PRS FAQs

Retirement withdrawal may be made, in part or in full, the day after a PRS Member reaches the age of 55 years old as currently stipulated by Securities Commission Malaysia.

PRS Members can contact their PRS Consultants or PRS Providers to obtain and submit a withdrawal form.

1. Is there any limit on the number of times I can withdraw upon retirement?

No, there are no limit to the frequency of retirement withdrawals.


2. If I initially invested in PRS and then stopped contributing, when can I withdraw from my PRS account or transfer to another PRS Provider?

Even if there are no repeat contributions after the initial investment, your PRS account is still deemed active and withdrawals or transfers to another PRS Provider upon retirement can still be conducted.



Transfers, however, can only be performed once per calendar year. Each PRS Provider has different fees and charges in relation to transfers. Please refer to this Fees Comparison for more information.


3. Why is the retirement age 55 years old?


For the purpose of allowing PRS Members to make retirement withdrawals, members must be at least 55 years old, as stipulated by Securities Commission Malaysia. PRS Members would be informed if any changes are made to the current specified age.


4. Is the 8% tax penalty applied to full or partial retirement withdrawal amount?

There is no tax penalty for retirement withdrawal.


5. What will happen if a member has not made any transactions for more than 12 months subsequent to attaining the age of 100 years?

It will be considered as unclaimed moneys and the Scheme Trustee may transfer such accrued benefit held by the Scheme Trustee to the Registrar of Unclaimed Moneys, in accordance with the requirements of the Unclaimed Moneys Act 1965.

6. What happens to the contributions in my PRS account if I am declared a bankrupt?

Am I still able to withdraw the funds?
As an undischarged bankrupt, you or your employer may continue to contribute to PRS. You will still enjoy rights accorded to PRS members including the right to switch funds or request for transfer of any accrued benefits to another PRS Provider. You may also request for a retirement withdrawal. However, withdrawals from your PRS account will be subjected to the oversight and conditions from the Director General of Insolvency.

Scenario 1

I am 55 years old and I wish to withdraw in full from my PRS account. Would I incur the tax penalty?

No. PRS Members may make full or partial retirement withdrawals without tax penalty upon reaching the age of 55, as stipulated by Securities Commission Malaysia.

Scenario 2

I am an employee above 55 years old, but still under employment and I continue to subscribe to PRS. Do I still incur an 8% tax penalty when I withdraw from my PRS account?

No. Retirement withdrawals without tax penalty are allowed for PRS Members aged 55 years old and above, even if they are still under employment. Although lump sum withdrawals are permitted, PRS Members are encouraged to retain their savings for continuous investment with PRS, and to consider making monthly or regular withdrawals to support their golden years.

Pre – retirement withdrawals can be made for the following reasons:

Pre – retirement withdrawals from Sub-Account B may only be made from a PRS fund one year after the date of enrolment, except when it is due to permanent departure.

Pre-Retirement Withdrawal for General Purposes can be made, in part or in full, from Sub-Account B, which holds 30% of a member’s PRS savings. Such withdrawals are allowed one year after the date of enrolment, once per calendar year and are subjected to an 8% tax penalty on the withdrawn amount.


1. Is the 8% tax applied to the full withdrawn amount or the net amount minus fees and charges?

The tax penalty of 8% imposed on pre-retirement withdrawals would be applied on the full withdrawn amount.


2. What are the fees involved?

• For PRS Providers related fees, please see this fees comparison.
• For PPA related fees, please refer to this page on important information.

3. How do I make a pre-retirement withdrawal?


You can contact your PRS Consultant or PRS Provider to obtain and submit a withdrawal form.


4. If I do not want to contribute to PRS anymore, can I withdraw all my money and close my PRS account?

You can stop contributing to PRS at any time, but you can only withdraw from Sub-Account A, which holds 70% of your PRS savings upon reaching 55 years old, as stipulated by Securities Commission Malaysia. This is to ensure you have adequate savings for your retirement years.



