Education Endowment and Savings Schemes Act 1992

Education Endowment and
Savings Schemes Act 1992

2020 REVISED EDITION

This revised edition incorporates all amendments up to and including 1 December 2021 and comes into operation on 31 December 2021

An Act to establish an education endowment scheme and a scheme to promote savings for post-secondary education, and for matters connected therewith.

[1 January 1993]

PART 1

PRELIMINARY

Short title

1.  This Act is the Education Endowment and Savings Schemes Act 1992.

Interpretation

2.—(1)  In this Act, unless the context otherwise requires —

“Council” means the Advisory Council established under section 11;

“Edusave account” means an Edusave account maintained under section 7(3);

“Edusave Pupils Fund” means the Edusave Pupils Fund established under section 7(1);

“Edusave Qualifying Ages” means the range of ages prescribed by regulations to be the Edusave Qualifying Ages;

“Edusave Scheme Administrator” means the public officer appointed under section 7(2) by the Minister to administer the Edusave Pupils Fund on the Minister’s behalf;

“Endowment Fund” means the Edusave Endowment Fund established under section 3(1);

“junior college”, in relation to a member of the Edusave Pupils Fund, means any of the following which is not a prescribed school:

(a) a junior college that is organised and conducted directly by the Government to provide full‑time pre‑university education;

(b) a junior college that is established by a person other than the Government and is conducted by a committee of management in receipt of a grant‑in‑aid from the Government to defray the costs and expenses of conducting the junior college to provide full‑time pre‑university education;

(c) a centralised institute that provides full‑time pre‑university education;

(d) any other educational institution providing full‑time pre‑university education that may be prescribed as a junior college;

“parent” includes a legal guardian;

“prescribed school”, in relation to a member of the Edusave Pupils Fund, means —

(a) an institution for providing full-time primary or secondary education, being —

(i) a school organised and conducted directly by the Government;

(ii) a school specified in any order made under section 3(1) of the School Boards (Incorporation) Act 1990; or

(iii) a school that is established by a person other than the Government and is conducted by a committee of management in receipt of a grant‑in‑aid from the Government to defray the costs and expenses of conducting the school; or

(b) any other educational institution that may be prescribed as a prescribed school;

“PSE account” means a PSE account maintained under section 19(3);

“PSE Fund” means the Post-Secondary Education Fund established under section 19(1);

“PSE Scheme Administrator” means the public officer appointed by the Minister to administer the PSE Fund on behalf of the Minister;

“schooling” means enrolled as a full-time student of a prescribed school or a junior college;

“sibling”, in relation to a member of the PSE Fund, means the natural sibling, stepsibling or adopted sibling of the member.

[33/2014]

(2)  For the purposes of this Act, the time at which an individual attains a particular age expressed in years is the relevant anniversary of the date of that individual’s birth, except that where an individual was born on 29 February in any year, then, in any subsequent year that is not a leap year, the anniversary of the birth of the individual is deemed to occur on 1 March of that subsequent year.

[33/2014]

PART 2

EDUCATION ENDOWMENT SCHEME

Establishment of Edusave Endowment Fund

3.—(1)  For the purposes of this Act, a fund called the Edusave Endowment Fund is established, into which must be paid —

(a) all capital moneys provided by Parliament pursuant to this Act;

(b) all the income of that Fund;

(c) any moneys which the Minister has authorised under section 7(5) to be transferred from the Edusave Pupils Fund; and

(d) all donations to that Fund made under section 15,

and out of which must be met all payments authorised to be made under this Act.

[33/2014]

(2)  The Minister is responsible for the administration of the Endowment Fund, and all moneys belonging to that Fund may be deposited in any bank and invested in any investment authorised under the Financial Procedure Act 1966.

(3)  The Endowment Fund is deemed to be a Government fund for the purposes of any written law.

Capital money of Endowment Fund

4.—(1)  On 1 January 1993, the Government must pay into the Endowment Fund as capital money a sum determined by the Minister for Finance out of moneys provided by Parliament.

(2)  For the purposes of this Act, the Minister for Finance may, from time to time, pay into the Endowment Fund such sums of capital money as the Minister may determine out of moneys to be provided by Parliament.

(3)  The capital moneys of the Endowment Fund must not be used for any purpose other than for investment.

(4)  Where at any time there is a permanent diminution of the capital moneys of the Endowment Fund, the Minister must, before paying out the income of the Endowment Fund, make good the diminution from the income of the Endowment Fund.

