1. What is the Special Needs Savings Scheme?
The SNSS encourages parents of children with special needs to save up for their long term care needs. Under this scheme, parents can nominate their children with special needs to receive monthly disbursements from the parent’s CPF savings after the parents’ demise.
2. How is SNSS different from other nomination schemes under the existing CPF system?
Currently, a deceased person’s CPF savings in the Ordinary, Special, Medisave and Retirement Accounts are distributed to his/her nominated beneficiaries as a once-off lump sum payment in cash or to the nominees’ CPF account.
Under SNSS, at the point of application, a nominating parent can determine the level of payouts he/she wishes his/her child with disabilities to receive upon his/her demise. When the parent passes on, the nominated child with disabilities who qualifies for SNSS will receive these pre-determined monthly payouts until the deceased parent’s savings are exhausted. Both parents of an eligible child with disabilities can participate in the SNSS.
3. How is SNSS different from the Special Needs Trust Company (SNTC)?
The SNSS and SNTC are both savings options and complement each other. Caregivers who would like to have a more customised and case-managed service for their special needs dependants can set up a SNTC trust account, while parents who do not have substantial savings outside of CPF may prefer to opt for the SNSS instead.
The SNTC is a non-profit trust company supported by MCYS and NCSS to provide affordable trust services to persons with special needs. Parents/caregivers can set up an SNTC trust account and determine a care plan for the dependants, set out in a Letter of Intent.
4. Will there be a charge levied on members for SNSS? No, participating members will not be charged for this service.
5. What are the eligibility criteria for SNSS?
The nominating parent and the person with disabilities have to be Singaporeans/Singapore Permanent Residents at the time of application. The person with disabilities has to:
(i) Require assistance in at least 1 Activity of Daily Living (ADL)*; OR
(ii) Have attended or is attending a Special Education (SPED) school.
Applications that do not meet the eligibility criteria will be evaluated on a case-by-case basis.
*The six ADLs are – washing, dressing, feeding, toileting, mobility, and transferring.
6. Is SNSS only limited to individuals with physical disabilities?
No. SNSS is open to persons with physical disabilities, intellectual disabilities, autism spectrum disorder and so on, provided they meet either of the 2 eligibility criteria.
7. Is there a minimum balance which the nominating parent must have in their CPF account in order to participate in SNSS?
There is no minimum balance needed to sign up for SNSS.
8. What happens to CPF savings nominated to the SNSS nominee after the parent passes away?
Upon the parent’s demise, nominee Ordinary, Special, Medisave and Retirement Accounts will be created and maintained as part of the deceased parent’s accounts. These nominee accounts will hold the CPF savings that the parent has nominated to the SNSS nominee. Nominated CPF savings from the parent’s Ordinary, Special and Retirement Accounts will be transferred to the corresponding nominee accounts to be disbursed to the SNSS nominee in monthly payouts. In the case of the parent’s Medisave savings, the parent can choose to have the monies transferred to either the nominee Special Account to bolster savings available for the child’s living expenses, or the nominee Medisave Account to cater for the child’s healthcare expenses.
9. What is the interest rate earned in these accounts?
The nominee accounts will continue to earn the same interest rates as the parent’s original CPF accounts. Extra interest of 1% will also be paid on the first $60,000 of the combined amount in the nominee accounts and the SNSS nominee’s own accounts, including up to $20,000 from the nominee’s own Ordinary Account.
10. Will the payouts be made directly to persons with disabilities?Payouts will be made directly to SNSS nominees aged 18 or above and to the legal guardians of nominees aged below 18, unless these nominees lack mental capacity and have donees or deputies appointed under the Mental Capacity Act. In such cases, payouts will be made to the donee or court-appointed deputy. Parents are hence advised to make arrangements to legally appoint a person to care for their child with special needs upon their demise, if their child is aged below 18 or lacks mental capacity.
11. When do SNSS payouts start? Can parents opt to start payouts while they are still alive?
The SNSS is designed to help parents continue to provide for the financial needs of their disabled children when they are no longer around. Hence SNSS payouts only start upon application to CPF Board after the parent’s demise. When the parents are still alive, they can personally see to the financial needs of persons with disabilities. Parents could use their own monthly payouts from their retirement account or from CPF LIFE for the care of their child if they wished, without having to activate payouts under SNSS.
12. What is the monthly SNSS payout? Parents can determine the level of the monthly SNSS payouts when they make their SNSS nomination, subject to a minimum payout of $250 per month.
13. Can parents change the level of payouts or cancel their SNSS nomination?
Parents can change the level of payout by making a new SNSS nomination stating the new level of monthly payout. Parents can also cancel their SNSS nomination by applying to revoke their existing nomination or by making a new nomination that does not mention the original SNSS nominee.
14. How can parents accumulate more CPF savings for their child under SNSS?
Parents can top-up their own/ their spouse’s CPF accounts via the Minimum Sum Top Up scheme or via the Voluntary Contribution scheme, in order to build up their CPF savings which can then be channelled to their child through SNSS. Parents who are past their Drawdown Age can also opt not to receive their monthly CPF payouts under the Minimum Sum Scheme or CPF LIFE, but to retain the monies in their CPF account. Please approach CPFB for more details on these options.
15. How do parents find out more on the Special Needs Savings Scheme such as application details?
Parents may contact the Centre for Enabled Living at 1800-8585 885, email
schemes@cel.sg for more information about the SNSS scheme.
For enquiries on CPF nomination matters, please call the CPF hotline at 1800-227-1188.