Very well researched and put together. Hats off to LS who originally placed this in the comments section.
Firstly, what is causing the confusion? It is because of this particular rule...
"After setting aside your Full Retirement Sum or Basic Retirement Sum with sufficient property charge/pledge, you can choose to withdraw the remaining CPF balances (excluding top-up monies, government grants, and interest earned in your Retirement Account)"
But in the same webpage, this is we can also see this;
"Your Ordinary and Special Account savings after setting aside the applicable Full Retirement Sum (FRS) or Basic Retirement Sum (BRS) with sufficient property charge/pledge."
Does this means you can withdraw all remaining funds in OA/SA after you set aside the amount for FRS/BRS? Or will the first statement take priority and takes effect (resulting in unable to withdraw the top-up money and its interest) even after we set aside enough for FRS/BRS? This is what is causing the confusion.
After searching the CPF website for over an hour, I finally found this;
"If you had received top-ups before age 55, the top-ups and accrued interest in your Special Account (SA) will be transferred to your Retirement Account (RA) when you turn 55. Any excess, above the Full Retirement Sum applicable to you, can be withdrawn when you apply for withdrawal at age 55."
What is interesting and yet confusing is this (also in the same webpage);
"In addition, top-up monies cannot be used to form part of the Basic Retirement Sum (BRS) in computing how much RA savings above their BRS that can be withdrawn through sufficient CPF property charge or pledge"
Which actually means that even if your BRS is $83,000, and you have $123,000 in your RA ($100,000 is from top-up and its interest), you will not be able to withdraw anything. That is due to after deducting your top-up money ($100,000) from your RA ($123,000), you got only $23,000 left which is less than the BRS ($83,000). You can read in detail of the example provide at the webpage.
So let us summarize :
1) If it is about FRS, you can withdraw all the remaining funds that exceeds the FRS amount,
2) if it is about BRS, the rule applies and you cannot withdraw the top-up money and its interest. You can only withdraw remaining funds if your RA still exceed BRS after deducting the top-up and its interest.
Sorry for the exceedingly long post but I hope it clears up the doubts.
P.S. actually I may be wasting my time here trying to clear things up since the withdrawal might change again 1-2 years down the road. I still have almost 2 decades before I hit the withdrawal age...
P.P.S hopefully this is useful for people who is near to the withdrawal age (55 years old)...
Did CPF Top Ups but denied lump sum withdrawal?