Mode of payment out of Endowment Fund

5.  A payment must not be made out of the Endowment Fund unless the payment is authorised by the Minister.

Application of income of Endowment Fund

6.—(1)  The income of the Endowment Fund may be paid out and applied for all or any of the following purposes:

(a) for the provision of grants to any educational institution prescribed for the purposes of this paragraph, to enable it to enhance its quality of teaching;

(b) for the provision of scholarships to full‑time students at any educational institution prescribed for the purposes of this paragraph;

(c) for the provision of contributions and additional income to the Edusave Pupils Fund;

(d) for any other purposes as are authorised under this Act or as may be prescribed.

[33/2014]

(2)  For the purpose of providing additional income to the Endowment Fund, the Minister for Finance may, from time to time, pay to that Fund such sum of money as Parliament may provide, and such sum of money is not regarded as forming any part of the capital moneys of that Fund.

Establishment of Edusave Pupils Fund

7.—(1)  For the purposes of this Act, a fund called the Edusave Pupils Fund is established, into which must be paid —

(a) all contributions under section 9;

(b) all the income of that Fund; and

(c) any cash grant made by the Government,

and out of which must be met all payments authorised to be made under this Act.

(2)  A public officer who is appointed by the Minister as the Edusave Scheme Administrator must administer the Edusave Pupils Fund on behalf of the Minister, and all moneys belonging to that Fund may be —

(a) deposited in any bank approved by the Edusave Scheme Administrator; and

(b) invested in any securities that trustees may by any written law be authorised to invest.

[33/2014]

(3)  The Edusave Scheme Administrator must maintain for each member of the Edusave Pupils Fund in respect of the money standing to the member’s credit in that Fund an account called the Edusave account from which withdrawals may be made under section 13 or 14.

[33/2014]

(4)  The Edusave Scheme Administrator has the powers and must perform the duties given or imposed by this Act or directed by the Minister, and the Minister or the Edusave Scheme Administrator may by instrument in writing delegate to any person all or any of those powers and duties, except the power of delegation conferred by this subsection.

[33/2014]

(5)  The Minister may authorise the transfer to the Endowment Fund of any moneys in the Edusave Pupils Fund which, in the Minister’s opinion, are not immediately required to meet the purposes of the Edusave Pupils Fund, and those moneys form part of the income of the Endowment Fund.

Members of Edusave Pupils Fund

8.—(1)  Every individual who —

(a) is a citizen of Singapore;

(b) is schooling or, if not schooling, is between the Edusave Qualifying Ages; and

(c) satisfies any other requirements that may be prescribed,

is and remains, by virtue of this section, a member of the Edusave Pupils Fund until the individual’s membership ceases under section 14.

[33/2014]

(2)  An individual who is a member of the PSE Fund or, if the member of the PSE Fund is below 21 years of age, any parent of that member, may apply to the Edusave Scheme Administrator for the individual to resume membership of the Edusave Pupils Fund.

[33/2014]

(3)  The Edusave Scheme Administrator may approve an application under subsection (2) for an individual who is a member of the PSE Fund to resume membership of the Edusave Pupils Fund, with effect from a date specified by the Edusave Scheme Administrator, if the Edusave Scheme Administrator is satisfied that the individual —

(a) is a citizen of Singapore;

(b) is schooling;

(c) had ceased to be a member of the Edusave Pupils Fund by virtue of section 14(6) read with section 14(1)(a), (b) or (c); and

(d) satisfies any other requirements that may be prescribed.

[33/2014]

(4)  An individual who resumes membership of the Edusave Pupils Fund under this section may continue to be a member of the PSE Fund in accordance with Parts 3A and 3B.

[33/2014]

(5)  An application under subsection (2) must be supported by any documents or evidence that the Edusave Scheme Administrator may require.

[33/2014]

Contributions and interest to be paid to members of Edusave Pupils Fund

9.—(1)  It is lawful for the Edusave Scheme Administrator to pay out of the income of the Endowment Fund to any member of the Edusave Pupils Fund, in each year, a single contribution of an amount prescribed for that year if, at any time during that year, the member —

(a) is a full-time student of a prescribed school and receiving primary or secondary education; or

(b) is between the Edusave Qualifying Ages, if the member is not schooling at any time during that year.

