CPF Account Value Thread 2023

[terence2112]

My company paid my Feb cpf after 14th this month, which is against the CPFB requirement. No explanation from HR yet.
May I know will there be any impacts to me?

"The CPF Board takes a serious view on employers who fail to pay CPF contributions correctly and promptly (the due date for CPF contributions is on the last day of the calendar month). Enforcement action would be taken against employers who fail to pay by the 14th of the following month (or the next working day if the 14th falls on a Saturday, Sunday or public holiday). "

The company could have contributed on the 14th and the payment is credited into your account a day after.
It’s not considered late.

 

[henrylbh]

My company paid my Feb cpf after 14th this month, which is against the CPFB requirement. No explanation from HR yet.
May I know will there be any impacts to me?

"The CPF Board takes a serious view on employers who fail to pay CPF contributions correctly and promptly (the due date for CPF contributions is on the last day of the calendar month). Enforcement action would be taken against employers who fail to pay by the 14th of the following month (or the next working day if the 14th falls on a Saturday, Sunday or public holiday). "

As long as the company paid CPF before midnite of 14 Feb for Jan contribution, it is not considered as late payment. If after, the company has to pay penalty (and interest, if applicable) before the 14 of Mar.

As long as the Jan contribution is credited to your accounts before end of Feb, you do not lose any interest on the contribution.

 

[wendyah]

As long as the company paid CPF before midnite of 14 Feb for Jan contribution, it is not considered as late payment. If after, the company has to pay penalty (and interest, if applicable) before the 14 of Mar.

As long as the Jan contribution is credited to your accounts before end of Feb, you do not lose any interest on the contribution.

I got it one week later, not one day.

 

[mp4005 help]

I got it one week later, not one day.

but as per your question. no impact at all. as long as credited before bed of month.

my company credits mid 20 of each month.


Read HWZ Forum Rules!

 

[wendyah]

but as per your question. no impact at all. as long as credited before bed of month.

my company credits mid 20 of each month.


Read HWZ Forum Rules!

Thanks, 1st time received cpf so late, my ex company paid cpf tgt with salary.

 

[dork32]

My company paid my Feb cpf after 14th this month, which is against the CPFB requirement. No explanation from HR yet.
May I know will there be any impacts to me?

"The CPF Board takes a serious view on employers who fail to pay CPF contributions correctly and promptly (the due date for CPF contributions is on the last day of the calendar month). Enforcement action would be taken against employers who fail to pay by the 14th of the following month (or the next working day if the 14th falls on a Saturday, Sunday or public holiday). "

If you want to quit the company already, go ahead and complain. make the company suffer before you leave.

but if you intend to stay, why slap your own company's face? you still get the cpf. you did not lose any interest as henry said

 

[dork32]

As long as the Jan contribution is credited to your accounts before end of Feb, you do not lose any interest on the contribution.

actually it may affect interest. interest is calculated based on the lowest balance of the month

most of us have property deduction on cpf. if the company delay resulted in the money coming in after the property deduction, then you lose 1 month interest

 

[a4973]

If you want to quit the company already, go ahead and complain. make the company suffer before you leave.

but if you intend to stay, why slap your own company's face? you still get the cpf. you did not lose any interest as henry said

I would be more concerned about the state of the company if it continues paying late.

 

[wendyah]

If you want to quit the company already, go ahead and complain. make the company suffer before you leave.

but if you intend to stay, why slap your own company's face? you still get the cpf. you did not lose any interest as henry said

Can't get you. For me, it's just a simple question that HR failed her duties to pay cpf on time. Nothing to do with I need to quit or slaping company's face. My company is rich enough, so no worries of paying late due to lack of money.

