Published: Tuesday July 12, 2011 MYT 5:37:00 PM
Updated: Tuesday July 12, 2011 MYT 5:38:32 PM
Private retirement scheme by year end
KUALA LUMPUR: A working paper on the proposed Private Retirement Scheme (PRS) is expected to be completed soon, before being implemented by year end, said Deputy Finance Minister Datuk Donald Lim Siang Chai.
Donald Lim said the Securities Commission (SC) was working out details on the management and implementation of the PRS.
"It includes among others, amendments to the Capital Markets and Services Act 2007, drawing guidelines and having discussions with the relevant authorities involved," he said when answering a question by Senator Ahmad Hussin at Dewan Negara here Tuesday.
Ahmad Hussin had wanted to know the importance of setting up a private pension fund for the people.
Lim said the implementation of the PRS was aimed at promoting greater diversity in the management of long-term savings when they retire, through voluntary saving initiatives, in addition to the Employees Provident Fund (EPF).
"The scheme will be enhanced by providing various options to save and invest, in addition to the compulsory savings required under the EPF," he said.
He added that individuals who were not part of or contribute to the EPF can use the scheme to plan their retirement benefits.
"It will help individuals who are self-employed and businessmen," he said. - Bernama