[33/2014]

(2)  The Edusave Scheme Administrator must also cause to be paid out of the income of the Edusave Pupils Fund to the Edusave account of each member of that Fund, at intervals determined by the Edusave Scheme Administrator, interest at the rate referred to in subsection (6) on the amount standing to the member’s credit in the member’s Edusave account.

[33/2014]

(3)  The amount of contribution that a member of the Edusave Pupils Fund is eligible to receive under subsection (1) in a year is as follows:

(a) for an individual who becomes such a member for the first time under section 8(1), the amount prescribed for the member (or the class to which the member belongs) on the date the individual first becomes a member;

(b) for any other member, the amount prescribed for the member (or the class to which the member belongs) on the qualifying date in the year prescribed for that member (or the class to which that member belongs).

[33/2014]

(4)  Unless the member dies, the amount of contribution that a member of the Edusave Pupils Fund is eligible to receive under subsection (1) in a year must be paid —

(a) not later than 31 January in that year in the case of a member mentioned in subsection (1)(a);

(b) not later than 30 April in that year in the case of a member mentioned in subsection (1)(b); or

(c) despite paragraphs (a) and (b), as soon as practicable after the date the individual first becomes a member of the Edusave Pupils Fund in the case of a member mentioned in subsection (3)(a).

[33/2014]

(5)  Where a member of the Edusave Pupils Fund belongs to 2 or more classes on the qualifying date prescribed for any year, the Edusave Scheme Administrator may, for the purposes of this section, determine that the member belongs for that year to the class the Edusave Scheme Administrator considers appropriate; and the Edusave Scheme Administrator’s decision is final.

[33/2014]

(6)  Interest is payable on the amount standing to the credit of every member of the Edusave Pupils Fund in his or her Edusave account at such rate per annum as the Minister may from time to time determine.

(7)  The Minister may, by order in the Gazette, prescribe for each year —

(a) different amounts of contributions for different members or different classes of members of the Edusave Pupils Fund; and

(b) different qualifying dates in the year for different members or different classes of members of the Edusave Pupils Fund for the purposes of subsection (3)(b).

[33/2014]

Cash grant

10.  The Edusave Scheme Administrator must also pay to the Edusave account of any member of the Edusave Pupils Fund such cash grant as the Government may make, if the member satisfies the eligibility criteria the Government determines for that cash grant.

[9A

[33/2014]

Advisory Council

11.—(1)  An Advisory Council is established for the purposes of advising the Minister as to the application of the income of the Endowment Fund.

(2)  The Council consists of at least 3 but not more than 7 members to be appointed by the Minister.

(3)  The Minister must appoint one of the members as chairperson.

(4)  The Schedule has effect with respect to the Council.

[10

Functions of Council

12.  The Council must from time to time make recommendations to the Minister on all matters relating to the application of the income of the Endowment Fund.

[11

PART 3

WITHDRAWAL FROM EDUSAVE PUPILS FUND

Conditions for withdrawal from Edusave Pupils Fund

13.—(1)  Any money standing to the credit of any member of the Edusave Pupils Fund in his or her Edusave account may be withdrawn from that Fund with the authority of the Edusave Scheme Administrator in accordance with this section and section 14.

[33/2014]

(2)  Subject to this section, the parent of a member of the Edusave Pupils Fund below 21 years of age, or a member of that Fund who has attained 21 years of age, is entitled to withdraw at any time the sum standing to the member’s credit in his or her Edusave account for the following purposes:

(a) where the member is schooling, to defray the whole or part of the member’s expenses as may be necessary to enable the member to take part in any enrichment programme approved by the prescribed school or junior college at which the member is schooling;

(b) for any other prescribed purpose.

[12

[33/2014]

Closure of Edusave account, etc.

14.—(1)  The Edusave Scheme Administrator must, as soon as practicable after the happening of the first of the following events concerning a member of the Edusave Pupils Fund, transfer all balances in the member’s Edusave account to the member’s PSE account:

(a) if the member is not schooling, at the start of the year immediately after the year in which the member attains the highest of the Edusave Qualifying Ages;

(b) if the member is schooling at the start of the year immediately after the year in which the member attains the highest of the Edusave Qualifying Ages, when the member stops schooling;

(c) where an application under subsection (2) to close the member’s Edusave account early is approved under subsection (4).

