Contents
09 Mission, Vision and Values
10 Board of Directors
12 Senior Management
14 Organisational Structure
17 Review of Operations
39 Financial Statements
67 Annexes
07
SINGAPORE QUALITY AWARD (SQA) WINNER
“By living out our core values, staff are able to excel
in our fi ve areas of excellence
– Benefi ts, Customers, Processes, People and Finance –
which helps us achieve our mission and advances us on
the journey towards business excellence.”
Willie Tan, Chief Executive Offi cer, CPF Board
“CPF’s customer-driven quality mindset has resulted in the
development of a multi-channel information delivery system.”
“CPF staff is actively engaged in skills upgrading and innovation.
There is a keen desire by all staff to provide excellent customer
service and a strong sense of identity to the organisation.”
“Leading from the front, the Board’s senior management
has set in place an integrated approach to drive, permeate
and operationalise its Mission, Vision, Values and 5 Areas of
Excellence through a well-articulated CPF Lifestyle value
concept across all levels of staff.”
SQA Award, SPRING Singapore
09
Mission
To enable Singaporeans to save for a secure retirement.
Vision
A world-class social security organisation
providing the best national savings scheme for Singaporeans
to enjoy a secure retirement.
Values
09
Excellent Processes
Excellent People
Sound Finance
Delighted Customers
Comprehensive CPF Benefi ts
TAKE CHARGE, CHANGE AND
INNOVATE
FOCUS ON CUSTOMERS
DO MY BEST
PRACTISE LIFE-LONG LEARNING
5 AREAS OF EXCELLENCE
BENEFITS CUSTOMERS PROCESSES PEOPLE FINANCE
10 Central Provident Fund Board | Annual Report 200410 Central Provident Fund Board | Annual Report 2004
Board Members
8
65
432
1
11Running Head
1 MOSES LEE Chairman
2 GOH KIM LEONG Deputy Chairman
3 Mrs OW FOONG PHENG Government Representative
4 Ms WU CHOY PENG Government Representative
5 ALFRED LIEN KIM SENG Employer Representative
6 GOH WEE LIAM Employee Representative
1110
7
9
7 REGI WONG SHAW SENG Employee Representative
8 Ms AMY HING NGUK JUON Others
9 ONG CHONG TEE Others
10 LAW SONG KENG Others
11 QUAH WEE GHEE Others
Board members who completed their terms during the year :
ONG YEN HER Government Representative1 July 1998 – 31 July 2004
Ms CHANG HWEE NEEGovernment Representative15 November 2001 – 14 November 2004
ALEXANDER CHAN MENG WAHEmployer Representative1 July 2003 – 31 December 2004
Assoc Prof ALLAUDEEN HAMEEDOthers15 November 2001 – 14 November 2004
12 Central Provident Fund Board | Annual Report 200412 Central Provident Fund Board | Annual Report 2004
Senior Management
1 (from left) TAN YOKE MENG WILLIE Chief Executive Officer
WU WAI MUN Deputy Chief Executive Officer
(Policy and Corporate Support Group)
LEONG LICK TIEN Deputy Chief Executive Officer (Services Group)
1
13
2 (from left) CHANG LONG KIAT Director (Corporate Affairs)
GOH TECK SOON Director (Infocomm Technology Services)
LIM BOON CHYE Director (Policy and Planning)
3 (from left) TEOH SEE LEONG Director (Housing and Healthcare)
SOH CHIN HENG Director (Retirement and Investment)
4 (from left) NG HOCK KEONG Director (Customer Relations)
LO TAK WAH Director (Collections and Recovery)
4
32
Senior Management
14 Central Provident Fund Board | Annual Report 2004
Organisational Structure(As at 1 April 2005)
14 Central Provident Fund Board | Annual Report 2004
Chairman Moses Lee
Chief Executive Offi cerTan Yoke Meng Willie
Deputy Chief Executive Offi cerServices Group
Leong Lick Tien
Retirement & Investment Division
DirectorSoh Chin Heng
Deputy Director (Retirement Schemes)Belinda Teoh Chun Yean
Deputy Director (Withdrawal Schemes)Tan Mui Leng
Deputy Director (Investment Schemes)Margaret Lim Yuen Bin
Deputy Director (Member Accounts & Records)
Ramlah Moiz Tyebally
Housing & Healthcare Division
DirectorTeoh See Leong
Deputy Director (Housing Schemes)Tan Chui Leng
Deputy Director (Insurance Schemes)Hsu Wei Ching
Deputy Director (HealthCare Schemes )
Tey Chee Keong
Collections & Recovery Division
DirectorLo Tak Wah
Deputy Director (Collections)Choo Eng Seng
Deputy Director (Recovery)Ngiam Su Ying
Deputy Director (Investigation & Foreign Worker Levy)
Ng Teck Beng
Assistant Director (Collections Records)Betty Ong Siow Cheng
Senior Assistant Director (Agency Projects)
Desmond Chew Chin Soon
Customer Relations Division
DirectorNg Hock Keong
Deputy Director (Member Education)Fiona Chan Oi Lai
Deputy Director (Customer Service)Sally Koh Lee Huan
15Organisational Structure 15
Internal Audit Division
Deputy Director (Internal Audit)
Lai How FattDeputy Chief Executive Offi cer
Policy & Corporate Support GroupWu Wai Mun
Corporate Affairs Division
DirectorChang Long Kiat
Deputy Director (Human Resource)Ginny Chua Geok Hong
Acting Principal Legal Offi cerChiong-Lee Sock Sim
Deputy Director (Property)Albert Yeo Leong Hai
Deputy Director (Corporate Services)Laura Lim Quee Eng
Deputy Director (Public Affairs)Jonas Kor Gee Cheong
Infocomm Technology Services Division
DirectorGoh Teck Soon
Senior Deputy Director (Revamp & Scheme Systems)
Alice Chay Jiak Phay
Deputy Director (Scheme Systems)Pauline Lim
Deputy Director (Collections & Corporate Systems)
Dr Lee Nyen Kong
Deputy Director (Data Centre & Resource Management)
Ng Tze Leong
Deputy Director (Database & Information Services)
Ang Moy Gek
Principal IT Consultant (Quality & Security Administration)
Cedric Teo Hwee Beng
Policy & Planning Division
DirectorLim Boon Chye
Deputy Director (Policy & Research)Linda Marie Chan Joo Kim
Deputy Director (Corporate Planning)Sally Seah Cheng Lang
Deputy Director (Management Information)
Chan Yoke Fong
Finance Division
Deputy Director (Finance & Accounts)Vacant
Assistant Director (Fund Management)Eileen Tay Kok Hua
Risk Management Department
Deputy Director (Risk Management)Charlene Tong Geok Hoon
18 Central Provident Fund Board | Annual Report 2004
Membership
In 2004, CPF membership rose by 1.3% to 3,018,014 as at 31 December
2004. Of this number, 1,324,368 were active members.
Members’ Balance
Total members’ balance grew by 8%, from $103,539.6 million in 2003 to
$111,873.8 million in 2004.
Membership as at 31 December
2004 3,018,014
2003 2,978,493
2002 2,963,160
2001 2,922,673
2000 2,879,956
Members’ Balance as at 31 December
2004 $111,873.8 m
2003 $103,539.6 m
2002 $96,422.6 m
2001 $92,221.2 m
2000 $90,298.3 m
CPF Contribution Rates
The CPF wage bands were revised from 1 October 2002, with the intent
to help the lower-income members increase their take-home pay. Now,
employees who earn more than $500 per month need to contribute
to their CPF accounts. For employers, CPF contributions are payable for
employees whose wages exceed $50 a month.
The maximum monthly contribution payable for all age groups in 2004
is based on a salary ceiling of $5,500 a month.
Members’ Accounts
A CPF member maintains three accounts with the Board – Ordinary,
Medisave and Special Accounts. At age 55, he also has a Retirement
Account under the Minimum Sum Scheme.
19Review of Operations
The allocation of CPF contributions to members’ accounts is as follows.
ALLOCATION OF CPF CONTRIBUTIONS
FROM 1 JANUARY TO 31 DECEMBER 2004
Age groupOrdinary
Account (%)Special
Account (%)Medisave
Account (%)Total (%)
35 years & below 22 5 6 33
Above 35–45 years 20 6 7 33
Above 45–55 years 18 7 8 33
Above 55–60 years 10.5 – 8 18.5
Above 60–65 years 2.5 – 8.5 11
Above 65 years – – 8.5 8.5
Contributions amounting to $15,320.1 million were collected and credited
into members’ accounts during the year. Withdrawals from members’
balances totalled $10,310.3 million in 2004, compared to $11,816.5 million
in the previous year.
Contributions Received
2004 $15,320.1 m
2003 $15,870.0 m
2002 $16,165.7 m
2001 $18,322.3 m
2000 $14,092.8 m
Annual Withdrawals*
2004 $10,310.3 m
2003 $11,816.5 m
2002 $14,821.4 m
2001 $18,860.4 m
2000 $14,555.9 m
* Include withdrawals under Section 15 & CPF schemes
21Review of Operations
In 2004, 48,858 members were brought into the Minimum Sum
Scheme. Of these, 2,989 bought annuities, 19,231 pledged their properties
and 13,988 left their Minimum Sum either with banks or the Board. The
remaining 12,650 were members who had no Minimum Sum to set aside
as they had small balances, and those who were exempted from the
scheme because they were terminally ill, had passed away, had their own
annuities, had left the country permanently or were pensioners in receipt
of a monthly pension.
Topping-Up of the Minimum Sum
The topping-up of the Minimum Sum gives individuals the opportunity
to top up their own, their spouses’ and their parents’ Retirement Accounts.
Accounts can be topped up with cash or transfers of CPF savings. Individuals
can also top up their grandparents’ accounts using cash.
In 2004, 2,880 individuals made cash and CPF top-ups amounting to
$21.21 million.
Withdrawals upon Death, Permanent Disability
and Other Grounds
Upon a member’s death, his savings will be paid to his nominated
benefi ciaries. If no nomination was made, the savings will be handed to
the Public Trustee for distribution according to the law. Members who
become permanently disabled can apply to withdraw their CPF savings at
any time. During the year, $226.9 million was withdrawn on these grounds.
Members who left Singapore and West Malaysia permanently withdrew
$322.5 million.
Transfer of Ordinary Account Savings to Special Account
CPF members below age 55 who want to put aside more cash for old age
can transfer their CPF savings from the Ordinary Account to the Special
Account up to a limit of $84,500, which is the prevailing Minimum Sum.
The transfer is irreversible. With the transfer, CPF members will enjoy a
higher interest rate paid on their CPF savings in the Special Account,
which is currently 4%. In 2004, 15,503 CPF members transferred/topped-up
$158.1 million into to their Special Accounts.
22 Central Provident Fund Board | Annual Report 2004
Retirement Planning
To encourage members to plan early for their retirement, the Board
launched “my cpf” at www.cpf.gov.sg. ”my cpf” is a comprehensive guide
for members to help them plan for their CPF savings at different life stages
such as Starting Work, Buying a House and Reaching 55.
The Board organised its fi rst ”my cpf & me” road show and retirement
planning seminar at the HDB Hub. It drew more than 50,000 members.
The public gave positive feedback and affi rmed that such events are
useful channels to obtain information in helping them plan for their
old age.
The event also marked the launch of the CPF Retirement Planner and
Housing Site. The Retirement Planner is an online tool that helps members
assess their fi nancial situation, determines their current savings adequacy
and provides suggestions on how to reach their goals. The Housing Site
provides housing-related information and useful calculators to guide
members in making prudent fi nancial decisions when buying their dream
home.
HEALTHCARE
Medisave, MediShield and MediShield Plus help CPF members and their
dependants pay for hospitalisation expenses. Prudent use of savings
in the Medisave Account, coupled with a catastrophic illness insurance
scheme such as MediShield, will go a long way towards meeting members’
healthcare needs.
Medisave
From 1 July 2004, members are required to maintain up to $30,500 in
their Medisave Account. Those who withdraw their savings at age 55 need
to set aside $25,500 or the actual Medisave balance, whichever is lower,
in their Medisave Account to meet healthcare needs during retirement.
Members who are government pensioners under the Fixed Amount
on Ward Charges scheme (FAW) are not required to maintain any savings
in the Medisave Account whereas government pensioners under the Co-
Payment on Ward Charges scheme (CPW) are required to maintain up to
$15,250 in their Medisave Account. They have to set aside $12,750 in their
Medisave Account when they withdraw their savings at age 55.
