Leong Sze Hian –
Several Singaporeans living overseas and in Singapore have contacted The Online Citizen to tell us that they have received letters from the CPF Board asking them to pay their CPF Medisave arrears, incurred many years ago.
For example, Jane (not her real name), has been married to a European citizen, working and living in Europe, since 2003.
She had not received any letters from the CPF Board for several years, until the recent demand letter arrived at her European address. The letter said: “Failure to pay Medisave contributions is an offence under the CPF Act and is liable for composition fine and possibly Court action.”
She was self-employed and was struggling to pay her full Medisave contributions consistently, as she had to support her bankrupt father, ailing mother and sibling who was studying.
About eight years ago, under threat of being charged in court, she struggled to pay about $500 a month under an installment plan worked out with the CPF Board for about a year, but was unable to continue for the rest of the agreed installment period of about 2 years.
Her outstanding Medisave arrears is now about $12,000.
As she is only earning about 1,000 Euros a month now, she is not able to pay her Medisave arrears.
She is afraid that if she is charged in court, and if a warrant of arrest is issued, as we understand is normally the case for those who don’t turn up, she fears that she may be arrested if she comes home to visit her family.
She wonders if her only solution to her “Medisave” predicament is to give up her citizenship.
Or is she condemned to a lifetime exile form her country of birth?
Since she is living in Europe and will not return to Singapore, even if she is able to pay her Medisave arrears, what is the point of asking her to contribute, as she may never be able to use her Medisave which is restricted for use in Singapore and 12 approved hospitals in Malaysia since March this year?
Another example is John, who is a retired civil servant, and receives a pension and free lifetime medical benefits.
He too has been served with letters of demand and threat of court action for Medisave arrears incurred as a self-employed person.
When he told the CPF Board that it was pointless for him to contribute to Medisave even if he could afford to, because he gets free medical treatment, he was told that he could use his Medisave for his wife.
When he told them that his wife was also a civil service pensioner with free medical benefits, he was told that he could use it for his children.
When he told them that he has no children, he was told that it was required by law to contribute to Medisave.
I wonder how many people in Singapore or Singaporeans living overseas, owe Medisave, and have received letters of demand.
Are these letters of demand being sent to Singapore permanent residents (PRs) living in Malaysia, who owe Medisave too?
How many will be served with court action?
Self-employed persons are required to contribute to Medisave if they earn more than $6,000 a year.
If you earn just $500 a month, how do you survive?
If you are struggling to survive, how can you afford to make Medisave contributions?
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One better die first, we can use the stupid Medisave for payment only half, and the other half has to be paid in cash!
Nowadays, hospital visit is classified under various rank for doctors ie junior, senior, consultant etc. Of course to have more subsidize, you cannot choose your doctor, otherwise, classify under private patient, and your bill shoot up 3 times!
Blood sucking rulers of this country, hope the real Tsunami will sink this little red dot, and then see if they can still use our monies! Dont mind dying with them!
I’m curious, you mentioned in your article that a self-employed who earns $6000 has to contribute to Medisave. Is it money earned in Singapore or in Jane’s case, money she earns in Europe? Why can’t Jane declare she is not self-employed since she’s been living out of Singapore since 2003?
A second more global question… is CPF running out of money such that it is trying to recover as much as possible?
Was just browsing through online citizen portal when I came across this article.
So.. did the persons concerned got satisfactory reply from the CPF Board?
Anyone care to share what’s the latest development with regards to the above matter. Any ‘advice’ from CPF board?
I used to have a business, but everytime i tried to renew the license, i was slapped with a cpf medisave contribution which i couldnt afford. So i gave up the business. EVen if i had the money, i’d rather save it myself as i use traditional chinese therapy, acupuncture, homeopathy etc. Why should i give up funds and then be subject to their rules which are not in my interest.
As i cant afford to buy a home, and have around 80K in the ordinary account I was told that the minimum sum would be removed this year at 55 and that i could choose an annuity, pay out at 67 years old. Principal sum can get at 85years….!!
I was told that after the sum is withdrawn then i can buy flat but at 90K i would be less able to afford bec minimum sum would have been removed. I then requested cpf board to apply for license to beg, since from 55 to 67, i have no salary income or other means of support.
They sent me a curt inhuman letter which i still have, if TOC is interested to post.
I am now seeking for alternative citizenship as my total amt spread across medisave special account etc is about 100K, more than enough to buy a nice property in the US.
Most people want to get out of a system which clearly is out to get as much money out of its citizens. It shakes our confidence regarding our reserves. We cant be a rich country if citizens are continually pressured to Pay And Pay, while Ministers are collecting pensions, million $$ salaries.
Earn $1k a month can own a HDB. So why cant you pay into your own medisave?
Very simple, ask Khaw bw for a HDB, then rent it out to collect $2k. Pay medisave some and keep the rest…
I m also a victim of this!
I ran a failed business venture, now already paying debts back in instalments
Outstanding 3.7K
Correspondences from CPF was to pay 1684 and the rest by instalment, i do not even have the spare cash to pay the 1.6K, let alone the instalments, as i m the sole breadwinner of the family with 1 dependent.
For 2 years I was unemployed and living on my saving, then I decided to startup a sole proprietor. The first year was a struggle but managed to put in some deals here and there, I decided to be staright with the IRAS and declared business turnover of just $20k. The next thing I received a letter of demand from CPF for a $1.6k to be contributed to my medisave account.
What I don't understand is my account is already more than $40k in access and yet CPF insisted I must pay up. I went to speak with the officer and now CPF informed me since I have met the required amount, they are delighted to defer the payment but not a waiver; however in the event the required amount is raised in the future and my amount doesn't meet I am still liable to pay.