Before the age of 55, as long as you’ve been a PRS Member for at least one year, you may make pre-retirement withdrawals for general purposes from Sub-Account B, which holds 30% of your PRS savings. Such withdrawals can be made once per calendar year and are subjected to an 8% tax penalty on the withdrawn amount. Additionally, PRS Members also have the option to switch their PRS savings to another fund within the same PRS Provider or transfer it to another PRS Provider’s fund. Fees for switch and transfer requests differ according to PRS Providers. Please see our fees comparison table or consult your respective PRS Providers for more information.


5. What happens to the contributions in my PRS account if I am declared a bankrupt?

Am I still able to withdraw the funds?
As an undischarged bankrupt, you or your employer may continue to contribute to PRS. You will still enjoy rights accorded to PRS members including the right to switch funds or request for transfer of any accrued benefits to another PRS Provider. You may also request for a pre-retirement withdrawal for general purposes. However, withdrawals from your PRS account will be subjected to the oversight and conditions from the Director General of Insolvency.


Scenario

I invested in Provider 1’s Fund A and Provider 2’s Fund B on 2nd January 2013. On 2nd February 2014, I would like to make pre-retirement withdrawal from Fund A and Fund B. I have not made any pre-retirement withdrawal for the year. Will my pre-retirement withdrawal be approved?

Yes, your pre-retirement withdrawal will be approved because:


1. You have invested in Provider 1’s Fund A and Provider 2’s Fund B for more than 1 year; and

2. You have not made any pre-retirement withdrawal for the year.

Permanent departure of a member from Malaysia refers to the surrendering of a Malaysian work permit or citizenship. Withdrawals must be made in full from both Sub Account A and B, and the withdrawal form can be obtained from, and submitted to, PRS Providers or PRS Consultants.

1. What documents are required for me to make a pre-retirement withdrawal due to permanent departure?

• PRS Provider’s withdrawal form
• Original and copy of NRIC (front and back) clearly showing full name and identification number; and
• Letter of renunciation of Malaysian Citizenship (Form K/Form Y); or
• Letter to confirm surrender of identity card from the National Registration Department (NRD); or
• Letter to confirm surrender of identity card from Malaysian Embassy/High Commission of Malaysia/Malaysian Consulate in foreign country.

2. What documents are required for expatriates or foreign workers?

• PRS Provider’s withdrawal form
• Original and copy of passport clearly showing full name and passport number, and
• Letter of resignation/termination of contract of service by employer/proof of termination of work; or
• Income tax clearance statement; or
• Cancellation of work permit.

3. What documents are required for non-working foreigners?


• PRS Provider’s withdrawal form
• Original and copy of passport clearly showing full name and passport number; and
• Proof of cancellation of long term social visit pass.

4. How can PRS Members, aged 55 or above, who will be permanently leaving the country make a full withdrawal?

• PRS Members aged 55 or above can make a retirement withdrawal anytime, in part or in full. Contact your PRS Provider or PRS Consultant to obtain and submit a withdrawal form.


5. What happens to the contributions in my PRS account if I am declared a bankrupt? Am I still able to withdraw the funds?

• As an undischarged bankrupt, you will still enjoy rights accorded to PRS members including the right to switch funds or request for transfer of any accrued benefits to another PRS Provider. You may also request for pre-retirement withdrawal due to permanent departure. However, withdrawals from your PRS account will be subjected to the oversight and conditions from the Director General of Insolvency.

Scenario

I am a foreigner and I ceased to work in Malaysia before the age of 55. Can I withdraw all my funds?

Yes, you are entitled to make a full withdrawal from sub-accounts A and B without any tax penalty as this is considered a pre-retirement withdrawal due to permanent departure. You will be required to furnish the following list of documentation:

• PRS Provider’s withdrawal form
• Original and copy of passport clearly showing full name and passport number, and
• Letter of resignation/termination of contract of service by employer/proof of termination of work; or
• Income tax clearance statement; or
• Cancellation of work permit.

Pre-retirement withdrawals for housing purposes from Sub Account B without tax penalty can be made once every calendar year from each PRS Provider. The applicant must have been a PRS Member for at least one year and has a minimum balance of RM500 in Sub Account B. Once the withdrawal application is approved, the proceeds will be credited into the member’s bank account within 10 business days.