23Review of Operations
Annual Medisave withdrawals for medical expenses increased from
$328.4 million in 2003 to $367.2 million in 2004. The number of such
withdrawals increased by 13.5% to 544,885.
Annual Withdrawals under Medisave Scheme for Approved Medical Expenses
2004 $367.2 m
2003 $328.4 m
2002 $361.0 m
2001 $371.9 m
2000 $368.7 m
Note: The fi gures exclude Medisave withdrawals for payment of approved premiums under the Private Medical Insurance Scheme (PMIS) and ElderShield Scheme.
Medisave for the Self-Employed
Self-employed persons below 35 years old are required to contribute
6% of their annual net trade income into their Medisave Account. Those
35 to below 45 years old have to contribute 7% while those 45 years old
and above have to contribute 8%.
Self-employed persons who have not previously been issued with a
Notice of Assessment/Non-tax Advice by the Inland Revenue Authority of
Singapore (IRAS) and who are below 35 years old contribute $540 yearly.
Those 35 to below 45 years old are required to contribute $630 yearly.
Those 45 years old and above have to pay $720 yearly. This is based on an
average yearly income of $9,000.
For 2004, self-employed persons contributed a total of $321.49 million
to CPF, including Medisave contributions of $243.64 million. Voluntary
contributions from self-employed persons to the Ordinary and Special
Accounts totalled $77.85 million, thus enabling them to save for their old
age, housing and family protection as well. As at 31 December 2004, the
total Medisave contributions made by self-employed persons stood at
$2,118.55 million.
24 Central Provident Fund Board | Annual Report 2004
Percentage of Employees* who have the Required Medisave Balance at Age 55
2004 57.5%
2003 54.6%
2002 54.7%
2001 55.2%
2000 56.0%
*Excludes pensioners and self-employed persons
Average Balance in the Medisave Accounts of Employees* at Age 55
2004 $22,292
2003 $20,512
2002 $18,983
2001 $17,842
2000 $16,059
*Excludes pensioners and self-employed persons
MediShield and MediShield Plus
MediShield, the low-cost national catastrophic illness insurance scheme,
provides members and their dependants with fi nancial protection
against high medical expenses arising from prolonged or serious illnesses.
MediShield Plus is also available for members who want a higher coverage
than MediShield and is designed to meet a signifi cant portion of the
higher hospital charges of Class A or B1 wards. It works in the same way as
MediShield and has two plans – Plan A and Plan B. Premiums for MediShield
and MediShield Plus can be paid from the Medisave Account, subject to a
maximum of $660 per insured person per policy year.
Those who have been insured continuously under any of the MediShield
plans since age 60 or earlier will enjoy a discount on their premiums from
ages 71 to 75. Depending on how long a person remains insured and the
type of plan he is under, he will enjoy yearly premium discounts ranging
from $20.40 to $480.
25Review of Operations
For MediShield, the annual premiums are between $12 and $390,
depending on the insured’s age. The annual claim limit is $30,000 with a
lifetime claim limit of $120,000.
As at 31 December 2004, 1,294,894 CPF members and dependants
were covered under MediShield. During the year, $70.1 million was
approved to meet 101, 894 claims.
For MediShield Plus Plan A, the annual premiums are between $60
and $1,950. The annual claim limit is $100,000 with a lifetime claim limit
of $300,000. For Plan B, the annual premiums are between $36 and $1,170
with an annual claim limit of $75,000 and lifetime claim limit of $225,000.
As at 31 December 2004, 337,293 CPF members and their dependants
were covered under MediShield Plus. In 2004, $16.7 million was paid out to
meet 13,258 claims.
HOME OWNERSHIP
CPF members are able to own their own home with the help of the Public
Housing Scheme and the Residential Properties Scheme.
Public Housing Scheme
The Public Housing Scheme allows members to use their CPF savings
to buy HDB fl ats and to pay their housing instalments. During the year,
$5,254.3 million was withdrawn by 655,239 members to pay for their HDB
fl ats and to service their HDB housing loans. Since January 2003, members
were allowed to obtain loans from banks to purchase HDB fl ats. In the year
2004, 69,096 members used $1,537.8 million of their CPF to service the
bank loans or to buy HDB fl ats fi nanced with bank loans.
From 1 January 2004, the CPF Withdrawal Limit for members using CPF
to service their bank loan was 144% of the Valuation Limit subject to
suffi cient Available Housing Withdrawal Limit. The CPF Withdrawal Limit
will be reduced to 138% for those who buy their fl at or refi nance from
HDB loan to bank loan with effect from 1 January 2005. This limit will be
further reduced by six percentage points every year until it reaches 120%
in year 2008.
26 Central Provident Fund Board | Annual Report 2004
Residential Properties Scheme
Under the Residential Properties Scheme, members can use their CPF
savings to buy private residential properties and executive condominiums,
and to pay their housing loan instalments. The CPF Withdrawal Limit for
new purchases or loan refi nanced on or after 1 January 2004 was 144%
of the Valuation Limit subject to suffi cient Available Housing Withdrawal
Limit. This limit will be further reduced by six percentage points every year
until it reaches 120% in year 2008.
The number of applications increased by 1.6% to 9,815 in 2004. In 2004,
a gross amount of $3,246.0 million was withdrawn under the scheme, an
increase of 5.8% over 2003’s fi gure.
Use of Special Account Savings
for Housing Instalments
Arising from the cut in the CPF contribution to the Ordinary Account
(OA) from October 2003, members whose housing loan was affected
were allowed to make up for the shortfall by using their Special Account
(SA) to service their housing loan. A higher SA withdrawal limit was set
for members who were allowed to use their SA to top up their monthly
housing payments. This higher SA withdrawal limit was the combination
of the limit allowed in 1999 plus the new limit resulting from the
additional CPF cut to the OA. As at 31 December 2004, 178,350 members
had used $279.5 million from SA savings to pay for their housing loan
instalments.
Annual Withdrawal (Gross) under Public Housing Scheme
2004 $6,792.1 m
2003 $6,849.5 m
2002 $8,219.5 m
2001 $8,330.7 m
2000 $8,208.5 m
27Review of Operations
Annual Withdrawal (Gross) under Residential Properties Scheme
2004 $3,246.0 m
2003 $3,069.3 m
2002 $3,693.8 m
2001 $3,676.5 m
2000 $4,237.9 m
Percentage of Employees Aged 21 and Above (Singapore NRIC Holders) who Currently Own Public
Housing Properties Bought with CPF Savings as at 31 December
2004 95.1%
2003 95.0%
2002 94.9%
2001 94.5%
2000 94.0%
Percentage of Employees Aged 21 and Above (Singapore NRIC Holders) who Currently Own Residential Properties Bought with CPF Savings as at 31 December
2004 68.8%
2003 69.4%
2002 70.0%
2001 70.0%
2000 69.4%
FAMILY PROTECTION
Dependants’ Protection Scheme
The Dependants’ Protection Scheme (DPS) is a term-life insurance that
provides members and their families with fi nancial help should the insured
member become permanently incapacitated, or die before age 60. The
scheme pays up to $44,000 to the insured member or his dependants
to help them tide over the initial diffi cult period if the breadwinner is
permanently incapacitated or dies unexpectedly.
28 Central Provident Fund Board | Annual Report 2004
Insured members pay an annual premium ranging from $36 to $360,
depending on their age. To reward members and to encourage them
to remain insured continuously under DPS, premium discounts ranging
from $10 to $160 a year, based on the length of coverage, are given to
members when they renew their cover from age 55 to 60.
As at 31 December 2004, 1,627,356 members were covered under
the scheme, compared to 1,577,051 in 2003. The percentage of eligible
members covered under DPS is 89.6%. The total sum assured also
increased, from $73,075.9 million in 2003 to $74,943.1 million in 2004.
During the year, the Board approved 2,765 claims. Of these, 1,775
were for death and 990 for permanent incapacity. The total claim amount
approved was $127.6 million, compared to $103.1 million for 2,640 claims
in 2003.
Percentage of Eligible Members Covered under DPS
2004 89.6%
2003 89.2%
2002 89.3%
2001 88.4%
2000 87.6%
Home Protection Scheme
The Home Protection Scheme (HPS) is a compulsory mortgage-reducing
insurance scheme. It protects the families of members who are using
CPF savings to service the housing loans for HDB fl ats. Members can
use CPF savings to pay the insurance premiums and are covered for the
period of the housing loan or until they reach the maximum cover age,
whichever is earlier. If a member becomes permanently incapacitated
from ever continuing in any employment, or dies, the Board will pay off his
outstanding housing loan.
At the end of 2004, 678,133 persons were covered for a total assured
sum of $80,023.5 million. This represents a 0.08% decrease in membership
and a 3.9% increase in the assured sum over 2003. There were 1,049
claims totalling $82.0 million in 2004. This comprised 713 claims for death
and 336 for permanent incapacity.
29Review of Operations
Cumulative Number of Members Covered under HPS as at 31 December
2004 678,133
2003 678,657
2002 676,502
2001 661,404
2000 648,418
Sum Assured under HPS as at 31 December
2004 $80,023.5 m
2003 $76,998.0 m
2002 $74,378.5 m
2001 $71,293.3 m
2000 $67,328.2 m
ASSET ENHANCEMENT
Members who wish to manage and enhance their CPF savings for their
old age can do so through the CPF investment schemes. The schemes give
CPF members more choices in investing their savings while maintaining
the longer-term objective of ensuring their fi nancial security in old age.
CPF Investment Scheme
Under the CPF Investment Scheme (CPFIS) members can invest their
Ordinary Account and Special Account savings. They are to take individual
responsibility for their old-age security while accepting the risks and
trade-offs in their investment decisions.
Members are encouraged to exercise prudence by investing their
old-age savings in professionally-managed products such as unit trusts
instead of self-investing in stocks so as to diversify their investment
portfolio and spread the risk of investment. Members may invest up to
the full balance in their Ordinary and Special Accounts in professionally-
managed products which include fi xed deposits, endowment and
investment-linked insurance policies, annuities, unit trusts, Singapore
Government bonds, Statutory Board bonds, bonds guaranteed by the
Singapore Government and exchange-traded funds. Members can
also invest the full balance in their Ordinary Account savings in fund
management accounts.
30 Central Provident Fund Board | Annual Report 2004
Under CPFIS-Ordinary Account (CPFIS-OA), members can invest up to
35% of investible savings in shares, corporate bonds and property funds,
while 10% can be invested in gold. Investible savings is defi ned as the
Ordinary Account balance plus net amounts withdrawn for education and
investments.
As at 31 December 2004, 741,679 members had invested a gross
amount of $24,126.3 million of their CPF savings under the CPFIS-OA and
432,965 members had invested $4,628.6 million of their CPF savings under
the CPFIS-SA.
NON-RESIDENTIAL PROPERTIES SCHEME
The Non-Residential Properties Scheme enables members to enhance
their CPF savings by investing them in non-residential properties. In 2004,
a gross amount of $54.2 million was withdrawn under the scheme, an
increase of 7.3% from 2003.
Education Scheme
The Education Scheme is basically a loan scheme to help CPF members
fi nance their children’s or their own tertiary education. The scheme covers
all full-time undergraduate courses at the National University of Singapore,
Nanyang Technological University and Singapore Management University,
and all full-time diploma courses at LaSalle-SIA College of the Arts, Nanyang
Academy of Fine Arts, Nanyang Polytechnic, Ngee Ann Polytechnic, Republic
Polytechnic, Singapore Polytechnic and Temasek Polytechnic.
During the year, 13,071 applications were processed under the scheme,
an increase of 0.5% from 2003. The gross amount withdrawn (tuition and
administrative fees) increased from $91.2 million in 2003 to $95.3 million in
2004. The total amount repaid was $47.5 million.
MEMBERSHIP PRIVILEGES
Discounted SingTel Shares
To make Singapore a share-owning society and give Singaporeans a
greater stake in the country, Singaporean CPF members were able to buy
31Review of Operations
discounted SingTel shares in 1993 (ST “A” shares) and 1996 (ST2 shares).
SingTel declared a fi nal dividend of 6.4 cents a share for its fi nancial year
ended 31 March 2004. In August 2004, the fi nal dividend totaling $105.1
million was credited to 1.3 million SingTel shareholders’ CPF Ordinary
Account.
SingTel also performed a capital reduction exercise in September 2004
and cancelled 1 out of every 14 shares. SingTel reimbursed its affected
shareholders a cash distribution amount of $2.36 for each cancelled share.
