General Private Retirement Scheme (PRS) Information

1. What should you know about the Private Retirement Scheme ("PRS")?
The private retirement scheme ("PRS") is introduced to encourage retirement savings. 

  • It is a new way to boost retirement savings. The PRS is a voluntary scheme for all individuals who are 18 years old and above. It is an additional way to boost total retirement savings, whether you are an Employees Provident Fund ("EPF") member or not. If you are an EPF member, the PRS can complement your EPF savings.
  • It enables you to enjoy additional tax savings. You can enjoy up to RM3,000 per year personal tax relief* on top of the RM6,000 per year tax relief for the mandatory retirement savings contribution and life insurance premiums. This could be as much as RM840 per year (depending on your tax bracket).

*For contributions into the PRS and deferred annuities effective from years of assessment 2012 to 2021.

2. 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.

3. Who is eligible to participate in the PRS?
Individuals who are 18 years of age and above (both Malaysians and foreigners*) are eligible to sign up for the scheme and participation is on a voluntary basis. Employers may also opt to contribute on behalf of employees.

*Note that any permanent resident of the USA (including US citizen residing in Malaysia) is not allowed to participate in Principal PRS Plus and Principal Islamic PRS Plus.

4. What is the Private Pension Administrator (PPA) and its functions?
Regulated by the SC, the Private Pension Administrator ("PPA") aims to promote efficiency and convenience to the PRS members through its functions, which include:

  • To provide a one-stop administrative framework for the growth and operation of the PRS landscape.
  • To facilitate all the inquiries and transactions requested by the members.
  • To provide the PRS related information in order to create awareness and educate the public on the PRS.

5.What are the funds offered by Principal?

Principal PRS Plus Principal Islamic PRS Plus
Principal PRS Plus Conservative Principal Islamic PRS Plus Conservative
Principal PRS Plus Moderate Principal Islamic PRS Plus Moderate
Principal PRS Plus Growth Principal Islamic PRS Plus Growth
Principal PRS Plus Equity Principal Islamic PRS Plus Equity
Principal PRS Plus Asia Pacific Ex-Japan Equity Principal Islamic PRS Plus Asia Pacific Ex-Japan Equity