SPK Introduction

1. What is the name of the new scheme under TAP?

It is known as Skim Persaraan Kebangsaan (SPK).


2. What is the objective of SPK?
The objective of this scheme is to strengthen TAP Members' social security at retirement taking into consideration various factors and challenges that are being faced:

 a) Adequacy of retirement income.

     Using Income Replacement Rate (IRR) method to provide better retirement income for Members especially the low-income earners.

b) Increased in life expectancy.

     The retirement income will be paid as lifetime annuity payout which provides protection against longevity risk (increasing life expectancy) for Member.

c) Withdrawal Needs.

     Under SPK, withdrawals are more flexible and can be used to cater for Member's pre-retirement needs.

d) Dependent Welfare.

     Coverage for dependents is extended to provide protection before and after retirement.

e) Inclusiveness.

     It is a more inclusive scheme that makes sure for all types of employment (Formal and Informal sector workers) are taken care of.


SPK Contribution

3. How will the contribution from Member and Employer contributed?

Under SPK, contribution from Member's salary goes to 'Member Account' and contribution from Employers goes to 'Retirement Account'.


4. What is the contribution rate under SPK?

Member contribution rate will remain at 8.5% from Member's salary, without minimum or maximum amount.

Employer contribution rate will be as follows:

Salary GroupEmployer Contribution
$500 and below$57.50
$500.01 - $1,500.0010.5%
$1,500.01 - $2,800.009.5%
$2,800.01 and above8.5%


5.  What is the minimum and maximum contribution amount?

The minimum and maximum contribution amount are as follows:


Member contribution

Employer contribution



SPK Account

6. What is Member Account?

Any contribution received by the Member will be credited into an account which will be known as 'Member Account'.


7. What is Retirement Account?

Contribution made by the Employer will be collected into a pool-fund known as the 'Retirement Account'. 

All employers will contribute into the Retirement Account.

The funds accumulated in this Retirement Account will be used and distributed to Member monthly payouts (annuities) upon retirement.


Member Account Withdrawal

8. What is the benefit of Member Account?

For Member's Pre-Retirement Withdrawal needs.

The withdrawal schemes are as follows:

  1. 30% for withdrawal at Age 45 years.
  2. 30% for withdrawal at Age 50 years.
  3. 30% for withdrawal at Age 55 years.
  4. 100% for withdrawal at Age 60 years.
  5. 50% for the withdrawal of building, buying, repairing, and renovating a house after Member reaches the age of 40 years old.
  6. 100% for Next of Kin withdrawal for deceased Member.
  7. 100% for Incapacitation withdrawal of Member.
  8. 100% for the withdrawal of Member who renounces citizenship.
  9. 100% for the withdrawal of Members suffering from Terminal Illness.

Retirement Account Benefit

9.  What is the benefit of Retirement Account?

- Better Retirement Income with annuity payment up to lifetime.

- Derivative Benefit will be provided to dependents if Member deceased before attaining the age of 75 years.

10. How is the SPK Annuity calculated?

The amount of annuity and the duration of the payment will subject to several factors  such as the estimated average Household Expenditure, Income Replacement Rate (IRR), average member salary, inflation rate and work productivity.

SPK Account

11. How much is my estimated SPK Annuity?

Example: Member has an average salary of $500 and have worked for 25 years:


Retirement Income (Annuity + Old Aged Pension)



If the said Member (average salary of $500) and worked for 35 years, Member can receive a higher annuity;


Retirement Income (Annuity + Old Aged Pension)



Example: Member has an average salary of $1,000 and have worked for 25 years:


Retirement Income (Annuity + Old Aged Pension)



If the said Member (average salary of 1,000) and worked for 35 years, Member can receive a higher annuity;


Retirement Income (Annuity + Old Aged Pension)




Benefit for dependents

12. What will be the benefit received by dependents of Member who passed away?

From Member Account, beneficiaries will receive 100% from Member Account.

From the Retirement Account, dependents will receive the following derivative  



a) For Member deceased before attaining the age of 60, dependents will receive a Derivative Benefit for a period of 15 years of a minimum $400 per month or 50% of the latest annuity arrangement whichever is higher. Dependents are eligible to receive a minimum of $400 if they meet the conditions such as having contributed for at least 25% of the membership period as a TAP Member or have contributed in the past 3 months before death.

b) For Member deceased between the age of 60 and before the age of 75, the dependents will receive a minimum derivative annuity of $250 per month or 50% of the annuity currently received whichever is higher by the Member and the payment period to the dependent expires before the deceased Member attaining the age of 75 years (if still alive).


13. Who will be eligible to receive derivative benefit?

The eligible Derivative Annuity Recipients are as follows;

  • - Husband or wife (who has not remarried);
  • - Children under the age of 21 and not married; and
  • - Parents of Member who are not married.


14. How much dividend will be received?
 Member Account will receive a fixed dividend rate at 2.5%.

Self Employed

15. Who is eligible to register as Self-Employed SPK Member?
- Not an employer
- Not an employee
- Individual who are verified by Authorities as self employed.