A total of 116.9 million shares was cancelled and a total amount of $275.9
million cash distribution was credited into SingTel shareholders’ CPF
Ordinary Account.
Economic Restructuring Shares
The Economic Restructuring Shares (ERS) are part of the assistance package
given to Singapore citizens to help them defray the Goods and Services Tax
(GST) increase from 2003.
The ERS are given out in three lots, one for each year starting 1 January
2003. The number of ERS allotted depends on the Annual Value of the
property at the address indicated on a person’s NRIC and based on IRAS’
records. The shares, each worth $1, are non-tradable and non-transferable.
$2.5b worth of ERS has been given out to Singaporeans in 3 lots:
Number Benefi ted ERS allotted
1st lot (2003) 2.1 m (96%) $870.8 m
2nd lot (2004) 2.14 m (96%) $814.2 m
3rd lot (2005) 2.17 m (97%) $824.7 m
Total $2,509.7 m
Dividends on the shares were paid in the form of bonus shares on
1 March 2004 and will continue to be paid till 2008. The rate will be a
guaranteed minimum of 3% per annum plus the real GDP growth rate (if
positive) of the previous calendar year.
32 Central Provident Fund Board | Annual Report 2004
CPF SERVICES
CPF PAL-Internet
2004 saw more new e-services being offered to members under the CPF
PAL-Internet. “My Statement” shows members their CPF balance in a single,
easy-to-read consolidated page that makes checking the statement a
breeze. “My Requests” is a step-by-step guide to help members fi nd and
complete the right online application form. “My Activities” tracks the status
of members’ online applications. Lastly, “My Messages” shows a member’s
participation in the various CPF schemes.
To assist members in the use of “my cpf” Online Services, an Online
Demo service was implemented in October 2004 on the CPF website. This
video clip gives members a guided view of what they can expect in the
online service.
Other online tools implemented last year are the intelligent search
facility, “Ask Us”, and the Retirement Planner.
In 2004, PAL-Internet received over 9 million hits. The number of
transactions made was 13 million, an increase of more than 140% above
the 5.4 million transactions in 2003.
Electronic Services for Employers
Employers can submit the CPF contribution details electronically at their
convenience through the CPF PAL-Internet (Employer Returns) by stating
the contribution details in the online form or using a fi le transfer. For fi le
transfer, employers can simply extract contribution details from their
payroll software and submit these to the Board for processing through a
secured web page. Upon successful processing of the details submitted
by employers, the system will send employers a soft copy of the Record
of Payment (ROP). Employers can retrieve and fi le or print the electronic
ROP at their convenience. To use CPF PAL-Internet (Employer Returns), all
employers need is a SingPass and a GIRO facility. The service is available 24
hours a day, 7 days a week.
Alternatively, employers can also use the CPF/IRAS Line. The CPF/IRAS
Line enables businesses to submit their monthly CPF contribution details
33Review of Operations
and Goods and Services Tax returns electronically to the CPF Board and the
Inland Revenue Authority of Singapore respectively.
mPAL
The Mobile Personal Auto-Link (mPAL) allows employers with 10 or less
employees to submit CPF contributions via a GPRS (General Packet Radio
Service) mobile phone.
The mPAL is built on a wireless platform. Submissions are made over
a public network and data is encrypted end-to-end. All information
transmitted is secured and confi dential. Payment will be deducted via
GIRO when the submission is received.
Like PAL-Internet, mPAL is a generic platform that can eventually be
extended to other transactions for members, employers and self-employed
persons.
CPF E-Lobby, e-Counters and SingPass
CPF E-Lobbies, located in all CPF offi ces, feature automated self-service
e-counters that allow members to view and print their latest CPF statement
during offi ce hours. Members can also access other CPF services online at
the e-counters. All they need is their SingPass, an alphanumeric password
comprising a minimum of 8 and a maximum of 24 characters.
Should members require a new SingPass or forget their SingPass,
they can make use of the SingPass Online Request service available
on www.cpf.gov.sg or the SingPass Request Hotline (1800-327 1133), a
new service implemented in December 2004, to request for one. A new
SingPass will be posted to them within 5 working days.
Call Centre
The Board’s Call Centre received about 1.75 million calls from both
members and employers regarding CPF schemes and services in
2004. Over 350,000 calls concerned national projects such as the New
Singapore Shares and the Economic Restructuring Shares.
34 Central Provident Fund Board | Annual Report 2004
Service Feedback
The Board conducts annual surveys to gather members’ and employers’
feedback on the Board’s counter, telephone and other services. In 2004,
survey results revealed that 96.0% of members and 97.2% of employers
were either “very satisfi ed” or “satisfi ed” with our overall services.
The Board also received 77,968 feedback forms under the “Share Your
Views with Us” Programme. About 98.3% of the customers rated the
Board’s services as excellent. 79,830 compliments were received from our
customers, service partners and the public.
Percentage of Respondents to the Annual Customer Service Survey who Gave a Rating of “Satisfi ed” or “Very Satisfi ed” for the Board’s Service
Employer Member
2004 97.2% 96.0%
2003 99.5% 95.5%
2002 98.1% 95.9%
2001 97.4% 95.9%
2000 95.9% 96.9%
Agency Services
The Board provides agency services to the Government and other
organisations. It is the collecting agent for Foreign Worker Levy (FWL),
Skills Development Levy (SDL) and Community Chest’s Social Help and
Assistance Raised by Employees (SHARE) donations. It also collects the
contributions made to the Chinese Development Assistance Council
(CDAC), Eurasian Community Fund (ECF), Mosque Building and MENDAKI
Fund (MBMF) and Singapore Indian Development Association (SINDA).
The Board also conducts the annual Occupational Wages Survey for
the Ministry of Manpower and administers the Edusave Pupils Fund and
Government-Paid Maternity Leave claims for the Ministry of Education and
the Ministry of Community Development, Youth and Sports respectively.
Collection of CPF Contribution
As at the end of 2004, 77,953 employers were paying CPF contributions for
their employees. For 2004, the default rate for employers who had failed to
35Review of Operations
pay the monthly contributions on time continued to improve. It was 0.53%
compared to 0.61% in 2003.
CORPORATE CITIZENSHIP
In 2004, the Board continued to organise various charity events such as
Valentine’s Day Charity Rose Sale and Charity Jumble Sale to raise funds to
help the less fortunate. CPF staff continued to care for the residents of the
Society for the Aged Sick, the Board’s adopted home under its Community
Service Programme. Besides raising funds, the Board also organised regular
visits to the home to bring cheer to the residents.
On CPF’s Family Day, a group of underprivileged children from
Gracehaven Children’s Home were treated to a day of fun and laughter
with the Board’s staff and families. The Board also assisted charitable
organisations in recruiting volunteers in the sales of donation draw tickets.
Contributing to the community has become a way of life at the Board
as seen in active staff participation in the SHARE programme, winning
the Board, for the 12th time, the SHARE Programme Platinum Award. This
award was given out by Community Chest to acknowledge the Board’s
unstinting efforts.
Besides caring for the less fortunate, the Board continued to support
the national drive towards a “clean and green environment”. During the
year, 36,470 kg of paper was collected for recycling. CPF staff also
participated actively in the beach-cleaning activities organised by the
Board.
The Board recognises that a strong and healthy workforce is integral
to its success. For its strong support in promoting healthy lifestyle and
health programmes at the workplace, the Board received the Singapore
H.E.A.L.T.H. (Helping Employees Achieve Life-Time Health) Platinum Award
from the Health Promotion Board. This award is given to organisations that
have achieved the Gold Award for three or more consecutive years and
that have also demonstrated tangible results in their workplace health
promotion programmes.
36 Central Provident Fund Board | Annual Report 2004
ADMINISTRATION & FINANCE
SQA Winner 2004
The Board was awarded the Singapore Quality Award (SQA) on 21
September 2004. The SQA is the most prestigious award conferred on
organisations that have achieved the highest standards of business
excellence.
Effective leadership, innovative processes, excellent customer service
and a committed and engaged workforce are some of the factors that had
contributed to the Board’s success in winning the SQA in 2004.
Promotion of Innovation Programmes
The Board’s WITs (Work Improvement Teams) programme, which started in
1981, has remained active for the past 23 years. In 2004, there was 100%
participation in the Board’s WITs programme. The Board’s 136 WITS teams
completed an average of 5.01 projects per team.
Under the “My Ideas” scheme introduced in 1983, there was 100% staff
participation in 2004. Each staff member submitted an average of 9.4
ideas. The percentage of quality ideas (ideas accepted for implementation)
was 48%.
The CPF “WOW” Ideas Award was introduced in 2001 to encourage more
impactful and creative ideas from staff. In 2004, a total of 74 “WOW” ideas
were generated from staff – a 7.25% increase from 2003. Of these, four ideas
were shortlisted for presentation at the “WOW” Ideas Conference held in
October 2004.
In 2004, the CPFB Innovation Fund funded two projects for trial. Two
projects from 2003 were approved for implementation. These projects
benefi ted both employers and members.
Public Offi cers Working on Eliminating Red-tape (POWER), an initiative
by the civil service, was introduced in the Board in August 2001. A total of
125 rules were reviewed in 2004, of which 51 were improved or removed.
37Review of Operations
Staff Development
We encourage our staff to continuously upgrade their skills through the
numerous learning opportunities available in the Board. As an indicator of
our achievement in promoting life-long learning, the Board accomplished
an average of 118.41 training hours per staff in 2004.
Recognition for Staff Excellence
In 2004, 14 staff were presented with the Staff Excellence Award, in
recognition for their excellent overall performance and service to
customers. These prestigious awards were fi rst introduced in 1989 to
recognise outstanding frontline and non-frontline staff.
International Relations
The Board received more than 260 visitors from foreign national provident
funds, government bodies and private organisations in 2004.
CPFB is one of the founding members of the ASEAN Social Security
Association (ASSA).
ASSA aims to promote the development of social security in its member
countries in line with the aspirations, laws and regulations of these
countries. Formed as a forum, member institutions are free to exchange
and share views and experiences on social security issues.
ASSA now comprises 11 social security organisations from Brunei,
Indonesia, Lao PDR, Malaysia, the Philippines, Singapore, Thailand and
Vietnam.
38 Central Provident Fund Board | Annual Report 2004
National Education
The Board has always played an active role in nation-building. As per
previous years, the Board’s “CPF and You” programme reached out to
more than 1,238 junior college students in 2004. During these sessions,
students were able to learn more about CPF schemes and the role that CPF
plays in nation-building. The programme is part of the Learning Journey
Programme coordinated by the Ministry of Education for students to
understand the factors behind Singapore’s nation-building and to instil a
sense of pride in the future leaders of Singapore. The Board is one of the
key national institutions invited to participate in the Learning Journey
Programme.
Finance
As at 31 December 2004, CPF members’ funds amounted to $111,873.8
million. Of this, $108,462.4 million was invested in Singapore Government
Bonds and $3,411.4 million placed as Advance Deposits with the Monetary
Authority of Singapore pending the issue of such bonds.
The insurance funds stood at $3,166.7 million as at 31 December 2004.
They were mainly invested in bonds, equities and deposits by institutional
fund managers.
40 Central Provident Fund Board | Annual Report 200440 Central Provident Fund Board | Annual Report 2004
Report on the Audit of the Financial Statements of the Central Provident Fund Board for the Year Ended 31 December 2004
The fi nancial statements of the Central Provident Fund Board, set out on pages 41 to 65, have been
audited under my direction and in accordance with the provisions of the Central Provident Fund Act (Cap.
36, 2001 Revised Edition). These fi nancial statements are the responsibility of the Board’s management.
My responsibility is to express an opinion on these fi nancial statements based on the audit.
The audit was conducted in accordance with the Central Provident Fund Act (Cap. 36, 2001 Revised
Edition) and Singapore Standards on Auditing. Those Standards require that the audit be planned and
performed in order to obtain reasonable assurance about whether the fi nancial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts
and disclosures in the fi nancial statements. An audit also includes assessing the accounting principles
used and signifi cant estimates made by the Board’s management, as well as evaluating the overall
fi nancial statements presentation. I believe that the audit provides a reasonable basis for my opinion.
