172,694
16,196,750
37
310
346,571
34,451,880
>45 - 50
215,515
21,629,108
191,606
16,970,595
136
939
407,257
38,600,643
>50 - 55
208,845
22,876,385
181,458
16,741,320
168
1,271
390,471
39,618,976
>55 - 60
173,140
17,470,724
155,668
12,621,079
129
577
328,937
30,092,380
Above 60
338,603
17,486,199
350,356
11,827,654
236
404
689,195
29,314,256
15,831
29,885
3,803
8,386
4,041
4,704
23,675
42,975
1,732,057
125,437,927
1,681,733
104,711,356
4,779
8,388
3,418,569
230,157,671
All Groups
Figures include self-employed persons.
Total may not add up due to rounding.
* Total balances below $1,000.
ANNEXES · 8
9 · ANNEXES
45,735
122,383
10
77
486
1,357
2,968
5,533
199,837
3,526
21,352
9,484
11,939
14,883
17,359
19,768
20,950
21,853
20,474
17,412
1,792
1,764
1,792
1,812
1,891
1,890
1,974
2,224
2,725
2,973
>25 - 30
232,217
62,900
58,526
12,603
12,490
12,003
11,692
11,420
11,651
11,132
9,155
7,569
766
782
840
937
965
1,047
1,160
1,362
1,547
1,670
>30 - 35
233,242
133,244
35,044
6,316
6,540
6,432
6,800
6,949
7,044
6,995
6,000
5,236
550
578
562
541
580
623
675
819
813
901
>35 - 40
220,934
148,998
23,644
4,700
4,675
4,765
4,928
4,969
5,185
5,204
4,758
4,428
401
442
456
423
477
427
506
529
460
559
>40 - 45
212,620
147,215
21,724
4,565
4,863
4,724
4,795
4,867
4,684
4,520
4,163
3,628
320
304
319
275
272
268
273
268
279
294
>45 - 50
194,438
135,623
19,337
4,297
4,315
4,433
4,391
4,374
4,424
4,161
3,938
3,290
231
253
238
207
193
176
174
142
111
130
>50 - 55
153,888
97,623
17,366
3,701
3,781
3,813
4,107
4,096
4,279
4,434
4,349
3,951
351
337
279
271
250
235
220
180
146
119
>55 - 60
173,459
56,015
25,310
5,875
6,579
7,309
7,702
8,102
10,167
10,400
11,323
15,283
1,428
1,343
1,221
1,184
979
856
775
627
530
451
above
60
not
15
-
-
-
-
-
-
-
-
-
-
5
-
1
1
-
1
2
-
-
-
5
1,788,768
785,154
222,380
51,640
55,407
58,848
63,131
67,516
73,920
78,988
81,293
89,685
9,782
10,126
10,636
11,179
12,051
12,831
14,317
16,555
20,981
42,348
active
members
320,993,373
261,553,318
27,573,463
4,903,233
4,705,989
4,410,777
4,099,086
3,709,788
3,319,147
2,761,762
2,030,313
1,333,927
92,871
86,013
79,717
72,533
66,219
57,621
50,048
41,107
30,933
15,507
balance
($’000)
total
* Regrossed Balances include amounts withdrawn under Investment, Education, Residential Properties, Non-Residential Properties and Public Housing Schemes as at end of period.
Total may not add up due to rounding.
Figures exclude all self-employed persons.
All Groups
-
150,000 & above
99
1
80,000 to below 90,000
-
-
70,000 to below 80,000
-
-
90,000 to below 100,000
3
50,000 to below 60,000
60,000 to below 70,000
100,000 to below 150,000
224
3
40,000 to below 50,000
17,043
10,271
90
18
20,000 to below 30,000
28,005
3,681
30,000 to below 40,000
878
10,000 to below 20,000
3,964
358
262
8,000 to below 9,000
9,000 to below 10,000
4,449
479
7,000 to below 8,000
5,478
4,820
965
709
5,955
5,000 to below 6,000
1,352
4,000 to below 5,000
6,445
7,012
7,412
7,094
>20 - 25
6,000 to below 7,000
3,392
2,115
2,000 to below 3,000
6,958
1,000 to below 2,000
3,000 to below 4,000
28,152
Up to 20
Below 1,000
balance group
($)
age groUps (years)
annex i
distribUtion oF aCtive CpF members by regrossed balanCes* and age groUp as at 31 deCember 2012
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retirement

Transcription

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