What is CPF Nomination Singapore

On the whole, a CPF nomination takes away the drawbacks of intestacy. For instance, your intended beneficiary may not be a legally-entitled beneficiary. Under those circumstances, he or she gets nothing upon your demise.

Given that sizeable amount that we will accumulate during our working years, you won’t want it to fall into the wrong hands. With this in mind, let’s understand the CPF nomination framework and how it works in Singapore.

One Minute Summary:

A CPF nomination allows you to distribute your CPF monies according to your wishes.
Altogether, there are three types of CPF nomination: 1) Cash Nomination; 2) Enhanced Nomination Scheme; and 3) Special Needs Savings Scheme.
A CPF nomination covers your monies in your Ordinary Account, Special Account, MediSave Account, and Retirement Account. In addition, it includes any unused CPF LIFE premiums as well as any discounted SingTel shares that you may have.

Part 1: Potential Problems

To begin with, let’s find out what happens when you pass away without a valid CPF nomination. In this situation, CPF Board will forward your monies to the Public Trustee’s Office (PTO). To point out, the Public Trustee’s Office serves as the administrator for un-nominated CPF monies. Emphatically, it will distribute your monies according to the Intestate Succession Act.

For that reason, neither your beneficiaries nor you have a say over the distribution. As a matter of fact, the Public Trustee’s Office will simply follow the book. Consequently, this leads to the following problems:

Delay in the distribution as the PTO needs time to locate and verify the legally-entitled beneficiaries.
The person whom you care for is not one of the legally-entitled beneficiary.
The legally-entitled beneficiary is unable or incapable of inheriting your CPF monies.
An unintended beneficiary inherits your CPF monies.
The Public Trustee’s Office charges an administrative fee for the distribution.

Part 2: Pre-requisites

In order to make a valid CPF nomination, you

must be a CPF member;
are at least 16 years old; and
mentally sound.

Part 3: What does a CPF Nomination cover?

In sum, your CPF nomination will cover all the monies that you have in your CPF Account, namely;

Ordinary Account;
Special Account;
MediSave Account; and
Retirement Account.

Additionally, this includes any unused CPF LIFE premiums and discounted SingTel shares (if any).

Part 4: What is not covered by a CPF Nomination?

Other than the assets mentioned in Part 3, you may distribute the rest via a Will. For example, it can be

A property that you bought using your CPF savings;
Investment under CPF Investment Scheme (CPFIS);
Payout from Dependants’ Protection Scheme.

To clarify, you may submit an insurance nomination for your Dependants’ Protection Scheme. For this purpose, you may complete the relevant form from the insurer:

Part 5: Who can I nominate?

Above all, you may nominate anyone or any organisation to become your beneficiary. Without a doubt, this organisation must be a legal entity that is capable of receiving monies in its own right. It is also important to realise that not all nominees are capable of receiving the monies. As an illustration, for a nominee who is

Below 18 years old: The Public Trustee’s Office will hold the monies in trust till the nominee reaches 18 years old.
Of unsound mind: The nominee’s court appointed deputies will handle the monies.
A bankrupt: CPF Board will forward the monies to the nominee’s Official Assignee.

Part 6: Types of CPF Nomination

Altogether, there are three types of CPF Nomination in Singapore:

Part 6.1: Cash Nomination

Generally, most of us will choose cash nomination as the default option. Correspondingly, your nominee(s) will receive your CPF monies in cash via cheque or GIRO.

Part 6.2: Enhanced Nomination Scheme (ENS) Nomination

On the other hand, you may choose to transfer your CPF monies to your nominee’s CPF account. There are two options to this end:

Either credit your CPF monies into the nominee’s Special Account or Retirement Account first; or
Credit your CPF monies into the nominee’s MediSave Account first.

This is on the condition that the nominee is a Singaporean or a Permanent Resident. Otherwise, they will receive the CPF monies in cash (Part 6.1).

Part 6.3: Special Needs Savings Scheme (SNSS) Nomination

If you have a child with special needs, then you may nominate your child as the beneficiary under this scheme. In effect, your child will receive your CPF monies on a monthly basis – till the vested amount is exhausted.

Part 7: How to check an existing CPF nomination (if any)?

If you can’t remember whether you have made a CPF nomination, then you are certainly not alone. In fact, this is a common phenomenon. Thankfully, you may login to CPF website to find out:

Login to CPF website.
From the left navigation menu, click “My Requests”.
Thereafter, click “Nomination Details”.
Following that, click “View my Nomination Details”.

In the event that the information is not available, go ahead and submit an online request (via “My Requests”). Thereafter, CPF Board will send the link to your email address. In like manner, you may also view the same information via “My Activities”.

For the same reason, you may also visit any of the CPF Service Centres to make an enquiry.

Locations of the five CPF Service Centres in Singapore:

Part 8: How to make a CPF Nomination?

Finally, we are going to submit the nomination. At this point, you need to prepare the following information:

Full Name and Identification Number of each nominee;
Two witnesses who are at least 21 years old, of sound mind, and not any of the nominee(s);
Particulars of an authorised person (optional);

It is important to emphasise that CPF Board will not disclose the identities of the nominee(s) and authorised person(s) to your witnesses. This is so as to protect the privacy of this nomination.

Who is an authorised person?

While it is not compulsory to complete this section, there are some benefits for doing so. After your death (and upon request), CPF Board will disclose your CPF account information and nomination details to the authorised person(s). Thereupon, the authorised person may help to speed up the entire distribution process.

Disclosed Information:

Names of your nominee(s) and witnesses;
The relationship between your nominee(s), witnesses, and you;
The proportion of your CPF savings that each nominee will receive;
Your CPF statement of account in and after the year of your death.

Summing up, there are two ways to complete a CPF nomination.

Part 8.1: Online

At this time, you may submit a cash nomination online. This is provided that both your (two) witnesses and you have a valid SingPass.

Part 8.2: At CPF Service Centres

Of course, you may also visit any of the CPF Service Centres to complete the nomination form. To be sure, this can be done for all three types of nomination scheme. What’s more, the customer service executives can act as your witnesses for the nomination.

Part 9: Should You complete a CPF Nomination?

Above all, completing a CPF nomination is the only way to distribute your CPF monies according to your wishes. Therefore, it is definitely sensible to do so. Otherwise, who knows who will inherit your life savings. Even if you have no one to give the money, consider donating to a charitable organisation and serve a bigger cause.

Checklist:

Complete a CPF nomination today.
Complete an insurance nomination for each insurance policy.
Draft a Will today.

Disclaimer:

By and large, the views and opinions expressed in this publication are mine. Therefore, they do not reflect the official policy or position of Central Provident Fund Board (“CPF Board”).

First Published: 4 September 2019
Last Updated: 25 November 2020

PZL Blog | Singapore

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