At the selected date of retirement, all the Units of the Sub-Funds to his credit shall be redeemed at the Net Asset Value notified at close of the day of retirement, if such day is a Dealing Day and otherwise on the next following Dealing Day.

The Participant shall be given Forms listing their choices under the Rules and shall then have the option to avail the following benefits without any tax liabilities, namely:

1. To withdraw up to twenty five per cent of the amount in his Individual Pension Account as cash;
2. To use the remaining amount to purchase an Approved Annuity Plan from a Life Insurance/Takaful Company of his choice, such payment shall be made directly by the Trustee of the Fund to the Life Insurance/ Takaful Company; or
3. To Enter into an agreement with the Pension Fund Manager of his choice to withdraw from the remaining amount (Income draw Down Plan), monthly instalments till the age of seventy-five years or as specified in the Rules.

It is clarified that any income received under annuity scheme or income payment plan may be subject to income tax/ withholding tax.

A Participant can withdraw full amount in his Individual Pension Account as cash subject to the note below.

Note: Any amount withdrawn in excess of 25% of the accumulated balance shall be subject to withholding tax.

The Prescribed Redemption Forms which are required to be submitted by the Participant to the Distribution Company/ Pension Fund Manager, for the various scenarios of redemption/withdrawal include the following:

1. Retirement Options Form: This is required to be filled in and submitted to the Distribution Company/ Pension Fund Manager thirty days prior to the selected Retirement Age/Date.
2. Early Redemption Form: This form is required to be submitted by the Participant (or the nominees of the deceased Participant) if he/she wishes to withdraw all or part of the Individual Pension Account balance.
3. Change of Pension Fund Manager Form: This form is required to be submitted if the Participant wishes to change the Pension Fund Manager and transfer the Individual Pension Account to another pension fund manager on the Anniversary Date of the opening of the Individual Pension Account. This form must be submitted thirty days prior to the Anniversary Date.

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