10. Letter to MPs dated 14 May 15:
The director of CPF has not reply after I showed wrongdoings.
Officers cause on-going monetary losses on three occasions. From higher interest I could get from Ordinary Account compared to bank accounts with a refund of proceeds from sale of flat, from reduced payout from CPF LIFE Plan because an additional CPF LIFE was issued in Aug 10 than if there was not one and from a miscalculation of payout for additional CPF LIFE issued under Silver Housing Bonus (SHB) in Jan 15 after an addition of interest income for the year 2014.
9. Letter to director of CPF LIFE dated 7 May 15 and forwarded to MPs:
Wrongdoing by Officers
1. I refer to your reference ... dated 30 Apr 15. My email to Mr Teo is on wrongdoing by officers but you have not replied to any of the wrongdoings. Could you reply to four such questions below?
2. Are you in agreement with the senior assistant director that there is to be no refund of proceeds from sale of flat to CPF Account? The 2012 CPF Act and Changes to CPF Housing Refund Policy Effective 1 January 2013, however, allow for refund.
3. Why was there no reply from CPF within the 7 working days stated in the application form for SHB submitted by the principal estate manager? Approval to include my mother in the studio apartment was given by CPF before the principal estate manager got us to sign the application form. He did wrong by not showing us the attached important notes that came with the application form, which included a reply within 7 working days, and asking me to fill the Transfer of Flat Ownership form intended for new owner, which took 10 weeks and a fee, when it was clear that approval was given because my mother was a co-owner who right-sized to a studio apartment.
4. Is the $4 more in payout correct? The additional $4 per month after DDA (at age 65) adds up to less than the interest income of $1757.88 over a lifetime. And if the $1757.88 is invested for say 30 years at the lower range of 3.75%, the calculated amount will be $8.14 per month.
5. Back in Aug 10 at CPF Tampines, why the application form for additional CPF LIFE Plan without any attached important notes in which I was led to sign unknowingly? The important notes would have stated that CPF LIFE allowed for only two deductions with the second and final deduction two months before Draw Down Age (DDA) and a 30-day grace period to cancel additional CPF LIFE Plan. It makes sense to purchase additional CPF LIFE Plan only if interest income from the purchase of Singapore Bond for CPF LIFE exceeds the 4% in CPF Retirement Account.
6. Elaboration of the four questions are in my emails of 16 Mar 15, 5 Apr 15 and 27 Apr 15. Officers including yourself wrote that since I had been replied numerous times before, they would not reply further. But the questions admit either wrongdoing with a correction or no wrongdoing with an explanation. It is the questions that need to be replied.
8. Letter to MPs dated 27 Apr 15:
Wrongdoing by Officers
1. I asked the assistant director to refer my emails of 16 Mar 15 and 5 Apr 15 to her superior but have not a reply.
2. It all started when people were installed in the flat across the neighbour after my complaint of noise from the neighbour in 2007. About a year later a man from the flat was seen often until I sold my flat in 2014. They were there to keep an eye on me and to allow the activities of the neighbour.
3. To get away from the noise, I applied for a studio apartment. After a few ballots I got it but found difficulty selling the existing flat within the stipulated six months period. Salespersons given exclusive right and paid the going rate would not sell the flat at market price. And Council of Estate Agencies (CEA) did not reply to the details of complaint I submitted. I tried but could not sell on my own because the market was controlled by salespersons. The flat sold only with your assistance after I wrote to you that I had limited options either to sell back to HDB or through a third salesperson with exclusive right to sell. As with many times before buyers came and went, the flat sold only when one came to negotiate directly with me. The third salesperson gave little support and he allowed a cheque for the sale proceeds to be issued to me without refund into CPF account.
