What is a CPF Nomination?
A CPF nomination is a process where you nominate the beneficiaries who will inherit your CPF savings after you passed away. It is noteworthy that your Will cannot include the distribution of your CPF savings as the CPF savings are not considered as a part of your estate.
The CPF nomination process can cover the following matters:
- The CPF savings in your Ordinary, Special, Medisave and Retirement Accounts;
- Any unused CPF Life premiums; and
- Any discounted SingTel shares you have.
The CPF nomination will not cover the matters as follows:
- Any properties bought using your CPF monies;
- Any payouts from the Dependants’ Protection Scheme (DPS) which will be administered by the insurers;
- CPF Investment Scheme-Ordinary Account (CPFIS-OA) cash and investments; and
- CPF Investment Scheme-Special Account (CPFIS-SA) investments.
Why is CPF nomination necessary?
The process enables you to nominate the person(s) who should inherit your CPF savings, ensuring that your CPF is distributed according to your wishes. If there is no CPF nomination completed, your CPF monies (except the discounted Singtel shares) will be distributed by the Public Trustee’s Office (PTO) to your family members according to the Intestate Succession Act or an Inheritance Certificate (for Muslims only).
The PTO charges a fee for the administration and distribution of your un-nominated savings. The fees start from a $ 15 (minimum), GST-inclusive and it will be deducted from the CPF savings.
The fees may be calculated as follows:
|Amount of CPF Money||Charge|
|Amounts exceeding $500,000||0.3%|
Who is eligible to make a CPF nomination?
All CPF members who are 16 years old and above and are mentally sound in mind. Even a bankrupt is eligible to make a CPF nomination. A bankrupt’s CPF savings are protected from claims by creditors or the Official Assignee.
Who is eligible to be a Nominee?
You can nominate any person or organisation to inherit your CPF savings, including a person below the age of 18. If a nominee, who is below 18 years old at the time of claim, his or her share will be held by the PTO for administration until he or she reaches 18 years old. The PTO charges a fee for holding the CPF savings for a minor nominee. Prior to the minor nominee reaching 18 years old, the CPF savings will be earning interest as it is held by the PTO on trust.
The table below shows the amount of fee to be charged for the amount of interest earned:
|Amount of Interest Earned||Charge|
|Amounts exceeding $3,000||2.25%|
How many nominees am I allowed to appoint?
There is no limitation on the number of nominees. If you appoint more than 4 nominees, you shall complete and sign an additional CPF nomination form.
What if my nominee passes away before me?
If your nominee passes away before you and you did not nominate a new nominee to replace him or her, your CPF savings apportioned to the nominee who passes away would be distributed equally to the rest of the surviving nominees. It is different from the situation where there is no CPF nomination made where the CPF savings will be distributed according to the Intestate Succession Act.
Nomination of organisations as my nominee(s)
It is permissible to nominate an organisation such as a family business, or charity or society as nominees. In order to make an organisation a nominee, the organisation must be a separate legal entity which is capable in law of holding the CPF savings in its own name and not in the name of its members.
These organisations are usually societies registered under the Societies Act, companies registered under the Companies Act and limited liability partnerships recognised under the Limited Liability Partnerships Act. To find out whether an organisation you want to nominate is a separate legal entity, you can check the Registry of Societies or the Accounting and Corporate Regulatory Authority (ACRA)’s BizFile+ website for companies or LLPs.
Will my CPF nomination be kept confidential?
Yes. It is impossible for anyone to find out from the CPF Board about the identity of your nominees. However, you can authorise the CPF Board to reveal the identities of your nominees to someone after you pass away.
What are the different types of CPF nomination?
The CPF nomination scheme provides 3 options of CPF nomination:
- Cash nomination option – your nominee(s) will receive your CPF savings due to them in cash via cheque or GIRO.
- Enhanced Nomination Scheme (ENS) nomination option – your nominee(s) will receive the CPF monies in their CPF accounts instead.
- Special Needs Savings Scheme (SNSS) nomination option – to nominate any of your children with special needs to receive your CPF monies on a monthly basis.
The default selection is the cash nomination option for the event where there is no option selected.
What is the procedure to make a CPF nomination?
- To decide on the number of nominees, the exact percentage of your CPF savings that you would like to distribute to them.
- You may nominate a different percentage of your CPF savings to your spouse and each of your children.
- You are required to sign a “CPF Nomination Form” in the presence of 2 witnesses.
- The witnesses cannot be your nominees and they must be at least 21 years of age and of sound mind.
- You shall not be your own witness.
- Complete and submit the form to the CPF Service Centre.
- Your application for CPF nomination will be processed and you will be notified by the CPF Board regarding the status of your application.
- You are advised to contact the CPF Board if you do not receive any news within 2 weeks after your submission.
NOTE: You are advised to complete the nomination form at the CPF Service Centre. The Customer Service Executives there can act as your witnesses and answer to any of your inquiries. To save time, you can make an appointment through the CPF Appointment Service at least 1 day before you go to the CPF Service Centre.
You are required to bring the following documents:
- A copy of your NRIC/Passport;
- A copy of both witnesses’ NRIC/Passport (this is not required if the witnesses are the Customer Service Executives); and
- Photocopies of your nominees’ NRICs/Passports.
It is a free-of-charge nomination service provided by the CPF Service Centre.
Reviewing of the CPF nomination
Change of circumstances such as marriage, the birth of a child or the death of a nominee may make your CPF nomination irrelevant. This is especially true if you made the nomination before your marriage. In this situation, your CPF nomination will automatically be revoked after your marriage, so you should make a new nomination if applicable.
Your CPF nomination will not be revoked in the events as follows:
- You divorce your spouse;
- You have a new child to your family; or
- One (or more) of your nominee(s) passes away.
However, you may need to review the CPF nomination upon the happening of the abovementioned events.
What if I lose mental capacity after making my CPF nomination?
Your CPF nomination will still remain valid unless:
- the only nominee or all nominees pass away before you; or
- The court revokes your CPF nomination (e.g. if the court rules that the nominations were made when you did not have mental capacity).
In the abovementioned circumstances, your CPF savings will be distributed by the PTO according to the Intestate Succession Act.
How do I change or cancel my CPF nomination?
You are required to complete a “Notice of Revocation Nominations” in order to cancel the CPF nomination that you made previously. You will still require 2 witnesses for this process.
The form is available online at CPF Service Centre’s website.
How will my CPF monies be distributed?
The CPF Board will write to your nominees upon your death. Then, your nominees can claim their share of your CPF savings from the CPF Board at any time.