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General Private Retirement Scheme (PRS) Information
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 RM780 per year (depending on your tax bracket).
*For contributions into the PRS and deferred annuities effective from years of assessment 2012 to 2021.
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.
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
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.
CIMB-Principal PRS Plus And CIMB Islamic PRS Plus (PRS Plus)
What are CIMB-Principal PRS Plus and CIMB Islamic PRS Plus ("PRS Plus")?
CIMB-Principal PRS Plus and CIMB Islamic PRS Plus ("PRS Plus") are new private retirement schemes designed to provide choice, investment performance and expertise to help members increase their retirement savings.
What are the benefits of PRS Plus?
Apart from enjoying the tax benefit, these are the benefits of PRS Plus:
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.
CIMB-Principal Asset Management Berhad ("CIMB-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.
CIMB-Principal is able to draw on the global experience, technical expertise and educational resources of its shareholder, the Principal Financial Group® ("The Principal®") 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.
The Principal® is a leading global financial company offering businesses, individuals and institutional clients a wide range of financial products and services. In the USA, it serves more than 32,000 retirement plans and 3.4 million plan participants. Its subsidiary Principal Global Investors manages assets for 10 of the 25 largest world pension plans*.
*The list is derived from "P&I/Towers Watson World 300: The Largest Retirement Funds" report on the largest pension plans compared to internal records. (September 2011)
How does PRS Plus work?
It is basically an alternative savings plan meant for your retirement. You decide how much, how often and what types of investment. You may choose to contribute RM100 this month and/or decide to add another RM50 two weeks later - it is entirely up to you. You can also pick different funds from either or both CIMB-Principal PRS Plus and CIMB Islamic PRS Plus for your contributions.
When you decide to retire*, these savings are available for your retirement. However, you have the option to withdraw monies (subject to a balance accumulated in Sub-Account B) for any reason before you reach retirement.
When you contribute to PRS Plus your money will be split and maintained in two sub-accounts as follow:
Sub-account A (70%)
Sub-account B (30%)
What are the funds available?
These are the funds available:
CIMB-Principal PRS Plus
CIMB Islamic PRS Plus
CIMB-Principal PRS Plus Conservative
CIMB Islamic PRS Plus Conservative
CIMB-Principal PRS Plus Moderate
CIMB Islamic PRS Plus Moderate
CIMB-Principal PRS Plus Growth
CIMB Islamic PRS Plus Growth
CIMB-Principal PRS Plus Equity
CIMB Islamic PRS Plus Equity
CIMB-Principal PRS Plus Asia Pacific
Ex Japan Equity
CIMB Islamic PRS Plus Asia Pacific
Ex Japan Equity
How many investment approaches are there?
There are two types of investment approaches, which are "Do-It-For-Me" and "Do-It-Myself".
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
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.
How To Start?
How can I sign up?
You can sign up with our authorised PRS Consultants at:
CIMB Bank Berhad (CIMB Bank) branches
CIMB Islamic Bank Berhad (CIMB Islamic) branches co-located at CIMB Bank branches
CIMB Wealth Advisors Berhad (CWA) branches
You should check with your respective human resource (HR) personnel to find out whether your employer participates in PRS Plus Partner Programme.
How does the sign up process work?
To sign up, you need to complete, sign and submit:
the Private Pension Administrator (PPA) account opening form;
either the PRS Plus application form or PRS Plus employee application form; and
a copy of your NRIC (front and back on the same page).
to any of our authorised PRS Consultants at any CIMB Bank branches, CIMB Islamic branches co-located at CIMB Bank branches or CWA branches.
If your employer participates in PRS Plus Partner Programme, you may obtain them from your respective HR personnel.
You can obtain the forms from your authorised PRS Consultant or your respective HR Personnel.
Contributions and Switches
What are the minimum initial and additional contribution amounts?
Generally, the minimum initial contribution is RM100 and the minimum additional contribution is RM50.
