PRS Funds List Update and How to make PRS Transfer ? (Dec 2015)

Since the first PRS fund was launched in year 2012, many Malaysian already invested in it because of the PRS Tax Relief and PRS Youth Incentive given by the government. After awhile, many of us started to compare different funds from different PRS providers. It's very normal. So, the information below may helps you.

First, there are still 8 approved PRS providers in the market. But, number of funds already increased to a total of 50 PRS funds for us to choose from. CIMB-Principal has the most number of funds with 10, while RHB has the least at 3 only. Please refer to below picture.

Can I transfer from one provider to another?

Answer is YES. This is a stark different if comparing to normal unit trust investment, whereby investors cannot simply change company. In unit trust investment, an investors wish to change company must redeem and buy again. Coupled with higher sales charge imposed by unit trust investment, investors will be at the losing end.

However, with the forming of centralized administrator called Private Pension Administrator (PPA), PRS investors can request to transfer their funds from one PRS provider to another provider easily with minimum fees. Please refer to below table of the fees imposed for each transfer transaction:

* Please take note that the RM25 transfer fee imposed by PPA was waived until further notice



Any conditions before an investor is allowed to make a transfer?

• Transfers are permitted per PRS Provider once only in a calendar year;
• The first transfer is being made after one full year from the first contribution to any fund under any scheme managed by the Transferor Provider;
• There had been no prior transfer with the Transferor Provider in that calendar year;
• There is sufficient units in the fund(s) selected by the member for transfer;
• Each transfer request is only between two PRS Providers which must involve a transfer of one or more funds from the Transferor Provider to one or more funds of the Transferee Provider; and 
• All accrued benefits to be transferred from a particular fund must be transferred correspondingly to one other fund managed by the Transferee Provider. 

* Transferor = the PRS provider that you want to transfer money OUT
* Transferee = the PRS provider that you want to transfer money IN

Example, if you want to transfer your PRS funds from Public Mutual to Affin Hwang. The transferor is Public Mutual and the transferee will be Affin Hwang.

You may download the PPA transfer form here and submit to the PRS provider that you want (Transferee) together with their account opening form.

Source: Private Pension Adminstrator (PPA)

This article was contributed by Alex Yeoh, a licensed financial planner and corporate PRS distributor who represents multiple PRS providers.

You may contact Alex Yeoh via email alexyeoh@vka.com.my or follow his Facebook fans page.