The Central Provident Fund, established by legislation in July 1955, is aimed at providing financial security for wage earners when they grow old or should they become permanently disabled. Before then,,only civil servants and employees of some organisations enjoyed superannuation benefits. The Fund is made up of compulsory contributions from both employees and employers.These are invested by CPF Board mainly in Singapore Government registered stocks which yield a fair annual return. The Board also pays interest on members' savings; this is credited to their accounts and compounded annually. Members can withdraw their CPF savings when they reach 55 years of age or should they become permanently disabled. Their nominated beneficiaries can withdraw the CPF contributions if the member dies. While old age security remains the main objective of the Fund, the CPF Board also has schemes that enable members to use their CPF savings to buy flats and houses, for home protection insurance, to invest in approved shares and residential properties and to meet hospitalisation expenses for themselves and their dependants.
