Government introduced 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.
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.