How can I contribute on a monthly basis?
You will need to set up a regular savings plan. Upon the set up, your contribution will be deducted from your banking account on a monthly basis.
If your employer participates in PRS Plus Partner Programme, you may do a payroll deduction.
What is the "Change of Contribution Direction/ Fund Switching" form?
The "Change of Contribution Direction/ Fund Switching" form is a form that allows you to change future contributions direction and/or do switching of the accumulated balance between investment choices.
There are two parts to the form. You are only required to fill up the relevant part(s) depending on whether you want to change future contributions direction and/or do switching.
What is change of contribution direction?
Change of contribution direction enables members to direct all future contributions to a different fund(s). However, no change will be made to past contributions that have been accumulated.
Refer to the illustration below for a better understanding:
What is fund switching?
Fund switching enables you to move your accumulated contributions (full or partial) to other funds under the schemes. You have the choice to move your accumulated existing contributions to more than one fund in PRS Plus.
However, your future contributions will remain the same and not be directed to the fund that you have switched into unless there is a request to also change your contribution direction for your future contributions.
Refer to the illustration below for a better understanding:
How often can I change my contribution direction?
You are allowed to change the contribution direction once a month.
How often can I do fund switching?
You are allowed to do fund switching once a month.
Where can I obtain the "Change of Contribution Direction/ Fund Switching" form?
You can obtain the form from any of our authorised PRS Consultants at CIMB Bank branches, CIMB Islamic branches co-located at CIMB Bank branches or CWA branches.
If your employer participates in PRS Plus Partner Programme, you may obtain it from your respective HR personnel.
Account Information and Charges
If I am an existing investor of CIMB-Principal, do I have to register for a new account?
Yes, you have to register for a new account. The accounts must be kept separate as PRS Plus is different from the regular Unit Trust investment.
Where can I get information about my account and investment details?
To find out more about your account and investment details, you may contact your authorised PRS Consultant at:
CIMB Bank branches or CIMB Islamic branches co-located at CIMB Bank branches
Alternatively, you can also contact CIMB-Principal at:
How often will I receive my statement?
You will receive your statement twice a year at your mailing address, so it is important for you to provide your current mailing address.
Electronic statements are also available. We strongly encourage you to choose green and eco-friendly electronic statements for environmental protection.
In addition, the PPA will also send a yearly consolidated statement that shows you an overview of all your PRS contributions across all PRS providers. You will receive the hardcopy statement before the deadline for e-Filling to the tax authority. Alternatively, you can print the account balance statement when you log onto the PPA website.
What are the fees charged by CIMB-Principal?
Sales charge: Up to 3% of net asset value ("NAV")
Account opening fee: RM40 (currently waived)
Annual management fee: Range from 1.40% to 1.50% per annum of NAV
Transfer PRS Provider Fee: Up to RM75
Annual trustee fee: Up to 0.04% per annum of NAV
Switching fee: Nil
Change of contribution direction fee: Nil
What are the fees charged by the PPA?
PPA account opening fee: RM 10 (currently borne and paid by CIMB-Principal)
PPA annual fee: RM8
PPA pre-retirement withdrawal fee: RM25
PPA transfer PRS provider fee (to another PRS provider): RM25
Annual PPA administration fee (accrued daily based on the NAV of the fund and paid monthly): 0.04% of the fund’s NAV
Will the value of my account change?
Yes, the value of your account may go up or down based on your investment choice(s).
Why are there three daily prices for each PRS Plus fund?
There are three different daily prices for each PRS Plus fund because there are 3 different classes. Hence, if you have bought a fund under class A for example, you need to refer to the NAV listed under class A.
Why are there classes and who can invest in it?
Classes are created to provide more choices to members. Generally, all the three different classes created for each funds in PRS Plus are available to the public. However, one must meet certain terms and conditions before they can contribute into class X. For details on classes, please refer to the current Disclosure Documents.
