Comparative Analysis Between Employees Provident Fund (EPF) & Private Retirement Scheme (PRS) in Malaysia

Abstract

The Employee Provident Fund (EPF) was established Under the Employees Provident Fund Act 1991 (EPF Act 1991) as a social security organisation that offers members with trustworthy and efficient savings management, and it is open to both di personnel. In contrast, the Private Pension Administrator (PPA) developed the Private Retirement Scheme (PRS), a retirement programme, to address retiree' insufficient resources for meeting their retirement expenses in light of rising living standards and longer life expectancies. Having to see the similar aspects between EPF and PRS in terms of creating a savings and their importance towards securing certain degree of comfort to retirees , this study seeks to make a comparative analysis between the two. The researcher employs a qualitative approach, by conducting a library-based research on the relevant materials including, but not limited to statutory provisions, case laws, textbooks, journal articles, newspapers, conference proceedings, and seminar papers. The findings show that both are identical in certain regards despite having distinctive features  and could greatly benefit not only the account holder, but also serve as a potential inheritance estate to his beneficiaries, subject to the effect of its nomination. it is believed that efforts should be bolstered by the stakeholders in creating more awareness regarding the importance of  contributing  in EPF or PRS.