Hi all,

quoted from the budget speech...got some questions regarding to this budget 2012...

1) what is 'Private Pension Fund' (or 'Private Retirement Scheme')??

2) what are the examples of Private Retirement Scheme??

3) A new tax relief up to RM3,000 on contribution to a Private Retirement Scheme and insurance annuity for 10 years
What does it mean??

Hope all sifu can help

Lagi, how will contribution to 10 yrs of life annuities keep pace with real inflationary cost of living expenses for retirees to retire with a comfortable life -will it dish out 'real inflation-adjusted' distributions?

Please consider this risk : Ten years later, this scheme may end up bankrupted, since Gov'ts can go bankrupt nowadays. What do you think of this current Gov't ?

This post has been edited by Hansel: Oct 10 2011, 01:35 PM

Our current GDP-to-debt ratio is the most concerning symbol to represent our current country situation..

But if i can still remember, we are already 52.6% in terms of GDP to Debt ratio.. What do you think it will be if someday we "achieve" 90%" in this ratio?

Most of us would have been half dead..

haha...no one yet to give me example of Private Retirement Fund...

This maybe?

http://www.hsbc.com.mt/1/2/insurance/financial-future/prp
http://www.unicover.co.za/

This type of Private Retirement Fund doesn't exist yet in Malaysia.
So Najib is just giving you "something" which you won't get "anything"

Thanks Dias

haha... so, all the while he mention about this PRF thing... it's just crap??

CIMB has plans in the works for PRF.

http://biz.thestar.com.my/news/story.asp?f...05&sec=business

ooo...waiting to see how's the plan

private retirement account - akan datang, still not yet have any

PRF - Better be discipline and safe in your own account. Seeing the current situation, soon or later the money might not have any values.

So the Retirement Plan is really not existed yet?

Haha... hopefully the government to announce something about this next year..

We who are in the private sector needs something from this after our retirement..

It's the best (dream on) budget ever!

This private retirement funds available in some insurance companies. For example, you pay RM3000/year for 20 years plan, then insurance company will pay you a sum/yr on 21st year onwards, this is consider retirement funds. For those need to pay 26% for income tax, RM3000 x 26% = RM780 exempted. This type of retirement plans definately give you better return than FD, somemore you get tax relief. You save RM780/yr x 10 years (only tax relief for 10 years) = RM7800, yet you still enjoy the saving return.

Hope i answer the question here.

Very well explained . . . Only product with PRU can be exempted for Tax Relief is PRURetirement Reward.
Find out more in the forum.

CIMB-Principal Asset Management welcomes SC’s nod for Private Retirement Scheme providers

URL: http://www.theedgemalaysia.com/business-ne...-providers.html

so..ur product is a Private Retirement Fund?

We have more details after since SC has started their engine for approving PRF related products.

Boost to private retirement savings

PETALING JAYA: The emergence of intermediaries as providers of private retirement schemes (PRS) will provide contributors the flexibility to invest in a structured manner and boost retirement savings, according to fund managers.

URL: http://biz.thestar.com.my/news/story.asp?f...28&sec=business

the tax relief for annuity could be utilised when you get into annuity product offered by insurance companies. im not sure about any other insurance companies but Prudential had created such account since 2 or 3 years back if im not mistaken. currently their annuity product provides tax relief of up to RM1,000 per year and no one knows how soon it will be revised to cater up to RM3,000. do check with your Prudential wealth planner

How do I go about it if I wish to grow my retirement fund via PRS?

In short, It is better than FD, similar to EPF. Cum tax saving for 10 years~

As it is meant for retirement. BNM n SC have restricted only can invest into low risk like - Govt Bonds, FD to ensure the PRS won't become speculation meanwhile to enjoy the RM3000 Tax Relief. This is like 2nd EPF to ensure u have money up to age 75~

If you are looking for high risk high return, this is not the cup of your tea. If you are looking forward for Retirement Planning cum Tax Relief, you definitely love it~


This post has been edited by andy_lyy: Apr 9 2012, 03:31 PM

those selected company need to submit the proposal fund/scheme to SC to get approval first in 6 months. So, The fund/scheme need appoval from SC first before available in the market.

http://www.theedgemalaysia.com/in-the-fina...-providers.html

Guys, don't rush into anything first until approved appointed intermediaries come out with approved products.

As I shared before. So far there is ONLY 1 product is approved by BNM. SC is controlling investment company. BNM is controlling banks and insurance company. More ppl are enjoying this PRS NOW~

This post has been edited by andy_lyy: Apr 18 2012, 09:43 AM

Please the attached link: http://www.skrine.com/index.php?option=com...=403&Itemid=613

The approval of the Securities Commission ("SC") is required before a person can establish or operate a Scheme (Section 139V).


