2. Pension
• Pension is a fixed payment for a person
retirement or surviving dependants
• It is stated on The Pensions Act 1980
• In Malaysia, a person who entitle pension
is usually an officer under public services
3. State Pension
• People above age 66 who have enough social
social security insurance or national insurances
• Country that involve: UK, Ireland, New Zealand,
France
• State pension scheme may differ from country
to country
• Not applied in Malaysia
4. Occupational Pension
• The employer may set up occupational scheme
for their employee
• tax-free lump sum benefits for their employees
at retirement
• Widows/widowers and dependants' benefits in
the event of death before retirement, or death in
retirement.
5. Personal Pension
• personal pension is when a person make regular
payments (contributions) into their pension
fund.
• This is then invested, for example in stocks and
shares, to give them an income when they retire.
• provided by insurance companies, banks and
building societies, and sometimes workplace.
6. Defined benefit
• employer/sponsor promises a specified monthly
benefit on retirement that is predetermined by a
formula based on the :
• employee's earnings history
• Duration of service
• age
• rather than depending directly on individual
investment returns.
7. Defined contribution schemes
• Both, employer and employee make a
contribution to this scheme.
• Paid under individual account
• Benefit depends on investment success.
• Employee may choose the investment.
• Future benefits are not guaranteed or insured