Permitted Housing Withdrawal Amount

1. Am I eligible to make withdrawal for housing purposes?

Any PRS Member (Malaysian or foreigner) below the age of 55 are eligible to make pre-retirement withdrawals from Sub-Account B for housing purposes without the 8% tax penalty.

2. What are the requirements to apply for housing withdrawal?


The applicant must have been a PRS Member for at least one year and have a minimum balance of RM500 in Sub-Account B.



3. What are the types of Housing Withdrawal allowed for withdrawals related to housing?

There are 3 types of housing withdrawal:

• Withdrawal for purchase of house
• Withdrawal for building a house
• Withdrawal to reduce/redeem housing loan

4. Where can I obtain the withdrawal form for housing? 


You may download a copy of the PRS Housing Withdrawal Form – Buy or Build House, PRS Housing Withdrawal Form – Reduce or Redeem Housing Loan and the Guide to Complete Form for Housing Withdrawal.


5. How can I make the application?

You may speak to your PRS Consultants for assistance or you can submit your application to your respective PRS Providers.

6. How long is the processing time for the money to be released upon application? 


Upon approved application, the proceeds will be credited into your account within 10 business days.


7. How do I know if my application is approved or rejected?


You may contact your respective PRS Providers. Alternatively, you can also call PPA at 1300-131-772.


8. As a joint purchaser, is a member still eligible to apply for withdrawal for building a house?

Yes, a PRS Member is eligible to apply for housing withdrawal as long as the member is the purchaser or the co-purchaser and the borrower, or the co-borrower financing the loan.


9. How many times can a member apply for withdrawal for housing?

Eligible Members can make a withdrawal anytime during the year, by submitting all required documentation as described under the Guide to Complete Form for Housing Withdrawal.


10. Is the withdrawal for housing application restricted for only one PRS fund at a time?

No. You may withdraw from all PRS Providers which you have an account with.


11. Am I eligible to make a pre-retirement withdrawal for housing if I am declared a bankrupt?

As an undischarged bankrupt, you will still enjoy rights accorded to PRS members including the right to switch funds or request for transfer of any accrued benefits to another PRS Provider. You are also eligible to make pre-retirement withdrawal for housing purposes. However, withdrawals from your PRS account will be subjected to the oversight and conditions from the Director General of Insolvency.

Forms

• PRS Housing Withdrawal Form – Buy or Build House
• PRS Housing Withdrawal Form – Reduce or Redeem Housing Loan
• Guide to Complete Form for Housing Withdrawal

Pre-retirement withdrawal for healthcare purposes from Sub-Account B without tax penalty and can be made once per calendar year from each PRS Provider, as long as the applicant has been a PRS Member for at least one year.

Healthcare withdrawals can be made to cover a list of illnesses for self and immediate family members, including medical equipment and/or medication, described in the document below: 


List of illness (Source: Schedule J, Guidelines on PRS, 21 Feb 2020)

1. Am I eligible to make withdrawal for healthcare purposes?


Any PRS Member (Malaysian or foreigner) below the age of 55 are eligible to make pre-retirement withdrawals from Sub-Account B for healthcare purposes without the 8% tax penalty, as long as the applicant has been a PRS Member for at least one year. 


2. What medical problems or situations do the healthcare withdrawal cover?

You may refer to the list of illnesses described in the Guide to Complete Form for Healthcare Withdrawal.


3. Where can I obtain the healthcare withdrawal form?

You may download a copy of the PRS Withdrawal Form for Healthcare and the Guide to Complete Form for Healthcare Withdrawal.


4. Can we apply for healthcare withdrawal for the use of family members as well?


Yes, you can. You can withdraw from Sub Account B for the purpose of healthcare for yourself or your immediate family members which includes spouse, children (biological/adopted/step), parents (biological/adopted/step/in-laws), and sibling (biological).


5. How can I make the application?

You may speak to your PRS Consultants for assistance or you can submit your application to your respective PRS Providers.


