Youth Incentive FAQS

GENERAL

This incentive refers to a one-off payment of RM1,000 by the Government to qualified individuals that will be used to purchase units in a PRS fund in the PRS account.
For further information, please refer to our website at PRS > PRS Youth.

ELIGIBILITY

Please refer to our website at PRS > PRS Youth > Eligibility Requirements for a list of the eligibility requirements.

You do not have to apply for the incentive. PPA will monitor the eligible accounts and compile a listing of those qualified and notify the Government of the individuals eligible for the incentive. A report is compiled by PPA bi-annually, in order for the pay-out to be made to the qualified individuals.
For further details, please refer to our website at PRS > PRS Youth > Payment of Incentive.

The incentive is only applicable for PRS contributions made from the period beginning 2 January 2014 to 31 December 2018. Any contributions made before 2 January 2014 would not be taken into account for the eligibility of the incentive, even if the minimum gross cumulative contribution amounts to RM1,000 and above.
Please refer to our website at PRS > PRS Youth > Eligibility Requirements.

Yes, you may conduct PRS contributions on behalf of your working son or daughter. However, please note that the PRS account would be opened in the individual name of your son or daughter.
For further details, please refer to our website at PRS > PRS Youth > Starting Your PRS > Parent Contributing To Youth.

No, this is not true. The incentive is for all Malaysians between the ages of 20-30 (from 2014 to 2018), regardless of whether the person is with or without EPF.
Please refer to our website at PRS > PRS Youth > Eligibility Requirements.

DOCUMENTATION

You are not required to produce any documentation. PPA monitors relevant PRS Funds which meet the eligibility criteria and subsequently notifies the SC and Government at specified periods.
For further details, please refer to PRS > PRS Youth > Payment of Incentive.

PAYMENT OF INCENTIVE

The incentive is a one-off incentive which will only be received once for the entire program between 2014 to 2018 and not once every year.
For further details, please refer to PRS > PRS Youth > Payment of Incentive.

No, this incentive is meant to purchase units in a PRS fund in the PRS account. The money will be credited to the said PRS fund.
For further details, please refer to PRS > PRS Youth > Payment of Incentive.

The RM1,000 incentive will be utilized to purchase units which will be created in sub-account A of the PRS fund.
For further details, please refer to PRS > PRS Youth > Payment of Incentive.

The RM1,000 will be automatically credited into the sub-account A of your qualified PRS Fund. PPA will notify you once the Incentive pay-out has been made into your qualified PRS Fund in the form of units.

A PRS Member contributes to Fund A until Fund A reaches a value of at least RM1,000. Fund A will be identified by PPA. Once the member has met the necessary requirements, PPA will notify the Government to release the incentive to Fund A. PPA will also notify the member once the Incentive pay-out is made into the member qualified PRS Fund in the form of units.
For further details, please refer to PRS > PRS Youth > Payment of Incentive and PRS > PRS Youth > Terms & Condition > Gross Contribution on a Staggered basis

Yes. If the contribution to your PRS Fund has not reached a gross value of RM1,000 in 2017, then you can top up the amount in 2018.

You may choose the PRS Fund to receive the Incentive by contributing RM1,000 to your preferred fund within a period of 2 years between 2017-2018.

The incentive will be converted into units to be credited into sub-account A of the PRS Fund that was eligible for the incentive in the first place i.e. the PRS Fund which first reached the RM1,000 minimum gross contribution amount cumulatively within 2017-2018.

If you have several PRS Funds in a single or multiple Providers and have accumulated RM1,000 minimum gross contribution in each of these Funds during 2017 to 2018, PPA will divide the Incentive equally between the various Funds.
For further details, please refer to PRS > PRS Youth > Terms & Condition > Splitting of Incentive.

SWITCHING

Yes, you are qualified for the Incentive provided you have: –
(i) Conducted switching to consolidate the amounts previous in Fund A and B to a single PRS Fund; and
(ii) The accumulated amount after switching is RM1,000 (meets the minimum gross contribution amount); and
(iii) You have not turn 31 years of age when you conduct the switching in order to reach the threshold of RM1,000.
For further details, please refer to our website at PRS > PRS Youth > PRS Transaction > Switching

TRANSFER

Scenario 1
I have 2 Funds with 2 different Providers. I wish to transfer one Fund from PRS Provider A to another Fund in PRS Provider B. Would I be eligible to receive the Incentive?
No, you will not be eligible to receive the Incentive as the minimum gross contribution amount cannot be achieved via Transfer.
Scenario 2
I have existing contributions in Provider A. In 2 March 2017, I contribute RM1,000 into Provider A (Fund 1). On 4 July 2017, I will transfer all my contributions from Provider A to Provider B. Am I still eligible for the incentive?
Yes, you are still eligible for the incentive as transfer was done after the cut-off date of 30 June. As such, units worth RM1,000 will be credited to sub-account A of Fund 1 at Provider A.


PRE-RETIREMENT WITHDRAWAL

As the full RM1,000 will be utilized to purchase units which will then be created in sub-account A, this incentive is therefore not available for pre-retirement withdrawal from sub-account B.
For further details, please refer to PRS > PRS Youth > Payment of Incentive > Pre-Retirement Withdrawal from Sub-Account B

I have existing contribution in Provider A. On 2 March 2014, I will contribute RM1,000 into Provider A (Fund 1) . On 4 July 2014, I will withdraw all my holdings from sub-account B of Provider A. Am I still eligible to receive the incentive?

Yes, you are still eligible to receive the incentive as the pre-retirement withdrawal was done after the cut-off date of 30 June. As such, units worth RM1,000 will be credited to sub-account A of Fund 1 at Provider A.
For further details, please refer to PRS > PRS Youth > Payment of Incentive > Pre-Retirement Withdrawal from Sub-Account B

What happens if I invest RM1,000 in January 2017 and decide to withdraw 30% from sub-account B in August 2017? Would I be eligible for the incentive?

Yes, you are still eligible for the incentive as pre-retirement withdrawal was done after the cut-off date of 30 June.
However, kindly be reminded that no pre-retirement withdrawal from sub-account B can be made where the individual has been a Member of that Scheme for less than a year.

EMPLOYER CONTRIBUTIONS

No, only contributions made by and individual are eligible.
For further details, please refer to PRS > PRS Youth > Eligibility Requirements

FEES AND CHARGES

The RM1,000 incentive will not be subject to PPA’s annual fee and Provider’s sales charge.
For further details, please refer to PRS > PRS Youth > Fees, Charges and Tax.

TAX RELIEF

Is the RM1,000 eligible for the annual RM3,000 tax relief for individual contributions made into the PRS?

The one-off incentive of RM1,000 from the Government to qualified contributors is not eligible for the annual RM3,000 tax relief claim as the contribution was not made by the PRS Member in his individual capacity.