Support Site for The Unemployed & Underemployed
Thursday January 24th 2019

How to pay back $24,000 medisave owed 16 years ago!

Dear Gilbert

A friend of mine (Tom, a Singaporean) has received such a letter. The arrears came close to $24, 000 and were for income earned in the years before 1994! At that time, Tom thought that he had to top up the medisave only if you needed a licence, etc. As he never needed to get a licence or register a business, he did not top up his medisave. Now after 16 years, CPF Board wants to get tough?! Isn’t there any grace period??

As far as I know, an employee has to recover any shortfall to his CPF account within one year. After one year, the CPF Board has no obligation to entertain his claim.

Small claims tribunal also have a limitation period (I forgot how long) beyond which the claim cannot be brought before the SCT.

Even IRAS will close their tax file after (I think) 6 yrs.

Tom doesn’t have $24, 000 to cough up to pay CPF Board now. According to the CPF Board letter, they are willing to agree to a one year instalment plan. But there is no way that Tom can fork out $2000 per month for the next 12 months given his current situation!

What is Tom going to do?? What is CPF Board going to do to him??

Please advise.

PS: This is a comment posted on the article page



I will advise that your friend, Tom, contact the CPF Board now for more information on how he can best settle his CPF medisave default.

As its quite a huge amount ($24, 000), do ask him to plead for more time to pay up or even for a favourable instalment period other than the 12-month plan provided.

I am sure many thousands of Singaporeans have received such letters from the CPF Board by now and fretting over how best they can pay back the medisave owed to their own account. The threat of legal charges also does not help the situaion here.

Can  any CPF Board’s spokesman comment here?



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