6. How long is the processing time for the money released upon application made?

Upon approved application, the proceeds will be credited into your bank account within 10 business days.


7. How do I know whether my application is approved or rejected?


You may contact your respective PRS Providers. Alternatively, you can also call PPA at 1300-131-772.

8. How many times can I make an application to withdraw for healthcare in a year?


Eligible Members can make a withdrawal anytime during the year by submitting all required documentation as described under the Guide to Complete Form for Healthcare Withdrawal.


9. Is the withdrawal for healthcare application restricted for only one PRS fund at a time?


No. You may withdraw from all PRS Providers which you have an account with.


10. Is this withdrawal for healthcare restricted to only local treatment coverage?

No. You are able to make withdrawal for local or foreign treatments.


11. If the PRS Member is incapable of making such application by himself or not in a condition to do so or unable to sign any documents required due to any illness or any other acceptable reasons, can the application be made by any other person on his behalf?


Yes. In the event a member is unable to sign the withdrawal form for healthcare due to health reasons, the member may sign using his or her thumbprint or appoint a person through the power of attorney.


12. Am I eligible to make a pre-retirement withdrawal for healthcare purposes if I am declared a bankrupt?


As an undischarged bankrupt, you will still enjoy rights accorded to PRS members including the right to switch funds or request for transfer of any accrued benefits to another PRS Provider. You are also eligible to make pre-retirement withdrawals for healthcare purposes. However, withdrawals from your PRS account will be subjected to the oversight and conditions from the Director General of Insolvency.

Scenarios of Withdrawal for Healthcare

Example 1: Member’s medical bill is RM3, 000.
Member has withdrawn RM2, 000 from EPF/ claimed personal insurance/ employer has paid.
Member is still entitled to withdraw RM3, 000 from PRS according to his medical bill.

Example 2: Member’s medical bill is RM500. Member have multiple providers. Balance in sub account B as shown below: 

Sub-account B in Provider A: RM500

Sub-account B in Provider B: RM500

Sub-account B in Provider C: RM400
Member submits withdrawal form to Provider A, Provider B and Provider C.
Providers will receive notification once PPA has approved the withdrawal request.

Example 3: Member’s medical bill is RM1, 000. Member has multiple providers. Balance in sub account B as shown below:

Sub-account B Provider A: RM500

Sub-account B Provider B: RM400

Sub-account B Provider C: RM400
Member submits separate withdrawal forms to each Provider A, Provider B and Provider C.

Member is entitled to withdraw RM500 from Provider A, RM400 from Provider B, and RM400 from Provider C up to the amount of the medical bill.

Example 4: Member’s medical bill is RM1, 000. Member has multiple providers. Balance in sub account B as shown below:

Sub-account B Provider A: RM500

Sub-account B Provider B: RM400
Member submits withdrawal form to Provider A to withdraw RM400 only despite medical bill being RM1, 000.

Member is entitled to withdraw the said amount.

Forms

• PRS Withdrawal Form for Healthcare
• Medical Report for PRS Withdrawal for Healthcare
• Guide to Complete Form for Healthcare Withdrawal

Following the death of a member, the withdrawal process will depend on whether the nomination process was completed.

If a nomination was made, the nominee(s) may withdraw the deceased member’s PRS savings in accordance to the allocated percentage as stated in the nomination form. Details on how to make a withdrawal, information on how to enquire the nomination status of a deceased member and the relevant forms can be found on PPA’s dedicated page on all things related to Nomination page.

In the event no nomination was made, then the PRS balance shall be paid to a lawful executor or administrator of the deceased member’s estate.

1. What documents are required to make a withdrawal if no nomination was made?

• A copy of the PRS Provider’s Withdrawal Form;
• A copy of deceased PRS Member’s IC/passport showing clearly full name and identification number/passport number;
• A copy of relevant document(s) showing PPA account number;
• Original and a copy of Death Certificate (DC);
• Original and a copy of Letter of Administration (LA)/Grant of Probate;
• A copy of executor’s/administrator’s IC; and
• A copy of executor’s/administrator’s bank account (not the front cover).

