PRS FAQs

APPLYING FOR PRS

What are the application requirements and supporting documents?

Anyone whom is 18 years old and above is eligible to contribute to the PRS. You will need proof of identification: Identification card/ Police/ Armed Force ID (for Malaysians) or Passport (Foreigners).

For more information on Scheme Features, please refer to the PRS tab on our website PRS > About PRS > PRS Scheme Features.

For more information on Investing in PRS, please refer to the Getting Started tab on our website Getting Started > Investing in PRS.

Where can I obtain information about the funds available? How would I know which option would suit me best? What should I consider when choosing a PRS?

For further details on fund options, please refer to the Getting Started, PRS and Providers tab on our website
Getting Started > Retirement Education > PRS Investment Options
PRS > About PRS > PRS Provider & Fund Options > PRS Fund Selection Option
Providers > Funds Information > Daily Fund Prices

You may also consult the Retirement Calculator here to help you plan out your retirement options.

If I am an undischarged bankrupt, can I open an account with a PRS Provider?

An undischarged bankrupt is not prevented from participating in a private retirement scheme by opening an account. However, as an undischarged bankrupt, you have a legal duty to inform the DGI of all your assets or properties which includes your investments in PRS as provided under section 24 of Bankruptcy Act 1967.

CONTRIBUTIONS (INDIVIDUALS)

Is there any minimum contribution for PRS?

The minimum contribution varies from provider to provider. To find out more, please refer to the Providers tab on our website for the minimum contribution amount for each respective PRS Provider.
Providers > Providers & Schemes > Contributions & Withdrawals

What are the contribution types?

For further details on contribution types, please refer to the PRS tab on our website
PRS > About PRS > PRS Scheme Features > Contributions


Can my spouse/ parent/ partner contribute to the PRS on my behalf?

Yes, they can. However, contribution to the PRS must be done under your own PPA account. For further details on contribution, please refer to the PRS tab on our website
PRS > About PRS > PRS Scheme Features > Contributions

Do I need to contribute on a monthly basis to the PRS?

For further details on contribution, please refer to the PRS tab on our website
PRS > About PRS > PRS Scheme Features > Contributions

To find out why you should make regular contributions, please refer to the Getting Started tab on our website
Getting Started > Retirement Education > Dollar Cost Averaging > Why Regular Contributions?


When do I start contributing to my PRS account?

Contributions to your PRS account could be made at the same time or prior to opening your PRS account. For further details on contribution, please refer to the PRS tab on our website
PRS > About PRS > PRS Scheme Features > Contributions

How do I make payment to my Provider?

For further details on contribution method, please refer to the Getting Started tab on our website
Getting Started > Investing in PRS > PRS Transactions


Can I withdraw from my EPF to contribute to the PRS?

The PRS is a supplementary form of retirement savings in addition to the EPF and is voluntary in nature. Members are not permitted by law to withdraw from EPF to contribute to the PRS.

Where do I check my contribution details?

Contribution details may be obtained from your PPA online account. For further details on how your PPA online account would look like, please refer to the PPA tab on our website
PPA > Member Services > Account Reporting > Online Services

Is the investment into PRS guaranteed by the government or does it have a minimum dividend policy?

PRS investments are not guaranteed and it does not have any statutory minimum dividend policy. You are advised to read and understand the Disclosure Document and Product Highlights Sheet to understand the risks involved before investing into a PRS. For further details on how you can manage your risk, please refer to the Getting Started tab on our website
Getting Started > Retirement Education > Risk Management

What happens to the contributions in my PRS account if I am declared a bankrupt after having participated in the scheme?

As an undischarged bankrupt, you or your employer may continue to contribute to PRS. You will still enjoy rights accorded to PRS members including the right to switch funds or request for transfer of any accrued benefits to another PRS Provider. You may also request for withdrawals according to the permitted circumstances as specified in the Guidelines of Private Retirement Schemes (“PRS Guidelines”). However, withdrawals from the account will be subjected to the oversight and conditions from the Director General of Insolvency (“DGI”).

CONTRIBUTIONS (EMPLOYER)

If I am an employee of Company X and I am currently contributing to the PRS in my personal capacity. Should Company X also contribute to my PRS?

As PRS is a voluntary scheme, it is not mandatory for any employer, employee or individuals to contribute. Check with your Employer if they have an Employer sponsored program for the PRS. For further details please visit our Home webpage and click on the Employees and Employer section to find out more.

I am interested to contribute PRS for my employees. Who should I talk to?

You may approach any of the PRS Provider for further information. For a full list of the PRS Providers, you may refer to the Providers tab in our website
Providers > Providers & Schemes

My company is contributing to PRS on behalf of my employee. What amount of tax relief is the company entitled to?

For further details on Employer tax relief on the PRS, please refer to the PRS tab in our website
PRS > About PRS > PRS Scheme Features > Contributions


Am I personally entitled to the 19% tax relief?

