Topping up of CPF Account

[tomicaguy]

wah so much interest in SA.

 

[kehyi4]

Edit: As pointed out by others later in this thread, I've probably misinterpreted how the interest and MA overflow works. My original post below probably does not apply

I think CPF screwed up again

BHS is supposed to go up from $48,500 to $49,800 on 1 Jan. So all those who got the auto-transfer from MA (above $48.5k) to SA/OA will probably need to 'refund' it so that their MA can reach the new $49.8K BHS ...

I predict lots of confused people and angry complaints to CPF when they have to reverse all the transfers

 

[spiritGate]

I think CPF screwed up again

BHS is supposed to go up from $48,500 to $49,800 on 1 Jan. So all those who got the auto-transfer from MA (above $48.5k) to SA/OA will probably need to 'refund' it so that their MA can reach the new $49.8K BHS ...

I predict lots of confused people and angry complaints to CPF when they have to reverse all the transfers

But the interest is on 31 dec, so is okay

Sent from sent from gagt using GAGT

 

[kehyi4]

But the interest is on 31 dec, so is okay

Sent from sent from gagt using GAGT

Edit: As pointed out by others later in this thread, I've probably misinterpreted how the interest and MA overflow works. My post below probably does not apply

The MA excess transfer is done on 3 Jan though, so the new BHS should have kicked in.

Either CPF says "oops, we didn't account for the new BHS, we'll reverse everyone's MA transfers and recalculate everything"

or

CPF says "oops, we didn't manage to implement the new BHS in time for 1 Jan, let's change it to 7 Jan, 31 Jan, 1 Feb, whatever"

Either way, it's malu for CPF ... again

 

[Jazzbie]

The MA excess transfer is done on 3 Jan though, so the new BHS should have kicked in.

Either CPF says "oops, we didn't account for the new BHS, we'll reverse everyone's MA transfers and recalculate everything"

or

CPF says "oops, we didn't manage to implement the new BHS in time for 1 Jan, let's change it to 7 Jan, 31 Jan, 1 Feb, whatever"

Either way, it's malu for CPF ... again

The interest earned are for 2015 and it is reasonable for the interest calculations to be done based on the conditions applicable in 2015. I don't see any error made by CPF, IMO.

 

[mcylo]

I think CPF screwed up again

BHS is supposed to go up from $48,500 to $49,800 on 1 Jan. So all those who got the auto-transfer from MA (above $48.5k) to SA/OA will probably need to 'refund' it so that their MA can reach the new $49.8K BHS ...

I predict lots of confused people and angry complaints to CPF when they have to reverse all the transfers

If a person has $48500 for medisave, the interest earned will be more than enuff to cover the BHS of $49800

 

[haydentan]

The interest earned are for 2015 and it is reasonable for the interest calculations to be done based on the conditions applicable in 2015. I don't see any error made by CPF, IMO.

If that is the case, what about contributions for Dec 2015 which will be put in Jan 2016 only? Will it be reasonable to adhere to $48.5K cap?

 

[kehyi4]

The interest earned are for 2015 and it is reasonable for the interest calculations to be done based on the conditions applicable in 2015. I don't see any error made by CPF, IMO.

Edit: As pointed out by others later in this thread, I've probably misinterpreted how the interest and MA overflow works. My post below probably does not apply

Let's say you have max MA of $48,500. For 2015 you've earned max $1,940 in MA interest. So your balance on 1 Jan would be $48,500 + $1940 = $50,440.

If there is no change to BHS, then $1940 would be transferred out as excess MA. So you'll have an "extra" $1940 in either SA or OA.

However, if BHS was raised to $49,800 on 1 Jan, like they said they would, then you would have "only" $640 available for transfer as excess MA.

Am I not being clear?

 

[henrylbh]

I think interest is considered earned at the end of 31 Dec and since MA hits the limit on 31 Dec, the excess should overflow to SA on the same day i.e. 31 Dec, though on paper it is recorded after 31 Dec.

Similarly on paper, interest is credited on 3 Jan but it is recognised as earned in Dec and form part of the "lowest balance" in the month of Jan for calculation of interest for Jan. Otherwise, balance on 1 Jan will be lower than balance on 3 Jan when last year's interest is credited.

 

[henrylbh]

If a person has $48500 for medisave, the interest earned will be more than enuff to cover the BHS of $49800

Yes for the moment.

Nobody knows whether future increase in BHS will be more than the interest earned on BHS as the government is more concerned with health rather than retirement needs.

 

[Jazzbie]

Let's say you have max MA of $48,500. For 2015 you've earned max $1,940 in MA interest. So your balance on 1 Jan would be $48,500 + $1940 = $50,440.