To set up a PRS, the approval of SC is required.

yup. that sure. only 1 is approved up to today~~ :>


tq.

This post has been edited by andy_lyy: Apr 17 2012, 11:17 AM

SC has approved 8 companies. how come cant see Uni Asia?

The eight PRS Providers approved by SC so far are:

AmInvestment Management Sdn Bhd,
American International Assurance Bhd,
CIMB-Principal Asset Management Bhd,
Hwang Investment Management Bhd,
ING Funds Bhd;
Manulife Unit Trust Bhd,
Public Mutual Bhd, and
RHB Investment Management Sdn Bhd.

For ING Funds, currently we not yet have any product that is under PRS since the approval was just announced this month. Probably will take 2 to 3 months before we can launch a product that is suitable for PRS.

Good things are worth the wait!


Regards,
Gavin Lim from ING

Thanks Gavin for the info. I have verified the info over STAR newspaper on the 6th April, 2012.
http://biz.thestar.com.my/news/story.asp?f...00&sec=business

I was wondering how come andy_lyy claims that only one company has the approval?

More sharing to all,

SC controls those INVESTMENT COMPANIES, BNM controls those INSURANCE COMPANIES/ BANK.

Insurance companies already eligible to join this PRS is because they have existing deferred annuity, yet, the product need to restructure to comply to the BNM compliance so that can get RM3000 tax relief. The conventional deferred annuity / saving plan cant get this tax relief.

BNM and LHDN have set guideline/compliance for the PRS/ Deffered Annuity to entitle RM3000 tax relief.

Well, they are 2 corporates responded swiftly to come out with the latest financial product which is COMPLY to the BNM guideline.
I am helping for distribution for this product. (but i am not from UniAsia~)

Companies get approval to join this PRS. Please read carefully, they need to come out with the product which must comply to the guideline~

so far only the UniAsia PRODUCT is complied to the guideline.

Retirement planning is good to start early~

Extra sharing, the power of compounding.
http://en.wikipedia.org/wiki/Compound_interest
http://www.mindyourfinances.com/money-mana...vings/081104-04

Anyone wanna plan for retirement EARLY and get the tax relief RM3000, feel free to contact me~ I am ready to share~



This post has been edited by andy_lyy: Apr 18 2012, 01:04 PM

Hi all,

If anyone is interested to read a FAQ on PRS, please see my file attached.

By the way, SC was announced the eligibility requirements as a PRS Provider on last December, and the INITIAL LIST of 8 approved PRS Providers was announced about 2 weeks ago. I wonder how a company can come out with a plan which comply with the latest PRS guideline so fast? Some more the company is still not yet listed in the INITIAL LIST.

Some company may already have some deferred annuity products. However, these products are definitely NOT ELIGIBLE for the tax incentives under PRS Scheme. The company should seek for SC's approval as a PRS Provider first, then will be given 6 months to comply with the conditions of their approval, which includes obtaining SC's approval for their schemes and funds under their PRS.

andy_lyy, if what you said is true, would you kindly provide some proof? People will listen to you if you have newspaper or any trustworthy source of info to support what you said.

To all the agents of PRS here, may I know how many % of the amount paid to PRS are deducted to pay as commission to agents?

PRS, what the ROI? Investing into what type of instruments? What's the source of fund, cash?

You may call to Uni Asia and verify~or your MD shall know this, perhaps.

I am here for provide financial planning service (now kinda hot is this PRS) and I am not agent from UniAsia~

Hahaha... I like the way you said ..

at this rate retiring early would mean our doom haha

pls advise how you count. tq.

andy, pm me details as to how to get some brochures from you.

Thanks for the support. Feel free to boom me any questions~ I am will to help~ :>

Don't forget Prudential also got...

The Star

According to what i see here in The Star article, some of the companies are offering high risk types of PRS to the public..

Well, from what i see, since its for retirement, putting those money at risks will be not my type...

I rather be conservative since those collective monies will be for my retirement, therefore, i rather it be more less risky.. ^^

Good, annuity product shall suitable for you as it is low risk, the investment is control by LHDN which only allowed in low categories like Govt Sexurities, FD, Treasury Bond.

Hi all,

Just would like to find out:

Is the 'annuity insurance' = 'PRS'? Will be given a personal tax relief of up to RM3,000.

OR

'annuity insurance' is different from 'PRS', we can personal tax relief of up to RM3,000 EACH (up to total of RM6,000)

Thanks.