4. The cheque should be issued to CPF because it had a charge over the flat. According to the Changes to CPF Housing Refund Policy Effective 1 January 2013 published at CPF’s website after my enquiry, an application could be made to retain the refund in CPF Account. The third salesperson and his agency should be aware of the rule, which was in effect for over a year, when I asked and wrote to them about the refund. Similarly when I wrote to CPF, the senior assistant director would not admit that the rule applied. She only referred to 2012 CPF Act, but there the Act specifies that an official letter is required for no refund and the default is to refund.
5. After the handing over of keys to the studio apartment, my application for Silver Housing Bonus (SHB) was delayed because I could not obtain the application form when I asked at HDB and left notes at CPF Tampines. Approval was given after many emails but the principal estate manager at HDB caused further delay of 8-10 weeks and a fee when he asked me to fill the Transfer of Flat Ownership form intended for new owner. The correct procedure for the transfer was through the legal department since the inclusion of my mother’s name was as co-owner who right-sized to a studio apartment and not as new owner. In fact when the principal estate manager asked us to sign the application form for SHB, the attached Important Notes stated that we would receive an outcome of our application within 7 working days and the required documents by the CPFB. He did not refer us to the attached Important Notes just as the application form for SHB and attached Important Notes was not given to me when I asked for it earlier.
6. Referring to the unsigned letter from Lifelong Income Department of CPF dated 12 Jan 15, the payout of $4 more per month from the addition of interest income in 2014 cannot be correct. The amount adds up to less than the interest income over a lifetime. If the interest income is invested in annuity for say 30 years at the lower range of 3.75%, the calculated amount will be $8.14 per month. The total payout first calculated without the interest income was in the signed letter of 16 Sep 14. I therefore wrote to cancel the additional CPF LIFE Plan within the 30-day grace period provided in the important notes that came with the letter dated 12 Jan 15. A copy of the application form for SHB and the Important Notes that we signed was then sent to show me it was issued under the SHB Scheme and could not be cancelled. It was here that I became aware of the application form for SHB and the Important Notes and why it was concealed from me earlier. It was to prevent my application and to cause delay.
7. Back in Aug 10 I signed an additional CPF LIFE Plan at CPF Tampines without being informed about any important notes. I came across the important notes only in a letter on the issuing of CPF LIFE Plan under SHB Scheme dated 12 Jan 15 mentioned in the preceding paragraph. The important notes stated CPF LIFE allows for only two deductions with the second and final deduction two months before Draw Down Age (DDA) and a 30-day grace period to cancel additional CPF LIFE Plan if one has already joined CPF LIFE.
It makes sense to purchase additional CPF LIFE Plan only if interest income from the purchase of Singapore Bond for CPF LIFE exceeds the 4% in CPF Retirement Account.
Therefore my doubt about the additional CPF LIFE Plan I signed in Aug 10 without being informed of the important notes at a time when the problem with the officers and neighbour was intense.
8. The above are verifiable and therefore proof of wrongdoings. Why could not it be corrected?
7. Letter to assistant director of CPF LIFE dated 5 Apr 15 and forwarded to MPs:
Officers Acted Against Rules
1. I refer to your letter reference ... dated 31 Mar 15 in which you avoided my questions. These were specific and behind each was the reason having to do with officers.
2. Why was the sale proceeds returned to me when part of it should be refunded to my CPF Account? The 2012 CPF Act requires an official letter to inform of no refund or a personal application if I needed the fund. The default is to refund. And although the Changes to CPF Housing Refund Policy Effective 1 January 2013 allows automatic disbursement, it also allows refund upon application. I made an application but was prevented by the senior assistant director. In my emails I showed how her statements were unsupported. Your reply, “Our colleague from the Housing Scheme Department has already explained numerous times to you on the issue pertaining to your CPF Housing Refund. As such, we will not reply on this matter again.”
3. Why was the payout $4 more? I showed that even without considering interest rate and inflation over time the additional $4 per month after DDA (at age 65) over lifetime adds up to less than $1757.88, which was the interest income used for the calculation. And if the $1757.88 is invested in annuity for say 30 years at the lower range of 3.75%, the calculated amount will be $8.14 per month. Therefore the payout of additional $4 per month could not be correct.