2. How long does it take for the PRS balance to be disbursed?


Proceeds from a deceased member’s PRS account will be disbursed by the PRS Provider within 10 days after receiving all relevant forms, supporting documents and authorization.


3. What if the deceased member has multiple PRS accounts?


Upon receiving a withdrawal request, PPA will alert all relevant PRS Providers on the status of the deceased member to prevent any unauthorised instructions from a third party. If there are multiple PRS accounts, PPA will inform the executor or administrator of the deceased member’s estate.

Withdrawals can be made in the event of Permanent Total Disablement (PTD), Serious Disease (SD) or Mental Disability (MD), as defined by Securities Commission Malaysia. Such withdrawals must be made in full from both Sub Account A and B, and is exempted from the 8% tax penalty.

1. How are PTD, SD and MD defined for this withdrawal?


Please refer to the Guide to Complete PRS Withdrawal Form for PTD, SD or MD for a list of definitions for PTD, SD and MD.


2. How do I make a withdrawal due to PTD, SD or MD?

A withdrawal may be made to the relevant PRS Provider by completing the PRS Withdrawal Form for PTD, SD and MD, accompanied by a medical report for PTD, SD or MD prepared by the member’s treating doctor. Do ensure all supporting documents submitted are certified true copies and verified by a Commissioner of Oaths, complete with the name, address and official stamp of the Commissioner of Oaths.For further details, including applications for fast-track withdrawals, please refer to the Guide to Complete PRS Withdrawal Form for PTD, SD or MD.

3. What if I’m diagnosed with PTD, SD or MD when I’m 55 years old or older, can I still make retirement withdrawals?

Yes. PRS Members aged 55 and above can make a retirement withdrawal anytime, in part or in full. Contact your PRS Provider or PRS Consultant to obtain and submit a withdrawal form.


4. Can the next of kin withdraw on behalf of a PRS Member who is incapacitated due to PTD, SD or MD?

If members are unable to manage their personal or financial affairs, and require the assistance of a third party to complete and sign the withdrawal form due to PTD, SD and MD on their behalf, then the third party must satisfy one of the following criteria:

• Appointed by a court of competent jurisdiction to manage the affairs of the member. A certified true copy of the relevant court order is required.
• Appointed by member through power of attorney. A certified true copy of the power of attorney registered and endorsed by the High Court of Malaya is required.

In cases of PTD only, where members are unable to sign the withdrawal form, thumbprints may be accepted in lieu of signatures, provided there is a PRS Consultant and a treating doctor to verify and endorse the member’s consent and inability to sign the withdrawal form.


1. What is the mode of payment?

Payment will be credited into the member’s bank account or a cheque will be issued under the member’s name. Court orders authorizing payment to be made to third parties would be decided on a case by case basis upon consultation between PPA and the relevant PRS Providers.


2. Once a member is diagnosed with PTD, SD or MD, how soon must the withdrawal be made?

There is no time limit, but the withdrawal form must be submitted to a PRS Provider within a year of the medical report’s date.


3. What happens to the contributions in my PRS account if I am declared a bankrupt?Am I still able to withdraw the funds?

As an undischarged bankrupt, you or your employer may continue to contribute to PRS. You will still enjoy rights accorded to PRS members including the right to switch funds or request for transfer of any accrued benefits to another PRS Provider. You may also request for withdrawal due to PTD, SD or MD. However, withdrawals from your PRS account will be subjected to the oversight and conditions from the Director General of Insolvency.

Forms

• PRS Withdrawal Form for Permanent Total Disablement (PTD)/ Serious Disease (SD)/ Mental Disability (MD)
• Medical Report On A Patient Withdrawing From PRS For Permanent Total Disablement (PTD)
• Medical Report On A Patient Withdrawing From PRS For Serious Disease (SD)
• Medical Report On A Patient Withdrawing From PRS For Mental Disability (MD)
• Guide to completing PRS withdrawal form for permanent total disablement (PTD)/serious disease (SD)/mental disability (MD)