---

Added on May 5, 2012, 12:31 amSource: The Sun Daily, Oct 9th, 2011 http://www.thesundaily.my/news/171238

During Budget 2012, the Government has proposed a new tax relief of up to RM 3,000 on contributions to;

a. Private Retirement Scheme (PRS)
b. Insurance Annuity for 10 years.

Both Private Retirement Scheme (PRS) and Insurance Annuity for 10 years are totally different products, hence are mentioned SEPERATELY. As far as PRS is concerned, it is only extended to products managed by unit trust management companies. I believe one of the forumers here has confusingly quoted a product from insurance company (annuity) as part of PRS as both products share the same benefit on tax relief.

This post has been edited by felixwang: May 5 2012, 12:44 AM

Both Annuity Insurance for 10 years and PRS are not the same thing. However, a person can only enjoy up to RM 3,000 on personal tax relief even though he/she has both different products.

This PRS/ Deferred annuity is planned for retirement.

After checking at PIDM website, Insurance products is under insured while unit trust/ investment is NOT covered by PIDM.
Do you wanna risk your retirement fund?

Save only 5% of annually income for your retirement while enjoying tax relief, 95% left, your may divide into property, unit trust, shares, commodity, is up to personnel interest.

Again, this tax relief only for 10 years. the choice is in your hand.

This post has been edited by andy_lyy: May 9 2012, 09:58 AM

I see. If save only RM3000/ year will be ok to me~

Najib always announce some 'new thing' too early.

Securities Commission only manage to get the Guideline out in April 2012.

Product may only be available for the market by early 2013.


http://www.sc.com.my/main.asp?pageid=1119&...=&linkid=&type=

---

Added on May 17, 2012, 9:01 amWhat are the available product that qualify this new RM3,000 tax relief?

RM3,000 x 26% (max tax bracket) = max. RM780 saving in tax

Not a great deal (as tax relief limited to RM3,000) but seem better for those in highest tax bracket.

This post has been edited by AskChong: May 17 2012, 09:01 AM

Bro,

PRS or Deferred Annuity is able to get this tax relief RM3000.

Well, while preparing for own retirement fund while getting tax relief, it is up to u~

Does anyone have Uni.Asia agent contacts preferably leng lui la pls pm me...

Najib is the best talker in Malaysia. He talks only.

After he talks... then only these people start working on it to make it materialise....

Until today, nothing yet.... so, effective YA2012? LOL.....

left 5 months plus, for those wish to fully utilise this tax relief facility for this year.

Btw, is there any minimum or maximum amount of the saving?

MUTB to launch several funds under retirement scheme

KUALA LUMPUR: Manulife Unit Trust Bhd (MUTB), a unit of Manulife Holdings Bhd, aims to launch several funds under the private retirement scheme (PRS), earliest, by October this year.

Read more: MUTB to launch several funds under retirement scheme http://www.btimes.com.my/Current_News/BTIM.../#ixzz1wweLJOrA

thanks for the sharing~~

most companies are trying to prepare this retirement scheme~

kindly pm me if wish to enroll into this retirement planning NOW~

PRIVATE RETIREMENT SCHEME, PRS is referring to Unit Trust product and NOT to be confused with any other product. Only Unit Trust Consultants with "PRS Distribution" license are ALLOWED to promote and distribute PRS to the public.

UTCs are required to attend to a "seperate" course and an examination prior to obtaining the PRS Distribution license. It is an entirely different license to the existing FIMM license. This course is ONLY opens to UTCs who have been in the industry for 3 years and above.

Thank you and regards,

So many license wan... Where got fun? Just to maintain your CPD only will eat up all your time.

Best to get a CMSRL from SC, then apa pun boleh.

"One license to sell them all" - a parody of the lord of the ring quote.

Xuzen

This post has been edited by xuzen: Jun 14 2012, 10:08 PM

thumb up~~~

A lot of this talk in the news lately by our govt, the main problem is, the low purchasing power of Malaysians.

Not talking to the 1.3% of top earners in Malaysia, but the bottom 65%.

Many are already struggling to get by on day-to-day expenses.

When EPF withdrawal age comes, they will cash out and relieve their tight cash flow.
For many, it's a first time in their life, or for a long time that they can splurge on something. Maybe even first time holiday.

If many are facing this problem on a daily basis, even with PRS providers in place, the people who need it most may find difficulty in contributing.

tis is the reality. many ppls strugle to save at least rm100 montly.

