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A NUMBER of changes to the Central Provident Fund (CPF) Board's schemes, aimed at improving the retirement nest eggs of Singaporeans, will kick in on

July 1. The changes are:

Instead of going automatically into members' Ordinary Accounts (OAs), excess Medisave Account contributions will be transferred into members' Special Accounts (SAs), for those aged below 55 years, or their Retirement Accounts (RAs), for those aged 55 years and above.

Instead of being free to use CPF savings to buy more than one property, CPF members who own one property will have to set aside a Minimum Sum cash component of $47,300 in their OAs and SAs, before they can buy a second property. Otherwise, they have to indicate their intention to sell the first property within a grace period. Those who own multiple properties bought with CPF savings before July 1 will not be affected.

CPF savings can no longer be used to buy non-residential properties such as factories and warehouses under the Non-Residential Properties Scheme. Those who are servicing non-residential property payments with their CPF funds before July 1 will not be affected.

The CPF Minimum Sum will be raised from $90,000 to $94,600. This applies to members who turn 55 during the year starting July 1.

The Medisave Minimum Sum will be raised from $27,500 to $28,000. This applies to members who withdraw their CPF at 55 years or older. The Medisave Contribution Ceiling will also be raised from $32,500 to $33,000.