Debated in Parliament on 13 Apr 2015.
Ms Foo Mee Har asked the Minister for Health how will the Basic Healthcare Sum, which will be raised every year, affect the quantum of CPF monies that CPF members are allowed to withdraw from their accounts.
The Basic Healthcare Sum (BHS) is the estimated savings that we need for our basic subsidised healthcare needs in old age. The BHS will need to be adjusted yearly, to keep pace with growth in Medisave, due to inflation and expanding uses of Medisave. This is to ensure that we will have enough savings for our healthcare needs after retirement. Once a person reaches age 65, his BHS will be fixed for the rest of his life.
As there will no longer be a Medisave Minimum Sum with effect from 1 January 2016, a CPF member will no longer need to transfer any monies from his other CPF accounts into the Medisave Account before he can withdraw his CPF monies from the Ordinary and Special
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Accounts. Therefore, the quantum of CPF monies he can withdraw from his Ordinary and Special Accounts will not be affected by his Medisave balance.
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