Your reply,
The policy letters were computer generated and sent on the Board’s capacity to inform you of the details of your CPF LIFE Plan. Even though it had not been signed off by our Staff, the board will still be accountable for the information stated as the letter bears the CPF logo.
Please be informed that the payouts are actuarially determined and is reviewed regularly to ensure that all CPF LIFE members can receive the full benefits from the scheme on a fair basis. The payout that was communicated to you had already included the interest you earned in your Retirement Account (RA) for the year 2014. Therefore, the payout you receive when you reach Draw Down Age (DDA) will be $1,329 to $1,457.
4. In my emails,
Of the additional annuity in Aug 10, I would ask whether an official letter with attached important notes was sent? Were similar letters sent out to other members at the time too? Why was there an additional annuity if the policy allows for only two deductions with the second and final deduction two months before DDA as indicated in the important notes attached to your department’s letter of 12 Jan 15? I showed that I signed up for the additional annuity in Aug 10 unknowingly because it seems there was no official letter and important notes to keep me informed. It raises my doubt because the source of my problem with officers and a neighbour started from Jun 07.
Your reply,
For a typical CPF LIFE member who joins the scheme before their DDA, there will be two annuity premium deduction which you have rightly pointed out. However, you are also given the option to commit your monies earlier to purchase an additional policy which you did in September 2010.
5. Why was I not informed that my mother was eligible for SHB when the document was being finalised before the handing over of keys to the studio apartment? On the same day I was refused the application form for SHB at HDB Hub and there was no reply to my notes handed in for the application form for SHB at CPF Tampines. The brochure for SHB that was given to me showed, “When and how to apply? Applications will be available from 1 February 2013. Interested elderly may obtain and submit application form at HDB and CPF Board from 1 February 2013.”
Why would the principal estate manager get us to sign the application form for SHB and sent it to CPF without informing us about it? I became aware of the application form only because your officer had to refer to the attached Important Notes. The Important Notes read, “1) Please read the Conditions for the Silver Housing Bonus Scheme (attached) before completing the form.” and “4) You will receive a letter on the outcome of your Silver Housing Bonus (SHB) Scheme application within 7 working days upon receipt of this form and the required documents by the Central Provident Fund Board at 79 Robinson Road, CPF Building, Singapore 068897.” The principal estate manager did not refer us to the Important Notes.
Why did the principal estate manager used the Transfer of Flat Ownership form, which included a fee of about $200, required a 8-10 weeks for processing and was not meant for co-owner, when there was a procedure through the legal department to include my mother in the studio apartment? In fact the application form for SHB included our names as co-owner who right-sized to a studio apartment and under the Important Notes processing time would be 7 working days.
Your reply,
In order for an applicant to be eligible to participate in SHB, the applicant has to make the sale and purchase transaction. As your mother was not included as an owner of the new property, she is thus not eligible for SHB when you first enquired about SHB at HDB.
In order for your family to receive the full $20,000 SHB bonus, HDB has advised you, based on our recommendation to include your mother as an owner of the Studio Apartment (SA) you have purchased. Due to this inclusion, the application for SHB was then delayed as the process for A Transfer of Flat Ownership typically takes HDB 8 to 10 weeks to process.
For more information on the process for A Transfer of Flat Ownership, you may wish to check with the HDB officer who handled your case.
6. Please refer this email in conjunction with my email of 16 Mar 15 to your superior as you are unable to give me a reply.
6. Letter to assistant director of CPF LIFE dated 16 Mar 15 and forwarded to MPs:
1. I refer to your reference ... dated 10 Mar 15.
2. Of the four issues in my email of 26 Feb 15, two were not in your reply. I will add to the four. The two issues you did not address are refund of CPF money after sale of flat and payout of $4 more after addition of interest income.
