|
Whenever the Central Provident Fund (CPF) system is tweaked, every aspect of the changes is scrutinised in great detail by members.
That is hardly surprising, of course, given that the CPF is an integral part of the retirement plans of people here.
Recently, some confusion arose over the important issue of how CPF savings are distributed when a member dies.
The muddle arose from an e-mail which did the rounds, that erroneously stated that when a CPF member makes a nomination in relation to the beneficiary of his funds, that nomination does not include the savings in his Medisave Account.
The e-mail, which made its way to various firms and the media, stated: 'The CPF nomination that we have done is only for the Ordinary Account. We have to make a separate nomination for the Medisave funds, otherwise the funds are automatically given to charities.'
When contacted, the CPF Board said the e-mail got it wrong.
'Where a valid nomination has been made, upon a member's death, all his CPF savings in his Ordinary, Special and Medisave accounts will be distributed to his nominees according to the proportion stated in his nomination form,' said the board.
It added that it has contacted the originator of the e-mail who has since clarified with her e-mail recipients that the information was inaccurate.
Here's what you need to know about making a CPF nomination and what it covers.
| 
