Retirement Fund (Incorporated) (; KWAP) is a

statutory body A statutory body or statutory authority is a body set up by law (statute) that is authorised to implement certain legislation on behalf of the relevant country or state, sometimes by being Primary and secondary legislation, empowered or deleg ...

which manages the

pension scheme A pension (; ) is a fund into which amounts are paid regularly during an individual's working career, and from which periodic payments are made to support the person's retirement from work. A pension may be either a "Defined benefit pension pla ...

for Malaysia's

public employee The civil service is a collective term for a sector of government composed mainly of career civil service personnel hired rather than elected, whose institutional tenure typically survives transitions of political leadership. A civil service offic ...

s. KWAP is the

investment manager Investment management (sometimes referred to more generally as financial asset management) is the professional asset management of various securities, including shareholdings, bonds, and other assets, such as real estate, to meet specified inve ...

of the Retirement Fund, which is applied towards financing the government's pension liability, and is responsible for the administration and payment of pension to public sector retirees. KWAP is one of three main bodies in Malaysia's pension system, the others being the Employees Provident Fund (for private sector employees) and

Armed Forces Fund Board The Armed Forces Fund Board (also commonly known by its Malay name Lembaga Tabung Angkatan Tentera and LTAT in short) is a statutory body which manages the pension fund for certain members of the Malaysian Armed Forces. LTAT was established in Au ...

(for

military A military, also known collectively as armed forces, is a heavily armed, highly organized force primarily intended for warfare. Militaries are typically authorized and maintained by a sovereign state, with their members identifiable by a d ...

personnel). It is also regarded as one of Malaysia's government-linked investment companies (GLICs).

History

Prior to KWAP's establishment, the public pension fund in Malaysia was managed by the Pensions Trust Fund (), whose operations fell under the responsibility of the Accountant General. The Pensions Trust Fund grew from an initial government grant of RM500 million in 1991 to RM42 billion in 2007. In March 2007, KWAP was established under the Retirement Fund Act and assumed all powers, functions, activities, assets and liabilities of the Pensions Trust Fund. In November 2015, KWAP was appointed as agent to the government for overall pension management and payment operation, taking over this role from the Public Services Department's Post Pension Services Division. In August 2018, KWAP acquires two properties in the United Kingdom from IP Investment Management (HK) Ltd and Maven Capital Partners for RM280 million in order to boost its presence in foreign markets. The fund launches its online app called MyPesara in November 2018 to help retirees to planning their future effectively. In August 2022, KWAP launches the Teras 5 that based on its five main cores as part of its long-term plan to strengthening its basis in facing the future challenges.

Operations

The fund receives contributions from the

Federal Government of Malaysia The Government of Malaysia, officially the Federal Government of Malaysia (; Jawi script, Jawi: ), is based in the Federal Territories of Malaysia, Federal Territory of Putrajaya, with the exception of the legislative branch, which is located in ...

statutory bodies A statutory body or statutory authority is a body set up by law (statute) that is authorised to implement certain legislation on behalf of the relevant country or state, sometimes by being empowered or delegated to set rules (for example reg ...

and

local authorities Local government is a generic term for the lowest tiers of governance or public administration within a particular sovereign state. Local governments typically constitute a subdivision of a higher-level political or administrative unit, such a ...

. The contributions are invested by the fund in a mix of

equities Stocks (also capital stock, or sometimes interchangeably, shares) consist of all the shares by which ownership of a corporation or company is divided. A single share of the stock means fractional ownership of the corporation in proportion t ...

, bonds,

property Property is a system of rights that gives people legal control of valuable things, and also refers to the valuable things themselves. Depending on the nature of the property, an owner of property may have the right to consume, alter, share, re ...

private equity Private equity (PE) is stock in a private company that does not offer stock to the general public; instead it is offered to specialized investment funds and limited partnerships that take an active role in the management and structuring of the co ...

and

infrastructure Infrastructure is the set of facilities and systems that serve a country, city, or other area, and encompasses the services and facilities necessary for its economy, households and firms to function. Infrastructure is composed of public and pri ...

, with the investment returns used to finance the government's pension liabilities. The fund's Investment Panel determines the fund's

investment policy Within public finance, an investment policy is any government regulation or law that encourages or discourages foreign investment in the local economy, e.g. currency exchange limits. Explanation As globalization integrates the economies of ...

and

asset allocation Asset allocation is the implementation of an investment strategy that attempts to balance risk versus reward by adjusting the percentage of each asset in an investment portfolio according to the investor's risk tolerance, goals and investm ...

strategy. KWAP also operates the Pension Services Department (PeSD) in

Cyberjaya Cyberjaya (a portmanteau of ''cyber'' and ''Putrajaya'') is a planned city with a science park as its core that forms part of Greater Kuala Lumpur, in Malaysia. It is located in Sepang District, Selangor. Cyberjaya is adjacent to and developed ...

which processes payment of pensions and other benefits to public pensioners.

References

External links

* * {{authority control 2007 establishments in Malaysia Government-owned companies of Malaysia Age pension systems Social security in Malaysia Investment in Malaysia Federal ministries, departments and agencies of Malaysia Public pension funds Malaysian companies established in 2007