Frequently Asked Questions
1. Purpose
2. Eligibility
3. Amount of Growth Dividends
4. Annual Value
5. Assessable Income
6. How to Receive Growth Dividends
7. Donating Growth Dividends
8. NSmen Status
9. Closure
10. Others


1. Purpose

1.1 Why is the Government giving out Growth Dividends?
The Government is sharing budget surpluses with citizens. This benefit from the nation's progress is possible because Singaporeans have worked together for the future of our country.

1.2 How much will the Growth Dividends cost?
The Growth Dividends will cost $1.4 billion.

1.3 How many Singaporeans can benefit from the Growth Dividends?
About 2.3 million Singaporeans can benefit from the Growth Dividends.

1.4 Will the Growth Dividends earn bonus dividends, similar to the New Singapore Shares (NSS) and Economic Restructuring Shares (ERS)?
Previously, many Singaporeans chose to encash their NSS and ERS early instead of waiting for the dividends, despite the attractive interest rates offered. Hence, the Growth Dividends will be distributed in the form of cash which can be collected immediately upon allotment.

 
2. Eligibility

2.1 Who can receive Growth Dividends?
To receive Growth Dividends, you must

  • Be a Singapore citizen,
  • Be aged 21 years or above as of 31 December 2005; and
  • Sign up for the Progress Package by 31 December 2006.

2.2 How will I know if I am eligible for Growth Dividends?
If you are eligible for the Progress Package (which includes the Growth Dividends), the CPF Board will write to you in late March 2006 informing you of the amounts you can receive for Growth Dividends, Workfare Bonus, CPF top-ups and NS Bonus.

2.3 Can Permanent Residents (PRs) receive the Growth Dividends?
Growth Dividends, like New Singapore Shares and Economic Restructuring Shares, are only given to citizens. This is a privilege of Singapore citizenship.

2.4 I have just become a Singapore Citizen. Am I eligible for Growth Dividends?
As long as you become a Singapore Citizen on or before 31 December 2005, you will be eligible for the Growth Dividends.

2.5 Do I have to make a $50 contribution for Growth Dividends, similar to ERS?
No, you do not need to make a $50 contribution. You only need to sign up for the Progress Package and indicate how you wish to be paid.

 
3. Amount of Growth Dividends

3.1 How much Growth Dividends can I receive?
The amount of Growth Dividends you can receive depends on:

(i) the Annual Value of your home as assessed by IRAS (based on your NRIC address as of 31 December 2005); and

(ii) Your Assessable Income for the Year of Assessment 2005 (your income earned in calendar year 2004 as assessed by IRAS)

  Annual Value of Home $6,000 or less Annual Value of Home more than $6,000 and up to $10,000 Annual Value of Home more than $10,000
Annual Assessable Income $24,000 or less
$800
$600
$200
Annual Assessable Income more than $24,000
$600
$400
Note: Annual Value of $10,000 or less covers about 90% of households. It includes all HDB flats (other than a few very large units), as well as smaller private homes.

3.2 Why use both AI and AV to determine how much Growth Dividends a person can receive?
The Government has received feedback from past surplus sharing exercises that both the income and wealth of a person should be taken into account when allocating more to vulnerable Singaporeans. The tiered structure of AI and AV presents a more targeted way of distributing Growth Dividends. The AI establishes an individual's income, while the AV of his property is a proxy for wealth.

3.3 How much will I receive if I stay in a rented property?
The amount of Growth Dividends you will receive depends on the AV of your rented property.

3.4 How do I check how much Growth Dividends I can receive?

You can check your Growth Dividends amount on your notification letter that the CPF Board will send to all eligible Singaporeans in late March 2006. Starting from 1 April 2006, you can also check your Growth Dividends amount on this website.

 
4. Annual Value

4.1 What is the Annual Value (AV)?

AV is the property value used to calculate the property tax of your home. The AV can be found on the property tax bill that you receive each year.

4.2 Why is AV used instead of flat-type?
By using AV instead of flat-type, Singaporeans who live in large HDB flats and Singaporeans who live in smaller and less expensive private properties with an AV similar to a large HDB flat, will receive similar amounts of Growth Dividends.

4.3 Why are AVs of $6,000 and $10,000 used?
An AV of $6,000 or less will cover all those who stay in a 1, 2, 3-room HDB flat and almost everyone who stays in a 4-room HDB flat. An AV of between $6,000 and $10,000 will cover most of those staying in 5-room HDB flats and less valuable private properties. An AV of more than $10,000 covers the top 10% of the population who stay in more valuable private properties.

