Apr 19, 2016

Private Retirement Scheme

Private Retirement Scheme (PRS) is a voluntary long-term investment scheme designed to help individuals accumulate savings for retirement. PRS seek to enhance choices available for all Malaysians, whether employed or self-employed, to voluntarily supplement their retirement savings under a well-structured and regulated environment.Each PRS offers a choice of retirement funds from which individuals may choose to invest in based on their own retirement needs, goals and risk appetite. The fund options under a PRS are intended to enhance long-term returns for members within a regulated framework. Assets of each PRS are segregated from the PRS Provider and held by independent Scheme Trustee under a trust.

http://www.ppa.my/prs/about-prs/overview/

What are the key differences between the Employees Provident Fund (EPF) and the PRS?
  • With the exception of certain categories, all employees under a contract of service are required to contribute to the EPF. By contrast, the PRS is a voluntary scheme for individuals who are 18 years old and above.
  • The EPF, which comes under the purview of the Ministry of Finance, has to maintain a minimum guaranteed return of 2.5% annually to its depositors. On the other hand, the PRS managed by the private financial intermediaries approved by the Securities Commission Malaysia ("SC") does not provide a guaranteed return.
  • All PRS contributions are separate and do not affect your mandatory EPF contributions. Your mandatory EPF contributions (both your own personal deductions and also your employer's contribution) will remain the same. 
http://www.cimb-principal.com.my/prs/FAQ-@-FAQ-landingpageAccordian3Tier.aspx
 

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