[33/2014]

(2)  An individual who is a member of the Edusave Pupils Fund or, if the individual is below 21 years of age, any parent of that individual, may apply to the Edusave Scheme Administrator to close the individual’s Edusave account early for the purpose of transferring the balance in the individual’s Edusave account to the individual’s PSE account.

[33/2014]

(3)  An application under subsection (2) must be supported by any documents or evidence that the Edusave Scheme Administrator may require.

[33/2014]

(4)  The Edusave Scheme Administrator may approve an application under subsection (2) relating to a member of the Edusave Pupils Fund only if the Edusave Scheme Administrator is satisfied that the member is enrolled in an approved institution mentioned in section 22(2)(a).

[33/2014]

(5)  The Edusave Scheme Administrator must close a member’s Edusave account —

(a) upon completing the transfer of all balances in the member’s Edusave account to the member’s PSE account under subsection (1); or

(b) upon payment to the Public Trustee under section 18 of all balances in the Edusave account of a deceased member.

[33/2014]

(6)  An individual ceases to be a member of the Edusave Pupils Fund when the individual’s Edusave account is closed.

[13

[33/2014]

Donation of member’s moneys in Edusave Pupils Fund

15.—(1)  A member of the Edusave Pupils Fund or, if the member is below 21 years of age, any parent of that member, may by notice given to the Edusave Scheme Administrator donate to the Endowment Fund all or part of the sum standing to the member’s credit in the member’s Edusave account.

[33/2014]

(2)  Upon receiving the notice in subsection (1), the Edusave Scheme Administrator may authorise the payment of the sum, as stated in the notice, to the Endowment Fund.

[13A

[33/2014]

Applications for withdrawal from Edusave Pupils Fund

16.—(1)  Upon an application to withdraw any sum of money standing to the credit of a member of the Edusave Pupils Fund in the member’s Edusave account for the purposes in section 13(2), the Edusave Scheme Administrator may authorise the payment of any sum that may, under this Act, be withdrawn from the member’s Edusave account —

(a) in the case of a withdrawal for the purposes in section 13(2)(a), to the prescribed school or junior college at which the member is schooling; and

(b) in the case of a withdrawal for the purposes in section 13(2)(b), to a person, an educational institution or any other entity that may be determined by the Edusave Scheme Administrator.

[33/2014]

(2)  All applications for withdrawal must be supported by such evidence as may be prescribed and by any further evidence that the Edusave Scheme Administrator may reasonably require.

[14

[33/2014]

Protection of benefits of member of Edusave Pupils Fund

17.  No withdrawals authorised by the Edusave Scheme Administrator made from the Edusave Pupils Fund under section 13, 14 or 15 nor the rights of any member of that Fund acquired under any of those sections are assignable or transferable or liable to be attached, sequestered or levied upon for or in respect of any debt or claim.

[15

[33/2014]

Moneys payable on death of member of Edusave Pupils Fund

18.—(1)  Where a member of the Edusave Pupils Fund dies, the total amount standing to the member’s credit in his or her Edusave account must be paid to the Public Trustee for disposal in accordance with —

(a) the Intestate Succession Act 1967, if the member was not a Muslim at the time of death; or

(b) section 112 of the Administration of Muslim Law Act 1966, if the member was a Muslim at the time of death.

[2/2012]

(2)  The receipt of the Public Trustee is a good discharge to the Edusave Scheme Administrator for those portions of the moneys payable out of the Edusave account on the death of a member of the Edusave Pupils Fund that are payable to the Public Trustee under subsection (1).

[33/2014]

(3)  All moneys paid out of the Edusave account on the death of any member of the Edusave Pupils Fund are deemed to be impressed with a trust in favour of the person or persons determined by the Public Trustee in accordance with subsection (1) to be entitled to the moneys but are, without affecting the Estate Duty Act 1929, deemed not to form part of the deceased member’s estate or to be subject to the member’s debts.

[16

PART 3A

POST-SECONDARY EDUCATION SCHEME

Establishment of Post-Secondary Education Fund

19.—(1)  For the purposes of this Act, a fund called the Post‑Secondary Education Fund is established, into which must be paid —

(a) all contributions under section 21;

(b) all the income of that Fund;

(c) all moneys transferred to any PSE account under the Child Development Co‑Savings Act 2001;

(d) all sums transferred to any PSE account under —

(i) section 14(1); or

(ii) section 13(2) or (3) of this Act as in force immediately before 10 November 2014; and

(e) any cash grant made by the Government,

and out of which must be met all payments authorised to be made under this Act.