For further details on Employer tax relief on the PRS, please refer to the PRS tab in our website
PRS > About PRS > PRS Scheme Features > Contributions

What happens to the contributions in my PRS account if I am declared a bankrupt after having participated in the scheme?

As an undischarged bankrupt, you or your employer may continue to contribute to PRS. You will still enjoy rights accorded to PRS members including the right to switch funds or request for transfer of any accrued benefits to another PRS Provider. You may also request for withdrawals according to the permitted circumstances as specified in the Guidelines of Private Retirement Schemes (“PRS Guidelines”). However, withdrawals from the account will be subjected to the oversight and conditions from the Director General of Insolvency (“DGI”).

SWITCHING

Can a Member switch funds within the first year?

Switching between funds of the same Provider is allowed within the first year. To find out more about Switching, please refer to the PRS tab in our website
PRS > About PRS > PRS Scheme Features > Switching / Transfer

How many times can a Member switch in one year? And what are the fees involved?

For fees and charges on switching, please refer to the Providers tab in our website under Fees and Charges
Providers > Providers & Schemes > Fees and Charges

To find out more about Switching frequency, please refer to the PRS tab in our website
PRS > About PRS > PRS Scheme Features > Switching / Transfer

What happens to the contributions in my PRS account if I am declared a bankrupt after having participated in the scheme? Am I still able to switch funds?

As an undischarged bankrupt, you or your employer may continue to contribute to PRS. You will still enjoy rights accorded to PRS members including the right to switch funds or request for transfer of any accrued benefits to another PRS Provider. You may also request for withdrawals according to the permitted circumstances as specified in the Guidelines of Private Retirement Schemes (“PRS Guidelines”). However, withdrawals from the account will be subjected to the oversight and conditions from the Director General of Insolvency (“DGI”).

TRANSFER

Can a Member transfer Providers in the 1st year of subscribing to PRS?

To find out more about Transfers, please refer to the PRS tab in our website
PRS > About PRS > PRS Scheme Features > Switching / Transfer

How many times can a Member transfer in one year? And what are the fees involved?

For fees and charges on transfer, please refer to the Providers tab in our website under Fees and Charges
Providers > Providers & Schemes > Fees and Charges

To find out more about Transfer frequency, please refer to the PRS tab in our website
PRS > About PRS > PRS Scheme Features > Switching / Transfer

Scenario 1

I made a contribution to Provider 1, Fund A on 2 January 2013. On 2 February 2014, I wish to transfer all my contributions from Fund A to Provider 2, Fund C. I did not conduct any transfers this year. Will my transfer request be approved?

Yes, your transfer request will be approved because:

1)      You have contributed in Fund A for over one year;
2)      This is your first transfer request from Provider 1;
3)      You are transferring to a single fund.


Scenario 2
I invested in Provider 1’s Fund A on 2nd January 2013. On 14th February 2014, I would like to transfer all my holdings from Fund A to Provider 2’s Fund C and Provider 3’s Fund D. I have not made any other transfer for the year. Will my transfer be approved?

No, your transfer will not be approved as you are only allowed to transfer to 1 fund.

For further details on Transfers, please refer to the PRS tab in our website
PRS > About PRS > PRS Scheme Features > Switching / Transfer

What happens to the contributions in my PRS account if I am declared a bankrupt after having participated in the scheme? Am I still able to transfer funds between Providers?

As an undischarged bankrupt, you or your employer may continue to contribute to PRS. You will still enjoy rights accorded to PRS members including the right to switch funds or request for transfer of any accrued benefits to another PRS Provider. You may also request for withdrawals according to the permitted circumstances as specified in the Guidelines of Private Retirement Schemes (“PRS Guidelines”). However, withdrawals from the account will be subjected to the oversight and conditions from the Director General of Insolvency (“DGI”).

PRE-RETIREMENT WITHDRAWALS (If you are below 55)

When can I start requesting for a withdrawal?

To find out more on when requests for withdrawals can be made, please refer to the PRS tab in our website
PRS > About PRS > PRS Scheme Features > Withdrawals

How many times can a Member withdraw in one year? And what are the fees involved?

For fees and charges on pre-retirement withdrawals, please refer to the Providers tab in our website under Fees and Charges
Providers > Providers & Schemes > Fees and Charges

To find out more about Withdrawal frequency, please refer to the PRS tab in our website
PRS > About PRS > PRS Scheme Features > Withdrawals

Which sub-account can I withdraw from?

Pre-retirement withdrawals may only occur from sub-account B. To find out more, please refer to the PRS tab in our website
PRS > About PRS > PRS Scheme Features > Withdrawals

What documents are required for me to make a pre-retirement withdrawal?

Other than withdrawal due to death and permanent departure, no documents and reasons are required to make a pre-retirement withdrawal. For death and permanent departure, please refer to the PRS tab in our website for further details
PRS > About PRS > PRS Scheme Features > Withdrawals: Documentation For Withdrawal

What documents are required for me to make a pre-retirement withdrawal due to permanent departure?
What documents are required for withdrawal due to death?
If I do not want to contribute to the PRS anymore, can I withdraw all my money and close my PPA account?

