|
  |
|
Source:
www.gov.sg |
|
POST-SECONDARY EDUCATION ACCOUNT |
|
Additional support for Singaporeans
to pursue further education |
|
|
As part of the Government¡¯s efforts to
encourage every Singaporean to complete post-secondary education, the
Government will create a Post- Secondary Education Account (¡°PSE
Account¡±) for every child currently eligible for the Children
Development Account (¡°CDA¡±). |
|
The Prime Minister announced the PSE Account
at the 2005 National Day Rally. |
|
The PSE Account helps parents to save for
their children¡¯s postsecondary education, and provides Government
co-funding for such savings. It underscores the Government¡¯s commitment
to support families in investing in further education for their
children, and to prepare them for the economy of the future. |
|
The CDA is the co-savings component of the
Baby Bonus scheme.1 Under the scheme, the Government matches parents¡¯
co-savings in the CDA dollar-for-dollar over 6 years from a child¡¯s
birth, up to the maximum of $6,000 for the second child and $12,000 for
the third and fourth child. |
|
Unused savings in the CDA will be
transferred to the PSE Account once a child enters primary school.
Further, parents can continue to contribute to the PSE Account until the
child is 18. |
|
The Government will match the amount of
savings the parents contribute. This will give parents more time to
contribute and therefore benefit fully from Government co-savings in
their child¡¯s account, beyond the child¡¯s first 6 years. |
|
The features of the PSE Account are
summarised below: |
|
a. Every Singaporean child with a CDA will
be given a PSE Account when he enters primary school. Unused CDA funds
will be automatically transferred to the PSE Account. Those who are
eligible for a CDA (i.e. 2nd, 3rd and 4th child) but did not open one
before entering primary school can open the PSE Account anytime before
they reach 18 years old; |
|
b. Edusave monies will also be transferred
to the PSE Account when the child reaches 16 years old or when he leaves
secondary school, whichever is later; |
|
c. The PSE Account will earn the same rates
of interest as the Edusave accounts (2.5% currently); |
|
d. In order to give parents a longer
timeframe and thus more flexibility in taking advantage of the PSE
Account, they can contribute to their children¡¯s PSE Accounts until
their children turn 18 years old; |
|
e. The Government¡¯s combined contribution to
the CDA and PSE Account will be capped at the current maximum Government
contribution to the CDA, which is $6,000 for the 2nd child and $12,000
each for the 3rd and 4th child. (Including parents¡¯ contributions, the
maximum amount is $12,000 for the 2nd child and $24,000 each for the 3rd
and 4th child.); |
|
f. Funds in the PSE Account can be used for
post-secondary education in the Junior Colleges, Institute of Technical
Education, locally-based polytechnics and universities; |
|
g. Parents can use funds in each child¡¯s PSE
Account for any of the other siblings; and |
|
h. Unutilised PSE Account balances will
eventually be transferred to the account holder¡¯s Central Provident Fund
¨C Ordinary Account. |
|
The first batch of children will have their
CDA funds transferred to their PSE Account in 2008. Further details
regarding the PSE Account will be announced at a later date. |
|
MINISTRY OF EDUCATION & MINISTRY OF
COMMUNITY DEVELOPMENT, YOUTH AND SPORTS 22 Aug 2005 |
|
Source:
www.gov.sg Press Release 22 Aug 2005 |
|
 |
|
|
Post Secondary Account for every eligible child
