11 August 2017

[PRS Nomination] What should I take note?

From 1 August 2017 onwards, every Private Retirement Scheme (PRS) contributors can make a nomination on your PRS savings. The purpose of making a nomination is to make it easy for your loved ones to receive your gift in the event of your passing on. Without your nomination, your loved ones may encounter difficulties when making a withdrawal from your PRS account, which may be a lengthy process.

How to make a nomination???

First of all, we must understand there is a body called "Private Pension Administrator (PPA)". It is the central administrator for the PRS scheme with following benefits:

  1. Provide lifetime account management and reporting for PRS members
  2. Provide online access to PRS members’ accounts
  3. Provide one-stop center for PRS learning and information on retirement

The nomination is provided by PPA (not respective PRS providers). Meaning, the nomination will take effect on all the PRS money although you may have invested with a few PRS funds with different companies. No worry. PPA will act as the central person to deal with it. 

Please take note of the following summary of PRS nomination:

  • can nominate up to 6 persons;
  • there is no limit to the number of times which you can make a nomination;
  • any new nomination form submitted will be treated as the latest nomination and will supersede previous nomination(s) made;
  • only ONE PPA nomination form will apply to all PRS accounts;
  • nomination details will be available via members login via PPA’s website (www.ppa.my);
  • you will also receive a confirmation from PPA that a nomination has been made inclusive of your nomination details via your email;

Who can be named as a nominee/administrator?
  • A nominee can be either a Malaysian / foreigner with Permanent residence status in Malaysia.
  • You can nominate any ‘natural person' as a nominee/administrator. ‘Natural person' refers to individuals and does not refer to organizations, associations, societies, welfare bodies and others.
  • You are advised to nominate your next-of-kin such as your spouse or child/children and parents to administer your PRS balance. However, the nomination can still be accepted if you name those other than your next-of-kin.
  • You may nominate your child/children who is/are a minor as your administrator(s). However, a minor may only administer if he/she has reached 18 years of age.
  • If you pass away before the minor reaches 18 years old, the nomination is treated as revoked as the minor can’t act legally as an administrator. Instead, your PRS balance shall be paid to a lawful administrator of your estate.

Is there a time limit for a nominee to submit the Withdrawal upon Death of a Member ???

Yes. The nominee MUST submit the withdrawal form within one year upon member’s death. Otherwise, the nomination will be revoked and treated as normal withdrawal as per without nomination.

Who can be the witness for my nomination ???
The member will need to fill up the Nomination Form and must be completed, witnessed and signed by a Malaysian. The witness must:
  • Be of sound mind
  • Be 18 years and above
  • Not a named nominee
  • Not a spouse of a nominee
  • Not PRS Consultant (Your consultant CANNOT be your witness)
  • Not an employee of the PPA
  • Not PRS Provider

If I have written a Will, can my Will revoke my PRS nomination ???
NO. A Nomination shall not be revoked by any Will. This is similar to our EPF nomination where it is more powerful than a Will.

What are the documents needed ???
  1. Completed Nomination form (click to download), and
  2. A copy front and back of member’s (MyKad/Police Identification Card / Military Identification Card / Permanent Resident Identification Card (MyPR)/passport. Original Identification Card is required for verification of identity.

For forms related to the nomination, download here:

Source: PPA website

No comments:

Post a Comment

Finance Malaysia Blog appreciates your comment. Cheers!