CIMB-Principal Asset Management Bhd has established its PRS Plus partner programme, a collaboration with employers to introduce their employees to Private Retirement Schemes (PRS), to encourage greater retirement savings.
UEM Group, Scomi Group, SME Corporation Malaysia, Ernst & Young, Alam Maritim Resources, A Cut Above and Asian Tigers Transpo Movers (M) are the first companies joining CIMB Group in introducing PRS to their employees.
“CIMB-Principal PRS Plus and CIMB Islamic PRS Plus are designed to provide additional investment options and help increase retirement savings.
“Additionally, we are also leveraging on our partner, the Principal Financial Group for its global experience, technical expertise and educational resources in the retirement savings segment,” said CIMB-Principal chairman Datuk Charon Wardini Mokhzani.
The Principal is one of US’ retirement savings and retirement solutions provider.
With more than 70 years of retirement plan services and more than 3.7 million plan participants served in nearly 40,000 retirement plans, The Principal has provided the support required to set up pension schemes.
“Our initial corporate partners are a mixture of large corporations and SMEs.
“Under the programme, CIMB-Principal will work with these companies to facilitate automatic payroll deduction on behalf of their employees.
“Employers joining the programme may also elect to either match a portion of their employees’ contributions or introduce vesting schedules over a pre-defined period of employment,” added Charon.
“From an employer’s perspective, we believe the PRS Plus partner programme is a positive tool in both attracting and retaining talent, in addition to aiding good workforce planning.
“PRS is also a cost-efficient solution for CIMB Group as an employer as it can enhance the organisation’s remuneration package. CIMB Group is pleased to be one of the first companies to adopt PRS as we believe in the merits of the programme,” said CIMB Group’s head of group corporate resources Hamidah Naziadin.
The CIMB-Principal PRS Plus comprises four domestic funds and one Asia Pacific ex-Japan fund, which caters for investors with different risk appetite and those that want to diversify their investments offshore.
Similarly, CIMB-Principal has a dedicated Islamic scheme, which mirrors the conventional scheme with five similar Islamic funds.
Upon enrolling for CIMB-Principal PRS Plus and CIMB Islamic PRS Plus, members can choose funds according to their respective risk appetite and investment profile under the do-it-yourself approach.
Alternatively, if they do not wish to fully customise their investment choice after enrolling in either scheme, a default fund option will be selected for them according to their age under do-it-for-you approach.
Members can log into PRS Plus Online or receive their statements online to keep track of their contributions and balances.
Individuals have until the end of 2012 to enjoy the new additional personal tax relief available of up to RM3,000 for PRS.
For details, visit www.cimb-principal.com.my/prs