The government introduced Nomination in the Private Retirement Schemes (PRS) which is a voluntary contribution pension scheme to encourage people to save more for their retirement other than EPF contributions. When you invest in the Private Retirement Schemes, you will automatically be enrolled as a member of Private Pension Administrator (PPA) Malaysia. Therefore, you are allowed to make a nomination in the Private Retirement Schemes for your loved ones to avoid going through the hassle and a lengthy estate administration process if you are no longer around.
What are Private Retirement Schemes (PRS)?
Private Retirement Schemes (PRS) is a voluntary long-term savings and investment scheme designed to help you save more for your retirement. PRS seeks to enhance choices available for all Malaysians whether employed or self-employed to supplement their retirement savings under a well-structured and regulated environment. Each PRS offers a choice of retirement funds from which individuals may choose to invest in based on their own retirement needs, goals, and risk appetite. The fund options under PRS are intended to enhance long-term returns for members within a regulated framework.
Private Retirement Schemes (PRS) Objective
A high-income nation must have a sound and sustainable social security framework to ensure adequate retirement savings. The PRS is an integral feature of the private pension industry as part of the Economic Transformation Programme under Entry Point Project 6 (EPP 6). With the objective of improving living standards for Malaysians at retirement through additional savings. With the regulatory framework developed by the Securities Commission Malaysia, PRS forms the 3rd pillar of Malaysia’s multi-pillar pension framework.
Reasons to Nomination in the Private Retirement Schemes (PRS)
The purpose of making a Nomination in the Private Retirement Schemes (PRS) 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.
Member’s Nomination & Persons to Nominate
When you invest in PRS, you are automatically enrolled as a lifetime member of PPA. As a member, you may make a nomination for the purpose of easy disbursement of your PRS balance in the event of your demise. Without making any nomination, the investment in the PRS shall form part of the member’s estate and will be claimed by the member’s personal representative ie the Executor or administrator. And, distributed according to the Will or the Distribution Act 1958.
As a member, you can nominate any individual person as your beneficiary subject to no more than six (6) individuals. If any nominee predeceases the member without making a new nomination, the portion of that deceased nominee shall be paid to a lawful executor or administrator of the member’s estate. Anyway, the other nominees still can claim their respective portions according to the nomination as a beneficiary.
However, if the nominee dies after the member’s death but before he/she makes any claim, that portion shall form part of the nominee’s estate. And, shall be paid to the lawful executor or administrator of the deceased nominee’s estate.
Steps to Make a Nomination in the Private Retirement Schemes (PRS)
Quick check when making a Nomination in the Private Retirement Schemes (PRS)
- The nominee must be an individual (not welfare bodies/organizations/ societies)
- Nominee and witnesses do not have to be present when the Nomination Form is submitted
- The witness must be of sound mind, 18 years and above, and not a named nominee
PRS Nomination FAQs
1. PRS Nomination by a Muslim Member
For Muslim members, the Nomination in the Private Retirement Schemes (PRS) is the process of naming an individual(s) as an administrator who can withdraw the balance in a member’s PRS account upon the member’s death.
In the event a Muslim member completes the nomination process then. When he or she passes away, the person(s) nominated in the form shall receive the balance of the PRS holdings as an administrator. As an administrator, the person(s) will be responsible to distribute such an amount in accordance with Islamic Law.
If the Muslim member elects not to make a nomination, the balance in the PRS account shall be paid to a lawful administrator of the member’s estate. Please visit PPA’s website for more information on payment upon death of member without nomination or speak to your PRS Consultant.
Making a Nomination in the Private Retirement Schemes (PRS)
1. Why do I need to make a nomination?
You are encouraged to make a nomination to facilitate and expedite the withdrawal of your PRS balance by the nominated person(s) in the event of your death. It also provides a sense of certainty to members that their PRS balance will be administered by the person(s) of their choice. If you opt not to make any nominations, your balance will be distributed in accordance with Islamic Laws. This process, however, may take longer.
2. When can I make a Nomination in the Private Retirement Schemes (PRS)?
You can make a nomination at any time after a PRS account has been opened by completing the PPA Nomination Form
3. Where can I obtain the PPA Nomination Form?
You can download the PPA Nomination Form here or obtain the form from any PRS Providers or PRS Consultant.
4. Am I eligible to make a Nomination in the Private Retirement Schemes (PRS)?
Only members who are:
- A Malaysian citizen; OR
- A non-Malaysian citizen who has obtained a Permanent Resident (PR) status in Malaysia is eligible to make a nomination.
5. Who can be named as a nominee/administrator?
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 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.
6. Is there a limit to the number of nominees I can appoint?
You may nominate one (1) individual or several individuals subject to not more than six (6) individuals.