3. The refund issue may not be relevant to your department but there is a bigger issue about officers. In my emails I showed that the 2012 CPF Act and Changes to CPF Housing Refund Policy Effective 1 January 2013 published at CPF’s website allow refund of CPF money and that the senior assistant director’s statements were unsupported. Referring only to the 2012 CPF Act, she prevented my refund. Could you or someone show me she is right?
In the case there was neither official letter to inform the reason for no refund nor a personal application submitted to withdraw CPF money from the sale of flat. These were the conditions in the 2012 CPF Act. Without official letter or personal application, the default should be to refund. Therefore a cheque that was given to me from the sale of flat should have gone into my CPF Account and only after an amount used to purchase the flat was deducted could the rest be returned to me. The amount deducted would represent a charge on the HDB flat. There would be no lapse of charge unless there was a letter from an officer or an application from me to cause it.
Portions of the Changes to CPF Housing Refund Policy Effective 1 January 2013 are as follow:
Any excess housing refunds after topping up the Minimum Sum you need to set aside in your Retirement Account and the current Medisave Minimum Sum in your Medisave Account will be automatically disbursed to you. If you wish to retain the excess housing refunds in your CPF account, you may apply to CFPB to do so.
If you choose to retain the excess housing refunds in your CPF account, any excess housing refunds remaining in the Ordinary Account can be used for housing purposes.
You need to refund your principal amount withdrawn for housing and accrued interest but any excess housing refunds will be automatically disbursed to you within 5 working days from the crediting of the refund to your CPF account.
The new housing refund policy applies to members whose legal completion of the sale falls on 1 January 2013 or later.
4. From the two outcomes presented in my reply of 1 Feb 15, the payout issue is clear. Having learned to look out for letter sent by officer and any application made by me, I noted that your department’s letter of 12 Jan 15 was without name and signature whereas your department’s letter of 16 Sep 14 was with name, signature and attached financial plans. Therefore starting with the payout from the letter of 16 Sep 14 and with all other things being equal, the payout of $4 more after the addition of interest income in the letter of 12 Jan 15 cannot be correct.
5. Of the additional annuity in Aug 10, I would ask whether an official letter with attached important notes was sent? Were similar letters sent out to other members at the time too? Why was there an additional annuity if the policy allows for only two deductions with the second and final deduction two months before DDA as indicated in the important notes attached to your department’s letter of 12 Jan 15? When I signed the application for additional annuity at CPF Tampines, I did it unknowingly just like I did with my application for SHB at HDB Hub. It seems there was no official letter and important notes to inform me about the additional annuity. Now that I have the application you sent, I notice that six of the eight digits of my phone numbers were incorrect and my email address was left blank. Only the signature was in my handwriting.
6. When I asked the principal estate manager at HDB Hub how long it would take to include my mother’s name, he said he would ask the legal department. Yet after I signed the form for SHB unknowingly he asked me to fill the online Transfer of Flat Ownership form, which was intended for new owner. If there had been a need for such a transfer, CPF would not have approved the cash bonus for my mother beforehand. Obviously our documents showed that she was a co-owner of the previous flat sold and not a new owner. Elsewhere, I showed that the form was not appropriate. So there was a procedure through the legal department to include my mother but the principal estate manager used the Transfer of Flat Ownership form.
Also when SHB came into effect on Feb 13, I could have been informed that my mother was eligible and given the application form. Although I had applied using only my name for a studio apartment earlier in Apr 10, was there a big difference to HDB if we then included both our names in the application form for SHB? But I was not informed when the documents were being finalised before the handing over of keys to the studio apartment. And I was refused the application form on the same day when I noted that the SHB brochure only required me to submit if interested. So I was not informed, then refused the application form at HDB Hub and there was no reply to my notes handed in for the application form at CPF Tampines.
7. By showing the evidence, I hope to make my case clear.
8. Could you do the same?
5. Letter to assistant director of CPF LIFE dated 26 Feb 15 and forwarded to MPs:
1. I refer to your reference … dated 23 Jan 15 together with the attached Application for the Silver Housing Bonus Scheme your department received on 7 Oct 14.
