CPF accounts belonging to 300,000 foreigners must be closed by March 31, 2024

Some of these CPF accounts happen to include people who have relinquished their citizenship or permanent residency. PHOTO: ST FILE

SINGAPORE – About 300,000 Central Provident Fund (CPF) accounts belonging to foreigners who are neither Singapore citizens nor permanent residents will be required to close by March 31, 2024.

These accounts were set up before 2003, when non-citizens and permanent residents were disallowed from making voluntary contributions to their CPF accounts. After the deadline, they will be shut down automatically.

The CPF Board said in a statement on Wednesday: “Any remaining savings will cease to earn the prevailing CPF interest rate. The remaining savings can still be transferred to their bank accounts at any time after that.”

The CPF accounts include those of people who have relinquished their citizenship or permanent residency. Most have low balances, and more than 200,000 have less than $5,000 accrued over the years, as Singapore adopted various changes in its CPF contribution policy for foreigners.

Before 1987, CPF contributions were compulsory for all employees working in the country, regardless of nationality.

That eventually moved to a system where those on work permits could make CPF contributions voluntarily, instead of having to make compulsory contributions.

This was later extended in 1995 to all foreigners working in Singapore, regardless of the type of work pass they held, before they were stopped from making any voluntary contributions in 2003.

Foreigners who plan to continue saving in Singapore can consider other options, including the Supplementary Retirement Scheme or commercial investment products, said the statement.

For more information, go to the CPF Board website at cpf.gov.sg/AccountClosure

Join ST's WhatsApp Channel and get the latest news and must-reads.