MORE CPF members will be able to top up the accounts of their family members following changes announced yesterday.

From April, they need only to have CPF balances of at least the prevailing Minimum Sum before being allowed to do top-ups.

At present, they need to have 1.5 times the Minimum Sum in their account before they can top up someone else's account.

Age restrictions will also be removed from August.

Currently, top-ups to parents and grandparents can be made only to those aged 55 or above.

The changes announced in Parliament are aimed at encouraging individuals to help older family members build up their retirement savings, Acting Manpower Minister Gan Kim Yong (below) said.

The rules for the top-up have been progressively eased in recent years, such as the change last year making it easier for CPF members to receive top-ups to their Retirement or Special accounts.

Such top-ups, said Mr Gan, can help older CPF members participate in CPF Life - the annuity scheme which provides a steady stream of income for life.

Those who turn 55 in 2013 will automatically go on the scheme, if they have a minimum of $40,000 in their CPF accounts.

The top-ups, Mr Gan added, will also help CPF members enjoy the 1 per cent extra interest on the first $60,000 of CPF savings.

'Naturally, if CPF members continue to work after 55, this would be the best way for them to continue building up their balances to participate in CPF Life,' he said.

SUE-ANN CHIA

This article was first published in The Straits Times.