7. Is there a limit to the number of times that I can make my nomination?
No, there is no limit to the number of times which you can make a nomination. However, please inform that any new nomination form submitted to PPA or the PRS Provider will treat as the latest nomination and will supersede previous nomination(s) made.
8. How do I make a Nomination in the Private Retirement Schemes (PRS)?
You required to meet your PRS Consultant/ PRS Provider/ PPA in person to submit the following documents which must be complete and in order:
- PPA Nomination Form; and
- A copy front and back of the Identification Card (MyKad/Police Identification Card / Military Identification Card / Permanent Resident Identification Card (MyPR)) of the member.
The PRS Consultant/ PRS Provider required to sight your identification card and verify your identity. The relevant PRS Provider would then extend the forms to the PPA. Alternatively, you may submit the form directly to PPA.
9. Do I need a witness when making a nomination?
Yes, a witness required. You can choose anyone who is 18 years old and above and of sound mind to be a witness to your nomination EXCEPT the following persons:
- the persons selected as nominee;
- the spouse of the nominee;
- an employee of the PPA; or
- an employee/consultant of the PRS Provider.
The witness not required to be present in person when you submit the nomination form to PPA or the PRS Provider.
10. When will my nomination be effective?
Your nomination will become effective when a completed and witnessed nomination form received by a PRS Provider/ PPA.
NOTE: Processing time will be dependent on the completeness of the form and supporting documentation.
11. How do I make changes to my PRS nomination?
You can complete a new PPA Nomination Form. Your new nomination will supersede the earlier nomination which you have made.
12. I have more than one PRS account as I have investments with multiple PRS Providers. Can I fill different nomination forms to provide different nominees for the respective PRS account?
No, only ONE (1) PPA Nomination Form will apply to all PRS accounts.
13. How can I check my nomination?
Your nomination details will be available upon logging onto PRS Members’ Portal 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.
14. How can I revoke my Nomination in the Private Retirement Schemes (PRS)?
You may complete and submit a Revocation of Nomination Form to your PRS Provider/Consultant/PPA. If you wish to revoke your previous nominations made and do not wish to nominate any other persons to receive your PRS balance upon your death.
For your information, there are other circumstances as set out below which would also revoke nominations previously made by members. These circumstances are:
- Upon the death of all of the nominee(s) stated in the PPA Nomination Form during the lifetime of the member;
- When a member submits a new PPA Nomination Form;
- Where a nominee fails to submit the withdrawal form within one (1) year from the death of the Muslim member (The one (1) year deadline is to ensure the nominee(s) take(s) action as soon as possible to expedite the distribution of the PRS balance); and
- Where the nominee is legally incapable to act as an administrator. For example, under the age of 18 or is certified as having a permanent total disability or mental disability.
NOTE: A Nomination shall not revoked by any Will.
15. Do I have to update my nomination when there are changes to my circumstances (e.g. marriage, childbirth, death of my nominee)?
If your circumstances changed (e.g. marriage, birth, death of a nominee), you encouraged to update your nomination to keep it relevant with your current circumstances. If you do not update your nomination, the persons stated on the PPA Nomination Form will receive the balance in the PRS account.
Example: Your current nomination form lists down your father and mother as your nominees. You have just gotten married and would like to include your spouse as the nominee in addition to your parents. You will need to obtain a new nomination form and fill up the details of your parents and your spouse.
16. What happens when a nominee predeceases (dies before) me?
If a nominee dies before you, this will not affect distribution to the other nominees. Other nominees can carry on the obligation to claim as an administrator. However, the portion allocated to the deceased nominee shall be paid to a lawful administrator of the member’s estate.
17. What if the nominee who is supposed to act as the administrator, does not distribute the PRS balance according to Islamic Law?
This is beyond the jurisdiction of PPA or the PRS Providers as their duties are limited to the disbursement of the PRS balance in accordance with the PPA Nomination Form. The PPA Nomination Form will highlight the duty of the nominee to act as the administrator to distribute the PRS balance in accordance with Islamic Law.
18. What happens when a nominee dies after the death of a member and did not make any claim on the PRS balance?
If the nominee dies after the member’s death but before he makes any claim for withdrawal, the PRS balance shall revert to the member’s estate.
19. Can anyone know the person I have nominated?
No. Your nomination is confidential. However, there are proper procedures for the next of kin or administrator to check on the nomination status once the member has passed away.
2. PRS Nomination by a Non-Muslim Member
For Non-Muslim members, the Nomination in the Private Retirement Schemes (PRS) is the process of naming an individual(s) to receive the PRS balance according to the direction of the nomination as a beneficiary upon the member’s death. If the member elects not to make any nomination, the PRS balance shall paid to a lawful executor or administrator of the member’s estate.
