Central Provident Fund Board
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| Agency overview | |
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| Jurisdiction | Government of Singapore |
| Headquarters | 238B Thomson Road, #08-00 Tower B Novena Square, Singapore 307685 |
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| Website | www |
In Singapore, the Central Provident Fund (CPF; Chinese: 公积金, Pinyin: Gōngjījīn) is a compulsory comprehensive savings plan for working Singaporeans and permanent residents primarily to fund their retirement, healthcare, and housing needs. The CPF is an employment based savings scheme with employers and employees contributing a mandated amount to the Fund.
It is administered by the Central Provident Fund Board, a statutory board operating under the Ministry of Manpower which is responsible for investing contributions.
British colonial authorities in Singapore created the Central Provident Fund in 1955 as a compulsory savings scheme to assist workers to provide for their retirement without needing to introduce a more extensive and costly old age pension. Money contributed to the Central Provident Fund earned a nominal rate of return. As Singapore's economy developed, the Central Provident Fund was expanded in 1968 to provide for housing expenses under the Public Housing Scheme. In 1984 the Central Provident Fund was again expanded to cover medical and care expenses. As the Central Provident Fund developed, dedicated accounts were created for the different expenses the Fund was designed to cover, to ensure a more targeted savings approach. In 1986 a higher risk investment option was added to give members the opportunity of a higher rate of return on their savings.
As Singapore continued to grow, the government progressively implemented a range of programs and supplements based around the Central Provident Fund. In 1987, the Minimum Retirement Sum Scheme annuity was introduced to better ensure a secure retirement for older workers. In 1990, MediShield health insurance, designed to be purchased with Central Provident Fund savings, was launched to provide more stable and affordable healthcare options to Singaporeans. Later expansions to the Fund included programs such as an additional rate of interest of 1% for the first $60,000 of retirement savings, the Workfare Income Supplement which supplements retirement savings for low-income older workers, and the Pioneer Generation Package which provides additional support for the medical expenses of older workers.
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