Yea. So this product actually is getting the middle income group votes. PRU is getting near~ and many PRU products are coming out soon~~

anyone can answer my question? any minimum saving?

the products not in the market yet

I heard that the Private Pension Administrator (PPA) and the first few Private Retirement Schemes (PRS) will be finally launched next week.

which company?

we have PRS, and then today i read Star newspaper..we have VOLUNTARY PRS....

woot ???

http://thestar.com.my/news/story.asp?file=...3233&sec=nation

This PRS is additional to your EPF. If you are in the highest tax bracket, it make sense to contribute just to get the RM3K tax exemption, right?.

Reference Site for the PRS : http://www.ppa.my/


This post has been edited by whizzer: Jul 19 2012, 12:03 PM

This is very informative
I thank you sincerely

Is this private retirement fund open to foreigners working in Malaysia?

yes. but remember you cant withdraw till retirement age or permanent departure from malaysia

This post has been edited by idoblu: Jul 20 2012, 08:33 AM

the only good thing is the RM3,000 tax exemption
even that is only benefiting the high income earner.

No concrete detail regarding the PRS investment structure, e.g. return, contribution, risk and so on.
How are we going to invest?

i dont see why people would want to invest in this PRS. So restricted. There is no difference if you were to invest it yourself in the same unit trust funds. Only thing missing is the tax relief.

When you cant withdraw the money, you can only stare as the price drops. No returns guaranteed, no capital guaranteed. And they called this a retirement fund? Might as well put more money into EPF

The game IS the tax relief - imagine if one is at the 26% level, one gets "immediate returns" of 26% then only minus the cost of these PRS (service charges lar, what not lar).

In addition, cannot withdraw doesn't mean one can't manage it by switching funds or % in bonds/fixed income VS equities right?
It hasn't been stated so thus far.
Heck, even my EPF $ invested into mutual funds can be manipulated by me by SWITCHING to/fro Bond Funds for Equity Funds, WITHOUT withdrawing from the fund house back into EPF.
Even further to that, one can also use EPF $ to invest into KLSE stocks (self-directed) via some investment houses, instead of the fund manager doing it for one.

There are many ways to manage bro.
Put $ only in EPF and when Gov touch touch, we people scream.
Now have a different channel WITH tax relief, also scream. Susah lar macam ni kan?

---

Added on July 20, 2012, 6:07 pmJust curious - have U ventured into it by calling one of the several fund houses?
Anyhow, normal lar - Boss says "A"... when "A" isn't fully ready yet.
If it's like the current schemes of EPF --> Mutual Funds are anything to go by, then shd be manageable and simple enough. I'm hoping the service charges are even lower heheh

This post has been edited by wongmunkeong: Jul 20 2012, 06:08 PM

I have just attended a PRS briefing organized by Pub-Mut for their UTC.

So this is the summary:

i) Low Sales Charge < 3%, no fix rate yet.... waiting for Sec-Com to iron out the detail

ii) Low Mngt Fee < 1.5%, again still waiting for Sec-Com to iron out the details with the PRS service provider.

iii) UTC need to get a seperate lic to sell this scheme. This lic comes under Sec-Com and not FIMM. UTC will need to pay an additional licensing fee to Sec-Com to sell this product.

iv) For the time being, only UTC with 3 years experience and above can sell this scheme, but they must attend a PRS familiarisation course which is a two full day course to be run by the respective PRS provider. The course will also earn the UTC 8 CPD pts.

v) Those who have less than three years experience need to sit for a Sec-Com exam. Details to be out later.

vi) After Jul-2013, all UTC who wishes to promote PRS products need to sit for the exam without exception.

vi) CFP, IFP, RFP, ChFC title holder are exempted from the exam but they must also attend the two full days familiarisation program.

vii) There is a RM 3,000.00 tax relief, contribution is flexible and is not statutuory. Contributor can only get 1/3 of their moonies post 50 y/o and all after 55 y/o. The govt is mulling extending this to 55/60 years old. If the contributor chooses to exit the scheme earlier, there wil be an 8% one time exit fee imposed.

My thoughts:

i) This product will probably fail if they expect UTC to sell it. The commission will be very low and UTC need to pay for a seperate license. So the drive to push for this product will not be there.

ii) Contributors will most like stay away from this as their money will be lock up until they turn 55 y/o.

iii) This scheme is going to fail as the carrot does not match the stick.

Xuzen

i really pity the 9 providers. do you know how much time, effort, and money they have to spend to sell this scheme? in the end, no one will buy.

the tax relief is only up to 10 years. after 10 years makan sendiri

Any link to confirm that relief up to ten years only
Tax relief for individual.
RM3000 tax relief. If MR A buys RM3000 for every year for ten years =RM30,000 total investment for PRF. Divest other funds to other investments.

