PRS - Private Retirement Scheme

[hazri99]

Following the various announcements & press releases on the Private Retirement Scheme (PRS), I am pleased to advise that Public Mutual has been approved by the Securities Commission (SC) as a PRS provider. (PRS is regulated by the SC.) The other approved PRS providers are AmInvestment Mgt, AIA, CIMB-Principal Asset Mgt, Hwang Investment Mgt, ING Funds, Manulife Unit Trust, & RHB Investment Mgt.



Some of the benefits & features of PRS:


•PRS is designed to provide choice & flexibility & encourages members to take control of their retirement savings.


•PRS will supplement EPF & other retirement schemes & savings for our retirement. PRS addresses the challenges facing EPF eg. 2 million self employed not covered, EPF savings not enough to last entire retirement, PRS offers choice & flexibility, EPF only legally obligated to provide yearly dividend of 2.5% (but historically higher), EPF mostly fixed income but equities allowed, some diversification if u participate in the EPF Members’ Investment Scheme.


•PRS is a voluntary scheme.


•Each PRS scheme will have a Trustee approved by SC.


•There will be a common Private Pension Administrator (PPA) approved by SC. PPA will also provide a website for members to check their accounts online. Members will receive periodical statements from the PRS provider & a consolidated statement from the PPA.


•Income tax relief of up to RM3,000 p.a. will be given to all members based on their contributions to PRS for 10 years commencing 2012. Eg. a member who is in the 20% maximum tax bracket & who contributes RM3,000 to a PRS will enjoy tax saving of 20% x 3,000 = RM600. This translates into a 20% “discount” on the investment!


•PRS is expected to be launched on 1 Sep 2012 (pls wait for further news).


•All Malaysians & non Malaysians above age 18 are eligible to contribute. There is no maximum age limit. However, accounts that remain inactive for 12 months after age 80 will be surrendered under the Unclaimed Monies Act.


•Employers may make contributions on behalf of employees & enjoy tax deduction of up to 19% of the employee’s salary (inclusive of EPF & other retirement scheme contributions by the employer).


•As specified by SC, Public Mutual will initially be launching 3 core funds (non Syariah compliant) & 3 Syariah compliant funds as follows:



•The unit prices & distributions payable of the funds may go up & down depending on their underlying investments. The daily values will be published in the respective PRS provider’s website daily.


•Interest income received by PRS funds will be exempted from income tax.


•Members who wish to invest in Public Mutual PRS may invest lump sums or by monthly standing instructions from Public Bank.


•Members may switch between funds within the same PRS provider or transfer their funds between PRS providers.


•Fees & charges for investing in PRS will be disclosed in the Disclosure Document which members should read & understand before they invest. I will advise the rates when PRS is launched.


•Investments in PRS will be divided in sub-accounts A & B made up of 70% & 30% respectively of the contributions. Sub-account A can only be withdrawn upon reaching retirement age of 55. Sub-account B can be withdrawn once a year but subject to a tax penalty of 8% which will be deducted from the withdrawal value.


•Full withdrawals may also be made upon permanent departure from Malaysia & by the beneficiary/executor/administrator following the death of the member.


•Before investing, all members must read & understand the Product Highlight Sheet (PHS) which will include a summary of the key info of the funds & the Disclosure Document either in electronic or printed form which will provide more comprehensive info

 

[hazri99]

Public Mutual Bhd


Public Mutual PRS- Conventional Series



•Public Mutual PRS Conservative Fund
•Public Mutual PRS Moderate Fund
•Public Mutual PRS Growth Fund



Public Mutual PRS- Shariah-based Series

•Public Mutual PRS Islamic Conservative Fund
•Public Mutual PRS Islamic Moderate Fund
•Public Mutual PRS Islamic Growth Fund

http://www.ppa.my/index.php/providers-and-schemes/list-of-approved-schemes/

 

[Hidier]

dah ada lesen bang? tahniah...

 

[hazri99]

dah ada lesen bang? tahniah...

senang ajer nak dpt kan lesen kalau dah jd UTC..

