CPF ENS

[Earnasyougrow]

Hi anyone opt for ENS in their cpf nomination?
May I know if my mom opt for ENS even thou I hit the have the full retirement sum (FRS) in my 40 now, her cpf money can still be transferred into my SA till ERS?

 

[Earnasyougrow]

This is wat I manage to find in cpf. Abit confuse now.


"At the point of nomination, a member can choose to have his CPF savings transferred to his nominees’ CPF accounts when he passes away via 2 options:

*

He can choose to credit his CPF savings into the nominee’s Special Account (SA) or Retirement Account (RA) first, up to the current Full Retirement Sum or Enhanced Retirement Sum. If there is excess beyond the current Full Retirement Sum or Enhanced Retirement Sum, it will then be credited to the nominee’s Medisave Account (MA), up to the Basic Healthcare Sum (BHS) applicable to the nominee at the time of transfer."

 

[apatheticme]

Hi anyone opt for ENS in their cpf nomination?
May I know if my mom opt for ENS even thou I hit the have the full retirement sum (FRS) in my 40 now, her cpf money can still be transferred into my SA till ERS?

Disclaimer: I have not opted for ENS. Reply is based on how I interpret what's written on CPF website

I don't think the CPF money can go into SA since you reached FRS. It will go MA (which you probably maxed out too) and then cash. Unless of course if you become old enough, then it will go RA till ERS then MA.

The option mentioned is just whether it goes to SA/RA (depending on which you have) first, or go to MA first.

 

[elnewbie]

SA account itself cannot be topped up to ERS. The ERS option is only given when a person reaches 55 and it goes into RA, not SA.

 

[henrylbh]

Hi anyone opt for ENS in their cpf nomination?
May I know if my mom opt for ENS even thou I hit the have the full retirement sum (FRS) in my 40 now, her cpf money can still be transferred into my SA till ERS?

To my understanding -

max credit to SA is FRS
max credit to RA is FRS or ERS
max credit to MA is BHS
excess paid in cash.

RA does not exist if you are below 55.

To opt for ENS, one must be very clear of the pros and cons in relation to the needs of or benefits to the nominee, present and future.

 

[Earnasyougrow]

Thanks everyone for their inputs. I am much clearer now that ERS is only created after 55. Just thinking whether I should opt for ENS into SA to generate more interest as I understand we can draw out the remaining sum above FRS as and when we like.

In another scenario if I opt for cash instead, can I top to to ERS in my RA when I am 55? Will I be subjected to cpf annual contribution limit?

 

[elnewbie]

1. yes
2. no.

Note that topups to ERS will not get tax deductions.

Thanks everyone for their inputs. I am much clearer now that ERS is only created after 55. Just thinking whether I should opt for ENS into SA to generate more interest as I understand we can draw out the remaining sum above FRS as and when we like.

In another scenario if I opt for cash instead, can I top to to ERS in my RA when I am 55? Will I be subjected to cpf annual contribution limit?

 

[BBCWatcher]

Just thinking whether I should opt for ENS into SA to generate more interest as I understand we can draw out the remaining sum above FRS as and when we like.

First of all, it's important to make a nomination, and to update it as/when appropriate. Otherwise there are extra probate costs required, and those costs are best avoided.

In my view, the Enhanced Nomination Scheme (ENS) is only useful to the extent it can top up a surviving CPF member's Medisave Account when that member is hitting the CPF Annual Limit and cannot effectively do it him/herself. The ENS is not counted toward the CPF Annual Limit. If a deceased CPF member's CPF funds are paid out in cash to a survivor (or survivors), they can then turn around and top up their own Special Account or Retirement Account. If they have not yet reached the Full Retirement Sum (FRS), they might even qualify for tax relief when they do that. So the ENS doesn't seem too exciting to me in that sense, unless I'm missing something.

If you think the survivor won't be "smart" and might do something crazy, like blow all the inherited cash at a casino, then the ENS begins to make more sense.

 

[Earnasyougrow]

First of all, it's important to make a nomination, and to update it as/when appropriate. Otherwise there are extra probate costs required, and those costs are best avoided.

In my view, the Enhanced Nomination Scheme (ENS) is only useful to the extent it can top up a surviving CPF member's Medisave Account when that member is hitting the CPF Annual Limit and cannot effectively do it him/herself. The ENS is not counted toward the CPF Annual Limit. If a deceased CPF member's CPF funds are paid out in cash to a survivor (or survivors), they can then turn around and top up their own Special Account or Retirement Account. If they have not yet reached the Full Retirement Sum (FRS), they might even qualify for tax relief when they do that. So the ENS doesn't seem too exciting to me in that sense, unless I'm missing something.

If you think the survivor won't be "smart" and might do something crazy, like blow all the inherited cash at a casino, then the ENS begins to make more sense.

Yes, ENS is better for some ppl who cannot hold on to cash.

 

[BBCWatcher]

Yes, ENS is better for some ppl who cannot hold on to cash.

There are such individuals, yes.

For what it's worth, I opted for the Enhanced Nomination Scheme (ENS), although it was a close call for me. I'm likely to reconsider that choice within the next couple years, possibly for a nominee change as the current nominee builds up CPF assets.

 

[Battery Operator]

First of all, it's important to make a nomination, and to update it as/when appropriate. Otherwise there are extra probate costs required, and those costs are best avoided.

In my view, the Enhanced Nomination Scheme (ENS) is only useful to the extent it can top up a surviving CPF member's Medisave Account when that member is hitting the CPF Annual Limit and cannot effectively do it him/herself. The ENS is not counted toward the CPF Annual Limit. If a deceased CPF member's CPF funds are paid out in cash to a survivor (or survivors), they can then turn around and top up their own Special Account or Retirement Account. If they have not yet reached the Full Retirement Sum (FRS), they might even qualify for tax relief when they do that. So the ENS doesn't seem too exciting to me in that sense, unless I'm missing something.

If you think the survivor won't be "smart" and might do something crazy, like blow all the inherited cash at a casino, then the ENS begins to make more sense.

IMHO, ENS works best for elderly couples. As one ages, there is a 'high chance' competency to manage one's funds diminishes, at worst struck with dementia. So, with an ENS in place, the surviving spouse will receive the funds directly into his or her nominated CPF account, removing the need to actively manage it.

 

[BBCWatcher]

Another possible reason you might choose the Enhanced Nomination Scheme is if you're concerned that your nominee will be (or already is) subject to a judgment or creditor claim of some kind. CPF monies are very well protected from such claims. If CPF pays out the funds in cash then they could be "intercepted."