Debated in Parliament on 2 Feb 2021.
Ms Carrie Tan asked the Minister for Manpower (a) whether the Government’s matched contributions under the Matched Retirement Savings Scheme apply to top-ups made by non-family members; and (b) whether the tax reliefs provided to those who top up the CPF accounts of their loved ones can be extended to non-related persons who may choose to do so for someone.
The Matched Retirement Savings Scheme (MRSS) was announced in Budget 2020 and launched earlier this year. Under this scheme, the Government will match cash top-ups to eligible recipients’ Retirement Accounts, up to $600 per year. Anyone can provide such top-ups. Singapore citizens and permanent residents who make cash top-ups for their loved ones may be eligible for up to $7,000 of tax relief per year. Employers who make cash top-ups on their employees’ behalf will also enjoy an equivalent amount of tax deduction. Tax reliefs are not available for top-ups from other non-related parties. However, they can contribute to beneficiaries through a charity with Institutions of Public Character (IPCs) status and be eligible for a tax deduction of 250%.
We will continue to review the scheme to ensure that it remains relevant to members.
PAPERCUTS