Debated in Parliament on 11 Feb 2019.
Mr Kwek Hian Chuan Henry asked the Minister for National Development in respect of HDB's Lease Buyback Scheme (a) whether the flat owner is required to use the proceeds to return the CPF amount used to purchase the flat before the net proceeds are used to top up the owner's CPF Retirement Account; and (b) whether HDB will consider allowing flat owners in need to receive half of the proceeds from the Lease Buyback Scheme in cash.
There is no need for seniors who take up the Lease Buyback Scheme (LBS) to refund the Central Provident Fund (CPF) monies they had used to purchase the flat. Instead, the LBS proceeds are first used to meet a basic level of CPF Retirement Account savings. Any remaining amount can then be taken out in cash. This ensures that seniors are able to benefit from a lifelong income stream under CPF LIFE.
Most seniors who take up LBS are able to meet this CPF top-up requirement and still receive some of their LBS proceeds in cash. On top of this, they also receive the LBS bonus in cash.
The Housing and Development Board (HDB) conducts personalised face-to-face counselling sessions for seniors who are interested in LBS or other housing monetisation options. Seniors are encouraged to make an appointment with their HDB Branch to find out more, so that they can make an informed decision about which option is best for their specific needs and circumstances.
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