CPF Changes from 1 January 2010

The following changes to the CPF will be effective from 1st January 2010:

• CPF Medisave Required Amount (MRA) will be raised from the current $18,000 to $22,500.
  
  If members have less than the Required Amount in their Medisave Accounts, their Ordinary and/or Special Account balances in excess of the Minimum Sum will be used to top up the Required Amount.
  
  
• Extension of the 4% floor rate for interest earned on all Special and Medisave Accounts (SMA) monies and Retirement Account (RA) monies for another year until 31 December 2010. After 31 December 2010, the 2.5% floor rate will apply for all CPF accounts.
  
  Interest rate would have been 3.31% if not for the extension.

Refer to my previous post here on my comments on the extension of the 4% floor rate. I still don't understand the logic behind this ruling.