2. I could see why the application form was not given to me when I requested for it at CPF and HDB earlier. Under Important Notes, I notice “1) Please read the Conditions for the Silver Housing Bonus Scheme (attached) before completing the form.” and “4) You will receive a letter on the outcome of your Silver Housing Bonus (SHB) Scheme application within 7 working days upon receipt of this form and the required documents by the Central Provident Fund Board at 79 Robinson Road, CPF Building, Singapore 068897.”
3. The principal estate manager at HDB managed to get us to sign the form while overlooking the Important Notes. He then asked me to fill in an online form for Transfer of Flat Ownership as if it was an application for SHB. So on the same day that I submitted the online form to HDB Branch Office at Punggol, CPF received our Application for the Silver Housing Bonus Scheme from him. Even as I wrote to him that there was no transfer of flat ownership and the online form was not appropriate, he carried on with a fee of about $200 and 8-10 weeks waiting period. If I had been able to obtain and submit the application form as stated in the brochure for SHB, I would have received a reply from CPF within 7 working days as stated in the application form for SHB above.
4. The form for SHB was concealed from me first to prevent my application and second, when it was finally approved by CPF after many emails, to cause delay. There was, in fact, a delay of nine months since I wrote to an officer at CPF concerning our eligibility for SHB. At the same time a senior assistant director from CPF prevented a refund of CPF money after sale of our flat.
5. I could now look through the application form you sent only because your officer had to support his statements by referring to it. Please refer to my email dated 10 Feb 15.
6. With regards to your letter, I did not volunteer for additional annuity in Aug 10. If I had, could you show me my application? There was no explanatory notes because I remembered I needed more information. If I had not made an application, could you reply to my question about the difference between the deduction then and having only the second deduction two months before DDA? I bring up the matter because the source of my problem with officers and a neighbour started from Jun 07. It is in my blog.
7. Referring to the Application for the Silver Housing Bonus Scheme, the handwritten note by an officer dated 7 Oct 14 was incorrect: “According to FC, $7,000.00 to ... and $63,000.00 to ....” When I refer to a letter dated earlier on 16 Sep 14, the first figure was the same at $7,000.00 but the second figure was $125,000.00, which was what we topped up later. So a mistake was made and then corrected by referring to the letter dated earlier.
It was also in this letter dated earlier that my payout was $1,324.77 - $1,452.81 and then subsequently $1,329 - $1,457, all else being equal, after an addition of interest income. In my email dated 1 Feb 15, I showed that it could not be $4 more.
8. Could you reply to each of the point made or refer to someone who could?
4. Letter dated 10 Feb 15 and forwarded letter to CPF LIFE of the same date to MPs:
Statements made by the officer in their second letter dated 4 Feb 15 in reply to my email go against Important Notes on CPF LIFE in their first letter dated 12 Jan 15.
The notes states that there will be two deductions of annuity premiums, but the officer would have made more than two deductions.
The notes states there will be a 30-day grace period to cancel additional CPF LIFE PLan, but the officer states I was not eligible.
Statements by the officer were not supported.
3. Letter to CPF LIFE dated 10 Feb 15:
1. I refer to your letter reference … dated 4 Feb 15 received on 9 Feb 15 (by the post office) in reply to my email dated 1 Feb 15.
2. You did not clear my doubt.
3. I quote from your letter: ¨We would like to reassure you that even though our letter had not been signed off by any CPF staff, the Board would still be accountable for the information stated therein as the letter bears the CPF logo.¨ I think CPF members would naturally prefer to know the name and designation of officers who wrote to them.
4. Your statement ¨In addition, we understand that you were given a copy of the list of conditions for SHB scheme when you submitted your application at HDB. In that list of conditions, we have indicated that all SHB scheme applicants who are already participating in CPF LIFE will have an additional CPF LIFE policy of the same plan type issued to them.¨ is not supported. A brochure on SHB (Silver Housing Bonus) was given to me at HDB but the relevant portion is not at all similar to your statement.
