Refund of overpaid CPF contributions

[Shutterfly]

If in 2020, I accidentally over-contributed due to voluntary contribution, when should I expect to get back the excess?

Do I need to contact them to initiate this process?

 

[badsector]

mine was refund the following year on Feb
do not need to contact them

 

[Shutterfly]

mine was refund the following year on Feb
do not need to contact them

Oh, this means that this year Feb, I should be getting them right? I did not see any refund being given.

 

[reddevil0728]

Oh, this means that this year Feb, I should be getting them right? I did not see any refund being given.

then it's possible you didn't exceed?

 

[karakorum1999]

I kena refunded once some years ago.

They will deduct your excess voluntary CPF contributions plus interest (that was credited in 2020). So you can look at your CPF transactions to check.

Yes, usually this is done in Feb and you should get a letter too ( and a cheque if there is no natural crediting account).

You can also look at your Annual CPF statement for 2020 and check if you have really exceeded the annual limit or not. Usually it is fairly clear cut, unless you have special circumstances like additional Medisave contributions scheme or more than 1 employer.

 

[Shutterfly]

I kena refunded once some years ago.

They will deduct your excess voluntary CPF contributions plus interest (that was credited in 2020). So you can look at your CPF transactions to check.

Yes, usually this is done in Feb and you should get a letter too ( and a cheque if there is no natural crediting account).

You can also look at your Annual CPF statement for 2020 and check if you have really exceeded the annual limit or not. Usually it is fairly clear cut, unless you have special circumstances like additional Medisave contributions scheme or more than 1 employer.

I will call them to check on this tomorrow.


Thanks everyone who have shared their experience!

 

[philips107]

I had emailed them recently and their response was it will be refunded in the coming quarter (refunded by Oct?), so looks like not once a year in Feb anymore.

Keeping fingers crossed that it happens per their response.

 

[karakorum1999]

I had emailed them recently and their response was it will be refunded in the coming quarter (refunded by Oct?), so looks like not once a year in Feb anymore.

Keeping fingers crossed that it happens per their response.

Thanks for sharing.
Usually after the calendar year is over, CPF would then check if there are any excess contributions that need to be refunded, and they took 1 month to sort out and refund by Feb.

A bit confused now - does this mean they need more than 6 months to figure out something that can probably be automated?
Or if they are now doing this more frequently, that would mean that once the system detects/concludes that a member has already exceeded the annual limit in say June, they would process it within the next 2-3 months and not wait for the next Jan/Feb? Interesting.

To add, it is to the “detriment” of the CPF member the longer CPF takes to make the refund since this refund would not be earning any interest while being inside the member’s accounts.

 

[reddevil0728]

I had emailed them recently and their response was it will be refunded in the coming quarter (refunded by Oct?), so looks like not once a year in Feb anymore.

Keeping fingers crossed that it happens per their response.

did you confirm if yours is indeed over??

 

[deve2545]

Hi, on a related note, can any kind soul here advise how I can pay / top-up my CPF Medisave via credit card? What are the steps to follow and the credit cards to use ( I tried using mAXS but payment is not possible)? Thanks...

 

[reddevil0728]

Hi, on a related note, can any kind soul here advise how I can pay / top-up my CPF Medisave via credit card? What are the steps to follow and the credit cards to use ( I tried using mAXS but payment is not possible)? Thanks...

Can meh?

 

[philips107]

Thanks for sharing.
Usually after the calendar year is over, CPF would then check if there are any excess contributions that need to be refunded, and they took 1 month to sort out and refund by Feb.

A bit confused now - does this mean they need more than 6 months to figure out something that can probably be automated?
Or if they are now doing this more frequently, that would mean that once the system detects/concludes that a member has already exceeded the annual limit in say June, they would process it within the next 2-3 months and not wait for the next Jan/Feb? Interesting.

To add, it is to the “detriment” of the CPF member the longer CPF takes to make the refund since this refund would not be earning any interest while being inside the member’s accounts.

My sense is they are doing it more frequently now.

 

[delpiero_10]

Hi, on a related note, can any kind soul here advise how I can pay / top-up my CPF Medisave via credit card? What are the steps to follow and the credit cards to use ( I tried using mAXS but payment is not possible)? Thanks...

I think they have removed the option to top up via credit card some time back.

 

[philips107]

did you confirm if yours is indeed over??

What I did was to login to my account at the CPF website and check how much more I can VC - it comes back as 0.

YTD, adding my VC and my company contributions, it has exceeded the annual limit of 37,740

 

[reddevil0728]

What I did was to login to my account at the CPF website and check how much more I can VC - it comes back as 0.

YTD, adding my VC and my company contributions, it has exceeded the annual limit of 37,740

Might have inevitably overlooked something? Best to confirm with them if you have indeed over contributed, if not you might be waiting for something that may never happen

 

[reddevil0728]

I think they have removed the option to top up via credit card some time back.

This was ever allowed?

 

[delpiero_10]

This was ever allowed?

I heard it was allowed before, and some savvy ones used credit cards that offered cashback for online transactions to do top-ups. It was such a win-win, i.e. get tax relief, earn cashback.

But I think this "loophole" was closed subsequently when they stopped accepting credit card as a payment mode, and banks also excluded transactions with government from any reward programmes.

 

[BBCWatcher]

I think they have removed the option to top up via credit card some time back.

This was ever allowed?

I believe you can still make CPF contributions and top ups using a Singapore-issued Diners Club card via AXS kiosks. But, if this is still possible, it could be ending. The CPF Board is ending its association with AXS effective September 1, 2021. CPF's e-Cashier is the designated replacement.

 

[karakorum1999]

What I did was to login to my account at the CPF website and check how much more I can VC - it comes back as 0.

YTD, adding my VC and my company contributions, it has exceeded the annual limit of 37,740

Your case looks interesting.
Logically you must have maxed up your mandatory contributions arising from additional wages (just need to clock $30k in variable pay) and also VC-ed at least $13,320.
Or you got less variable pay but that means you VC-ed even more - but why would you do that? Unless you are not familiar with all these stuff?

Usually the main source of uncertainty for most people is the bonus/commissions part; once that is able to be determined/estimated with some accuracy, it becomes easier to plan your VC for the year.

 

[philips107]

Your case looks interesting.
Logically you must have maxed up your mandatory contributions arising from additional wages (just need to clock $30k in variable pay) and also VC-ed at least $13,320.
Or you got less variable pay but that means you VC-ed even more - but why would you do that? Unless you are not familiar with all these stuff?

Usually the main source of uncertainty for most people is the bonus/commissions part; once that is able to be determined/estimated with some accuracy, it becomes easier to plan your VC for the year.

Yes, you are right.

I miscalculated the mandatory contributions from the company that is outside the regular monthly base pay.

Although I have interest forgone due to exceeding the annual limit via my VC, I look on the bright side of things, and see it as a happy thing.

The interest forgone is very small (esp. if the money can be returned within 3 months (1 quarter) instead of once a year in Feb), compared to the extra CPF contribution from my employer which I had not expected.

You can say, it's legally mine anyway, it's not like I'm getting extra free money, but I view it positively as its CPF money coming in which I had not expected. It's good to look at the bright side of things