The requirements for a PRC license are as follows:


•Registered as UTC with FIMM for at least 3 years as at 31 July 2012 or CFP IFP RFP ChFC & attend 1-&-a-half days familiarization program facilitated by Public Mutual. Registration fee RM100. U may check your registration date at fimm.com.my– “Is my consultant authorized?”


•For UTCs with less than 3 years with FIMM, sit for PRS exam. Registration & exam fee RM250.

 

[hazri99]

PRS as defined by Securities Commision (SC) :

“A private retirement scheme (PRS) is a voluntary long*term investment scheme designed to help individuals accumulate savings for retirement. It complements the mandatory contributions made to EPF.

Each PRS will include a range of retirement funds that individuals may choose to invest in based on their own retirement needs, goals and risk appetite. The fund options under a PRS must be consistent with the objective of building savings for retirement and ensure that there is a prudent spread of risk.”






The SC will regulate the following key participants in the PRS industry – the PRS Administrator (the Private Pension Administrator or PPA; visit www.ppa.my), PRS Providers (the selected 8), the Schemes (the funds), Trustee to PRS (Scheme Trustee) and the Trustee to Employer*Sponsored Retirement Schemes (Employer Trustee).

The formation of the PRS Administrator, namely the Private Pension Administrator or PPA (http://www.ppa.my) serves as an administrative centre. It does not accept contribution from PRS into PPA.

As announced in Budget 2012 – tax relief up to RM3,000 per annum will be given for an individual’s contribution to the PRS; and Employers will also be given tax deduction on contributions to PRS made on behalf of their employees of up to 19% of the employees’ remuneration.

http://www.sc.com.my/main.asp?pageid=1156&menuid=1038&newsid=&linkid=&type=



An Individual may participate in several PRS, simultaneously as they wish. As contributions are voluntary, no fixed amounts or fixed intervals are specified. The PRS Providers may set the minimum contribution as well switching policy [switching between funds can be used as tactical allocation strategy]. The contribution will be divided into 2 sub-accounts – A holds 70% and B holds 30%. Amounts are to be invested until mandatory retirement age but the sub-account B withdrawal is allowed once a calendar year at payment of penalty of 8% on the withdrawal amount. Withdrawal at mandatory retirement age, withdrawal due to death or permanent departure from Malaysia, are tax free.

So why must we contribute to PRS ?
For individual under employment – PRS is a supplement to retirement savings such as EPF.
For individual who are self-employed – PRS offers creation of retirement fund
PRS can potentially generate higher Returns, as there are options to placed contributions in funds with higher equity proportions. Unlike EPF which is meant to be conservative and invest largely in bonds and Sukuk [EPF average returns 6% per annum]. As PRS are similar to Unit Trust Funds, perhaps the returns can average 12% or better per annum depending on type of Funds.
PRS allow choice between Growth Funds (equity max 70%), Moderate Funds (Equity max 60%) and Conservative Funds (Equity max 20%) and more.
PRS offers choice of Syariah funds.
Tax relief of RM3,000 per year for individual contributor. And tax exemption of up to 19% employee’s salary for employers.

So, whatcha gonna do ? Wake up Malaysia ! Time to be responsible for our own retirement. Only those who choose to be responsible, can be rich, be financially free and achieve happiness in life.
http://www.sc.com.my/eng/html/ppa/PRS_booklet_web.pdf

 

[hazri99]

Public Mutual’s Private Retirement Scheme (PRS) Funds
launching at 26 November 2012
Public Mutual PRS Islamic Growth Fund (PRS-IGRF)
Public Mutual PRS Islamic Moderate Fund (PRS-IMDF)
Public Mutual PRS Islamic Conservative Fund (PRS-ICVF)

 

[jerul]

org kampong x fhm TT nk baca omputih...transalete ckit..hehhehe

 

[terunadesa]

Bro.. Berhati2 bila nak buka thread.. nanti kena panggil suruh tunjuk sebab..

 

[mansur79]

ape beza PRS dgn Unit Trust? nampaknya company yg dapat license PRS ni sudah ade experience in UT...return pun mesti lebih kurang je..nothing exceptional

 

[jcsc]

This sounds to be a very interesting scheme, would consider