To qualify for the SHB the relevant portion states ¨Join CPF LIFE. All owners in the household must use their full CPF RA savings to purchase a CPF LIFE plan if they have at least $40,000 (if below age 65) or $60,000 (if age 65 to 79) in their RA after the top-up.¨
In my case the CPF LIFE Annuity Premium under Important Notes on CPF LIFE applies. It states there will be two deductions of annuity premiums if you join CPF LIFE before your DDA (Draw Down Age). The first upon issuance of CPF LIFE Plan and the second two months before the DDA. There is therefore no need for the additional CPF LIFE Income Plan because the second deduction is the full RA (Retirement Account) and the reason I ask for an explanation. (There was a deduction of $8,843.06 on Sep 10 nine months after issuance in my case but no explanatory notes was given then).
5. Your statement ¨According to our records, you have been covered under the LIFE Income Plan since December 2009. As such, you will not be eligible to cancel your additional annuity issued with the SHB scheme top-up.¨ is again not supported and goes against the Change/ Cancel your CPF LIFE Plan under Important Notes on CPF LIFE, which allows a 30-day grace period to cancel additional CPF LIFE Plan. Also, to be eligible for SHB, I topped up $7000 to RA but $37,704.20 from RA was used for the additional CPF LIFE Income Plan. Is there any document you could produce to support your case? I have the CPF LIFE Plan before there was SHB, it should not simply overwrite existing CPF LIFE Plan.
6. I wrote that I have doubt and do not wish to have the additional CPF LIFE Income Plan. Please refer my emails of 1 Feb, 7 Feb and this email to your superior.
2. Letter to CPF LIFE dated 7 Feb 15:
While waiting for your reply, the last day of the 30-day grace period will be 11 Feb 15 for the additional CPF LIFE Income Plan.
Therefore I give notice not to have the additional CPF LIFE Plan before the 30-day grace period.
I will appreciate a reply to my earlier email.
1. Letter to CPFB and CPF LIFE dated 1 Feb 15:
Central Provident Fund Board
79 Robinson Road
CPF Building
Singapore 068897
Lifelong Income Department
Dear Sir,
Additional CPF LIFE Income Plan
I refer to your reference … dated 12 Jan 15. The letter was not signed and I received it only on 30 Jan 15.
In CPF LIFE Annuity Premium under Important Notes on CPF LIFE, it states there will be two deductions of annuity premiums if you join CPF LIFE before your DDA (Draw Down Age). The first upon issuance of CPF LIFE Plan and the second two months before the DDA.
Also in Change/Cancel your CPF LIFE Plan if you had joined CPF LIFE and purchased an additional annuity with additional money in your Retirement Account (RA), there would be a 30-day grace period to cancel an application to purchase the additional annuity.
As to the CPF LIFE Annuity Premium, what is the difference between the deduction now and having only the second deduction two months before DDA?
As to the Change/Cancel your CPF LIFE Plan, could I wish not to have the additional CPF LIFE Income Plan now?
I have doubt when I saw that the CPF LIFE payout is only $4 more than the CPF LIFE payout in the previous CPF LIFE letter dated 16 Sep 14. The difference in payout is due to an addition of an interest amount of $1757.88 to the amount in Dec 13 to arrive at the amount in Dec 14 used in the calculation, all other things being equal including the top-up for SHB (Silver Housing Bonus). $1757.88 is the value at present, but even without considering interest rate and inflation over time the additional $4 per month after DDA (at age 65) over lifetime adds up to less than $1757.88. Another outcome is if the $1757.88 is invested in annuity for say 30 years at the lower range of 3.75%, the calculated amount will be $8.14 per month.
Thank you.
Sincerely,
hh
Observation Letters to officers and to MPs on the payout from additional CPF LIFE Plan. The owner raised doubt based on two events and a summary of wrongdoing by officers.
