What is Private Retirement Scheme (PRS)?
Most employees in Malaysia currently save for their
retirement through existing mandatory retirement savings scheme. However,
recent studies have shown that their retirement funds are often exhausted
within a short retirement period of three to five years. With increasing life
expectancy and rising standards of living, many find that their retirement
funds are not enough to give them the retirement lifestyle they want and
encounter financial difficulties when really they should be enjoying their
golden years then.
To address this issue, the Malaysian Government introduced
the voluntary Private Retirement Scheme (PRS) as an initiative to accelerate
one's long-term retirement savings. Under PRS, an individual can plan for their
retirement better by increasing their savings on a voluntary basis through
various PRS funds, according to their risk and return profile.
In other words, you can now save even more money for your
retirement to have a better and a financially secured future!
The PRS Framework
PRS is a regulated capital market services activity that
comes under the supervision of the Securities Commission Malaysia, who ensures
the proper functioning of the PRS industry and investor protection through
regulating the following four intermediaries.
PRS Key Features – at a glance
What is it?
A voluntary retirement savings scheme structured by private
sector fund providers licensed and approved by the Securities Commission
Malaysia.
A tax-efficient vehicle for individuals to save for
retirement.
To complement your mandatory retirement savings scheme.
Why you need it?
Enables additional savings for your retirement.
Protects against inflation and provides adequate returns
upon retirement.
Allows individuals or employers to voluntarily contribute
into a retirement savings scheme.
Allows private company employees and self-employed
individuals to voluntarily contribute into a retirement savings scheme.
Ultimately, to ensure quality of life at retirement!
How PRS can benefit you
As an employer
i. Retirement benefit management and ease of administration
PRS enables you to have your existing or new retirement
benefit program to be professionally managed by pension expert fund managers
therefore giving you ease of administration whilst still maintaining control of
the entire retirement program.
ii. Cost
savings
Using PRS as your own retirement benefit program may
potentially reduce cost because it does not incur activities and expert advice
involved in self-managed pension programs.
iii. Employees'
productivity booster
PRS offers employee engagement, training and empowerment to
take responsibility of their own retirement financial well-being thus making
them happier and enhancing their productivity.
As an employee
PRS allows you to better plan for your retirement as an
additional form of savings to complement your existing retirement savings and
also offers personal tax relief.
As a self-employed individual
PRS complements your existing retirement savings and lets
you to enjoy personal tax relief. It also allows you to separate business
funding requirements from personal retirement savings which is creditor-proof.
So your retirement funds remain intact no matter what happens to your business.
What is OnePRS Scheme (OnePRS)?
Save now for your retirement with Kenanga OnePRS
Kenanga introduces OnePRS, its voluntary private retirement
scheme to complement existing mandatory retirement savings scheme and other
retirement savings. By providing a choice of funds with different risk and
return policies to meet your life needs, OnePRS encourages you to save now for
your future.
It is also designed to provide you with the flexibility of
receiving your retirement savings either as a lump-sum payment or through a
regular monthly pension income while it remains invested in the fund of your
choice.
Take control of your retirement with OnePRS - Retirement
Made Easy.
OnePRS Scheme Funds
Meeting your retirement needs
Choose from default core funds and self-selection funds
according to your risk and return requirements.
1. Kenanga OnePRS Conservative Fund
2. Kenanga OnePRS Moderate Fund
3. Kenanga OnePRS Growth Fund
Fees and Charges
Minimum
initial investment
Lump
sum: RM1,000 per Fund
Regular
contribution plan: RM100 per Fund.
Minimum
additional investment
RM100
per Fund
Minimum
redemption amount
RM250
or 500 units per Fund
Minimum
switching / transfer amount
RM250
or 500 units per Fund
Minimum
monthly withdrawal
Minimum
units withdrawn based on last trading day's price equivalent to at least RM250.
Fees
and charges paid to Kenanga Investors Berhad
Sales
charge (for initial and subsequent contribution)
Lump
sum: Up to 1.50% of NAV per Unit of the Fund.
Regular
contribution plan: Nil.
Switching
fee (between funds in Kenanga OnePRS Scheme)
Nil
Transfer
fee (to another PRS provider)
RM25
per transaction
Redemption
charge
Nil
Fees
charged to the Fund
Annual
management fee
1.55%
per annum of the Fund's NAV.
Annual
scheme trustee fee
0.015%
per annum of the Fund's NAV or a minimum fee of RM60,000 per annum for the
Scheme.
PPA
administration fee
0.04%
per annum of the Fund's NAV.
Fees
and charges paid to PPA
PPA
account opening fee
RM10.
PPA
annual fee
RM8
charged to Members or the employers who make contributions on behalf of the
Members. Not payable for the year the OnePRS account is opened and not payable
for the year(s) where no contributions are made.
PPA
pre-retirement withdrawal fee
RM25
per transaction.
PPA
transfer fee (to another PRS provider)
RM25
per transaction.
PPA
administration fee
0.04%
per annum of the Fund's NAV.
The
charges paid to the PPA as mentioned above, may be collected by Kenanga
Investors Berhad acting on behalf of the PPA.
