What is the Special Needs Savings Scheme (SNSS)?
The SNSS was developed by the
Ministry of Social and Family Development (MSF) in partnership
with the Central Provident Fund Board (CFPB) to enable parents to
set aside CPF savings for the long term care of children with
special needs. Under the SNSS, parents may nominate their loved
one with special needs to receive a regular stream of fixed
pay-outs upon the parent’s demise.
How does the SNSS work?
- At the point of
nomination, parents can decide the
amount of monthly payouts the child with special needs
will receive upon their demise.
- The minimum monthly CPF
payout is $250 for each nominated child with special
needs. Parents may decide on a higher quantum.
- There is no minimum
balance sign up for SNSS. However,
a
participating parent’s CPF savings upon his/her demise
must be sufficient to support a year’s worth of payout.
(For eg, a minimum monthly payout is S$250 x 12 months =
S$3000). If, upon the parents' demise this condition is
not met, the CPF savings will be disbursed as a lump sum
to the nominee.
- Without the SNSS
nomination, a deceased person’s CPF savings in the
Ordinary, Special, Medisave and Retirement Accounts are
distributed to their nominee(s) as a once-off lump sum
payment in cash if he had made a Cash nomination. If the
deceased person did not make any nomination, his CPF
savings will be transferred to the Public Trustee for
distribution to his family members in accordance with the
intestacy laws or inheritance certificate (for Muslims).
- When the parent passes on,
the nominated child with special needs, who qualifies for
SNSS will receive these pre-determined monthly pay-outs
until the deceased parent’s savings are exhausted.
BOTH parents of an eligible child with
special needs may apply for the scheme for the benefit of the
same child.