[13/2011; 33/2014]

(2)  The PSE Scheme Administrator must administer the PSE Fund on behalf of the Minister, and all moneys belonging to that Fund may be —

(a) deposited in a bank or banks approved by the PSE Scheme Administrator; and

(b) invested in any securities that trustees may by any written law be authorised to invest.

(3)  The PSE Scheme Administrator must maintain for each member of the PSE Fund in respect of the money standing to the member’s credit in that Fund an account to be called the PSE account from which withdrawals may be made under section 22, 23 or 24.

[33/2014]

(4)  The PSE Scheme Administrator has the powers and must perform the duties given or imposed by this Act or directed by the Minister, and the PSE Scheme Administrator may by instrument in writing delegate to any person all or any of those powers and duties, except the power of delegation conferred by this subsection.

(5)  The Minister may, by warrant under his or her hand, authorise the transfer to the Consolidated Fund of any moneys in the PSE Fund which, in the opinion of the Minister and the Minister for Finance, are not immediately required to meet the liabilities or purposes of the PSE Fund.

(6)  For the purpose of providing additional income to the PSE Fund, the Minister for Finance may, from time to time, pay to that Fund such sum of money as Parliament may provide.

[16A

Members of PSE Fund

20.  A person becomes a member of the PSE Fund by virtue of this section if the person —

(a) is a citizen of Singapore; and

(b) satisfies any other prescribed requirements.

[16B

Contributions and interest to be paid to members of PSE Fund

21.—(1)  Subject to subsection (2) and any regulations made under section 35, any parent of an eligible member of the PSE Fund, or any person on the parent’s behalf, may, from time to time after a PSE account has been opened for the member and before the member has attained 18 years of age, contribute one or more sums to the member’s PSE account.

(2)  If the aggregate of all contributions by or on behalf of a parent of an eligible member of the PSE Fund to the member’s PSE account under subsection (1) exceeds the maximum amount that the Minister may from time to time prescribe for such contributions, the PSE Scheme Administrator may refund the whole or any part of the contributions in excess of that amount.

(3)  Subject to subsection (4), where any sum has been contributed by or on behalf of a parent of an eligible member of the PSE Fund to the member’s PSE account under subsection (1), the Government must contribute an equivalent sum to the PSE account.

(4)  The aggregate of —

(a) all contributions made by the Government to the PSE account of an eligible member of the PSE Fund under subsection (3); and

(b) all contributions (if any) made by the Government under the co-savings arrangement to the member’s bank account (if any) opened under regulations made under section 3 of the Child Development Co-Savings Act 2001,

must not exceed the maximum amount that the Minister may from time to time prescribe.

[13/2011]

(5)  For the purposes of subsections (2) and (4), different maximum amounts may be prescribed for different classes of eligible members of the PSE Fund.

(6)  Subject to subsection (2), the PSE Scheme Administrator must cause to be credited —

(a) to any eligible member of the PSE Fund the contributions made to the member’s PSE account under subsections (1) and (3); and

(b) to every member of the PSE Fund interest at the rate mentioned in subsection (9) at the intervals and on the amount standing to the member’s credit in his or her PSE account over the periods, which must be paid out of the income of that Fund at the time, that the PSE Scheme Administrator may determine.

(7)  The PSE Scheme Administrator must, as far as practicable, credit any contribution made by the Government under subsection (3) to the PSE account of an eligible member of the PSE Fund within the prescribed period after the corresponding contribution under subsection (1) was made by or on behalf of a member’s parent to the member’s PSE account.

(8)  Where it is not practicable to credit the contribution made by the Government under subsection (3) to the PSE account of an eligible member of the PSE Fund within the time limited by subsection (7), the PSE Scheme Administrator must credit that contribution within any other period allowed by the Minister.

(9)  Interest is payable on the amount standing to the credit of every member of the PSE Fund in his or her PSE account at such rate per annum as the Minister may from time to time determine, and the Minister may determine different rates of interest for different parts of the amount standing to the credit of any member of the PSE Fund in the member’s PSE account.

(10)  In this section —

“co-savings arrangement” means the co‑savings arrangement mentioned in section 3(1)(a) of the Child Development Co‑Savings Act 2001;

“eligible member of the PSE Fund” means any member of that Fund who —

(a) is eligible for the co-savings arrangement; and

(b) satisfies any other prescribed requirement.

[16C

[13/2011]