From 1 July 2009, the CPF Minimum Sum (MS) and Medisave Minimum sum (MMS) will be raised. The Medisave Contribution Ceiling (MCC) will also be adjusted upward.

The increases, which includes an adjustment for inflation, is to ensure that Singaporeans set aside sufficient savings for their retirement and have sufficient savings to meet their hospitalisation expenses.

CPF Minimum Sum

The prevailing CPF MS will be revised from $106,000 to $117,000.

This new MS will apply to CPF members who turn 55 from 1 July 2009 to 30 June 2010.

The policy is in line with the Ministry of Manpower's announcement in August 2003 that the MS will be raised gradually to reach $120,000 (in 2003 dollars) in 2013.

Medisave Minimum Sum, Medisave Contribution Ceiling raised

Also with effect from 1 July, the Medisave Minimum Sum (MMS) will be raised to $32,000 from $29,500.

Members will be able to withdraw their Medisave savings in excess of the MMS at or after 55 years old.

The maximum balance a member may have in his Medisave Account, known as the Medisave Contribution Ceiling (MCC), is fixed at $5,000 above the minimum sum and this would be increased correspondingly to $37,000, from $34,500.

Any Medisave contribution in excess of the MCC will be transferred to the member's Special Account if he is below age 55 or to his Retirement Account if he is above age 55 and has a minimum sum shortfall.