Who has the option to make repayment in Silver Generation?
Members who are 50-59 years old who has signed consent form and opted to defer conversion to SPK until TAP 55 Years Old is withdrawn 100%.
Why does a deferred Member has the option to make repayment?
Retirement Account in SPK consists of Employer's contribution.
Deferred conversion to SPK allows Member to withdraw 100% of the TAP account balance at age 55.
At 100% withdrawal, Member will also take out the Employer’s portion in which will reduce the Employer’s contribution in the SPK Retirement Account during the conversion to SPK - only balance in SCP account goes into SPK Retirement Account once the balance in TAP Account is withdrawn.
Reduced Employer's contribution in SPK Retirement Account will also reduce the SPK Annuity (monthly) for Member's retirement.
Member can make repayment to recover the reduced Employer's portion in order to increase the SPK Annuity (monthly) for retirement.
Type of Repayment
Full repayment
Member can make full repayment of the Employer’s portion to receive FULL SPK Annuity.
Partial repayment
Member can make partial repayment of the Employer’s portion (any amount) to INCREASE SPK Annuity (annuity is higher than no repayment at all).
No Repayment
Member can opt to not make repayment of the Employer’s portion and the member will receive a REDUCED SPK Annuity.
Things about repayment that you need to know
Repayment can be made latest ONE (1) month before Member turns 60 years old.
Repayment can only be made ONCE into the SPK Retirement Account.
Member can use the following method to make the repayment into the Retirement Account:
Immediate repayment at TAP 55 years old application.
Member can state the amount of repayment for Employer’s portion (full or partial) in the application form when withdrawing TAP 55 years old. TAP will automatically deduct the stated repayment amount from the balance and the remaining amount of the TAP balance will be transferred into Member’s bank account.
Repay lump sum into Retirement Account any time before reaching 60 years old.
Member can only make repayment into SPK Retirement Account once. Once repayment has been made into the SPK Retirement Account, Member will not be able to add on repayment.
Make voluntary contribution into Member Account and repay full or partial at SPK 60 years old 100% withdrawal application.
Member can make voluntary contribution to SPK Member Account once converted to SPK. Once a Member make application for SPK 60 years old application upon reaching the age 60, the Member can state the amount of repayment from the withdrawal to be repaid into the SPK Retirement Account.
FAQ
Frequently Asked Questions
After I have chosen to defer joining SPK, I have not made any withdrawals under TAP
Scheme. Can I still make withdrawal?
Yes. If you have chosen to defer joining SPK and have not yet made any withdrawals under TAP, you can still proceed with both TAP50 and TAP55 withdrawals.
For those who choose to defer their participation into SPK and remain in TAP and SCP schemes, are there any changes made to the scheme?
If you choose to defer your participation in SPK and remain in the TAP and SCP schemes, there are no changes to the withdrawal scheme. TAP Withdrawal remains the same. The adjustment under the new scheme is related to Member contributions, which will be aligned with the SPK contribution rate.
Previously, I have withdrawn TAP55 Withdrawal. After which, both my Employer and I
continue to contribute voluntarily into my TAP account. Upon implementation of SPK and
joining the scheme, can both my Employer and myself contribute voluntarily into SPK?
Under SPK, there have been improvements where mandatory contributions are applicable until the age of 60, and you will receive a new SPK account. Both you and your Employer can continue contributing voluntarily on top of your mandatory contribution, and these voluntary contributions will go to your SPK Member Account.