KUALA LUMPUR (July 31): Contributors to the Private Retirement Schemes (PRS) can now name nominees to facilitate and expedite the withdrawal of their balance in the event of their demise.

Private Pension Administrator Malaysia (PPA) said it will launch the nomination process tomorrow, adding that it expects 20% of PRS members to submit their nominations within the first 12 months.

“Your gift of love can continue with a simple nomination for those you care most,” said PPA chief executive officer Husaini Hussin, in  a statement today, stressing that the nomination document will supersede all wills.

PPA also announced that PRS members who suffer from permanent total disablement, serious disease or mental disability will be able to withdraw the full sum of their PRS account.

“This new service will help expedite members’ access to their PRS account during their time of need,” it said.  

Previously, the full sum can only be withdrawn when members reach 55, migrate, or in the event of death.

PPA said some 250,000 people are subscribing to PRS, a significant achievement given that it is a voluntary savings scheme for Malaysians to save more for their retirement.

According to PPA, the steady stride of new members is partly due to the incentives offered by the government, including annual tax reliefs for both individual (up to RM3,000) and employer contributions (up to 19% of employees' remuneration), and the one-off RM1,000 incentive to qualified youth members.

It is also due to the fruitful cooperation between key stakeholders — PPA, Securities Commission Malaysia, and the eight PRS providers, said PPA.

The eight providers are Affin Hwang Asset Management Berhad, AIA Pension and Asset Management Sdn Bhd, AmFunds Management Berhad, CIMB-Principal Asset Management Berhad, Kenanga Investors Berhad, Manulife Asset Management Services Berhad, Public Mutual Berhad and RHB Asset Management Sdn Bhd.