Special Needs Savings Scheme starts on Monday

A scheme which gives parents another option to take care of the financial needs of their special needs children will be officially launched on Monday.

Under the Special Needs Savings Scheme initiated by the Ministry of Community Development, Youth and Sports (MCYS), beneficiaries can get a monthly payout from their deceased parents' Central Provident Fund (CPF) savings.

A nominee CPF account will be created for the children when the parents die.

Funds will be disbursed from the account, which earns interest of up to 4 per cent a year, with an extra 1 per cent on the first $60,000.