Now, such CPF contributions are limited to their spouse, siblings, children and grandchildren.

This change is one of several CPF amendments set out in a law that was passed in Parliament yesterday.

The changes were announced in the Budget Statement in February this year and are part of a package of refinements made to the CPF system to help Singaporeans build up their retirement savings.

In explaining the easing of the top-up rules, Acting Manpower Minister Gan Kim Yong said yesterday: 'This will encourage family support and provide another route for employers to make voluntary contributions to employees' CPF.'

The start date of Nov 1 will let givers take advantage of a new tax exemption of up to $7,000, when making cash top-ups to the accounts of other CPF members before year's end.

This is on top of the $7,000 tax exemption for making cash top-ups to their own CPF accounts.

Another change is the removal of the annual cap of $26,393 imposed on all mandatory and voluntary contributions to the Minimum Sum account of those aged below 55. Since last year, the Government has been progressively easing the rules for CPF Minimum Sum top-ups by family members.

But cash top-ups will be treated as gifts and will no longer be returned to the giver if the recipient dies, Mr Gan said.

Apart from top-ups, another key change is letting CPF savings be used for more tertiary courses.

Introduced in 1986, the CPF Education Scheme allows members to use their Ordinary Account savings to pay for their children's or their own education.

But the savings can be used only for full-time degree and diploma courses at approved tertiary institutions, such as Singapore universities and polytechnics.

With the change, the money can also be used for government-subsidised courses at local institutions where the degree or diploma is conferred by reputable foreign institutions.

Two MPs who spoke during the debate on the CPF (Amendment) Bill described the changes as timely and relevant.

Dr Muhammad Faishal Ibrahim (Marine Parade GRC), however, suggested allowing CPF savings to be used for more educational courses here and overseas.

Mr Gan replied that the primary aim of the CPF is to help members save for their retirement, home and health-care needs.

'In contrast with heavily subsidised local courses, overseas education and private education generally are more costly. It is also not easy to ascertain the quality of many of these programmes,' he said.

As for a suggestion from Ms Ellen Lee (Sembawang GRC) for more generous tax reliefs for CPF top-ups, Mr Gan pointed to the new tax exemption. 'This is a new incentive which we have just introduced. Let's give it a bit more time to take effect and monitor the outcome before we fine-tune it further,' he said.

sueann@sph.com.sg