Basic Healthcare Sum

13 April 2015

Name and Constituency of Member of Parliament

Ms Foo Mee Har

MP for West Coast GRC

Question No. 223

To ask 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.

Written Reply

1        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.

2        As there will no longer be a Medisave Minimum Sum with effect from 1 Jan 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 Accounts. Therefore, the quantum of CPF monies he can withdraw from his Ordinary and Special Accounts will not be affected by his Medisave balance.