SC sets up private pension administrator

The Securities Commission (SC) has established the Private Pension Administrator (PPA), the one-stop centre that
will govern private retirement schemes in the country.

In a statement today, the SC said the PRA will be helmed by Zaiton Mohd Hassan, currently managing director of Capital Intelligence Advisors Sdn Bhd.

"The other members of the board are Datuk Nozirah Bahari, Datuk Dr Thillainathan Ramasamy, Ou Shian Waei and Ahmad Zakie Ahmad Shariff," it said.

The SC said it has approved the first set of schemes comprising 24 funds by several private retirement schemes providers and will be available for offer to the public from September.



It said the establishment of the PPA was the final component of the Private Retirement Schemes (PRS) framework.

"This follows on from the establishment of the legal framework for the PRS via amendments to the Capital Markets & Services Act 2007 in October 2011 and the issuance of Private Retirement Schemes Guidelines and Regulations in April this year and the approval of eight private retirement schemes providers," it
said.

PRS is a voluntary retirement savings scheme structured by private sector fund providers who are licensed and approved by the SC.

The funds under the schemes are also subject to the SC’s approval.

Prime Minister Datuk Seri Najib Tun Razak today launched the final component of the private retirement scheme framework.

In line with this, the SC, PPA and PRS providers will conduct a series of educational and awareness programmes soon.

PRS are intended to provide employees and the self-employed with an additional avenue to save for their retirement.

A range of funds will be available to meet the individual’s retirement goals and investment profile.

SC said that it will also offer opportunities for employers to make additional voluntary contributions towards the retirement savings of their employees.

"To incentivise participation in PRS, individuals are granted tax relief of up to RM3,000 and employers are provided tax deduction on contributions to PRS made on behalf of their employees above the statutory rate and up to 19 per cent
of employees remuneration.

"Tax exemption is also provided on income received by the PRS funds," it said.

SC chairman, Datuk Ranjit Ajit Singh, said as with any new industry, understanding of the product offerings were essential (and) it was important that contributors and potential members had all relevant information in order to make informed decisions. -- BERNAMA