Allowed to wait until age 55 to apply for the TAP 55 Years Old Withdrawal.
Grace period of ONE (1) year to withdraw TAP 55 Years old.
Has the option to make repayment* of the withdrawn Employer's portion from the withdrawal to enjoy the full SPK annuity.
(Not compulsory)
Transition Process for Deferred SPK of Silver Generation Member
From Age 50 -55 (prior to effective date)
Member who chose to defer SPK after the effective date can wait until he/she turns 55 years old to withdraw 100% TAP 55 Years Old Withdrawal.
At Age 55
Member who waited until the age 55 can make TAP 55 Withdrawal application within 1 year (grace period) from turning 55 years old. By 56 years old, if the Member did not make any TAP 55 Years Old Withdrawal, the TAP account will be automatically converted to SPK.
Deferred Member Contribution Rate until 55 Years Old
5% for TAP Scheme of basic salary
3.5% for SCP Scheme of basic salary
50
years old
55
years old
56
years old
60
years old
From Age 55 (or 56) - 60
Member will automatically converted to SPK and continue to contribute into SPK Member Account. The Employer will contribute into SPK Retirement Account according to the prescribed rate.
SPK Member Account
Contribution Rate
remains at 8.5% of basic salary
SPK Annuity Reduced
unless repayment* of the Employer's portion from TAP 55 Years Old Withdrawal were made.
(not compulsory)
Structure of Deferred SPK for Silver Generation Members after TAP Withdrawal
What happens to TAP Account and Member's contribution after 100% of TAP Account is withdrawn?
TAP Account
100% withdrawn at 55 years old.
Both Member and Employer will no longer contribute into this account once it is 100% withdrawn.
Member
No balance from TAP Account goes into Member Account since Member has already withdrawn 100% of the TAP balance.
SPK Member Account
Member will continue to contribute into SPK Member Account after the TAP 55 Years Old Withdrawal.
8.5% of Member's salary will be contributed.
100% of this contribution will go into SPK Member Account.
At 60 years old, the amount will be available for lump sum withdrawal.
What happens to SCP Account and the Employer's contribution after 100% of TAP Account is withdrawn?
SCP Account
Once TAP is withdrawn 100%, the Member's SCP balance will be automatically converted to SPK Retirement Account.
Employer
All Employers' contributions will go into a pool-fund, SPK Retirement Account. All SPK Members will receive SPK Annuity from this account starting at 60 years old.
SPK Retirement Account
From post TAP 55 withdrawal until 60 years old, the SPK Retirement Account contribution will be as follows:
Employer's Contribution at prescribed rate
100% into SPK Retirement Account
At 60 years old, this will be paid out as an annuity.
FAQ
Frequently Asked Questions
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.
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.
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.