HR Seminar - Quiz 1

The purpose of a Pension Funds is to:

• Invest to maximize gains

• Deduct money from your monthly income

• Function as a retirement saving and wealth management tool

Investing objective of MRPS aims to:

• Achieve gains equivalent to Treasury Bill rate

• Preserve the member’s Retirement Saving by beating Inflation Rate

• Beat share prices

As per the Pension Act, my employer is mandated to:

• Register me in the MRPS scheme, only.

• Deduct 14% from my monthly salary for MRPS.

• Contribute on my behalf, 7% equivalent of my monthly salary to MRPS.

The retirement income you get from MRPS is dependent on:

• Contributions, investment return, investment duration.

• Contributing amount and investment return.

• Contribution and age of contribution.

Compared to Growth Assets, Cash equivalent assets have:

• More volatile returns

• More stable income

• Lower investment risk