Why can't the pledging be done simultaneously? (so that I no need to wait for one week)

I am above 55. I am currently pledging my HDB flat for half the minimum sum. I was told that if I want to buy and sell my flat at the same time (downgrading), I need to put the full minimum sum to my retirement account. It would take the CPF board about one week to refund me half the minimum sum if I pledge my new flat. Why can't the pledging be done simultaneously (no need to wait for one week)?

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Lyndon Wong

01 Nov 2019

Dad at Dad Pte. Ltd.

I believe you are referring in relation to the withdrawal of excess monies from your SA/OA after meeting Basic Retirement Sum (BRS) and pledging your property as charge to account for the difference between Full Retirement Sum (FRS) and BRS in your RA.
The reason for the delay could be related to the administrative checks involved before the excess above BRS could be released.
1. If you own the property alone, your pledged property must be worth at least $88,000.

If you co-own the property with someone, you can only pledge up to your share of the property value. Today, your share of the pledged property must be worth at least $88,000 as well, since the purpose of the property pledge is to ensure your assets can help you meet the Full Retirement Sum.
Your property needs to have 30 years of lease remaining and it cannot be an HDB 2-room flexi flat.
HDB flats that have undergone a lease buyback are also ineligible for pledging.
The above requires some time to check, thus pledging and release of excess funds above the BRS level in your RA cannot be done simultaneously.

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