What Are Economic Restructuring Shares?

The Government gave out Economic Restructuring Shares (ERS) to help Singaporeans cope with the increase in the Goods and Services Tax (GST) from 3% to 5% between January 2003 and January 2004. The first lot of ERS was given out in early 2003, the second lot in early 2004 and the third lot in early 2005. Singaporeans had the choice of encash their ERS at any time.

Those ERS which had not been encashed earned tax-free dividends each year in the form of bonus shares, payable every year on 1 March from 2004 - 2008. The rate is a minimum guaranteed 3% + real GDP growth rate of the previous year.

Crediting Date
Dividend Rate (%)
ERS balance as at
1 March 2004
4.1
31 Dec 2003
1 March 2005
11.4
31 Dec 2004
1 March 2006
9.4
31 Dec 2005
1 March 2007
10.9
31 Dec 2006
1 March 2008
10.7
31 Dec 2007

After the final round of dividends is credited on 1 March 2008, all outstanding ERS will automatically be exchanged for cash at $1 per share and paid out to the beneficiaries.

CPF Board will send notification letters between 7 and 10 March 2008 to beneficiaries who have yet to encash their ERS.

Beneficiaries do not need to take any action. Your ERS will be automatically paid to your most recent valid bank account used to receive payment for GST Credits, Workfare Income Supplement, Progress Package, Economic Restructuring Shares or New Singapore Shares by 7 April 2008.

If you do not have a valid bank account in CPF Board's records, a cheque will be issued and sent to you on 7 April 2008. However, if you wish to receive your ERS payment in a bank account, you can indicate your bank account at www.ers.org.sg or return a completed form to the CPF Board by 24 March 2008.

If you have a valid bank account in CPF Board's records, but wish to receive your ERS payment in a different bank account, you can similarly provide a different bank account at www.ers.org.sg or return a completed form to the CPF Board by 24 March 2008.

Singaporeans who have already encashed their ERS will not receive any notification letter or payment from CPF Board.

Latest ERS Press Release: 10.7% Bonus for ERS

Calendar of Events

Year 2008

1 March 2008 Fifth (and final) dividend payment on ERS which have not been encashed, for period from 1 March 2007 to 29 February 2008.
All ERS which have not been encashed will be exchanged for cash automatically.
7 to 10 March 2008 Notification letters will be sent out to beneficiaries who have not encashed their ERS to inform them of their dividend payment and how the ERS will be paid out to them.
24 March 2008 Last day for Singaporeans to provide bank account details if
(a) they do not have one in CPF Board's records and do not wish to receive a cheque,
or
(b) they have a valid bank account in CPF Board's records but wish to receive their ERS in a different bank account.
7 April 2008 ERS will be paid to beneficiaries through their bank accounts or cheques.
7 July 2008 Last day to encash ERS cheques. If cheques are not encashed, the ERS monies will be transferred to the beneficiaries' CPF Ordinary Accounts.
1 September 2008 Closure of ERS.
 


2008 Government of Singapore