In my opinion,
(a) the fi nancial statements are properly drawn up in accordance with the provisions of the Central
Provident Fund Act (Cap. 36, 2001 Revised Edition) and Singapore Financial Reporting Standards so
as to give a true and fair view of the state of affairs of the Board as at 31 December 2004, and the
results, changes in equity and cash fl ows of the Board for the year ended on that date;
(b) proper accounting and other records have been kept, including records of all assets of the Board
whether purchased, donated or otherwise; and
(c) receipts, expenditure and investment of moneys and the acquisition and disposal of assets by
the Board during the fi nancial year have been in accordance with the provisions of the Central
Provident Fund Act (Cap. 36, 2001 Revised Edition).
CHUANG KWONG YONGAuditor-GeneralSingapore28 March 2005
41Financial Statements
CENTRAL PROVIDENT FUND BOARD
BALANCE SHEET AS AT 31 DECEMBER 2004
2004 2003
Note S$’000 S$’000CENTRAL PROVIDENT FUND 3
Accumulated surplus 1,598,475 1,580,723 Members’ accounts 4 111,873,821 103,539,568 Reserve Account 5 37,678 37,488 Other non-current liability 6 153 508
113,510,127 105,158,287
INSURANCE FUNDS
Home Protection Fund 7 2,041,765 2,038,031 Dependants’ Protection Fund 7 557,307 516,398 MediShield Fund 7 567,594 524,505
3,166,666 3,078,934
116,676,793 108,237,221
Represented by:
FIXED ASSETS 8 179,443 186,532
INTANGIBLE ASSETS 9 7,016 6,951
LONG-TERM INVESTMENTS 10 103,727,846 94,434,451
STAFF LOANS 11 1,064 1,269
CURRENT ASSETS
Investments 12 8,500,000 9,490,000 Debtors and deposits 13 40,384 49,233 Accrued interest 938,450 857,144 Bank deposits 14 94,600 111,200 Cash and bank balances 14 99,570 99,369
9,673,004 10,606,946
Less: CURRENT LIABILITIES
Creditors, accruals and provisions 15 76,979 76,490 Contribution payable to Government Consolidated Fund 16 1,267 1,372
78,246 77,862
NET CURRENT ASSETS 9,594,758 10,529,084 113,510,127 105,158,287
NET ASSETS OF INSURANCE FUNDS
Home Protection Fund 7 2,041,765 2,038,031 Dependants’ Protection Fund 7 557,307 516,398 MediShield Fund 7 567,594 524,505
3,166,666 3,078,934
116,676,793 108,237,221
The accompanying notes form part of the fi nancial statements.
MOSES LEEChairmanCentral Provident Fund Board28 March 2005
TAN YOKE MENG WILLIEChief Executive Offi cerCentral Provident Fund Board28 March 2005
42 Central Provident Fund Board | Annual Report 2004
CENTRAL PROVIDENT FUND BOARD
INCOME AND EXPENDITURE STATEMENT FOR CENTRAL PROVIDENT FUND FOR THE YEAR ENDED 31 DECEMBER 2004
2004 2003Note S$’000 S$’000
INCOME
Investment income 3,461,829 3,190,913 Agency, consultancy and data processing fees 17 29,817 33,221 Penalty interest on late contributions 12,679 15,139 Rent, service charges and car park receipts 18 11,913 11,701 Miscellaneous revenue 1,149 1,186 Interest from bank deposits 874 1,256
3,518,261 3,253,416
Less:EXPENDITURE
Salaries and staff benefi ts 19 75,041 67,208 Depreciation and amortisation 8,9 11,647 11,246 Computer software and supplies 8,849 8,035 Maintenance of buildings and equipment 7,047 7,883 Printing and postage 6,157 8,299 Agency fees and other professional charges 5,875 5,336 General and administrative expenditure 20 3,305 3,909 Public utilities 2,624 2,609 Property tax 2,147 1,250 Publicity and campaigns 1,248 1,725 Finance cost 37 31 Bad debts expense – 49
123,977 117,580
Interest credited to members’ accounts 3,375,266 3,115,273
SURPLUS FOR THE YEARbefore contribution to Government Consolidated Fund 19,018 20,563
Less: Contribution to Government Consolidated Fund 16 1,266 1,371 NET SURPLUS FOR THE YEAR 17,752 19,192
Accumulated surplus as at 1 January 1,580,723 1,561,531
Accumulated surplus as at 31 December 1,598,475 1,580,723
The accompanying notes form part of the fi nancial statements.
43Financial Statements
CENTRAL PROVIDENT FUND BOARD
STATEMENT OF CHANGES IN EQUITY FOR CENTRAL PROVIDENT FUNDFOR THE YEAR ENDED 31 DECEMBER 2004
2004 2003
S$’000 S$’000
Accumulated surplus as at 1 January 1,580,723 1,561,531
Add:Net surplus for the year 17,752 19,192
Accumulated surplus as at 31 December 1,598,475 1,580,723
44 Central Provident Fund Board | Annual Report 2004
CENTRAL PROVIDENT FUND BOARD
CASH FLOW STATEMENT FOR CENTRAL PROVIDENT FUND FOR THE YEAR ENDED 31 DECEMBER 2004
2004 2003Note S$’000 S$’000
CASH FLOWS FROM OPERATING ACTIVITIES
Surplus for the year before contribution to Government Consolidated Fund 19,018 20,563
Adjustments for:Depreciation and amortisation 11,647 11,246 Interest credited to members’ accounts 3,375,266 3,115,273 Write-off of fi xed assets 2 61 Other income – sale of fi xed assets (29) (2)Investment income and interest from bank deposits (3,462,703) (3,192,169)Lease interest 37 31
Defi cit before working capital changes (56,762) (44,997)
Add/(less) changes in working capital:Decrease/(increase) in debtors and deposits 8,849 (23,037)Increase/(decrease) in creditors, accruals and provisions 3,000 (32,126)
Add/(less) cash fl ows from:Contributions received 15,320,105 15,869,972 Withdrawals by members (10,310,297) (11,816,527)Refunds of contributions (50,631) (34,161)Placement of advance deposits (17,793,395) (16,161,077)Redemption of Singapore Government bonds 9,490,000 9,000,000 Net reduction in staff loans 205 421 Interest received 3,381,396 3,095,915 Contribution to Government Consolidated Fund (1,371) (1,591)
Net cash used in operating activities (8,901) (147,208)
CASH FLOWS FROM INVESTING ACTIVITIESPayments for purchase of fi xed assets (6,931) (6,602)Payments for intangible assets (183) (6,399)Proceeds from sale of fi xed assets 29 2 Net cash used in investing activities (7,085) (12,999)
CASH FLOWS FROM FINANCING ACTIVITYRepayment of fi nance lease liability (376) (251)Lease interest paid (37) (31)Net cash used in fi nancing activity (413) (282)
NET DECREASE IN CASH AND CASH EQUIVALENTS (16,399) (160,489)
CASH AND CASH EQUIVALENTS AS AT 1 JANUARY 210,569 371,058
CASH AND CASH EQUIVALENTS AS AT 31 DECEMBER 14 194,170 210,569
The accompanying notes form part of the fi nancial statements.
45Financial Statements
NOTES TO THE FINANCIAL STATEMENTS – 31 DECEMBER 2004
1 PRINCIPAL ACTIVITIES
The Central Provident Fund Board, established under the Central Provident Fund (CPF) Act,
administers the CPF, which is Singapore’s national social security savings scheme jointly supported
by employees, employers and the Government. The Board’s principal activities include the collection
of CPF contributions, the processing of withdrawals of CPF savings by members under the various
schemes and when they reach withdrawal age, and the administration of the Home Protection Fund,
Dependants’ Protection Fund and MediShield Fund.
The Board is the trustee of the CPF and the administrator of the Home Protection Fund,
Dependants’ Protection Fund and MediShield Fund.
2 SIGNIFICANT ACCOUNTING POLICIES
a) BASIS OF ACCOUNTING
The fi nancial statements have been prepared in accordance with the provisions of the
Central Provident Fund Act (Cap. 36, 2001 Revised Edition) and Singapore Financial Reporting
Standards (FRS).
The fi nancial statements are prepared under the historical cost convention.
b) BASIS OF RECOGNISING CONTRIBUTIONS AND INCOME
By virtue of sections 12 and 13 of the Central Provident Fund Act, contributions are recognised
when received and credited directly to the members’ accounts.
Penalty interest on late contributions, interest income on investments and bank deposits
and dividend income are recognised on an accrual basis.
Premiums from Insurance Funds are taken directly to the respective funds and are
recognised on an accrual basis.
Income from services is recognised when services have been rendered.
c) OPERATING EXPENDITURE
By virtue of the Central Provident Fund Act, all operating expenditure relating to the Central
Provident Fund, Home Protection Fund, Dependants’ Protection Fund and MediShield Fund
are charged to the respective funds.
46 Central Provident Fund Board | Annual Report 2004
d) INSURANCE FUNDS
Insurance Funds are established by the Board under the Central Provident Fund Act to account
for receipts and payments under the Home Protection Scheme, Dependants’ Protection Scheme
and MediShield Scheme. These funds are controlled and administered by the Board.
Receipts and payments of these funds are taken directly to the funds and the excess of the
funds’ assets over their liabilities is refl ected separately in the balance sheet. These funds are
accounted for on an accrual basis.
e) FIXED ASSETS AND DEPRECIATION
Fixed assets are stated at cost less accumulated depreciation and accumulated impairment
losses. Depreciation is calculated using a straight-line method to write off the cost of the fi xed
assets over their estimated useful lives. The estimated useful lives are as follows:
Leasehold land – period of the lease
Buildings – 50 years or period of the lease, whichever is shorter
Building renovation and improvement – remaining life of the building
Machinery and equipment – 4 to 20 years
Furniture and fi ttings – 8 years
Data-processing equipment – 3 to 5 years
Other assets – 30 years
A full year’s depreciation is charged in the year of acquisition of the assets and no
depreciation is charged in the year of disposal. No depreciation is provided for freehold land,
land with statutory grant and construction-in-progress.
The carrying amounts of fi xed assets are reviewed at each balance sheet date to assess
whether they are recorded in excess of their recoverable amounts, and if carrying amounts
exceed recoverable amounts, assets are written down to recoverable amounts.
Fully depreciated assets are retained in the books until they are disposed of.
Assets costing below S$2,000 per item are charged against income in the year of purchase.
47Financial Statements
f ) INTANGIBLE ASSETS AND AMORTISATION
Computer software including software development cost is stated at cost less accumulated
amortisation and accumulated impairment losses, if any. Amortisation is calculated using a
straight-line basis to write off the cost of the computer software over their estimated useful
lives ranging from 3 to 20 years.
A full year’s amortisation is charged in the year the asset is available for use and no
amortisation is charged in the year of disposal. No amortisation is provided for intangible
assets under development.
The carrying amounts of computer software are reviewed at each balance sheet date
to assess whether they are recorded in excess of their recoverable amounts, and if carrying
amounts exceed recoverable amounts, assets are written down to recoverable amounts.
Fully amortised assets are retained in the books until they are disposed of.
Computer software costing below S$2,000 per item is charged against income in the year
of purchase.
g) FINANCE LEASE
Assets fi nanced by lease agreements, which effectively transfer to the Board substantially all
the risks and benefi ts incidental to ownership of the leased items, are capitalised at the present
value of the minimum lease payments at the inception of the lease term. The corresponding
lease commitments are included under liabilities. The excess of the lease payments over the
recorded lease obligations are treated as fi nance charges which are amortised over each lease
term to give a constant rate of charge on the remaining balance of the obligation. Finance
charges are charged directly to the income and expenditure statement.
Capitalised lease assets are depreciated over the shorter of the estimated useful life of the
assets or the lease term.
h) INVESTMENTS
Investments in securities and derivatives are stated at the lower of cost or market value, and
determined on a portfolio basis. Provision is made for any diminution in the value of these
investments.
48 Central Provident Fund Board | Annual Report 2004
Amortisation of premiums or discounts on bonds and negotiable certifi cates of deposit is
provided on an individual counter basis. Premiums paid or discounts received upon acquisition
are amortised over the period from the date of purchase to the date of maturity of the related
securities, and the amortised premium or discount is taken to the income and expenditure
statement each year.
Investments under Insurance Funds are managed by external fund managers.
i) FOREIGN CURRENCIES
Transactions in foreign currencies are measured and recorded in Singapore dollars, using the
exchange rates in effect at the date of the transactions. Foreign currency monetary assets and
liabilities are translated to Singapore dollars at the rates of exchange prevailing at the balance
sheet date. Exchange differences are taken to the respective funds.
j) EMPLOYEE BENEFITS
Defi ned Contribution Plans
Contributions are made to the Central Provident Fund (CPF), as required by law. The CPF
contributions are recognised as compensation expense in the same period as the employment
that gives rise to the contributions.
