CPF members who have more than $30,000 in their Special Account can currently invest the excess monies. But from July, the CPF Investment Scheme (CPFIS) will be tweaked to raise that threshold to $40,000. This change will not affect existing investments until they are liquidated.
Explaining the refinement, Manpower Minister Gan Kim Yong said given the higher interest rate on the Special Account - which is subject to a guaranteed floor rate of 4 per cent until the year's end - and the volatility of CPFIS returns, "we should take a more conservative approach". In all, 2.7 per cent of CPF members will be affected.
[SOURCE: http://www.todayonline.com]
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