Saturday, April 12, 2014

Private Retirement Scheme (PRS) Youth Incentive

Recognising the need to cultivate a retirement savings culture amongst the younger demographics, the Government has announced that it will make a RM500 one-off contribution under the Private Retirement Scheme (PRS) Youth Incentive. This incentive aims to provide a head start for Malaysian youths between the ages of 20-30 years. It is effective 1 January 2014, for a period of five years from 2014 to 2018.

  • Malaysian.
  • Aged between 20 and 30, have not reached the age of 31 within any calendar year between 2014 and 2018.
  • Existing Private Pension Administrator (PPA) account holders or new members.

The Incentive
  • Member will be given a RM500 one-off contribution when he/she made gross contribution of RM1,000.
  • The criteria for the incentive:
    • The gross contribution of RM1,000 must be made by a Malaysian youth:-
      • aged between 20 and 30, have not reached the age of 31.
      • within one calendar year.
      • within the period of 2014 to 2018.
      • in a single PRS fund of a Provider.
  • Contributions can be made on a lump sum or staggered basis within the calendar year.
  • The incentive will be reinvested into the fund.
  • For contributions with more than one PRS fund, the incentive will be given to the fund that first reaches the gross contribution of RM1,000.
  • If contributions were made on the same date, the incentive will be equally divided among the funds.

Note: Employers’ contributions are excluded from the incentive programme.

How Would The Incentive Be Given?
  • Member will receive the RM500 in the form of units of the PRS fund(s) that the member has contributed the RM1,000.
  • The number of units is calculated based on the NAV per unit of the PRS fund(s) at the valuation point.
  • The Government’s RM500 one-off contribution will not be subject to PPA’s annual fee and Provider’s sales charge.
  • The RM500 is a ONE-OFF incentive, as such members will only receive it ONCE and not once every year.
  • The incentive is not eligible for tax relief.

PRS Funds Available For The Incentive

  • Provides 6 PRS funds which are categorized under Conventional Series and Shariah-based Series.
Conventional Series
Shariah-based Series
Age Group*
(under default option)
PRS Growth Fund
PRS Islamic Growth Fund (PRS-IGRF)
Age below 40
PRS Moderate Fund
PRS Islamic Moderate Fund (PRS-IMDF)
Age 40 to below 50
PRS Conservative Fund (PRS-CVF)
PRS Islamic Conservative Fund (PRS-ICVF)Age 50 and above

*You are eligible to make full withdrawal upon reaching the age of 55. Securities Commission Malaysia may specify any other age from time to time.
Please refer to the Disclosure Document and the relevant fund’s Product Highlights Sheet for more details of the PRS funds.

Tuesday, December 11, 2012

Saturday, November 24, 2012

Private Retirement Scheme (PRS) Introduction

Private Retirement Scheme (PRS)
·         Offered to the public for the purpose of building up long-term savings for retirement
·         PRS Framework

·         6 core funds: -


a)      You can select either default option or non-default option

b)      All contributes made to PRS will be split and maintained in 2 sub-accounts A & B

  • Diversification
  • Professional management
  • Ease of transactions
  • Enjoy personal tax relief
  • Income of the fund is exempt from Malaysia income tax (Max. RM3,000)
  • Tax deduction for employers on contribution made
  • Capital & returns not guaranteed
  • Market risk
  • Fund Manager risk
  • Inflation risk
  • Legal & regulatory risk
  • Risk associated with the default option
Fees & Charges
  • RM10 PPA account opening fee (one off)
  • 3% of sales charge
  • RM8 per annum of PPA annual fee (if contribute subsequent year)
  • RM25 PPA pre-retirement withdrawal fee
  • RM25 Service Provider transfer fee & RM25 PPA transfer fee (to another PRS provider)
  • Other management fee, trustee fee and PPA administration fee per annum of NAV.
  1. Withdrawal proceeds within 10 days.
  2. Pre-retirement withdrawals: Death of member, Permanent departure from Malaysia, Withdrawal of accrued benefits from sub-account B.
  3. The scheme is open to all individuals aged 18 and above, including foreigners.

Download Product Highlights sheet
PRS-Conventional Series     PRS-Shariah-based Series

Download Disclosure Document
PRS-Conventional Series     PRS-Shariah-based Series