4.4 If I own several properties, which AV will be used?
The AV will be based on the property reflected on your NRIC. By law, the NRIC address must show where you are staying. If it does not, you should update the address immediately at the Immigration & Checkpoints Authority or any police station.

4.5 What happens when the AV of my house changes?
We will use the 2005 AV of the house stated on your NRIC as of 31 December 2005, to determine the amount of Growth Dividends you can receive.

4.6 What is the AV if I stay in an old age home, nursing home or community hospital?
You will be considered to have an AV of $6,000 or less.

 
5. Assessable Income

5.1 What is Assessable Income (AI)?

Assessable Income is the full income you have in a calendar year (sum of your employment, dividends, interest and other income) less allowable expenses, applicable capital allowances, donations to IPCs and any loss incurred in trade and business.

5.2 Why is the AI of $24,000 used?
The cut-off of $24,000 corresponds with the salary of a median worker which is about $2,000 a month.

5.3 If I did not need to pay any taxes in Year of Assessment 2005, what is my AI?
You will be deemed to have an AI less than or equal to $24,000, so you will receive the higher amount of Growth Dividends for the AV category that you are in.


 
6. How to Receive Growth Dividends

6.1 How can I receive my Growth Dividends?

To receive your Progress Package, you must sign up at any DBS/POSB/UOB/OCBC ATM, or at our website or by returning a completed form (available at all SingPost offices, Community Centres/Clubs, Community Development Councils and the CPF Board Service Centres) to the CPF Board from 1 April 2006. Your Progress Package will be paid on 1 May 2006 if your instructions are submitted by the following dates.

Sign-up Mode By when must I sign up to receive my Progress Package on 1 May 2006?
1. ATMs 25 April 2006
2. Website (www.progress.gov.sg) 25 April 2006
3. Hard copy forms 15 April 2006

6.2 What if I miss the April 2006 deadlines?
You have until 31 December 2006 to sign up for your Progress Package The fastest way to receive your Progress Package is to sign up through the ATMs or website. Your Progress Package, other than the CPF top-ups and 10% of your Workfare Bonus, will be credited to your bank account within 4 working days. If you sign up using forms, you will receive your Progress Package in your bank account within 10 working days or a cheque within 15 working days.

CPF top-ups will be made by the 15th of the following month if you sign up before the end of the previous month.

6.3 Why am I signing up for the Progress Package and not Growth Dividends? Do I need to sign up for the Progress Package and Growth Dividends separately?
Growth Dividends are part of the Progress Package, so you only need to sign up once for the Progress Package. There is no separate sign-up for Growth Dividends.

6.4 Who can use the ATM to sign up for the Progress Package?
To use the ATM for signing up, you need to be an ATM card holder with one of the participating banks: DBS/POSB, OCBC or UOB. You can only sign up at the ATM of your own bank. For example, if you are holding a DBS/POSB ATM card, please go to any DBS/POSB ATM.

6.5 Can I sign up on behalf of my relatives or friends using my ATM card?
No, you can only sign up for the Progress Package using your own ATM card.

6.6 Can I use the ATM to sign up for the Progress Package throughout the year?
The ATM channel for signing up is only available from 1 April 2006 to 31 May 2006. After 31 May 2006, only hard copy forms and website sign-ups will be available.

6.7 My father (or immediate family member*) is bedridden/physically immobile or of unsound mind, and does not have a bank account. How can I help my father encash his Progress Package cheque?
Please proceed to the bank issuing the cheque (DBS or UOB), with the following documents:

(a) Signed Letter of Authorisation from beneficiary (unless otherwise exempted by doctor’s memo or medical report);

(b) Documentary evidence stating your father's medical condition e.g. doctor's memo or medical report or court order. The date of the documents should not be more than 1 year before the cheque encashment. (Note: a doctor's memo or medical report can be dated more than 1 year before the encashment date, if it specifically states that the patient's condition is permanent.);

(c) Both your original NRICs;

(d) Documentary evidence of your relationship e.g. birth certificate, marriage certificate; and

(e) Your father's Progress Package cheque.

An administrative fee of $4 is payable at the bank for exchanging Progress Package cheques for cash. The fee will be waived for those who are aged 62 and above.

* Immediate family member refers to a parent, child, sibling or spouse.

