PRS is a voluntary long-term investment scheme approved by the Securities Commission Malaysia (SC). Whether you are a Malaysian or a foreigner residing in Malaysia, and whether you are either fully employed or self-employed, PRS helps you to accumulate savings for your retirement. It is designed to complement the compulsory contributions you make to the EPF.
When you contribute to PRS, you can select from a range of funds to invest in based on your retirement needs, goals and risk appetite.
Whether you are employed or self-employed, PRS allows you to voluntarily boost your retirement savings under a structured and regulated scheme. The purpose of PRS is to grow your savings over the long-term.
You may contribute to more than one fund under a PRS provider, or even choose to contribute to multiple funds offered by different PRS providers.
As contributions to the funds are voluntary, there are no fixed amounts above the minimum investment or fixed intervals for making contributions to PRS. However, each PRS provider may set a different minimum and maximum contribution amount for each fund that they offer.
All your contributions to PRS will be split into two sub-accounts, A (70%) and B (30%)
All your investments in PRS are marked to market daily such that the value of your PRS investments may increase or decrease depending on the unit price on that day.
You should consider factors such as age, personal and household income, risk tolerance, retirement objectives and the suitability of the different funds offered by the PRS provider(s), so that your retirement needs can be met.
You may contribute to more than one fund under a PRS provider or transfer your other funds from different PRS providers to us.
If you select a PRS provider but do not specify a fund option, your contributions will go into a default fund based on your age. The PRS provider will ensure that a member’s funds are switched to the default fund based on their age group.
For example: You are currently 38 years old and you did not specify a fund option. Your contributions will be placed under the Growth Fund. When you turn 40, your PRS provider will automatically switch your funds into the Moderate Fund – unless you instruct them to do otherwise.
The capital and income for PRS investments are not guaranteed.
However, PRS should be viewed as a long-term investment where the overall risk can be minimized through diversification within the fund. There is also the benefit of “dollar cost averaging” – a technique designed to reduce market risk when your investments in PRS are done on a regular basis over a long period.
As with all investments, past performance is not indicative of future performance. So, we encourage you to read and understand the Disclosure Document and Product Highlights Sheet to understand the risks involved before investing into a PRS.
The Securities Commission Malaysia (SC) provides the regulatory framework for the PRS industry, ensuring a stable operating environment.
The SC has established the Private Pension Administrator (PPA) as the central administrator to provide a one-stop account management that serves and protects members’ interest.
An approved PRS Scheme Trustee is appointed to monitor the operation and management of the scheme by the PRS Provider. The PRS scheme trustee has a fiduciary duty to ensure that the PRS Provider complies with the scheme’s deed and disclosure document. Apart from this, the PRS Scheme Trustee provides custodianship of the PRS fund’s assets.
If you have any questions or have a dispute on your PRS investment, please contact our customer service personnel at 1300-22-7771 during office hours from 8.30 a.m. to 5.00 p.m.
If you are dissatisfied with the outcome of the internal dispute process, please know that you have the option to refer your dispute to the Securities Industries Dispute Resolution Corporation (SIDREC). They can be contacted at 603-2282 2280 or via email firstname.lastname@example.org.
You can pay directly to AIA Pension and Asset Management Sdn. Bhd. via interbank fund transfers, bank drafts or personal cheques. Credit cards can only be accepted for regular contributions with standing instructions.
As contributions to the PRS fund are voluntary, there are no fixed amounts or fixed intervals when it comes to investing. You can contribute to the PRS as often as you like and are encouraged to make regular monthly contributions to take advantage of “dollar cost averaging”. However, there is a minimum contribution of RM100 set for each fund.
If you want to make additional contributions into your funds, you can do so via PRS Online Top Up under PPA’s website or contact us.
− The day after you reach retirement age, currently at 55
− When you pass away (your next of kin can apply for withdrawal)
− If you leave Malaysia permanently
Pre-retirement withdrawals from sub-account A & B due to medical reasons
− Full pre-retirement withdrawal from sub-account A & B is allowed for permanent total disability, serious disease and mental disability with effect from 1 August 2017.
− Latest original medical report and withdrawal form must be submitted to the PRS provider.
− Pre-retirement withdrawals from sub-account B without 8% tax penalty for the purposes of housing and healthcare
Pre-retirement withdrawals from sub-account B without 8% tax penalty for the purposes of housing and healthcare
− Withdrawal can be made once every calendar year.
− Withdrawal proceeds will be credited to your bank account within 10 business days.
− A minimum balance of RM500 must be maintained in sub-account B if it is for the purchase of house, constructing a house and to redeem/reduce housing loan.
− Full withdrawal can be made for the purpose of healthcare for yourself or your immediate family members (spouse, children, parents and sibling).
− Healthcare needs cover 91 types of illnesses, including the cost of medical equipment or medication for the approved illnesses.
Pre-retirement withdrawals from sub-account B without 8% tax penalty under Prihatin Rakyat Economic Stimulus package March 2020
− A one-time withdrawal of up to RM1,500 worth in units in aggregate from sub-account B is allowed starting April 30, 2020 to December 31, 2020.
− The temporary tax exemption forms part of the government’s measure under the Economic Stimulus Package as announced by YAB PM on 27 March 2020 to provide financial relief to members who face short-term financial constraints arising from the COVID-19 pandemic.
− Members will receive the withdrawal proceeds within 10 days after receiving the completed withdrawal request form from the member.
Learn more about the various scenarios on how the 8% tax penalty is exempted on pre-retirement withdrawals here.
When a member passes away, his/her savings will be transferred to the executor, administrator or named beneficiary. The Scheme Trustee will be required to release all or part of the balance where required pursuant to a grant of probate or letters of administration.
Documents required for PRS withdrawal due to death are as below:
A copy of the deceased member’s IC/passport
A copy of relevant documents(s) showing PPA account number
Original and a copy of Death Certificate
Original and a copy of Letter of Administration/Probate
A copy of executor’s / administrator’s IC
A copy of the PRS Provider’s Withdrawal Form and
A copy of executor’s / administrator’s bank account
You are encouraged to make a nomination, so that the nominated person(s) will be able to expedite the withdrawal of your PRS balance when you pass away.
There is no restriction on the number of times or when you can make a nomination.
You can nominate up to 6 persons and allocate specified percentage of the PRS balance to be paid to the nominee(s).
The nominee must be an individual (not welfare bodies/organisations/societies).
A witness, aged 18 and above, is required to be present when you make the nomination except for the following persons:
- the persons selected as nominee;
- the spouse of the nominee;
- an employee of the PPA; or
- an employee/consultant of the PRS provider
The PPA nomination form can be downloaded from PPA’s website. Please complete the form after a PRS account has been opened, and submit it together with a copy of your identification (front and back) to PPA or APAM for processing.