Can I transfer all my contributions from other PRS Provider(s) to CIMB-Principal?
Yes, you can do so. To find out more, you can approach our authorised PRS Consultants.
If your employer participates in PRS Plus Partner Programme, you may check with your respective HR personnel.
Can I withdraw my money?
Yes, withdrawals can be made under these following circumstances:
Reaching the retirement age*
Leaving Malaysia permanently
*Partial withdrawals are allowed
Alternatively, members may withdraw up to the amount in sub-account B once a year. The withdrawal amount is subject to a tax penalty of 8% (imposed by the tax authority) and the penalty will be deducted before the balance is credited to your account. The first withdrawal from sub-account B is allowed only after a year from the date of the first contribution by the member. Subsequently, withdrawals from sub-account B will be allowed once in every calendar year.
PRS Plus Partner Programme For Employers
How does the PRS Plus Partner Programme work?
View how PRS Plus Partner Programme work
As an employer, can I make a voluntary contribution on behalf of my employees with the PRS Plus Partner Programme?
Yes, you may. In addition, you can choose the contribution amount while the individual selection of funds under CIMB-Principal PRS Plus and CIMB Islamic PRS Plus is as per each of your employees’ preferences.
What are the benefits available to employers with the PRS Plus Partner Programme?
Employers who join PRS Plus Partner Programme by CIMB-Principal will enjoy the following benefits:
Keep your employees happy. PRS Plus Partner Programme is an effective way for employers to provide a valuable perk and set the tone as a
Be amongst the country's most
employers who are being socially responsible by taking an active role in helping employees increase their retirement savings.
A great benefit package is a determining factor to attract and retain the top employees. The organization can customise PRS Plus Partner Programme to promote
amongst employees, if the employer chooses to offer these services.
The employer can impose desired terms and conditions that employees must fulfil to be entitled to the employers' PRS contributions through
The employer can also
the contributions made by the employees to the PRS Plus.
PRS Plus Partner Programme services are provided with
no subscription fee
charge to the employer
imposed by CIMB-Principal.
The scheme provides a
way of enhancing an organisation's total remuneration package at no additional cost to the employer*.
* The 19% of the total remuneration of employees is inclusive of the mandatory employer's contribution to the EPF.
One of the
best employee benefits
you can give is an additional way for them to trim their income tax bill. The PRS may be used as a tax planning tool for employees. Employees can utilize the personal tax relief (provided the employee makes his or her own contribution).
*Vesting will only be available in early 2013
Will I have to brief my employees and handle all the subscriptions myself?
We have a member relations team who will assist you with the education and subscription processes.
How can I find out more about starting a voluntary contribution on behalf of my employees? What should I do next?
To find out more about PRS Plus Partner Programme for employers, you may contact us by email at
or contact our Customer Care Centre at (03) 7718 3100 during our office hours from 8.30am – 5.30pm, Mondays to Fridays and we will refer you to our PRS Corporate Sales Team.
PRS Plus Partner Programme For Employees
Can I personally contribute more than the amount contributed by my employer to my PRS Plus account?
Yes you can. You can choose to automatically and easily make additional contributions via salary deduction. Alternatively, you can also make a personal contribution through any of our authorised PRS Consultants.
After signing up for the PRS Plus Partner Programme, can I choose to stop my contributions?
Yes, you can choose to stop your personal contributions. However, all accumulated personal contributions will still remain in the PRS Plus.
What happen to my personal contributions if I no longer work for my current employer?
A change in employment will not affect your personal contributions except if you do so via a payroll deduction. The account is owned by the member whether the member signs up for the scheme(s) individually or through PRS Plus Partner Programme. The fully vested* amount will remain with the employee. The non-vested amount will be forfeited.
*Vesting will only be available in early 2013
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CIMB-Principal PRS Plus Disclosure Document
CIMB Islamic PRS Plus Disclosure Document
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