Making a Nomination in the Private Retirement Schemes (PRS)
1. Why do I need to make a nomination?
You encouraged to make a nomination to facilitate and expedite the withdrawal of your PRS balance by the nominated person(s) in the event of your death. It also provides a sense of certainty to members that their PRS balance will be given to the nominated person(s) of their choice. If you opt not to make any nomination, your PRS balance will paid to a lawful executor or administrator of the member’s estate. This process, however, may take longer.
2. When can I make a Nomination in the Private Retirement Schemes (PRS)?
You can make a nomination at any time after a PRS account opened by completing the PPA Nomination Form.
3. Where can I obtain the PPA Nomination Form?
You can download the PPA Nomination Form here or obtain the form from your PRS Providers or PRS Consultant..
4. Am I eligible to make a Nomination in the Private Retirement Schemes (PRS)?
Only members who are:
- A Malaysian citizen; or
- A non-Malaysian citizen who has obtained a Permanent Resident (PR) status in Malaysia is eligible to make a nomination.
5. Who can be named as a nominee?
You can Nomination in the Private Retirement Schemes (PRS) any ‘natural person’ as a nominee. ‘Natural person’ refers to individuals and does not refer to organizations, associations, societies, welfare bodies, and others.
You may nominate your child/children who are a minor as your beneficiary. Generally, payment to a nominee may only made when the nominee turned 18 years old. However, their parent/legal guardian may withdraw on behalf of the minor nominee by furnishing either a Birth certificate (as proof of parentage) or a Court order (as proof of legal guardianship) where applicable.
6. Is there a limit to the number of nominees I can appoint?
You may nominate one (1) person or several persons subject to no more than six (6) individuals.
7. Is there a limit to the number of times that I can make my nomination?
No, there is no limit to the number of times which you can make a nomination. However, please inform that any new nomination form submitted to PPA or the PRS Provider will treat as the latest nomination and will supersede previous nomination(s) made.
8. How do I make a Nomination in the Private Retirement Schemes (PRS)?
You required to meet your PRS Consultant/ PRS Provider in person to submit the following documents which must be complete and in order:-
- PPA Nomination Form; and
- A copy front and back of the Identification Card (MyKad/Police Identification Card/Military Identification Card/ Permanent Resident Identification Card (MyPR)) of the member.
The PRS Consultant/ PRS Provider required to sight your identification card and verify your identity. The relevant PRS Provider would then extend the forms to the PPA.
9. Do I need a witness when making a Nomination in the Private Retirement Schemes (PRS)?
Yes, a witness required. You can choose anyone who is 18 years old and above and of sound mind to be a witness to your nomination EXCEPT the following persons:
- the nominee;
- the spouse of the nominee;
- an employee of the PPA; or
- an employee/consultant of the PRS Provider.
The witness not required to present in person when you submit the nomination form to PPA or the PRS Provider.
10. How do I make changes to my PRS nomination?
You can complete a new PPA Nomination Form. Your new nomination will supersede the earlier nomination which you have made.
11. How could I revoke my Nomination in the Private Retirement Schemes (PRS)?
You may complete and submit a Revocation of Nomination Form to your PRS Provider/Consultant. If you wish to revoke your previous nominations made. And, do not wish to nominate any other persons to receive your PRS balance upon your death.
For your information, there are other circumstances as set out below which would also revoke nominations previously made by members. These circumstances are:
- Upon the death of all of the nominee(s) during the lifetime of the member; or
- When a member submits a new PPA Nomination Form.
NOTE: Nomination shall not revoked by a Will.
12. When will my nomination be effective?
Your Nomination in the Private Retirement Schemes (PRS) will become effective when a completed and witnessed nomination form received by a PRS Provider.
NOTE: Processing time will be dependent on the completeness of the form and supporting documentation.
13. Do I have to update my nomination when there are changes to my circumstances (e.g. marriage, childbirth, death of my nominee)?
If your circumstances changed (e.g. marriage, birth, death of a nominee), you encouraged to update your nomination to keep it relevant with your current circumstances. If you do not update your nomination, the persons stated on the PPA Nomination Form will receive the balance in the PRS account.
Example: Your current nomination form lists down your father and mother as your nominees. You just gotten married and would like to include your spouse as the nominee in addition to your parents. You will need to obtain a new nomination form and fill up the details of your parents and your spouse.
14. How can I check my Nomination in the Private Retirement Schemes (PRS)?
Your nomination details will be available upon logging onto PRS Members’ Portal via PPA’s website (www.ppa.my). You will also receive a confirmation from PPA that a nomination made inclusive of your nomination details via your email.
15. I have more than one PRS account as I have investments with multiple PRS Providers. Can I fill different nomination forms to provide different nominees for the respective PRS account?
