1. Every member who meets the following criteria (the “Eligibility Criteria”) shall be eligible to participate in the STSS:
(a) the member has a minimum balance of S$2,000 in his/her Subscription Capital Account (SCA) (the “Minimum Balance”) as at 31 October 2018 or as at such date the Board may specify from time to time; and
(b) the member does not have any outstanding unpaid loans to the Society.
2. For the initial four (4) year term of the STSS (“Series 8”), the Board shall administer and members shall participate in the STSS in accordance with the rules set out in the attached Annex A. For any subsequent terms of the STSS, the members shall participate in the STSS in accordance with any rules the Board may administer, approve and implement from time to time.
3. For a member who satisfies the Eligibility Criteria and wishes to participate in the STSS, the withdrawal from the member’s SCA for participation in the STSS shall be made pursuant to the provisions of the Subscription Capital Scheme (SCS), provided that the member maintains the Minimum Balance in his/her SCA at all times, including after any transfer of funds for participation in the STSS.
4. In the event the STSS is terminated by the Society, the principal sum belonging to each participating member shall, at the option of the member, be:
(i) returned to the member; or
(ii) used by the member to participate in any scheme that the Board may approve and implement from time to time.
5. These Administrative Rules Governing the STSS shall not amend or affect the implementation of the Administrative Rules Governing the SCS.
A member may only utilise his/her funds in his/her Subscription Capital Account (“SCA”) to participate in the STSS.
A member would be free to choose how much funds he/she would like to transfer from his/her SCA to the STSS, subject to the minimum sum of S$2,000.00 to be retained in his/her SCA and a minimum placement amount of S$3,000.00. Any amount transferred out of the SCA into the STSS cannot be transferred back to the SCA. Participation in the STSS does not affect a member’s monthly obligations to contribute to his SCA.
(i) The initial duration for a member’s funds to remain in the STSS is 4 years. At the end of 4 years, the member will be at liberty to withdraw the principal sum deposited into the STSS. Alternatively, the member may wish to continue with his participation in the STSS if it is extended at the sole discretion of the Board for another term.
(ii) In the event that the STSS is extended for subsequent terms, an invitation letter will be sent to members at least two (2) months before the expiry date for them to participate in the new terms. Members can opt to:
1) “Roll over” the whole principal by utilising it as principal for the new term; or
2) Withdraw the full principal.
The Society reserves the right to send such invitation letters to eligible members with different terms and conditions.
(i) If the Society receives the member’s ORIGINAL reply slip confirming his/her participation in the STSS by 5.30pm, 7 December 2018, the member will earn a one-off return at an interest rate of 3.25% per annum to be paid on the principal sum which would be deemed to have been deposited for the period 1 January 2018 to 31 October 2018. The interest will be credited into the member’s bank account on 28 December 2018.
(ii) A return of 3.25% per annum would be paid on the principal sum deposited for the STSS for the period from 1 November 2018 to 31 October 2022. Interest accrued would be paid to the member every six (6) months based on (actual number of days for the 6 months) / (number of actual days for the Series) x 3.25% x 4 years.
(c) Early Withdrawal by Member
(i) In the event of an early withdrawal from the STSS by a member before the maturity of term, the following interest rates, instead of the interest rate return set out above, will apply on the principal sum deposited:
|Less than 12 months||12 months to less than 24 months||24 months to less than 36 months||36 months to less than 48 months|
|1.00% per annum||1.50% per annum||2.00% per annum||2.50% per annum|
(ii) In the event that the STSS is extended for subsequent terms, the applicable interest rate payable for any early withdrawal shall be determined by the Board.
(iii) For early withdrawals by a member, there will be a pro-rata claw-back of the interest paid out with a corresponding deduction made to the principal sum that would be repaid to the member.
For example, if the early withdrawal is done on the 13th month, there will be a claw-back of interest of 1.75% per annum for the first twelve (12) months, which will be deducted from the principal.
The claw-back interest will be based on (actual number of days calculated up to the day before the money is in the member’s bank account) / (number of actual days for the Series) x 1.50% x 4 years less total accumulated interest already paid to a member.
(iv) If a member wishes to make an early withdrawal, only a withdrawal of the entire principal sum deposited in the STSS is permitted. No partial withdrawal of the principal sum is allowed.
(v) Forms will be furnished by the Society for any withdrawals by members.
The deposit under STSS may be used as collateral to apply for a secured loan from the Society.
Find out more about Police Co-op’s loan here.