So, total tax saving for Mr. A=RM30,000x26%=RM7800.

Cost = RM30k-RM7.8k=RM22.2k

This post has been edited by Denis: Jul 21 2012, 11:31 AM

I agree with xuzen~ just went for the briefing. It might not tempting for UTC to promote this since it might not cover the basic expenses.

while, for deferred annuity, definitely ppl are willing to share it.

i do have financial product for this tax relief cum retirement... anyone are interested to know more can pm me~ if share here, will be deleted by admin..

most ppl know the conspiracy of PRS
- to reduce govt burden to take care of ppl in future
- to push up the capital of share market, as PRS is unit trust. the more capital in share market, the more govt can manipulate.. as we can c in FGVH, world 2nd highest IPO after FB..

therefore, I m just sharing the deferred annuity
- insurance based product
- entitle new tax relief
- stable wealth accumulation
- if u have some FD, perhaps u can compare this with FD

why govt din promote and say about deferred annuity although it can get this tax relief also? pls refer the statement above, govt has not much benefits by promoting this.

here is the link for coming 10 years tax relief, from Malaysia Institute of Accounts (MIA)
(page 98, btm part, the tax relief only starts on 2012 and refer the note 5 at the page 101)

http://wcoa2010kualalumpur.com/new/downloa...ECTION_B/B7.pdf

good luck and happy researching~~

btw, who wish to fully utilise this tax relief by this year, feel free to contact me~
i am representing a wealth management cooperation. I am focusing on utilise of tax relief.

cheers~

This post has been edited by andy_lyy: Jul 30 2012, 11:33 AM

Government never set any minimum. Individual PRS provider can set their own. Public Mutual will set minimum at RM1000.

i just attend the briefing and apply for the license. the product going to be in the market near future. most probably by september.

Kparam77,

what is your thought or opinion on this new development from the perspective of agent and that of a investor?

Thanks,
Xuzen

as a investor:
- low SC.
- tax relief for 10 yrs.
- core-funds as default choosing the funds to reduce the risk. (good move)
- performance? not sure since no past record. but i believe more or less as UT performance.
- is good for long term investment as reitrement saving.
- personaly believe, the return shud more than epf returns over the time.



agent:
- low SC= low commission

last 2 months who those wanna utilise the tax relief while prepare for own retirement fund~ good luck~~

Hi all, if you do want to save in PRS, please do contact me via pm. Free advice to public =)

hye please pm me...

Hi, please pm me ur number, I will contact u soon =)

pmed...

Private Retirement Scheme

The eight PRS providers that have been approved are:·
AmInvestment Management Sdn Bhd·
American International Assurance Bhd·
CIMB-Principal Asset Management Bhd·
Hwang Investment Management Bhd·
ING Funds Bhd·
Manulife Unit Trust Bhd·
Public Mutual Bhd·
RHB Investment Management Sdn Bhd

Benefits of PRS

-To complement the current pension landscape by:Creating an alternative platform for accumulation of voluntary retirement savings to complement existing mandatory retirement schemes.
-Enhancing options available for individuals in terms of choice of quality providers and funds for their retirement needs.Extending coverage (on voluntary basis) to all segments of the population.
-To add depth to the capital market as a source of long-term funding for various capital market activities and to enhance the role of the investment management industry.
-Wider stimulus effect in contributing to the economic growth and development of Malaysia.

Tax incentives

-As announced in Budget 2012:Tax relief up to RM3,000 per annum will be given for an individual’s contribution to the PRS for the first 10 years from assessment year 2012; and
-Employers will also be given tax deduction on contributions to PRS made on behalf of their employees above the EPF statutory rate up to 19% of the employees’ remuneration.
-A tax exemption is also provided on income received by the funds under the Schemes.




This post has been edited by MilesAndMore: Oct 11 2012, 02:17 PM

maybe you can enlighten us first on the following questions:
1. how does it work?
2. what is special about Private Retirement Scheme?
3. can you do a comparison between unit trust with Private Retirement Scheme?

thanks for your explanation in advanced, i'm sure it will benefits many of us

This post has been edited by property101: Oct 11 2012, 01:26 PM

Im in PRS training class right now. LOL.

well guys, you can ask me any information about PRS and I can tell you where they invest how they do it too. Most probably you can apply for it this month. So if you want or interest in it, you can get it from me too : ) cheers.

so Hwang IM was the 1st PRS provider approved by SC.

Yes I have enrolled with Hwang DBS last Friday......Hope it looks good in term of returns.

Yes, the fund actually managed by fund manager from former singapore DBS bank fund manager, the performance record is good. Anyway I'm from hwang, do ask me any ：)