Employee Leave Entitlement
Employee entitlements to annual leave are recognised when they are accrued to employees.
A provision is made for the estimated liability for leave as a result of services rendered by
employees up to the balance sheet date.
3 CENTRAL PROVIDENT FUND
The Central Provident Fund is established by the Central Provident Fund Act. All contributions
authorised under this Act are paid into the Fund and all payments authorised under this Act are
paid out of the Fund.
49Financial Statements
4 MEMBERS’ ACCOUNTS2004 2003
S$’000 S$’000
Balance as at 1 January 103,539,568 96,422,614 Add:
Contributions credited in the year 14,876,956 15,563,106 Government grants:
CPF Housing Grant Scheme 233,012 214,085 Small Families Improvement Scheme (a) – 694 Home Owership Plus Education Scheme (a) 6,763 – Medisave Top-Up Scheme 97,953 5
Dividends:Special Discounted Shares Scheme 105,421 92,082
Interest credited in the year 3,375,266 3,115,273 18,695,371 18,985,245
Less:Refunds of contributions:
Section 72 of Central Provident Fund Act (b) 113 65 Section 75 of Central Provident Fund Act (b) 29,515 22,564 Regulation 9 of Central Provident Fund(Self-employed persons) Regulations (c) 4,134 4,238 Other refunds (d) 16,869 7,294
50,631 34,161 Less:
Net transfers to Reserve Account 190 17,603
Less:Withdrawals (net of refunds) by members:
Sections 15 and 25 of Central Provident Fund Act (e) 2,272,637 2,384,802 Amount restored from Reserve Account (f ) 568 1,322 Public Housing Scheme 4,125,057 4,512,329 Residential Properties Scheme 2,391,921 2,397,467 Medisave Scheme 367,203 328,449 Non-Residential Properties Scheme 38,542 40,000 Investment Scheme 818,703 1,303,536 Minimum Sum Scheme 352,073 337,691 Dependants’ Protection Scheme 148,092 140,837 Education Scheme 46,757 44,295 MediShield Scheme 103,874 101,683 Private Medical Insurance Scheme 142,064 125,553 ElderShield Scheme 166,541 166,286
10,974,032 11,884,250 Add: Excess of refunds over withdrawals:
Home Protection Scheme (g) 9,940 43,722 DelGro Shares Scheme (h) 9,061 1,815 Special Discounted Shares Scheme (i) 644,734 22,186
663,735 67,723
Balance as at 31 December 111,873,821 103,539,568
50 Central Provident Fund Board | Annual Report 2004
(a) With effect from 1 January 2004, the Small Families Improvement Scheme was replaced by the
Home Ownership Plus Education Scheme.
(b) Refunds under sections 72 and 75 of the Central Provident Fund Act refer to refunds to the
Government for contributions and interest relating to public offi cers before their confi rmation as
pensionable offi cers, and refunds of excess contributions on additional wages respectively.
(c) Refunds under regulation 9 of the Central Provident Fund (Self-employed persons) Regulations refer
to refunds of contributions to self-employed persons.
(d) Other refunds mainly refer to refunds under section 74 of the Central Provident Fund Act for
contributions paid in error.
(e) Withdrawals under sections 15 and 25 of the Central Provident Fund Act mainly refer to withdrawals
by members who attain the age of 55 years and by members who leave Singapore and West
Malaysia permanently, as well as on death grounds.
(f ) The amount restored from Reserve Account refers to the amount refunded to members or their
nominees upon application made under regulation 7(5).
(g) The withdrawals for Home Protection Scheme premium have reduced signifi cantly since the
premium payment mode was changed from single to annual payment in March 2001. However, the
refunds from the surrender of single premium covers continue.
(h) The DelGro Shares Scheme was phased out in February 2004. Members were given a choice either
to repurchase the shares in ComfortDelGro Corporation Ltd and refund the principal amount to their
CPF account or have their shares transferred to their Investment Account under the CPF Investment
Scheme, thus resulting in the excess of refunds to members’ CPF accounts.
(i) Under the Special Discounted Shares Scheme, a capital reduction exercise was carried out by
SingTel in September 2004 whereby SingTel made a cash distribution into members’ CPF accounts
in exchange for the shares cancelled. Also, there was a surge in the sales volume during the year
resulting in the excess of refunds to members’ CPF accounts.
51Financial Statements
5 RESERVE ACCOUNT
This account is set up under regulations 7(2) and 7(3) of the revised Central Provident Fund Regulations.
All unclaimed monies which match the conditions stipulated under these regulations were transferred
from members’ balances to this account. The balance in this account is refundable to members or
their nominees upon application made under regulation 7(5). In year 2003, all amounts that had been
accounted for as unclaimed by the Board before 1 January 2003 by virtue of regulation 7(3) were
transferred to this account.2004 2003
S$’000 S$’000
Balance as at 1 January 37,488 16,085
Net transfers from/(to):
Contributions unclaimed – 16,667
Members’ accounts 190 936 190 17,603
Withdrawals unclaimed – 3,909
Refunds unclaimed – (109)
Balance as at 31 December 37,678 37,488
6 OTHER NON-CURRENT LIABILITY
Obligations under fi nance lease – minimum lease payments
2004 2003S$’000 S$’000
Within one year 372 411
After one year but not more than fi ve years 155 527
Total minimum lease payments 527 938
Less: Amounts representing fi nance charges 19 54
Present value of minimum lease payments 508 884
The present value of fi nance lease liabilities is as follows:
2004 2003S$’000 S$’000
Within one year 355 376
After one year but not more than fi ve years 153 508
508 884
The Board has a fi nance lease for data-processing equipment which expires in the next two years. At
the expiration of the lease, the Board has the option to purchase the asset for S$100. The present value
of the lease payments due within 12 months is included under “creditors, accruals and provisions”.
The average discount rate implicit in the lease is 5% p.a.
52 Central Provident Fund Board | Annual Report 2004
7 INSURANCE FUNDS
The Home Protection Fund is set up under section 33 of the Central Provident Fund Act to account for
premiums received, claims paid for home insurance cover and operating expenses incurred under the
Home Protection Scheme.
The Dependants’ Protection Fund is set up under section 46 of the Central Provident Fund Act to
account for premiums received, claims paid for life insurance cover and operating expenses incurred
under the Dependants’ Protection Scheme.
The MediShield Fund is set up under section 56 of the Central Provident Fund Act to account for
premiums received, claims paid for medical insurance cover and operating expenses incurred under the
MediShield Scheme.
Note HOME PROTECTION FUND
DEPENDANTS’ PROTECTION FUND
MEDISHIELD FUND
2004 2003 2004 2003 2004 2003S$’000 S$’000 S$’000 S$’000 S$’000 S$’000
Balance as at 1 January 2,038,031 2,104,559 516,398 459,615 524,505 476,423 Add:Insurance premiums 94,098 71,532 149,047 141,436 100,030 98,688 Interest from bank and other deposits 1,191 1,053 1,851 1,287 402 545
Net income from funds with fund managers 7A 116,208 68,149 32,288 29,268 31,435 31,481
211,497 140,734 183,186 171,991 131,867 130,714 Less:Claims 97,021 85,462 137,722 110,910 83,770 76,788 Surrenders 104,017 115,724 – – – –Agency fees and professional charges 3,459 3,060 2,371 2,424 3,372 4,242 Salaries and staff benefi ts 19 1,658 1,456 842 735 1,335 1,150 Printing and postage 171 155 272 266 207 306 Publicity and campaigns 7 9 9 8 - 10 Computer software and supplies 459 371 1 5 13 3 Depreciation 8 335 335 3 6 11 3
Maintenance of buildings and equipment 212 198 1 – 4 4
General and administrative expenditure 424 492 1,056 854 66 126
207,763 207,262 142,277 115,208 88,778 82,632
Balance as at 31 December 2,041,765 2,038,031 557,307 516,398 567,594 524,505
53Financial Statements
Represented by:
Note HOME PROTECTION FUND
DEPENDANTS’ PROTECTION FUND
MEDISHIELD FUND
2004 2003 2004 2003 2004 2003 S$’000 S$’000 S$’000 S$’000 S$’000 S$’000
CURRENT ASSETSInvestments 7B 2,056,429 2,027,823 562,131 529,843 558,490 519,356 Sundry debtors 3,093 – 1,324 698 1,496 1,243 Accrued interest 671 569 1,156 760 295 272 Bank and other deposits 40,800 57,700 85,400 53,800 8,400 4,500 Cash and bank balances 316 398 406 385 318 454
2,101,309 2,086,490 650,417 585,486 568,999 525,825
Less:CURRENT LIABILITIESClaims intimated or admitted but not paid 59,544 44,474 93,110 69,088 689 774 Sundry creditors – 3,985 – – 716 546
59,544 48,459 93,110 69,088 1,405 1,320
NET CURRENT ASSETS 2,041,765 2,038,031 557,307 516,398 567,594 524,505
TOTAL NET ASSETS 2,041,765 2,038,031 557,307 516,398 567,594 524,505
2004 2003 2004 2003 2004 2003 S$’000 S$’000 S$’000 S$’000 S$’000 S$’000
ESTIMATED ACTUARIAL LIABILITIES 1,734,900 1,826,400 547,200 447,700 372,700 359,600
The estimated actuarial liabilities (including the provisions for solvency margin) have been determined in light of the advice received from the Board’s independent actuarial advisers.
54 Central Provident Fund Board | Annual Report 2004
7A NET INCOME FROM FUNDS WITH FUND MANAGERS HOME
PROTECTION FUNDDEPENDANTS’
PROTECTION FUNDMEDISHIELD
FUND
2004 2003 2004 2003 2004 2003
S$’000 S$’000 S$’000 S$’000 S$’000 S$’000
INCOMEInvestment income 58,861 62,882 16,007 12,695 15,401 13,443 Interest from bank and other deposits 524 492 86 160 92 120 Foreign exchange gain 23,230 – 3,744 – 6,076 –Profi t on sale of investments 41,528 9,573 14,721 – 12,044 –Diminution in value of investments written back – 10,344 – 24,906 – 28,063 Miscellaneous revenue 1 3 – 3 – 1
124,144 83,294 34,558 37,764 33,613 41,627
Less:EXPENDITUREForeign exchange loss – 9,508 – 1,627 – 1,366 Loss on sale of investments – – – 5,175 – 7,220 Fund management fees 7,936 5,637 2,270 1,694 2,178 1,560
7,936 15,145 2,270 8,496 2,178 10,146
NET INCOME FROM FUNDS WITH FUND MANAGERS 116,208 68,149 32,288 29,268 31,435 31,481
7B INVESTMENTSHOME
PROTECTION FUNDDEPENDANTS’
PROTECTION FUNDMEDISHIELD
FUND
2004 2003 2004 2003 2004 2003 S$’000 S$’000 S$’000 S$’000 S$’000 S$’000
COST
Funds managed by fund managers 2,056,429 2,027,823 562,131 529,843 558,490 519,356
Represented by:
Fixed income securities 1,674,840 1,551,283 282,598 269,824 300,168 265,619 Equities 494,092 523,886 291,859 273,737 271,572 269,279 Derivatives (1,206) 12,721 – – – –
2,167,726 2,087,890 574,457 543,561 571,740 534,898
Add/(less):Interest and other receivables 52,825 71,654 11,475 7,411 11,332 7,129 Accruals and payables (186,593) (151,249) (33,059) (25,148) (32,815) (26,356)Bank deposits 19,474 17,151 8,727 3,812 7,781 3,448 Cash balances 2,997 2,377 531 207 452 237
(111,297) (60,067) (12,326) (13,718) (13,250) (15,542)2,056,429 2,027,823 562,131 529,843 558,490 519,356
MARKET VALUE
Funds managed by fund managersFixed income securities 1,731,641 1,590,305 295,070 275,328 312,260 273,030 Equities 581,850 593,811 349,368 317,672 321,026 304,193 Derivatives 1,241 10,299 – – – –
2,314,732 2,194,415 644,438 593,000 633,286 577,223
55Financial Statements
7C DEPENDANTS’ PROTECTION FUND
The Dependants’ Protection Scheme will be privatised in the 3rd quarter of 2005. After the privatisation,
part of the Dependants’ Protection Fund will be transferred to the appointed private insurers who will be
responsible for the insurance operations as well as the fi nancial solvency of the scheme.