 

[dork32]

Can't get you. For me, it's just a simple question that HR failed her duties to pay cpf on time. Nothing to do with I need to quit or slaping company's face. My company is rich enough, so no worries of paying late due to lack of money.

what is the point of whacking your own company? so company get a fine for being late. you very happy kena fine? what is your benefit?

maybe you buaysong the hr department, you want to get the payroll aunty. ok loh.

notice it is cpf take serious view on employer, not payroll aunty

 

[wendyah]

what is the point of whacking your own company? so company get a fine for being late. you very happy kena fine? what is your benefit?

maybe you buaysong the hr department, you want to get the payroll aunty. ok loh.

notice it is cpf take serious view on employer, not payroll aunty

Emm...I never said I wanna report HR/company. I just asking about any impacts on me since CPFB only mention the penalties to employer.
U're the one keep assuming I'll take some actions.
Seems like u have a tough day although it's only morning.
I'll stop conversation with u here. Have a nice day btw.

 

[royalmix]

Emm...I never said I wanna report HR/company. I just asking about any impacts on me since CPFB only mention the penalties to employer.
U're the one keep assuming I'll take some actions.
Seems like u have a tough day although it's only morning.
I'll stop conversation with u here. Have a nice day btw.

Excellent sense/observation! He lost his job, has total inferiority complex, so come here to do personal attacks at everyone who dun agree or not in line with his one and only correct view! Avoid and say goodbye is the best approach to end the discussion! Goodbye

 

[henrylbh]

I got it one week later, not one day.

No need to concern as along as your company is solvent and ultimately make the contributions. Any loss of interest on cpf will be recovered from the employer with penalty.

 

[henrylbh]

actually it may affect interest. interest is calculated based on the lowest balance of the month

most of us have property deduction on cpf. if the company delay resulted in the money coming in after the property deduction, then you lose 1 month interest

From my observations, most mortgage deductions take place in the beginning of each month based on interest calculated to end of each month.

 

[henrylbh]

what is the point of whacking your own company? so company get a fine for being late. you very happy kena fine? what is your benefit?

maybe you buaysong the hr department, you want to get the payroll aunty. ok loh.

notice it is cpf take serious view on employer, not payroll aunty

She just wish to find out what affect her if company pay late. So don't kick the molehill.

 

[dork32]

From my observations, most mortgage deductions take place in the beginning of each month based on interest calculated to end of each month.

mortgage is just one of the deduction. it could be dps deduction, it could be i draw money out for tbills or goldenagri

 

[dork32]

She just wish to find out what affect her if company pay late. So don't kick the molehill.

this type of things is human do one. sure sometimes got error here and there. i dont see to reason to raise an issue here, especially with words like take serious view on employer.

 

[SBC]

my parent is on RSS scheme.

Current RSS monthly payout date is on every 2nd of the month.

Is it possible to change this date to a later change? Say 15th of every month?
Thanks

 

[BBCWatcher]

my parent is on RSS scheme.
Current RSS monthly payout date is on every 2nd of the month.
Is it possible to change this date to a later change? Say 15th of every month?

Ask the CPF Board, but why? Your parent earns zero CPF interest during the whole withdrawal month on that money, but your parent earns a little bit of daily bank interest once the money arrives. So it’s financially advantageous to get the money as early as possible within each month. The 2nd of the month is almost ideal in this respect.

 

[Shion]

No CPF rate hike but here’s how savings can be invested to grow retirement nest egg​

https://www.straitstimes.com/busine...s-can-be-invested-to-grow-retirement-nest-egg

SINGAPORE - Central Provident Fund (CPF) interest rates will remain unchanged till June 30, even as both borrowing and savings rates globally look set to stay elevated.

Some CPF members may be looking for ways to make every dollar of their savings work harder.

The Straits Times deep-dives into the CPF Investment Scheme (CPFIS) to find out how CPF savings can be invested to grow the retirement nest egg.

1. Getting started: Maintain CPF balances​

CPF members have to keep $20,000 in their Ordinary Account (OA) and $40,000 in their Special Account (SA) before they can invest the remaining funds.

For members below the age of 55, this $60,000 sum earns extra interest of 1 per cent per annum. This gives them up to 5 per cent interest annually on the first $60,000 of their combined CPF balances.

