88 per cent of CPF monies with no nomination distributed
The Public Trustee's Office (PTO), which handles the Central Provident Fund (CPF) savings left by people who die without nominating a beneficiary, has distributed around 88 per cent of such monies it got in the last five years.
At the end of last year, the amount of such savings left unclaimed made up $132 million of the $211 million in unclaimed monies held by the PTO, Senior Minister of State for Law Edwin Tong said yesterday in Parliament.
"PTO continues to make efforts to locate legally entitled beneficiaries of unclaimed monies, including making house visits," he added.
Manpower Minister Josephine Teo, whose ministry oversees the CPF Board, said that to address the issue, the CPF Board is looking at introducing an electronic nomination system in the first quarter of next year.
The ministers were responding to questions from at least four MPs on what steps are being taken to return unclaimed CPF monies left with the Insolvency and Public Trustee's Office.
The sum had soared to $211 million in the last six years, The Straits Times reported two weeks ago.
The savings of people who die without nominating a beneficiary are transferred to the PTO, which will disburse the funds to those legally entitled to them.
Mr Tong said the PTO will contact and invite the individuals to submit an application to make a claim.
These people include the death informant as well as family members listed in the records of the Immigration and Checkpoints Authority, which manages the birth and death registry.
There is no time limit to make an application, Mr Tong added.
Mrs Teo said the CPF Board and the PTO have distributed around 98 per cent of the unused CPF savings of all members who died in the last five years. Around 2 per cent is unclaimed, she added.
The minister said that the CPF Board adopts a three-pronged approach to reduce the number of cases of unclaimed monies.
One, it holds annual roadshows to raise awareness of making CPF nominations.
Two, the yearly statement of account given to all CPF members reminds them by highlighting whether or not they have made a nomination.
Three, a nomination can be made in person at any CPF Service Centre, making it easy for members to nominate.