A Very Special Type of CPF Nomination

26 Apr 2022

In this article for our “Voices from CMs” series, SNTC’s Case Manager, Mr Jeremy Lau, shares more about the Special Needs Savings Scheme (SNSS), and clears up three myths and misconceptions he sometimes hears about it.

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Parents, do you know that instead of a lump sum payout, you can instead set aside your CPF savings for your child with special needs in the form of regular, monthly disbursements after you pass on?

The Special Needs Savings Scheme (SNSS) is a collaboration between the Central Provident Fund (CPF) Board and SNTC that enables you to do just that.  

 

The benefits of SNSS are:

1. It allows you to determine a monthly amount to be disbursed to your loved one.
2. The remaining money in your CPF account will continue to earn interest even as the payouts continue.
3. It gives dignity and independence for the beneficiary, in being able to use the small sum according to their own needs and wishes.

Benefits aside, the SNSS does come with a few considerations, namely:

• SNTC is not able to monitor the use of the funds

• The CPF Board does not determine the monthly amount to disburse. The applicant has to inform the Board of the desired amount during application

• Each beneficiary needs to handle more than just the money that will be credited to their bank account. They would need to remember the account password and/or PIN; keep and use their own ATM/Debit cards; and be able to seek help when the card is damaged or lost, among other considerations.

In my conversations about SNSS with parents, I sometimes come across some myths and misunderstandings about its nature and how it functions. That is totally understandable as there is a lot of information to digest!

The three most common myths I hear are:

Myth #1

“If one parent nominates the CPF through SNSS, the other spouse will automatically have their CPF nominated to SNSS as well.”

Fact

As with Enhanced or Cash nominations, the applicant's nomination does not affect their spouses' CPF account and nomination type.

Myth #2

“The SNSS nomination will take effect during the lifetime of the applicant.”

Fact

CPF nominations, by their nature, take effect only when the applicant passes on. This myth usually comes from the applicant's worry that there would not be enough money in the CPF for applicant and beneficiary, while the applicant is still alive.

Myth #3

“SNSS can be nominated via Will.”

Fact

CPF nominations cannot be made through a Will. In fact, we strongly encourage our clients to make a CPF nomination, whether it be to their SNTC Trust account, SNSS or otherwise.

For more information and FAQs about SNSS, visit our dedicated section at https://www.sntc.org.sg/services/special-needs-savings-scheme-(snss)