Those aged 55 and above earn extra interest of 2 per cent a year on the first $30,000, and 1 per cent on the next $30,000 of their combined CPF balances. This gives them up to 6 per cent on the first $30,000 of their combined CPF balances, and up to 5 per cent on the next $30,000.

2. Getting started: Have a CPF Investment Account​

To invest their OA savings, CPF members will need a CPF Investment Account (CPFIA) with one of three banks – DBS Bank, OCBC Bank or UOB.

Each member can have only one CPFIA account, which will hold the funds released from his OA.

Members can channel these funds to fixed deposits (FDs), buy government securities like Treasury bills (T-bills), or invest in funds approved under the CPFIS.

Upon maturity of the T-bills or FDs, or when they sell their investments, the funds will go back to their CPFIA.


The money will remain in that account until members instruct the bank to transfer the amount back into their OA.

Any cash balance is also automatically transferred back to members’ OA if their accounts have been inactive for two months. CPF members effectively lose OA interest on money sitting in the CPFIA.

They can also choose to reinvest the money after each issue of their T-bills matures, instead of putting it back into their CPF account immediately. Ultimately, however, all the money must be returned to their CPF account.

Note that using OA funds incurs bank fees of $2.50 plus goods and services tax for each transaction, and a service fee of $2 every three months.

Conversely, CPF members do not need a CPFIA to invest their SA funds. The funds are drawn directly from their SA, and the money is automatically credited back to the SA when the investment is sold or matures.

3. Investing in T-bills​

CPF members can consider investing in T-bills, which have maturities of six months or a year.

The six-month T-bills are issued every two weeks, while the one-year T-bill is issued every three months.

Both OA and SA funds can be used to buy T-bills.

Previously, investors had to queue up at the bank to apply for T-bills using OA and SA funds.

Now, DBS customers can apply online using their OA funds, but will still have to submit a T-bill application at a bank branch if using SA funds.

OCBC customers can use OA and SA funds to buy T-bills via the bank’s Internet banking and mobile portals.

UOB customers can apply online to use their OA funds from April 22, but need to go to a bank branch to use SA funds.

It is worth taking the time to weigh the T-bill yields against the loss of CPF interest during the tenure, to decide if the investment is worthwhile.

To illustrate, let’s assume we have a CPF member who is 30 years old and has $30,000 in his OA. He took out $10,000 from his OA at the end of February, and successfully applied for a six-month T-bill on March 2 at a cut-off yield of 3.98 per cent. His T-bill will mature on Sept 5, when the money will go back into his OA.

This money will earn OA interest only from October, as CPF contributions start to earn interest only from the next month. Effectively, the member loses eight months of OA interest – for February to September.

In the above example, he will earn $199 from his T-bills.

But he loses interest on that $10,000 in his OA, which would have netted him $166.67 at 2.5 per cent per annum.

He still gets $32.33 more by putting his $10,000 in six-month T-bills.

Those who are not allocated any T-bills in an auction will not have their CPF funds deducted and will not lose any interest.

4. Investing in fixed deposits​

Another option is to put the CPF savings in a Singapore-dollar FD with DBS, OCBC or UOB under the CPFIS.

Members will require a CPFIA for this, and they can hold FDs with banks other than the one they have a CPFIA with.

Foreign-currency FDs are not in the list of CPFIS-approved investments.

5. What else to invest in​

CPF members looking for higher returns above the risk-free rate offered by T-bills can consider investing their CPF savings in exchange-traded funds or unit trusts approved under the CPFIS.

Both OA and SA funds can be used to invest, but SA savings cannot be tapped for higher-risk investments.

OA savings can also be used to invest in shares and corporate bonds approved under the CPFIS.

But there is a cap on stock and bond investments – up to 35 per cent of investible savings – known as the stock limit.

Investible savings refer to the sum of the OA balance plus the amount withdrawn for investment and education.