Friday, March 13, 2015

CPF Minimum Sum scraped BUT Maximum Limit RETAINS

Likely we are taken for a ride again.  Before those folks turning 55 rejoice about not needing to top up their CPF Medisave a/c to meet its Minimum Sum in order to withdraw their money - READ the reports carefully.

They only scrapped the Medisave Minimum sum BUT the CPF Medisave Maximum Ceiling is retained (it is renamed BHS -Basic Healthcare Sum) .  Minimum is LESS than maximum so it is another round of confusing the public with all the renaming and changes.

In 2013 the Medisave minimum sum was 40.5K vs 45.5K for the maximum ceiling limit (BHS)
In 2014 the Medisave minimum sum was 43.5K vs 48.5K for the maximum ceiling limit (BHS)

It is obvious that the maximum sum is more than the minimum sum by  5K. Besides, they said no need to top up at 55, but it is unclear what happens when one reach 65, as the BHS still applies for the cohort.  In Jan 2016, the BHS is 49.8K as announced by CPF.

The only real change is that once we hit 65, the BHS will remains at that prevailing limit and not shoot up year after year.  However, before we reach 65, the BHS is still subjected to yearly adjustment !

Most of the changes this year has been cosmetic, just like this Bull sHit Stuff BHS thingy.

Of course they can afford to scrap the minimum sum as they retains the maximum one (BHS). Is this a sick joke or what ?  Besides, when Medishield Life kicks in to replace the current medishield, they are going to legalize accessing our bank a/c to deduct any outstanding premium for those who do not pay up.  There is no need to have minimum amount in medisave for the premium deduction as they can now access our bank a/c to do it forcefully.

Could it mean they will be looking into forcefully accessing our bank a/c to ensure we meet BHS when we turn 65 ?  It matters not to them our daily needs, what is more important is that our money flow into CPF one way or another.

What is even more misleading is the official and MSM reporting. They made it sound as if our medisave a/c is filled with money.  They said "Any amount in excess of this (BHS) will be transfer to Retirement and Special account ..."  Notice they talked about excess but not what happen if there is shortfall. So what happen if there is shortfall ? Only God Govt knows!

CPF is full of CRAP.  It gets more and more complicated each year. Perhaps that is their intention, as it is a web of sticky confusion that is not meant to help us. Majority are trapped when negotiating the maze of terms and unending changes. 

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