You can stop contributing to the PRS at any time. However, you are only able to withdraw all your money upon retirement age. You can make pre-retirement withdrawal from your sub-account B subjected to 8% tax penalty.

Please refer to the PRS tab in our website for further details
PRS > About PRS > PRS Scheme Features > Withdrawals


I am a foreigner, and I cease to work in Malaysia before the age of 55? Can I withdraw all my funds?

You are entitled to a complete withdrawal from Sub-account A and B with no 8% tax penalty as this is considered a pre-retirement withdrawal due to permanent departure. For a list of documentation required to be submitted, please refer to the PRS tab in our website for further details
PRS > About PRS > PRS Scheme Features > Withdrawals: Documentation For Withdrawal


I invested in Provider 1’s Fund A and Provider 2’s Fund B on 2nd January 2013. On 2nd February 2014, I would like to make pre-retirement withdrawal from Fund A and Fund B. I have not made any pre-retirement withdrawal for the year. Will my pre-retirement withdrawal be approved?

Yes, your pre-retirement withdrawal will be approved because:
1) you have invested in Provider 1’s Fund A and Provider 2’s Fund B for more than 1 year;
2) the withdrawals are made on the same day; and
3) you have not made any pre-retirement withdrawal for the year.

For further details on Pre-Retirement Withdrawals, please refer to the PRS tab in our website
PRS > About PRS > PRS Scheme Features > Withdrawals

RETIREMENT WITHDRAWALS (If you are 55 and above)

When can I start requesting for a withdrawal?

To find out more on when requests for withdrawals can be made, please refer to the PRS tab in our website
PRS > About PRS > PRS Scheme Features > Withdrawals

Is there any limit on the number of times I can withdraw upon retirement?

No, there would not be any limit for retirement withdrawals.


If I initially invested in PPA and then stopped contributing, when do I withdraw my funds from PPA?

The funds would be able to be withdrawn upon retirement. Even if there are no repeat contributions, after the initial contribution, the PPA account is deemed active and withdrawals upon retirement can still be conducted.

Although lump sum withdrawals are permitted, members are encouraged to still continue maintaining regular contributions. To find out why you should contribute regularly, please refer to our Getting Started tab in our website
Getting Started > Retirement Education > Dollar Cost Averaging > Why Regular Contributions?

For further details on Withdrawals, please refer to the PRS tab in our website
PRS > About PRS > PRS Scheme Features > Withdrawals

As a member of a Private Retirement Schemes (PRS), when can I make full withdrawal from PRS?

Currently, members are eligible to make a full withdrawal from the PRS upon reaching the age of 55. However, the SC may specify any other age from time to time. Members would be informed if any changes are made to the current specified age.

Although lump sum withdrawals are permitted, members are encouraged to still continue maintaining regular contributions. To find out why you should contribute regularly, please refer to our Getting Started tab in our website
Getting Started > Retirement Education > Dollar Cost Averaging > Why Regular Contributions?

For further details on Withdrawals, please refer to the PRS tab in our website
PRS > About PRS > PRS Scheme Features > Withdrawals

What documents are required for withdrawal due to death?

What happens to the PRS investments upon sudden death?

Beneficiary nomination is not permitted under the law for PRS and in the event of death, the PRS monies will return to the estate of the deceased member to be distributed in accordance to the instruction of the probate court.

What happens to the contributions in my PRS account if I am declared a bankrupt after having participated in the scheme? Am I still able to withdraw the funds?

As an undischarged bankrupt, you or your employer may continue to contribute to PRS. You will still enjoy rights accorded to PRS members including the right to switch funds or request for transfer of any accrued benefits to another PRS Provider. You may also request for withdrawals according to the permitted circumstances as specified in the Guidelines of Private Retirement Schemes (“PRS Guidelines”). However, withdrawals from the account will be subjected to the oversight and conditions from the Director General of Insolvency (“DGI”).

TAX PENALTIES

Is the 8% tax applied to the full withdrawal amount or the net amount minus fees/ charges?
Should I make pre-retirement withdrawal, how do I pay for the tax penalty?

For further details on Withdrawals and Tax Penalties, you may refer to the PRS tab in our website
PRS > About PRS > Scheme Features > Withdrawals

I am 55 years old and I wish to withdraw in full from my PRS account. Would I incur the tax penalty?
I am an employee above 55 years old but still under employment and I continue to subscribe to PRS. Do I still incur an 8% tax penalty when I withdraw from my PRS account?

There is no tax penalty for withdrawal upon reaching retirement age of 55 years.

Although lump sum withdrawals are permitted, members are encouraged to still continue maintaining regular contributions. To find out why you should contribute regularly, please refer to our Getting Started tab in our website
Getting Started > Retirement Education > Why Regular Contributions?