How does BRS and FRS work for CPF refund

The Basic Retirement Sum (BRS) and Full Retirement Sum (FRS) are key components in the CPF refund process. For households with one owner, the proceeds from the sale of the flat must be used to top up the CPF Retirement Account (RA) to the current age-adjusted FRS. For households with two or more owners, each owner must use their share of the proceeds to top up their RA to the current age-adjusted BRS.

After topping up the RA to the specified requirements, any remaining proceeds can be retained in cash, up to a maximum of $100,000 per household. If there are still remaining proceeds after this, they must be used to further top up the respective RAs to the current FRS before any additional balance can be retained in cash.

This ensures that sufficient funds are set aside for retirement needs.