Medisave Contribution Ceiling Attainment

18 August 2015

Name and Constituency of Member of Parliament

Mr Baey Yam Keng
MP for Tampines GRC

Question No. 737

To ask the Minister for Health (a) what is the current number and percentage of CPF members who have reached their Medisave contribution ceiling; and (b) whether the Ministry can allow CPF members, upon reaching their Medisave contribution ceilings, to keep the overflows to pay for medical expenses instead of channelling the overflows to their Special, Retirement or Ordinary Accounts.

Oral Reply

1        The Medisave Contribution Ceiling, or MCC, is the maximum amount that a CPF member can set aside in his Medisave account, currently set at $48,500. From 1 Jan 2016, MCC will be replaced by the Basic Healthcare Sum, or BHS. 

2        For the cohort who turned 55 in 2014, 21% of them had their Medisave account balance at MCC. Medisave contributions above MCC will flow to a member’s Special or Retirement Account to help improve his retirement adequacy.  This will help to increase the monthly cash payouts from CPF LIFE, which can be used to supplement his Medisave monies for his healthcare needs if necessary. Members can also approach CPF Board to apply for reversal of Medisave overflows if they have exceptional circumstances and we will consider such applications on a case by case basis.