16. How much is the contribution for Self Employed SPK Member?
The Qualified Contribution for Self-Employed Member is minimum of $17.50 and up to $40.

If the Member contributes the Qualified Contribution amount, the Government will match-up the contribution of $ 17.50 per month.


SPK Implementation

17. When will the scheme be implemented?

This scheme will be implemented in 2023. The implementation date of this scheme will be announced later.


18. SPK Member

       For Member under the age of 50: Member is automatically converted to the new scheme.

       For Member aged 50 to 59: Member is given the option to either join SPK or remain in TAP and SCP scheme.

       For Member aged 60 and above: Member who is currently receiving SCP Annuity will be retained in the SCP scheme.


19. Will TAP and SCP scheme be abolished after the SPK is implemented?

TAP and SCP scheme will be maintained for Members who have chosen to remain in the schemes.


20. For Members who choose to stay in the TAP and SCP scheme, is there any changes to the scheme?

There  is no changes to TAP and SCP withdrawal schemes. This means TAP lumpsum withdrawal remain at age 55 years old and SCP Annuity withdrawal remain at age 60 years old.

Changes to scheme are as follows:

  • Contribution rates for Members who choose to remain in TAP and SCP scheme will be the same as SPK contribution rate.
  • Discontinue lumpsum withdrawal threshold of $12,000 for SCP.

Any SCP annuity below $150 will be adjusted to a minimum of $150 a month and to be paid until Member's balance exhausted.


21. How to get information on SPK Annuity?

Information on the amount of SPK will be shared during the implementation of SPK. The implementation date will be announced in the future.

22. Is there a calculator for SPK Annuity calculation?

SPK Annuity calculator will be shared during the implementation of SPK to allow Members to get an estimation of their SPK Annuity.

SPK Annuity calculation considers factors such as Income Retirement Rate (IRR), Average Salary, and Work Productivity.

22. Can I join SPK if I am no longer working or suspended?

Members are allowed to join SPK according to the implementation arrangement SPK in question 18. Therefore, the requirements to join SPK is based on age and not employment status (Member is still working or suspended).

Will my SPK Annuity be affected?

SPK Annuity Calculation considers factors such as Income Replacement Rate (IRR), Average Salary and Work Productivity. Therefore, for Members who does not contribute due to not working or being suspended, will affect their "Work Productivity".

SPK encourages Members to continue working and be more productive (either in the formal or informal sector) to earn a higher SPK Annuity for retirement.


23. Can the housing withdrawal be used for a house not under Member's name?

For a house that is not owned by the Member, the Member must provide additional documents to verify the relationship and to confirm that the house is owned by the immediate family such as husband or wife, parents (in-laws), or children.


24. To whom is the housing withdrawal payment made?
Housing withdrawal payments will still be made to the relevant parties such as the Contractor or the Government or the Bank(s).


25. What documents are required for Housing Withdrawal?
The required documents are the same as the existing TAP Housing withdrawal.

To repair and renovate the house, Members are required to present the relevant documents available such as Identification Card (other relevant documents etc.), including a letter of agreement (repair/renovation), Form C - ABCi or to fill-in a special TAP form/ TAP exemption letter.


26. Can SPK Housing withdrawal be made for a second house?

SPK Housing Withdrawal is allowed only once, this can be for the first house or the next house.


27. Can I make early withdrawal for the purpose of:

      a) Early retirement,

      b) For children's education expenses,

      c) Financing the hajj pilgrimage

      d) Debt settlement?

SPK does not provide specific withdrawal requirements as stated.

Some of the Member's Pre-Retirement Withdrawal without other terms and conditions are:

30% for withdrawal at Age 45 years.

30% for withdrawal at Age 50 years.

30% for withdrawal at Age 55 years.

100% for withdrawal at Age 60 years.

These withdrawals can cater to any Member's withdrawal needs.

28. If the Member does not have eligible dependents? Where are Members' savings paid to?

For Members deceased before reaching the age of 60:

  • 100% of the Member's Account savings will be withdrawn and given to the beneficiaries.
  • At the same time, dependents whom are eligible (please refer to Question 13), will also receive a Derivative Benefit from the Retirement Account, whichever is the highest, for 15 years either:
    i ) 50% of the Annuity or

ii) $ 400 per month.

For Members deceased after the age of 60 until the age of less than 75:

  • If the Member's Account savings have not been withdrawn, 100% will be given to the beneficiaries.
  • At the same time, dependents will also be receiving a Derivative Benefit from the Retirement Account, whichever is the highest, either:

i ) 50% of the Annuity or

ii) $250 per month.

iii) The payment period to dependents expires before the deceased member   reaches the age of 75 years (if still alive).

The Member's Account is considered as the Member's rights and will go through the same procedures for the Next-of-Kin Withdrawal. For Muslims, the division is in accordance with faraid where the savings must be given to the beneficiaries. While for non-Muslims it will be determined by the Probate office and given to their beneficiaries.

For the Retirement Account, it is from the employer’s contribution and is by law administered similarly to the Government’s pension concept.


29.  Does SPK pay dividends?

The Member Account Dividend is set at 2.5%.