PRS Youth Incentive is for Malaysians only
Individuals may be existing Private Pension Administrator (PPA) account holders or new members who make a gross contribution of RM1,000 within any calendar year between 2014 to 2018 in a single PRS fund of a single Provider
Individuals must be aged between 20 and above but have not reached the age of 31 at the time the member reaches the minimum gross contribution of RM1,000 within a calendar year
Contribution within the calendar year may be on a lump sum or staggered basis
Any employer contribution are excluded from the incentive programme
You may continue to make contributions into several funds offered by different PRS Providers. However, the PRS Youth Incentive applies only to the first RM1,000 that was contributed in a single PRS Fund of a single PRS Provider. This does not include any fund that was transferred from one PRS Provider to another. Transferring of fund from one PRS Provider to another is not taken as a contribution, but merely a transaction.
On 1st January 2014, Mr. X (aged 25) has transferred RM1,000 from PRS Provider A into CIMB-Principal’s PRS Plus Equity fund. Mr. X is not entitled to the PRS Youth Incentive as the RM1,000 were contributions made before 1 January 2014. He would be eligible if he were to contribute an additional RM1,000 into CIMB-Principal’s PRS Plus Equity Fund (single PRS Fund of a single PRS Provider).
You do not have to apply for the PRS Youth Incentive. The PPA will identify individual account eligible for the incentive based on the cut-off date of end June and December every year (2014-2018). They will ensure each youth is only eligible once for the incentive.PRS Providers are responsible for creating the units in sub-account A of the respective funds upon PPA’s instruction.
No, you will not receive the PRS Youth Incentive in cash. Instead, you will receive RM500 in the form of units of the PRS fund in which you have contributed RM1,000. The number of units you are entitled to depends on the NAV per unit of the PRS fund at the day of disbursement.
On 1st January 2014, Mr. X (aged 25) has contributed RM1,000 into CIMB-Principal PRS Plus Growth fund. He has obtained 2,000 units with NAV per unit of RM0.50. When the PRS Youth Incentive is paid out on 30th June 2014 (day of disbursement), NAV per unit of CIMB-Principal PRS Plus Growth fund is at RM0.55. Hence, Mr. X will receive 909.09 units of CIMB-Principal PRS Plus Growth (909.09 units X RM0.55 = RM500).
The RM500 will be converted into units of the same fund in which you have contributed RM1,000. In the event where you have a fund allocation into several funds by a single PRS Provider which resulted in RM1,000 in each fund, the RM500 will be divided equally between the Funds.
You may view the transaction via PRS Plus Online. If you have not received your Login ID/Password Mailer or should you require any assistance, please contact our Customer Care Centre at (03) 7718 3100.
Alternatively, you may also log into your PPA online account to view the transaction.
The RM500 is added into your PRS portfolio. Thus, it would be charged the annual Management Fee of 1.40%. However, the Sales Charge is waived on the RM500 incentive.
The RM500 incentive will be credited into sub Account A. Hence, no pre-retirement withdrawal is allowed.
The RM500 incentive is not tax deductable as it is not considered as a contribution by the PRS Member. The RM500 incentive will only increase your unit holding and portfolio value.
If you have more enquiries, you may call our Customer Care Centre at (603)7718 3100 or email to firstname.lastname@example.org. You may also visit our website at www.cimb-principal.com/prs
Alternatively, you may contact the PPA at 1300 131 772 or visit the official website at www.ppa.my
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