If there is no change to BHS, then $1940 would be transferred out as excess MA. So you'll have an "extra" $1940 in either SA or OA.

However, if BHS was raised to $49,800 on 1 Jan, like they said they would, then you would have "only" $640 available for transfer as excess MA.

Am I not being clear?

Yes, my view is that the interest calculations and allocations should be done based on 2015 balances and criteria, which is what CPF has done accordingly.

The payment date of 3 Jan 16 should not affect these calculations / allocations due to the "processing lead time" needed to record the payment in our CPF balances. To me, it is akin to the XD and record date for share dividends. The period in between has no affect to how the payments are being calculated and allocated to the shareholders.

 

[kehyi4]

Yes, my view is that the interest calculations and allocations should be done based on 2015 balances and criteria, which is what CPF has done accordingly.

The payment date of 3 Jan 16 should not affect these calculations / allocations due to the "processing lead time" needed to record the payment in our CPF balances. To me, it is akin to the XD and record date for share dividends. The period in between has no affect to how the payments are being calculated and allocated to the shareholders.

i see... hmm... you guys might be right. I may have misinterpreted how the interest and excess overflow works.

Well, in that case, it's better for me... more money for SA

 

[highsulphur]

i see... hmm... you guys might be right. I may have misinterpreted how the interest and excess overflow works.

Well, in that case, it's better for me... more money for SA

Sa and MA attracts the same interest for me.

 

[edwinttt1978]

Some people's interests have been credited today (3 Jan). Some got the "4 working days notice" message. Weird that it is not standardised across the accounts.

Here is screenshot of one of the HWZ forumer's CPF interest being credited. Not mine hor. I not so elite:

Very likely, this guy had transferred OA funds to SA, resulting in a very high SA interest.

The same point must be reiterated: transfer funds from OA to SA as soon as possible. Watch the interest grow and compounded annually, risk-free, on its own, to match whatever increase in Full Retirement Sum.

 

[tiny]

Even the journalist from CNBC also envy our CPF accounts:

This fund outperformed the markets in 2015, but you're probably not allowed in. Unless you're Singaporean or near enough.

Singapore's Central Provident Fund (CPF), a mandatory retirement savings plan open only to the country's citizens and permanent residents, offered its usual, steady 2.5 percent-to-5 percent payouts, depending on the nature of members' balances.

CPF contributors may grumble about the returns, but they aren't always doing terribly well on their own in the broader markets. One quirk of the program is allowing some members to invest some of their funds in approved securities.

Link:
http://www.cnbc.com/2015/12/30/sing...beat-markets-in-2015-with-steady-returns.html

 

[SBC]

Some people's interests have been credited today (3 Jan). Some got the "4 working days notice" message. Weird that it is not standardised across the accounts.

Here is screenshot of one of the HWZ forumer's CPF interest being credited. Not mine hor. I not so elite:

Nice to see that you had hit Min Sum. Mind to share your age?

 

[tiny]

Nice to see that you had hit Min Sum. Mind to share your age?

The screenshot as I had explained earlier, is not mine. It is a guy who is 35 years old.

Please click below for his original thread. The thread is parked under EDMW as it contains a lot of casual chat and humour.

http://forums.hardwarezone.com.sg/e.../cpf-interest-2015-credited-liao-5273689.html

 

[magnesium1]

Very likely, this guy had transferred OA funds to SA, resulting in a very high SA interest.

The same point must be reiterated: transfer funds from OA to SA as soon as possible. Watch the interest grow and compounded annually, risk-free, on its own, to match whatever increase in Full Retirement Sum.

Must stop tranfer from OA to SA when the SA total amount is reaching Minimum Sum or what they call it FRS (Full Retirement Sum) now.
FRS is revised upward yearly. Timing is important.
Leave a little room for SA top up, at least 7k for yearly IRAS tax relief.

Sent from the research lab without using GAGT

 

[doody_]

The screenshot as I had explained earlier, is not mine. It is a guy who is 35 years old.

Please click below for his original thread. The thread is parked under EDMW as it contains a lot of casual chat and humour.

http://forums.hardwarezone.com.sg/e.../cpf-interest-2015-credited-liao-5273689.html

Not that farfetched if he didn't use any money for property. No point looking at CPF statement and feeling rich IMO, I rather spend the money on a property and enjoy living in it.

 

[highsulphur]

Not that farfetched if he didn't use any money for property. No point looking at CPF statement and feeling rich IMO, I rather spend the money on a property and enjoy living in it.

Possible for you to have your cake and eat it too but in this case,the cake can't be too big