This is a question that sometimes sparks a debate about the personal training account: is it possible to give away your CPF credits? Indeed, since it is a personal right, we might be tempted to dispose of it as we see fit, and thus transfer all or part of our credit. Unfortunately, this is not (for the moment) possible. Let’s see together why…
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CPF, training rights open to all but not accessible to everyone
Even though it is not uncommon to hear about donating paid leave days, it is still not possible to give away CPF hours. Let’s try to understand why.
Training rights not recognized and varied needs
Not everyone has the same training needs. While some people do not use all the allocated funds, others need more to pursue the training they want.
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It is also worth noting that it is quite possible not to mobilize one’s CPF budget. Therefore, between those who do not wish to train and those who are not aware of their training rights, there are many “inactive training credits” on certain CPF accounts.
According to a survey conducted in December 2019 and published by the Centre Inffo, nearly 15% of employees have never heard of the personal training account. Additionally, 28% have heard of it without really knowing what it is. In the end, only 57% of the affected population knows about the CPF and understands its purpose.
So, can we consider “offering” our unused CPF rights to benefit someone else?
Giving your CPF hours: why it is not possible
The CPF (Personal Training Account), as its name indicates, is a personal right. It is assigned nominally to each person entering the labor market.
In other words, it is an account opened for the benefit of an individual. Currently, only this individual is authorized to use the credits accumulated in it. This rule applies regardless of the situation.
Therefore, you cannot assign your CPF points to a third party, regardless of your type of relationship with that person:
- professional (colleague, subordinate, or superior);
- or personal (spouse, child…).
Moreover, the only way to use your CPF hours is to mobilize them for your own needs.
Assigning CPF credits: towards a change in legislation?
In light of this inequality in the mobilization of training hours related to the personal training account, is it possible to see legislation evolve?
Will the transfer of training rights soon be possible?
A bill was introduced in early 2020, proposing the possibility to transfer CPF credits to another person’s personal training account.
Thus, this article of the law stipulates that any account holder may, if they wish, transfer all or part of their rights to another person’s account. This will only be possible if the transfer is made without compensation. The holder who transfers their RPC hours will therefore not be able to request compensation from the recipient or their employer.
According to the latest news, this bill has been referred to the social affairs committee for review.
Solutions for unused CPF budgets: information first!
If donating training credits could be a solution for better utilization of training credits, raising awareness about the Personal Training Account seems even more essential!
Indeed, nearly three out of four workers claim not to know the amount of their training rights. By the way, 41% do not use the “My Account Training.” However, it was created specifically to facilitate access to the following information:
- know the amount of their training rights;
- search for and enroll in a training without going through an intermediary.
It can therefore be assumed that employees who are better informed about their rights, the available amounts, and the training offered to them will be able to better assess their needs in terms of training credits. They will then be able to determine whether a credit transfer is truly necessary.
On another note, let us remember that the employer’s contribution or that of Pôle Emploi is also possible in case of budget insufficiency.
What to remember about donating CPF credits
Currently, it is not possible to assign CPF rights to a third party, even if the third party also holds a Personal Training Account. A bill has been made to move the lines, but this remains (for now) at the project stage. However, by acquiring more information about available rights and knowing the arrangements in place, it becomes easier to manage your training budget. Need help using this budget? Our team is here to assist you in mobilizing your CPF credits for the training you need.
Tag: understanding professional training