7D MEDISHIELD FUND
The MediShield Plus portfolio will be tendered out to a private insurer in the 4th quarter of 2005. Part
of the MediShield Fund will be transferred to the appointed private insurer taking over the MediShield
Plus portfolio. The insurer taking over the MediShield Plus portfolio will be responsible for the insurance
operations as well as the fi nancial solvency of the MediShield Plus portfolio.
56 Central Provident Fund Board | Annual Report 2004
8 FIXED ASSETS
LAND BUILDINGSCONSTRUCTION-
IN-PROGRESS
BUILDINGRENOVATION &
IMPROVEMENTMACHINERY &
EQUIPMENTFURNITURE &
FITTINGS
DATA-PROCESSINGEQUIPMENT
OTHER ASSETS TOTAL
S$’000 S$’000 S$’000 S$’000 S$’000 S$’000 S$’000 S$’000 S$’000Cost
At 1 Jan 2004 54,756 138,272 616 10,185 54,798 964 31,110 310 291,011
Additions – – 323 872 2,527 5 480 – 4,207
Disposals – – – – (156) (70) – – (226)
Reclassifi cations – – (642) 124 518 – – – –
Adjustments – – – – – – (35) – (35)
At 31 Dec 2004 54,756 138,272 297 11,181 57,687 899 31,555 310 294,957
Accumulated Depreciation
At 1 Jan 2004 5,968 34,301 – 1,104 36,659 678 25,645 124 104,479
Depreciation for the year 447 3,501 – 414 3,348 66 3,494 10 11,280
Disposals – – – – (153) (70) – – (223)
Adjustments – – – – – – (22) – (22)
At 31 Dec 2004 6,415 37,802 – 1,518 39,854 674 29,117 134 115,514
Depreciationfor 2003 447 3,501 – 384 3,198 65 3,485 11 11,091
Net Book Value
At 31 Dec 2004 48,341 100,470 297 9,663 17,833 225 2,438 176 179,443
At 31 Dec 2003 48,788 103,971 616 9,081 18,139 286 5,465 186 186,532
Land includes freehold land and land with statutory grant of S$10,178,000.
Depreciation charges amounting to S$335,000 (2003: S$335,000), S$3,000 (2003: S$6,000) and S$11,000 (2003: S$3,000) were allocated to Home Protection Fund, Dependants’ Protection Fund and MediShield Fund respectively. The remaining depreciation charge of S$10,909,000 (2003: S$10,747,000) was accounted for under the Central Provident Fund.
The net book value of data-processing equipment under fi nance lease amounted to S$388,000 (2003: S$757,000).
57Financial Statements
9 INTANGIBLE ASSETS
COMPUTERSOFTWARE
INTANGIBLEASSETS UNDERDEVELOPMENT TOTAL
S$’000 S$’000 S$’000CostAt 1 January 2004 2,520 5,053 7,573
Additions 670 133 803
Reclassifi cation 159 (159) –
At 31 December 2004 3,349 5,027 8,376
Accumulated Amortisation
At 1 January 2004 622 – 622
Amortisation for the year 738 – 738
At 31 December 2004 1,360 – 1,360
Amortisation for 2003 499 – 499
Net Book Value
At 31 December 2004 1,989 5,027 7,016
At 31 December 2003 1,898 5,053 6,951
Intangible assets under development comprise software and development costs for various computer application systems.
10 LONG-TERM INVESTMENTS2004 2003
S$’000 S$’000
Singapore Government bonds 99,962,395 91,260,365
Advance deposits 3,765,451 3,174,086
103,727,846 94,434,451
The Singapore Government bonds are fl oating rate bonds issued specifi cally to the Board to meet its interest and other obligations. They do not have quoted market values. The interest rates for the bonds are pegged to the rates at which the Board pays interest to its members.
The advance deposits are deposits placed with the Accountant-General through the Monetary Authority of Singapore, to purchase Singapore Government bonds and meet members’ withdrawal requirements. The interest rate for the advance deposits is pegged to the rate at which the Board pays interest for the Ordinary Account.
58 Central Provident Fund Board | Annual Report 2004
11 STAFF LOANS
The Board’s total outstanding loans to staff are as follows:2004 2003
S$’000 S$’000
Amount receivable within 12 months 231 238
Amount receivable after 12 months 1,064 1,269
1,295 1,507
The amount receivable within 12 months is included in debtors and deposits. The staff loans are repayable with interest at rates ranging from 4.25% p.a. to 5.75% p.a. by monthly instalments over a period of up to 30 years.
12 INVESTMENTS
The investments comprise Singapore Government bonds maturing within 12 months. The interest rates
for the bonds are pegged to the rates at which the Board pays interest to its members.
13 DEBTORS AND DEPOSITS2004 2003
S$’000 S$’000
Debtors – scheme 31,178 32,761
Debtors – non-scheme 6,655 14,419
Prepayments 2,197 1,690
Deposits paid 123 125
Staff loans 231 238
40,384 49,233
Debtors – scheme includes all receivable accounts linking to the various CPF schemes.
14 CASH AND CASH EQUIVALENTS
Cash and cash equivalents included in the cash fl ow statement comprise bank deposits, cash on hand
and bank balances with the following balance sheet amounts:
2004 2003S$’000 S$’000
Bank deposits 94,600 111,200
Cash and bank balances 99,570 99,369
Cash and cash equivalents as at 31 December 194,170 210,569
59Financial Statements
15 CREDITORS, ACCRUALS AND PROVISIONS2004 2003
S$’000 S$’000
Creditors – scheme 47,411 49,793
Creditors – non-scheme 16,311 14,373
Security, renovation and rental deposits received 2,462 2,821
Accrued expenses 7,653 6,774
Provisions 3,142 2,729
76,979 76,490
Creditors – scheme includes all payable accounts linking to the various CPF schemes.
16 CONTRIBUTION PAYABLE TO GOVERNMENT CONSOLIDATED FUND
The contribution to the Government Consolidated Fund is required under section 3(a) of the Statutory
Corporations (Contributions to Consolidated Fund) Act (Cap. 319A). The contribution is computed based
on the guidelines specifi ed by the Ministry of Finance.
17 AGENCY, CONSULTANCY AND DATA-PROCESSING FEES
Included in agency, consultancy and data-processing fees is agency income in respect of the following:
2004 2003S$’000 S$’000
Collection of Foreign Workers’ Levy 5,243 4,756
Administration of:
New Singapore Shares 455 1,070
Economic Restructuring Shares 5,679 8,230
SingPass 1,691 1,137
These are for agency work handled on behalf of the Ministry of Manpower and the Ministry of Finance on a cost recovery basis.
60 Central Provident Fund Board | Annual Report 2004
18 RENT, SERVICE CHARGES AND CAR PARK RECEIPTS
Rental income is derived from the leasing of space for offi ce use and food businesses. Such leases are
generally for a 3-year term. Shorter leases are also granted. The lease agreements provide for termination
should the tenant fail to perform or observe any of its covenants.
Future minimum lease payments receivable under non-cancellable operating leases as of 31
December are as follows:2004 2003
S$’000 S$’000
Within one year 9,952 10,678
After one year but not more than fi ve years 9,569 14,370
19,521 25,048
19 SALARIES AND STAFF BENEFITS
Included in salaries and staff benefi ts are the following items:2004 2003
S$’000 S$’000Central Provident FundEmployer’s CPF contribution 7,738 7,844
Staff welfare and training 4,050 2,822
Home Protection FundEmployer’s CPF contribution 186 184
Dependants’ Protection FundEmployer’s CPF contribution 99 96
MediShield FundEmployer’s CPF contribution 156 152
The number of employees as at 31 December was as follows:2004 2003
Central Provident Fund 1,265 1,284
Home Protection Fund 42 40
Dependants’ Protection Fund 21 21
MediShield Fund 33 34
61Financial Statements
20 GENERAL AND ADMINISTRATIVE EXPENDITURE
Included in general and administrative expenditure are the following items:2004 2003
S$’000 S$’000
Audit fees 506 518
Board members’ allowance 98 97
Entertainment expenses 14 12
Overseas travelling expenses 3 7
21 FINANCIAL RISK MANAGEMENT
a) MARKET RISK
There is no market risk exposure for the Central Provident Fund.
The Insurance Funds are exposed to market risk due to the investments in fi xed income
securities, equities and derivatives.
b) INTEREST RATE RISK
Central Provident Fund
In the management of the interest rate risk of the Central Provident Fund, the interest rates
of the investments in Singapore Government bonds and advance deposits are pegged to the
rates at which the Board pays interest to its members, which are affected by changes in the
market interest rates.
The long-term investments of the Central Provident Fund are invested in non-tradeable
Singapore Government bonds and advance deposits maturing after 2005, which amount to
S$103,727,846,000 (2003: S$94,434,451,000). Investments in Singapore Government bonds
maturing in 2005 amount to S$8,500,000,000 (2003: S$9,490,000,000).
62 Central Provident Fund Board | Annual Report 2004
Insurance Funds
The Insurance Funds are exposed to both fair value and cash fl ow interest rate risks as a result
of investments in fi xed and variable rate fi xed income securities. The interest rates on these
investments are determined based on prevailing market rates. The fair value interest rate risk is
the risk that the value of a fi nancial instrument will fl uctuate due to changes in market interest
rates. The cash fl ow interest rate risk is the risk that future cash fl ows of a fi nancial instrument
will fl uctuate because of changes in market interest rates.
The investments in the fi xed income securities account are as follows:
Amount Percentage of Total Investments of the Fund
2004 2003 2004 2003S$’000 S$’000 % %
Home Protection Fund 1,674,840 1,551,283 81.4 76.5Dependants’ Protection Fund 282,598 269,824 50.3 50.9MediShield Fund 300,168 265,619 53.7 51.1
The carrying amounts and effective interest rates of fi xed income securities are as follows:Years to maturity
Effective interest rates
Less than 1 Between 1 and 5 More than 5
2004 2003 2004 2003 2004 2003 2004 2003
% % S$’000 S$’000 S$’000 S$’000 S$’000 S$’000
Denominated in S$Home Protection Fund 1.4 – 4.6 1.0 – 4.8 32,237 28,221 401,214 373,698 445,779 462,335Dependants’ Protection Fund 1.4 – 4.6 0.6 – 4.7 2,372 300 75,690 62,678 68,758 80,079MediShield Fund 1.4 – 4.6 0.6 – 4.7 4,904 400 76,564 59,058 77,390 74,221
Denominated in US$Home Protection Fund 0.9 – 7.0 0.9 – 6.1 234,402 154,858 39,680 46,584 249,682 158,916Dependants’ Protection Fund 1.2 – 6.4 0.9 – 6.1 23,825 24,849 6,686 11,574 46,216 39,413MediShield Fund 1.2 – 6.4 0.9 – 6.1 29,219 27,066 8,270 14,762 48,483 41,362
Denominated in other currenciesHome Protection Fund 1.1 – 6.0 2.2 – 6.4 1,883 3,616 79,461 64,498 190,502 258,557Dependants’ Protection Fund 1.6 – 6.0 2.1 – 6.4 – 268 19,151 21,807 39,900 28,856MediShield Fund 1.6 – 6.0 2.2 – 6.4 – – 14,794 19,325 40,544 29,425
c) FOREIGN EXCHANGE RISK
There is no foreign exchange exposure for the Central Provident Fund.
The Insurance Funds are exposed to foreign exchange risks as a result of global investments.
Where exposures are certain, these risks are hedged as appropriate.
63Financial Statements
d) CREDIT RISK
The maximum exposure at the end of the fi nancial year, in relation to each class of recognised
fi nancial assets, is the carrying amount of those assets, net of any provision for losses, as
indicated in the balance sheet.
Central Provident Fund
The credit risk is minimised as the bulk of the Fund’s investments is in Singapore Government
bonds.
Insurance Funds
Investments are in bonds, equities and cash equivalents of high credit ratings.
e) LIQUIDITY RISK
In the management of liquidity risk, the Board monitors and maintains a level of cash and bank
balances deemed adequate by the Management to fi nance its operations and mitigate the
effects of fl uctuations in cash fl ows.
