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FoR betteR PeoPle Annual Report 2022 19

ABOUT KWAP

ROLE AND OBJECTIVES

KWAP is Malaysia’s pension fund for civil servants. We manage contributions from the Federal Administration
and relevant agencies and invest the fund to obtain optimum returns via sound risk management and
sustainable investments. In 2015, KWAP officially took over the Public Service Department (PSD)’s
Pension Division roles, for pension payment, gratuities and other benefits.
ESTABLISHMENT OBJECTIVE FUNCTIONS

Under the Retirement To achieve optimum returns • Management and payment of pension
Fund Act 2007 (Act 662), on investments for the Fund • Management of contributions from the Federal Administration,
replacing the Pensions so as to assist the Federal Statutory Bodies, Local Authorities and other agencies
Trust Fund Act 1991 Government Administration in • Administration, management and investment of the Fund in equity,
(Act 454), KWAP was financing its pension liability fixed income securities, money market instruments and other forms of
incorporated in 1 March investment as permitted under the Retirement Fund Act 2007 (Act 662)
2007
KWAP WITHIN MALAYSIA’S PENSION SYSTEM

Policy Setting Member Investment Investment Members Benefit
Contribution Policy & Management Administration Payments
Collection Guidelines
Set policy for Manage Set investment Execute Manage Manage
pension or collection of policy and investment members’ financial
provident fund members’ monitor management accounts administration
and payment
contributions performance Appointed Agent by the Federal
Treasury
PENSIONABLE CIVIL SERVICE • Approve EPU Administration
• Financial impact
calculation
policies
• Develop and
review policies
PSD
• Develop and
review policies

LTAT
ARMED FORCES MINDEF • Collection of contribution from armed forces Veterans Affairs (MINDEF)
• Communicate with retirees
personnel and the Federal Administration
• Benefits calculation
Develop and
• Calculation of LTAT refund to KWAP
• Disbursement of withdrawals
review policies
• Communication with active members
• Transfer of refunds to KWAP
• Administration of members’ account balance
PRIVATE SECTOR AND NON-PENSIONABLE CIVIL SERVICE EPF
Provide
policy input

Legends: Treasury: Treasury, Ministry of Finance MINDEF: Ministry of Defence EPF: Employees Provident Fund
PSD: Public Services Department LTAT: Armed Forces Fund Board