No, only ONE PPA Nomination Form will apply to all PRS accounts with respective Providers.
16. What happens when the nominee predeceases (dies before) me?
If one or all nominee dies and you have not made a new nomination form, the portion of the deceased nominee shall be paid to a lawful executor or administrator of the member’s estate. However, even if one or more of the nominee(s) dies before you, this will not affect distribution to the other nominees. Other nominees can claim the PRS balance according to the direction of the nomination as a beneficiary.
17. What happens when a nominee dies after the death of a member and did not make any claim on the PRS balance?
If the nominee dies after the member’s death but before he makes any claim for withdrawal, the PRS balance shall revert to the nominee’s estate. And, shall paid to the lawful executor or administrator of the deceased nominee’s estate.
18. Can anyone know the person I have nominated?
No. Your Nomination in the Private Retirement Schemes (PRS) is confidential. However, there are proper procedures for the next of kin or executor to check on the nomination status once the member has passed away.
Summary of List of Forms and Supporting Documents Required
***Forms must filled up using BLOCK LETTERS with a BLACK INK pen ONLY.
Process 1: Making a Nomination in the Private Retirement Schemes (PRS)
(To be filled up by member)
Forms and supporting documents
- The nomination form, and
- A copy front and back of the Identification Card (MyKad/Police Identification Card / Military Identification Card / Permanent Resident Identification Card (MyPR)) of the member. Copy of the ID should be the front and back.
The form must witnessed by an individual. Witness criteria are as follows:
- Malaysian;
- Above 18 years old;
- Of sound mind; and
- The witness cannot be a nominee, a PRS consultant, an officer of PPA or a PRS Provider, or a spouse of the nominee.
During the submission, the PRS consultant/ PRS Provider/PPA will verify the identity of the member by checking the original Identification Card (MyKad/Police Identification Card/Military Identification Card)/ Permanent Resident Identification Card (MyPR)/ Passport (for foreigner).
Process 2: Withdrawal upon the death of a member
(To be filled up by nominee or applicant [in the case of a nominee who has PTD, Serious Disease or Mental Disability, where applicable])
Forms and supporting documents
- Withdrawal Upon Death of a Member Form;
- A copy of member’s death certificate*; and
- A copy front and back of nominee(s) Identification Card (MyKad/Police Identification Card/Military Identification Card)/ Passport (for foreigner).
Applicable for non-Muslims only
1. For Guardian or person appointed by the court (where applicable) who wants to withdraw on behalf of the nominee who is below the age of 18
- Birth certificate (as proof of parentage ) or a Court order (as proof of legal guardianship)*
2. For Persons appointed by the court via court order who wants to withdraw on behalf of the nominee who is certified as having permanent total disablement or mental disability by a medical practitioner registered under the Medical Act 1971 [Act 50]:
- Court order evidencing proof that such persons are responsible for managing the personal and financial affairs of the nominee and that PRS is part of the scope of assets covered*; and
- Medical report on a patient/nominee withdrawing from PRS for PTD or Mental Disability (MD) completed by the treating doctor*
3. For Persons appointed by the nominee via the power of attorney who wants to withdraw on behalf of a nominee who is certified as having permanent total disablement or serious disease by a medical practitioner registered under the Medical Act 1971 [Act 50]:
- Power of attorney document evidencing proof of appointment of such persons. And, that the scope of powers given to the person includes PRS as part of the assets covered*; and
- Medical report on a patient/nominee withdrawing from PRS for PTD or Serious Disease (SD) completed by the treating doctor*
During the submission, the PRS consultant/Provider will verify the identity of the nominee/applicant by checking the original Identification Card (MyKad/Police Identification Card/Military Identification Card)/ Permanent Resident Identification Card (MyPR)/ Passport (for foreigner).
Documents marked with an asterisk (*) must submitted as certified true copies and verified by a Commissioner of Oaths, complete with the name, address, and official stamp of the Commissioner of Oaths.
Process 3: Nomination details inquiry form
(To be filled up by Member’s next of kin/executor)
Forms and supporting documents
- Nomination Details Enquiry Form;
- A copy of member’s death certificate*;
- A copy front and back of enquirer’s Identification card/ Passport; and
- A copy of the relevant document to prove the identity of the next of kin (marriage certificate/birth certificate). OR, a copy of the document as proof he/she is the executor*
During the submission, the PRS consultant/Provider/PPA will verify the identity of the nominee/applicant by checking the original Identification Card (MyKad/Police Identification Card/Military Identification Card)/ Permanent Resident Identification Card (MyPR)/ Passport (for foreigner).
Documents marked with an asterisk (*) must submitted as certified true copies. And, verified by a Commissioner of Oaths, complete with the name, address, and official stamp of the Commissioner of Oaths. (Source: PPA)