6.8 My friend is bedridden/physically immobile or of unsound mind, and does not have a bank account. How can I help my friend encash his Progress Package cheque?
As you are not an immediate family member of the beneficiary, please go to any CPF Service Centre with the following documents:

(a) Signed Letter of Authorisation from beneficiary (unless otherwise exempted by doctor’s memo or medical report);

(b) Documentary evidence stating your friend's medical condition e.g. doctor's memo or medical report or court order. The date of the documents should not be more than 1 year before the cheque encashment. (Note: a doctor's memo or medical report can be dated more than 1 year before the encashment date, if it specifically states that the patient's condition is permanent.);

(c) Both your original NRICs; and

(d) Your friend's Progress Package cheque.

At the CPF Service Centre, you would have to sign a Letter of Indemnity. CPF Board will then issue you with an instruction letter to the bank. Please bring the CPF Board's instruction letter to the bank together with your NRIC to encash the Progress Package cheque on your friend's behalf.

An administrative fee of $4 is payable at the bank for exchanging Progress Package cheques for cash. The fee will be waived for those who are aged 62 and above.

6.9 My family member/friend is overseas. How can I help him encash his Progress Package cheque?
Your family member/friend may wish to check with his overseas bank whether the cheque can be deposited into his overseas bank account. Overseas banks may charge a fee and the charges vary from bank to bank.

OR

Cheque encashment by immediate family member

If your immediate* family member would like you to exchange his Progress Package cheque for cash on his behalf, please proceed to the bank issuing the cheque (DBS/POSB/UOB/OCBC), with the following documents:

(a) Original signed copy of his Letter of Authorisation stating his overseas address and authorising you to exchange his Progress Package cheque for cash;

(b) Photocopy of your immediate* family member’s valid passport (personal particulars page, and page with customs stamp)

(c) Your original NRIC;

(d) Documentary evidence of your relationship e.g. birth certificate, marriage certificate; and

(e) Your immediate* family member’s Progress Package cheque.

An administrative fee of $4 is payable at the bank for exchanging Progress Package cheques for cash. The fee will be waived for those who are aged 62 and above.

* Immediate family member refers to a parent, child, sibling or spouse.

OR

Cheque encashment by friend/non-immediate family member

If your friend (or non-immediate family member) would like you to exchange his Progress Package cheque for cash on his behalf, please go to any CPF Service Centre with the following documents:

(a) Original signed copy of his Letter of Authorisation stating his overseas address and authorising you to exchange his Progress Package cheque for cash;

(b) Your original NRIC; and

(c) Photocopy of your friend’s (or non-immediate family member) valid passport (personal particulars page, and page with customs stamp)

At the CPF Service Centre, you would have to sign a Letter of Indemnity. CPF Board will then issue you with an instruction letter to the bank. Please bring the CPF Board's instruction letter to the bank together with your NRIC to encash the Progress Package cheque on your friend's behalf.

An administrative fee of $4 is payable at the bank for exchanging Progress Package cheques for cash. The fee will be waived for those who are aged 62 and above.

 
7. Donating Growth Dividends

7.1 Can I donate my Growth Dividends to a charity?
Yes. Starting from 1 April 2006, you will be able to donate your Progress Package (Growth Dividends, NS Bonus and Workfare Bonus) to a charity of your choice on this website.

 
8. NSmen Status

8.1 Will NSmen receive extra Growth Dividends?
NSmen will not receive more Growth Dividends. They will receive the 40th Anniversary NS Bonus, to recognise their vital contributions to the security and well-being of Singapore.

 
9. Closure

9.1 Can I sign up for the Progress Package after 31 December 2006?
No, the last date for all sign-ups is 31 December 2006.

9.2 Is there a deadline to encash my Progress Package cheque?
All cheques have to be encashed by 30 November 2007. Those holding on to expired cheques have until 1 November 2007 to request for a replacement cheque. No new cheques will be issued after 1 November 2007.

9.3 Will I lose my Progress Package if I fail to encash my Progress Package cheque by 30 November 2007?
No, if you fail to encash your cheque by 30 November 2007, your Progress Package will be credited directly to your CPF Ordinary Account and will be subjected to CPF withdrawal rules. If you do not have a CPF account now, the CPF Board will automatically open a CPF account for you to credit your Progress Package monies. You need not come to the CPF office to open an account.

 
10. Others

10.1 Are the Growth Dividends taxable?
No, the Growth Dividends are not taxable.

10.2 Can I transfer or sell my Growth Dividends?
No, you are not allowed to transfer or sell your Growth Dividends.

10.3 What happens to the Progress Package if the beneficiary passes away after signing up?
The Progress Package monies will be transferred to the deceased's CPF account for distribution, together with other CPF monies.

 
 

Copyright© 2006. All rights reserved. Central Provident Fund Board