It is a new way to boost retirement savings
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 RM3000 per year personal tax relief* on top of the RM6000 per year tax relief for the mandatory retirement savings contribution and life insurance premiums. This could be as much as RM780 per year (depending on your tax bracket).
*For contributions into the PRS and deferred annuities effective from years of assessment 2012 to 2021
CIMB-Principal PRS Plus and CIMB Islamic PRS Plus ("PRS Plus") are private retirement schemes designed to provide choice, investment performance and expertise to help members increase their retirement savings.
Depending on your preference, choose either our conventional or Islamic private retirement schemes. Therefore if end-to-end Shariah compliance is a priority for you, you can choose CIMB Islamic PRS Plus.
With either PRS Plus scheme, you can personalise and select the mixture of funds that best suits your risk and return preference. You can also update your investment choices as and when desired.
You can automate your savings and investment easily and conveniently via regular monthly contributions or make lump sum contributions. The choice is yours as to how much and how often you want to contribute.
Your first move is the most important one. That's why choosing the right partner is everything.
Principal Asset Management Berhad (formerly known as CIMB-Principal Asset Management Berhad) ("Principal") is an award-winning regional asset manager with international investment capabilities adhering to global best practices in compliance and risk management.
We adopt a focused stocks and bonds/sukuk selection process overlaid with a disciplined investment philosophy. We believe a top-down approach coupled with bottom-up stocks and bonds/sukuk selection is the most reliable source of performance.
Our on-the-ground presence, integrated quantitative and qualitative research is the key to superior stocks and bonds/sukuk selection. We believe disciplined portfolio construction combined with a systematic in-depth review process is the key to consistent performance over time. This is supported by strong portfolio risk management oversight.
Principal is able to draw on the global experience, technical expertise and educational resources of its shareholder, the Principal Financial Group for the benefit of PRS Plus members.
So long as you remain a member, you will receive the latest information updates and education needed to make better decisions to optimise your retirement savings with PRS Plus. In addition you can rest assured that administration and operations adhere to global best practices.
Have you saved enough for retirement?
CIMB-Principal PRS Plus and CIMB Islamic PRS Plus aim to help individuals accumulate savings for retirement, on top of their mandatory retirement savings. CIMB-Principal PRS Plus and CIMB Islamic PRS Plus are totally voluntary and can be started at anytime.
Extend your retirement savings with CIMB-Principal PRS Plus and CIMB Islamic PRS Plus.
The more savings you set aside, the more comfortable your retirement will be. You may opt to contribute to CIMB-Principal PRS Plus and CIMB Islamic PRS Plus on your own (should your employer not offer such benefits at your workplace).
Everyone has different retirement needs.
CIMB-Principal PRS Plus and CIMB Islamic PRS Plus have a range of retirement savings choices (both conventional and Islamic schemes) that individuals may choose to invest based on their own retirement needs, goals, time horizon and risk appetite.
Employers can do more to attract and retain quality employees.
The PRS Plus Partner Programme by Principal is for organizations who team up with us to offer PRS benefits to their employees as a service. The PRS Plus Partner Programme by Principal can be customised to promote loyalty amongst employees.
Be an Employer of Choice
1. What should you know about the Private Retirement Scheme ("PRS")?
The private retirement scheme ("PRS") is introduced to encourage retirement savings.
*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?
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 CIMB-Principal PRS Plus and CIMB 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:
1. How many investment approaches are there?
There are two types of investment approaches, which are "Do-It-For-Me" and "Do-It-Myself".
2. What is "Do-It-For-Me"?
Do-It-For-Me caters to those who want to leave their investment decision to the experts while building a solid foundation for retirement.
Under this approach, you choose either CIMB-Principal PRS Plus or CIMB Islamic PRS Plus. Then, the appropriate fund* will be automatically selected based on your age.
When you reach the next age bracket, your savings and gains will be moved to the next appropriate fund*.
|Age of Members||Funds Automatically Selected|
|50 years & above||CIMB-Principal PRS Plus Conservative or CIMB Islamic PRS Plus Conservative|
|40 - 49 years||CIMB-Principal PRS Plus Moderate or CIMB Islamic PRS Plus Moderate|
|Below 40 years||CIMB-Principal PRS Plus Growth or CIMB Islamic PRS Plus Growth|
Note: *Refer to the table
3. What is "Do-It-Myself"?
Do-It-Myself has been created for those who are comfortable with investment concepts and prefer to keep an active eye on their retirement investments.
You can choose from the 10 funds that best suit you, taking into consideration all your retirement planning needs and other investments you may have.