22 FINANCIAL DERIVATIVES
The Insurance Funds have the following outstanding forward foreign exchange and interest rate futures
contracts as at 31 December under the management of external fund managers:
Forward Foreign Exchange Contracts
Notional principal Favourable fair value Unfavourable fair value 2004 2003 2004 2003 2004 2003 S$’000 S$’000 S$’000 S$’000 S$’000 S$’000
Home Protection Fund 1,057,109 926,263 12,317 11,088 10,807 14,660
Dependants’ Protection Fund 384,582 293,360 4,665 4,525 5,019 4,885
MediShield Fund 400,087 290,469 5,094 4,554 5,215 4,719
64 Central Provident Fund Board | Annual Report 2004
Interest Rate Futures Contracts
(a) Futures Contracts PurchasedNotional principal Favourable fair value Unfavourable fair value
2004 2003 2004 2003 2004 2003 S$’000 S$’000 S$’000 S$’000 S$’000 S$’000
Home Protection Fund 226,188 115,185 1,019 1,471 1,114 333
Dependants’ Protection Fund 19,424 18,131 96 462 53 98
MediShield Fund 18,863 16,203 88 425 50 99
(b) Futures Contracts Sold
Notional principal Favourable fair value Unfavourable fair value 2004 2003 2004 2003 2004 2003 S$’000 S$’000 S$’000 S$’000 S$’000 S$’000
Home Protection Fund 65,350 14,439 268 1 257 676
Dependants’ Protection Fund 33,441 2,216 169 8 77 43
MediShield Fund 25,139 2,208 163 5 11 2
23 FUTURE CAPITAL EXPENDITURE
Capital expenditure approved by the Board but not provided for in the fi nancial statements is as
follows:2004 2003
S$’000 S$’000
Amount approved and contracted for 31,838 27,887
Amount approved but not contracted for 29,368 28,740
61,206 56,627
65Financial Statements
24 COMPARATIVE FIGURES
Comparative fi gures of the fi nancial statements have been reclassifi ed to conform with the current year’s
presentation, where appropriate.
Under the Central Provident Fund, certain items in the debtors – non-scheme amounting to
S$1,018,000 were offset against the corresponding creditors – non-scheme so as to refl ect the net
payable amount in the balance sheet. In addition, Singapore Government bonds maturing within 12
months of S$9,490,000,000 were reclassifi ed from long-term investments to investments, to better
refl ect their liquidity.
Under the Insurance Funds, claims payable amounting to S$49,866,000, which were previously
classifi ed as sundry creditors, were reclassifi ed to claims intimated or admitted but not paid, to improve
the presentation of the fi nancial statements.
25 APPROVAL OF FINANCIAL STATEMENTS
The fi nancial statements were approved and authorised for issue by the Board on 28 March 2005.
68 Central Provident Fund Board | Annual Report 2004
Annex A
Rates of CPF Contributions, 1955–2004
STARTING EMPLOYEE’S AGECONTRIBUTION RATE (%) CREDITED INTO
TOTALByEmployer
ByEmployee
OrdinaryAccount
SpecialAccount
MedisaveAccount
Jul 1955 – 5 5 – – – 10
Sep 1968 – 6.5 6.5 – – – 13
Jan 1970 – 8 8 – – – 16
Jan 1971 – 10 10 – – – 20
Jul 1972 – 14 10 – – – 24
Jul 1973 – 15 11 – – – 26
Jul 1974 – 15 15 – – – 30
Jul 1975 – 15 15 – – – 30*
Jul 1977 – 15.5 15.5 30 1 – 31
Jul 1978 – 16.5 16.5 30 3 – 33
Jul 1979 – 20.5 16.5 30 7 – 37
Jul 1980 – 20.5 18 32 6.5 – 38.5
Jul 1981 – 20.5 22 38.5 4 – 42.5
Jul 1982 – 22 23 40 5 – 45
Jul 1983 – 23 23 40 6 – 46
Jul1984 – 25 25 40 4 6 50
Jul 1985 – 25 25 40 4 6 50**
Apr 1986 – 10 25 29 – 6 35
Jul 1988 55 years & below 12 24 30 – 6 36
Above 55 – 60 years 11 20 25 – 6 31
Above 60 – 65 years 9 19 22 – 6 28
Above 65 years 8 18 20 – 6 26
Jul 1989 55 years & below 15 23 30 2 6 38
Above 55 – 60 years 12 16 22 – 6 28
Above 60 – 65 years 8 13 15 – 6 21
Above 65 years 6 11 11 – 6 17
Jul 1990 55 years & below 16.5 23 30 3.5 6 39.5
Above 55 – 60 years 12.5 12.5 19 – 6 25
Above 60 – 65 years 7.5 7.5 9 – 6 15
Above 65 years 5 5 4 – 6 10
* Maximum contribution increased from $450 to $600 per month.** Maximum contribution increased from $2,500 to $3,000 per month.
69Annexes
Rates of CPF Contributions, 1955–2004
STARTING EMPLOYEE’S AGECONTRIBUTION RATE (%) CREDITED INTO
TOTALByEmployer
ByEmployee
OrdinaryAccount
SpecialAccount
MedisaveAccount
Jul 1991
55 years & below 17.5 22.5 30 4 6 40
Above 55 – 60 years 12.5 12.5 19 – 6 25
Above 60 – 65 years 7.5 7.5 9 – 6 15
Above 65 years 5 5 4 – 6 10
Jul 1992
35 years & below 18 22 30 4 6 40
Above 35 – 55 years 18 22 29 4 7 40
Above 55 – 60 years 12.5 12.5 18 – 7 25
Above 60 – 65 years 7.5 7.5 8 – 7 15
Above 65 years 5 5 3 – 7 10
Jul 1993
35 years & below 18.5 21.5 30 4 6 40
Above 35 – 45 years 18.5 21.5 29 4 7 40
Above 45 – 55 years 18.5 21.5 28 4 8 40
Above 55 – 60 years 7.5 12.5 12 – 8 20
Above 60 – 65 years 7.5 7.5 7 – 8 15
Above 65 years 5 5 2 – 8 10
Jul 1994to
Dec1998
35 years & below 20 20 30 4 6 40
Above 35 – 45 years 20 20 29 4 7 40
Above 45 – 55 years 20 20 28 4 8 40
Above 55 – 60 years 7.5 12.5 12 – 8 20
Above 60 – 65 years 7.5 7.5 7 – 8 15
Above 65 years 5 5 2 – 8 10
Jan 1999to
Mar 2000
35 years & below 10 20 24 – 6 30
Above 35 – 45 years 10 20 23 – 7 30
Above 45 – 55 years 10 20 22 – 8 30
Above 55 – 60 years 4 12.5 8.5 – 8 16.5
Above 60 – 65 years 2 7.5 1.5 – 8 9.5
Above 65 years 2 5 – – 7 7
Apr 2000to
Dec 2000
35 years & below 12 20 24 2 6 32
Above 35 – 45 years 12 20 23 2 7 32
Above 45 – 55 years 12 20 22 2 8 32
Above 55 – 60 years 4.5 12.5 9 – 8 17
Above 60 – 65 years 2.5 7.5 2 – 8 10
Above 65 years 2.5 5 – – 7.5 7.5
Jan 2001to
Sep 2003
35 years & below 16 20 26 4 6 36
Above 35 – 45 years 16 20 23 6 7 36
Above 45 – 55 years 16 20 22 6 8 36
Above 55 – 60 years 6 12.5 10.5 – 8 18.5
Above 60 – 65 years 3.5 7.5 2.5 – 8.5 11
Above 65 years 3.5 5 – – 8.5 8.5
Oct 2003 To
Dec 2004
35 years & below 13 20 22 5 6 33
Above 35 – 45 years 13 20 20 6 7 33
Above 45 – 55 years 13 20 18 7 8 33
Above 55 – 60 years 6 12.5 10.5 – 8 18.5
Above 60 – 65 years 3.5 7.5 2.5 – 8.5 11
Above 65 years 3.5 5 – – 8.5 8.5
70 Central Provident Fund Board | Annual Report 2004
Annex B
CPF INTEREST RATES, 1994–2004
YEARCPF INTEREST RATE PER ANNUM (%)
ORDINARY ACCOUNT MEDISAVE ACCOUNT SPECIAL & RETIREMENT ACCOUNTS
Jan – Jun 1994 2.50 2.50 2.50
Jul – Dec 1994 2.50 2.50 2.50
Jan – Jun 1995 3.10 3.10 3.10
Jul – Dec 1995 3.82 3.82 5.07*
Jan – Jun 1996 3.52 3.52 4.77
Jul – Dec 1996 3.48 3.48 4.73
Jan – Jun 1997 3.48 3.48 4.73
Jul – Dec 1997 3.48 3.48 4.73
Jan – Jun 1998 3.48 3.48 4.73
Jul – Dec 1998 4.29 4.29 5.79**
Jan – Jun 1999 4.41 4.41 5.91
Jul – Sep 1999 2.50 2.50 4.00
Oct – Dec 1999 2.50 2.50 4.00
Jan – Dec 2000 2.50 2.50 4.00
Jan – Sep 2001 2.50 2.50 4.00
Oct – Dec 2001 2.50 4.00*** 4.00
Jan – Dec 2002 2.50 4.00 4.00
Jan – Dec 2003 2.50 4.00 4.00
Jan – Dec 2004 2.50 4.00 4.00
*From 1 July 1995, the Special and Retirement Accounts earn additional interest of 1.25 percentage points above the CPF interest rate paid for Ordinary and Medisave Accounts.
** From 1 July 1998, the Special and Retirement Accounts earn additional interest of 1.5 percentage points above the CPF interest rate paid for Ordinary and Medisave Accounts.
*** From 1 October 2001, the Medisave, Special and Retirement Accounts earn additional interest of 1.5 percentage points above the CPF interest rate paid for the Ordinary Account.
71Annexes
Annex C
Membership, Contributions & Members’ Balances, 1993–2004
YEAR END NUMBER OF MEMBERS (‘000)
TOTAL CONTRIBUTION ($’000)
TOTAL BALANCES($’000)
1993 2,456 10,427,035 52,334,313
1994 2,522 11,278,556 57,649,187
1995 2,684 13,536,077 66,035,403
1996 2,742 14,623,003 72,566,560
1997 2,782 15,873,794 79,657,446
1998 2,803 15,999,822 85,276,838
1999 2,828 12,826,637 88,396,851
2000 2,880 14,092,833 90,298,251
2001 2,923 18,322,270 92,221,220
2002 2,963 16,165,738 96,422,614
2003 2,978 15,869,972 103,539,568
2004 3,018 15,320,105 111,873,821
72 Central Provident Fund Board | Annual Report 2004
Annex D
CPF Contributions in respect of Private Sector Employees
(From 1 January to 31 December 2004)
AGE OF EMPLOYEE
55 YEARS & BELOW ABOVE 55 – 60 YEARS ABOVE 60 – 65 YEARS ABOVE 65 YEARS
Total amount of the employee’swages for thecalendar month
(1)
Contributions payable by the employer for the calendar month
(2)
Amount recoverable from the employee’s wages for the calendar month
(3)
(4)
(5)
(6)
(7)
(8)
(9)
Not exceeding $50 Nil Nil Nil Nil Nil Nil Nil Nil
Exceeding $50but notexceeding $500
13% of the employee’s total wages for the month
Nil 6% Nil 3.5% Nil 3.5% Nil
Exceeding $500but notexceeding $750
a. 13% of the employee’s total wages for the month; and
a. Nil 6% Nil 3.5% Nil 3.5% Nil
b. 0.6 of the difference between the employee’s total wages for the month and $500.
b. 0.6 of the difference between the employee’s total wages for the month and $500.
0.37 0.37 0.22 0.22 0.15 0.15
Exceeding $750
a. 33% of the employee’s ordinary wages, subject to a maximum of $1,815; and
a. 20% of the employee’s ordinary wages, subject to a maximum of $1,100; and
18.5% max
$1,018
12.5% max
$687
11% max $605
7.5% max $412
8.5% max $468
5% max $275
b. 33% of the additional wages payable to the employee
b. 20% of the additional wages payable to the employee
18.5% 12.5% 11% 7.5% 8.5% 5%
For employees in the above 55 – 60, above 60 – 65, and above 65 age groups, replace the fi gures underlined in columns (2) and (3) with the corresponding fi gures in columns (4) to (9).
