Retirement Fund (Incorporated) ( ms, Kumpulan Wang Persaraan (Diperbadankan); 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 empowered or delegated to set rules (for example reg ...

which manages the

pension scheme A pension (, from Latin ''pensiō'', "payment") is a fund into which a sum of money is added during an employee's employment years and from which payments are drawn to support the person's retirement from work in the form of periodic payments ...

for Malaysia's

public employee The civil service is a collective term for a sector of government composed mainly of career civil servants hired on professional merit rather than appointed or elected, whose institutional tenure typically survives transitions of political leaders ...

s. KWAP is the

investment manager Investment management is the professional asset management of various securities, including shareholdings, bonds, and other assets, such as real estate, to meet specified investment goals for the benefit of investors. Investors may be institut ...

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. It is typically authorized and maintained by a sovereign state, with its members identifiable by their distinct ...

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 ( ms, Kumpulan Wang Amanah Pencen), 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.

Operations

The fund receives contributions from the

Federal Government of Malaysia The Government of Malaysia, officially the Federal Government of Malaysia ( ms, Kerajaan Persekutuan Malaysia), is based in the Federal Territory of Putrajaya with the exception of the legislative branch, which is located in Kuala Lumpur. Malays ...

, statutory bodies and

local authorities Local government is a generic term for the lowest tiers of public administration within a particular sovereign state. This particular usage of the word government refers specifically to a level of administration that is both geographically-loca ...

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

equities In finance, stock (also capital stock) consists of all the shares by which ownership of a corporation or company is divided.Longman Business English Dictionary: "stock - ''especially AmE'' one of the shares into which ownership of a company ...

, 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, r ...

private equity In the field of finance, the term private equity (PE) refers to investment funds, usually limited partnerships (LP), which buy and restructure financially weak companies that produce goods and provide services. A private-equity fund is both a ty ...

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 priv ...

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

investment policy 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 neighboring and of trad ...

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 investment tim ...

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

Cyberjaya Cyberjaya (a portmanteau of ''cyber'' and ''Putrajaya'') is a city with a science park as the core that forms a key part of the Multimedia Super Corridor in Malaysia. It is located in Sepang District, Selangor. Cyberjaya is adjacent to, and deve ...

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