Q WHEN my dad reached 55, he did not withdraw his Central Provident Fund (CPF) savings.
He is now 61 and was recently made a bankrupt due to a business failure.
Do the Official Assignee (OA) or creditors have the right to go after his CPF money that has not been withdrawn?
Does my father have to declare to the OA the retirement cheque that he will receive monthly when he reaches 62?
A CPF money is protected from creditors.
This includes excess CPF beyond the CPF Minimum Sum and the Medisave Required Amount or Medisave Minimum Sum, whichever is higher - which was not withdrawn.
The monthly retirement amount your father will receive from the CPF Board from age 62 is not subject to any claim by the OA or his creditors.
The reason is that the source of these payments is the CPF Minimum Sum, which is protected under the CPF Act.
The OA or creditors do not have the right to 'go after' his CPF that is not withdrawn.
If he withdraws his CPF savings, however, they will not be protected from creditors for debts incurred after the withdrawal date.
Leong Sze Hian
President Society of Financial Service Professionals
Advice provided in this column is not meant as a substitute for comprehensive professional advice. E-mail questions to chanteik@sph.com.sg