73Annexes
Annex E
CPF Contributions in respect of Government Pensionable Employees
(From 1 January to 31 December 2004)
AGE OF EMPLOYEE
55 YEARS & BELOW ABOVE 55 – 60 YEARS ABOVE 60 – 65 YEARS ABOVE 65 YEARS
Total amount of the employee’swages for thecalendar month
(1)
Contributions payable by the employer for the calendar month
(2)
Amount recoverable from the employee’s wages for the calendar month
(3)
(4)
(5)
(6)
(7)
(8)
(9)
Exceeding $0.01
a. 9.75% of the employee’s ordinary wages excluding the non-pensionable variable payment and non-pensionable component; and
a. Nil 4.5% Nil 2.625% Nil 2.625% Nil
b. 13% of the non-pensionable variable payment and non-pensionable component for the month subject to a maximum of $780; and
b. Nil 6%max$361
Nil 3.5%max$211
Nil 3.5%max$210
Nil
c. a further 15% of the employee’s ordinary wages excluding the non-pensionable variable payment and non-pensionable component; and
c. 15% of the employee’s ordinary wages excluding the non-pensionable variable payment and non-pensionable component; and
9.375% 9.375% 5.625% 5.625% 3.75% 3.75%
d. 20% of the non-pensionable variable payment and non-pensionable component for the month subject to a maximum of $1,100; and
d. 20% of the non-pensionable variable payment and non-pensionable component for the month subject to a maximum of $1,100; and
12.5%max$687
12.5%max$687
7.5%max$412
7.5%max$412
5% max$275
5% max$275
e. 33% of any additional wages payable
e. 20% of any additional wages payable
18.5% 12.5% 11% 7.5% 8.5% 5%
For employees in the above 55 to 60, above 60 to 65, and above 65 age groups, replace the fi gures underlined in columns (2) and (3) with the corresponding fi gures in columns (4) to (9).
74 Central Provident Fund Board | Annual Report 2004
Annex F
CPF Contributions in respect of Government Non-pensionable Employees,
Employees in Designated Statutory Authorities and Aided Schools
(From 1 January to 31 December 2004)
AGE OF EMPLOYEE
55 YEARS & BELOW ABOVE 55 – 60 YEARS ABOVE 60 – 65 YEARS ABOVE 65 YEARS
Total amount of the employee’swages for thecalendar month
(1)
Contributions payable by the employer for the calendar month
(2)
Amount recoverable from the employee’s wages for the calendar month
(3) (4)
(5)
(6)
(7)
(8)
(9)
Not exceeding $500
a. 13% of the employee’s ordinary wages for the month; and
b. 33% of any additional wages payable
a. Nil
b. 20% of any additional wages payable
6%
18.5%
Nil
12.5%
3.5%
11%
Nil
7.5%
3.5%
8.5%
Nil
5%
Exceeding $500but notexceeding $750
a. 13% of the employee’s ordinary wages;
b. 0.6 of the
difference between the employee’s ordinary wages and $500; and
a. Nil
b. 0.6 of the difference between the employee’s ordinary wages and $500; and
6%
0.37
Nil
0.37
3.5%
0.22
Nil
0.22
3.5%
0.15
Nil
0.15
c. 33% of any additional wages payable
c. 20% of any additional wages payable
18.5% 12.5% 11% 7.5% 8.5% 5%
Exceeding $750 a. 13% of the employee’s ordinary wages, subject to a maximum of $780;
b. a further 20% of the employees’ ordinary wages, subject to a maximum of $1,100; and
a. Nil
a. 20% of the employee’s ordinary wages, subject to a maximum of $1,100; and
6% max $361
12.5%max $687
Nil
12.5% max
$687
3.5% max $211
7.5%max $412
Nil
7.5% max $412
3.5% max $210
5%max $275
Nil
5%max $275
c. 33% of any additional wages payable
c. 20% of any additional wages payable
18.5% 12.5% 11% 7.5% 8.5% 5%
For employees in the above 55 – 60, above 60 – 65, and above 65 age groups, replace the fi gures underlined in columns (2) and (3) with the corresponding fi gures in columns (4) to (9).
75Annexes
Annex G
Withdrawals under Section 15 and Section 25 of the CPF Act – 2004
2004
Ground for Withdrawal Number Amount ($’m)
55 years and above 324,776 1,723.2
Leaving Singapore and West Malaysia 3,395 208.8
Physical Incapacity 627 19.1
Unsound Mind 103 2.4
Death 14,245 205.4
Malaysian Citizen (Leaving Singapore) 6,441 113.7
Total 349,587 2,272.60
Annex H
Distribution of CPF Members’ Balances by Age Group and Sex
as at 31 December 2004
Male Female Not Specifi ed Total
Age Group(Years) Number Balances
($’000) Number Balances($’000) Number Balances
($’000) Number Balances($’000)
Up to 20 39,310 34,348 41,000 53,427 3 5 80,313 87,780
>20 – 25 103,936 510,153 102,469 980,925 259 627 206,664 1,491,705
>25 – 30 122,059 2,691,231 125,176 3,594,769 96 1,646 247,331 6,287,646
>30 – 35 152,667 6,289,350 154,500 6,710,115 42 228 307,209 12,999,693
>35 – 40 184,922 9,019,319 173,946 7,832,549 63 457 358,931 16,852,325
>40 – 45 230,534 11,462,114 195,084 8,759,988 227 1,509 425,845 20,223,611
>45 – 50 210,300 12,461,063 182,097 8,661,364 193 1,479 392,590 21,123,906
>50 – 55 165,329 11,872,635 143,154 6,966,685 163 643 308,646 18,839,963
>55 – 60 111,294 5,410,979 101,088 3,170,032 88 107 212,470 8,581,118
Above 60 218,106 3,540,645 232,233 1,791,566 79 214 450,418 5,332,425
Unspecifi ed 17,745 35,843 4,325 10,017 5,527 7,789 27,597 53,649
All Groups 1,556,202 63,327,680 1,455,072 48,531,437 6,740 14,704 3,018,014 111,873,821
Figures include self-employed persons.
76 Central Provident Fund Board | Annual Report 2004
Annex I
Distribution of Active CPF Members by Regrossed Balances* and
Age Group as at 31 December 2004
AGE GROUP (YEARS)
Balance Group($)
Up to 20 >20 – 25 >25 – 30 >30 – 35 >35 – 40 >40 – 45
Below 1,000 17,705 6,527 2,794 1,975 986 517
1,000 to below 2,000 4,862 6,067 2,057 1,371 703 381
2,000 to below 3,000 2,827 6,017 2,023 1,122 611 328
3,000 to below 4,000 1,824 5,894 1,874 923 574 366
4,000 to below 5,000 1,140 5,234 1,992 862 502 339
5,000 to below 6,000 720 4,706 1,992 826 501 326
6,000 to below 7,000 473 4,120 1,995 704 476 340
7,000 to below 8,000 354 3,817 2,123 723 449 366
8,000 to below 9,000 241 3,469 2,019 695 439 339
9,000 to below 10,000 193 3,401 1,962 688 464 336
10,000 to below 20,000 629 24,574 20,079 6,682 4,623 3,789
20,000 to below 30,000 61 14,697 20,370 6,722 4,741 4,468
30,000 to below 40,000 3 8,229 20,628 7,102 5,019 4,847
40,000 to below 50,000 5 3,884 20,871 7,909 5,195 5,122
50,000 to below 60,000 3 1,507 19,172 8,972 5,365 5,066
60,000 to below 70,000 1 582 16,621 10,640 5,627 4,985
70,000 to below 80,000 1 218 13,453 12,341 5,896 4,942
80,000 to below 90,000 – 69 10,346 13,747 6,431 5,125
90,000 to below 100,000 – 20 7,803 14,581 6,805 5,178
100,000 to below 150,000 1 9 13,074 63,851 42,982 29,223
150,000 & above – 8 1,097 42,663 92,494 110,825
All Groups 31,043 103,049 184,345 205,099 190,883 187,208
Figures exclude all self-employed persons.
* Balances include amounts withdrawn under Investment, Education, Residential Properties, Non-Residential
Properties and Public Housing Schemes as at end of period.
77Annexes
AGE GROUP (YEARS) TOTAL
>45 – 50 >50 – 55 >55 – 60 Above 60
Not Specifi ed
ActiveMembers
Balance($’000)
235 118 212 1,335 9 32,413 12,371
183 85 349 1,568 3 17,629 26,111
241 147 388 1,531 – 15,235 37,997
244 207 377 1,533 3 13,819 48,261
269 199 330 1,420 – 12,287 55,202
253 248 308 1,247 1 11,128 61,071
310 234 294 1,182 – 10,128 65,729
304 215 325 1,080 – 9,756 73,149
336 262 285 945 – 9,030 76,741
329 297 277 834 – 8,781 83,400
3,748 2,949 3,033 6,992 1 77,099 1,141,469
4,219 3,220 3,345 6,514 – 68,357 1,707,240
4,557 3,420 3,459 5,025 – 62,289 2,175,706
4,666 3,581 3,101 4,563 – 58,897 2,648,612
4,608 3,403 3,041 3,976 – 55,113 3,028,430
4,509 3,407 3,136 3,540 – 53,048 3,445,313
4,463 3,278 3,136 2,841 – 50,569 3,790,171
4,287 3,157 3,080 2,333 – 48,575 4,127,145
4,391 3,078 3,015 1,962 – 46,833 4,447,886
20,884 14,263 13,919 4,487 – 202,693 25,066,358
103,907 77,151 27,989 4,555 – 460,689 136,712,345
166,943 122,919 73,399 59,463 17 1,324,368 188,830,707
78 Central Provident Fund Board | Annual Report 2004
Annex J
Distribution of Active CPF Members by Monthly Wage Level and
Age Group as at 31 December 2004
AGE GROUP (YEARS)
Monthly Wage Level ($) Up to 20 >20 – 25 >25 – 30 >30 – 35 >35 – 40
< 200 7,196 2,658 847 686 739
200 – 299 4,326 1,773 660 487 604
300 – 399 3,523 1,760 708 643 813
400 – 499 2,746 1,727 751 691 1,006
500 – 599 2,272 2,819 1,905 2,015 2,740
600 – 799 3,467 5,177 4,223 5,050 6,802
800 – 999 2,464 5,425 4,117 4,699 6,084
1,000 – 1,499 3,663 24,864 21,606 18,413 19,355
1,500 – 1,999 1,029 28,816 35,970 28,178 24,753
2,000 – 2,499 218 17,274 36,979 28,556 23,493
2,500 – 2,999 39 6,318 29,704 25,936 19,737
3,000 – 3,499 20 2,300 19,484 21,810 16,394
3,500 – 3,999 13 917 10,818 16,496 12,367
4,000 – 4,499 1 362 6,388 13,170 10,438
4,500 – 4,999 1 239 3,321 9,849 7,882
5,000 – 5,499 – 184 2,129 6,859 7,067
> 5,499 10 432 4,732 21,560 30,608
Unspecifi ed 55 4 3 1 1
All Groups 31,043 103,049 184,345 205,099 190,883
Figures exclude all self-employed persons.
79Annexes
AGE GROUP (YEARS)
>40 – 45 >45 – 50 >50 – 55 >55 – 60 Above 60 NotSpecifi ed Total
816 832 731 461 708 1 15,675
853 1,025 918 523 898 – 12,067
1,129 1,247 1,126 783 1,319 1 13,052
1,393 1,627 1,468 1,100 1,715 1 14,225
3,715 4,283 3,924 3,130 4,881 6 31,690
9,133 9,860 8,177 5,732 10,478 6 68,105
8,218 8,990 7,516 5,125 7,713 2 60,353
22,998 23,614 19,551 12,807 11,645 – 178,516
24,359 21,424 15,877 9,378 5,837 – 195,621
21,592 18,616 12,830 6,756 3,586 – 169,900
17,272 14,371 10,036 5,107 2,408 – 130,928
14,222 11,355 7,683 3,698 1,725 – 98,691
10,133 7,829 5,151 2,702 937 – 67,363
8,838 6,816 4,326 2,345 820 – 53,504
6,217 5,084 3,280 1,571 693 – 38,137
5,823 4,824 3,237 2,093 692 – 32,908
30,497 25,146 17,088 10,088 3,407 – 143,568
– – – – 1 – 65
187,208 166,943 122,919 73,399 59,463 17 1,324,368
CPF Offi ces
CPF Call Centre 1800-227 1188
Website www.cpf.gov.sg
MAIN OFFICE
CPF Building
(near Tanjong Pagar MRT Station)
79 Robinson Road
Singapore 068897
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(near Bishan MRT Station)
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(near Tampines MRT Station)
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(near Woodlands MRT Station)
Woodlands Civic Centre
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Mondays to Fridays – 8 am to 5 pm
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