Singaporeans who turn age 55 in or after 2013 and who have at least $40,000 in their CPF Minimum Sum will be automatically included in the scheme. Older Singaporeans and those with less in their Minimum Sum can opt in. - The Government will provide a bonus, called the LIFE Bonus (L-Bonus), to encourage Singaporeans to enrol in the LIFE Scheme.
- L-Bonus will be provided for the first five cohorts of Singaporeans who join the LIFE scheme i.e. those aged 46 to 50 in 2008, with up to $54,000 Assessable Income (AI) and live in a property of up to $11,000 Annual Value (AV) at the time of enrolment.
- Members in the oldest cohort, those aged 50 in 2008, can expect to receive between $2,200 and $4,000. The youngest cohort, those aged 46 today, will get 30 percent of what the 50-year-old receives.
- L-Bonus will also be extended to those aged above 50 in 2008 who opt in.
- For members with less than $40,000 in their Minimum Sum, but want to participate in the LIFE scheme, the Government will help them to do so and give them the L-Bonus as long as they are willing to make a reasonable contribution to their balances and accept lower monthly payouts. Members with less than $20,000 in their Minimum Sum will receive a pro-rated L-Bonus upon opting in to the scheme. They will receive the full L-Bonus if they top up their Minimum Sum to at least $20,000.
- L-Bonus will be given to members at the point of enrolment in the CPF LIFE Scheme.
- This will cost the Government $770 million.
(Details of the LIFE Scheme are available on the MOM website.)
Who can get the L-Bonus? To receive the L-Bonus, you must: - Be a Singapore citizen;
- Be aged 46 or above in 2008;
- Enrol in the CPF LIFE Scheme; and
- Have up to $54,000 Assessable Income (AI) and live in a property of up to $11,000 Annual Value (AV) at the time of enrolment.How much L-Bonus can I get?
- The amount of L-Bonus you can receive depends on the following:
- Your age in the year 2008; and
- The Annual Value (AV) of your home as assessed by IRAS based on your NRIC address as of 31 December of the year preceding the year that you enrol in the CPF LIFE Scheme; and
- Your Annual Assessable Income (AI) for the Year of Assessment preceding the year that you enrol in the CPF LIFE Scheme (if 2009 is the year you join, Year of Assessment will be 2008, which takes into account income earned in calendar year 2007).
- Your CPF Minimum Sum at the time you enrol in the CPF LIFE Scheme.Members in the oldest cohort, those aged 50 in 2008, with at least $20,000 in their Minimum Sum, can expect to receive between $2,200 and $4,000 (Table 1). Members with less than $20,000 in their Minimum Sum can expect to receive a pro-rated L-Bonus. They will receive the full L-Bonus if they top up their Minimum Sum to at least $20,000. The youngest cohort, those aged 46 today, will get 30 percent of what the 50-year-old receives.
Table 1: L-Bonus for those 55 and older in 2013 | | Annual Value (AV) | | Annual Assessable Income (AI) | $6,000 or less | More than $6,000 and up to $11,000 | | $24,000 or less | $4,000 | $3,200 | | More than $24,000 and up to $54,000 | $3,200 | $2,200 |
Based on AV and AI cut-offs in 2008. Actual AV and AI cut-offs for the year of enrolment may vary.
When and how can I get my L-Bonus? If you are aged 46 to 50 in 2008, and have at least $40,000 in your Minimum Sum by the time you turn age 55, you will automatically be included in the CPF LIFE Scheme and receive the L-Bonus in your Minimum Sum when you turn age 55.
Example:
Mr Tan is a Singaporean, aged 50 on 2 February 2008.
When he turns age 55 on 2 February 2013:
• He has $45,000 in his CPF Minimum Sum and is automatically included in the LIFE Scheme.
• The AV of his 3-room HDB flat as assessed for the year 2012 is less than $6,000.
• He earned less than $24,000 in YA2012. Mr Tan is eligible for $4,000 worth of L-Bonus in 2013.
The $4,000 will be credited to his Minimum Sum automatically.
If you are aged above 50 in 2008, you can also opt in to the CPF LIFE Scheme to benefit from the L-Bonus. If you have less than $40,000 in your Minimum Sum, but want to participate in the CPF LIFE Scheme, you can opt in and receive the L-Bonus as long as you are willing to make a reasonable contribution to your balances and accept lower monthly payouts. If you have less than $20,000 in your Minimum Sum, you will receive a pro-rated L-Bonus upon opting in to the scheme. You will receive the full L-Bonus if you top up your Minimum Sum to at least $20,000.Detailed conditions for opting-in will be set out by the Ministry of Manpower later.
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