FAQ | LPPSA

I will retire / end my service soon. What documents do I need to be submit to LPPSA?

i) Pensioner under JPA/KWAP agency
Borrower under JPA/KWAP agency do not need to submit any pension documents to LPPSA due pension deduction instruction will be issued directly to customer after receiving retirement data from JPA/KWAP agency.

ii) Pensioner under JHEV agency
Borrower who are going retire or end service under JHEV agency require to submit Retirement / End of Service Notification (Form C) to LPPSA 6 months before the retirement date.

If my monthly repayment is not deducted from my pension, what action should I take?

Borrower may inform LPPSA regarding on the unexecuted pension deduction through the inquiries and complaint portal https://etiket.lppsa.gov.my/ and enclose a copy of the monthly pension statement.

LPPSA will issue a notice of Pension Deduction Instruction (APP) to JPA Post Service / KWAP and JHEV (for ATM members and officers).

Borrower is obliged to make monthly repayment directly to LPPSA for monthly instalments that has not been executed through pension deduction.

Direct payment to LPPSA can be referred to LPPSA official website https://myfinancing.lppsa.gov.my/my/pelanggan-sedia-ada.

Will my gratuity be deducted to settle the loan outstanding balance?

Gratuity deduction will be made to future pensioner who has defaulted in repayment. The amount of gratuity deduction is based on the amount of arrears and not based on the total outstanding balance.

If the borrower financing is prompt with no arrears, the monthly repayment will be paid through pension deduction. Borrower is advised to check her financing account and ensure prompt payment before retirement.

Does application can be made by borrowers to settle the oustanding balance through compulsory retirement gratuity?

Yes. Borrower require to submit an official letter and enclose the Retirement / Service Expiration Notification for LPPSA to continue the application process.

How do I make my monthly repayment if I have retired?

Monthly repayment can be made through pension deduction. LPPSA will issue a notice of Pension Deduction Instruction (APP) to JPA Post Service / KWAP and JHEV (for ATM members and officers)

If my monthly pension is insufficient to cover the monthly installment, what should I do?

If the monthly pension is insufficient, borrower has to pay the difference directly to the LPPSA to avoid arrears.

Example:
Monthly pension: RM 1,000.
Borrower’s monthly installment: RM1,200.

Payment through pension deduction: RM 1,000
Borrower to direct payment to LPPSA: RM 200

Direct payment to LPPSA can be referred to LPPSA official website https://myfinancing.lppsa.gov.my/my/pelanggan-sedia-ada.

If my monthly pension is insufficient, can I reschedule the monthly installment according to the amount of pension received.

No. Rescheduling is allowed if partial settlement is made towards the financing balance made by borrowers

I have submitted Form C six (6) months before my retirement date but did not received any response from LPPSA after 2 months from the submission date.

For your information, retirement information received through Form C will be updated in LPPSA system. Notice of Pension Deduction Instruction (APP) will be sent to JHEV (for ATM members and officers) one month before the retirement date. The APP notice will also be sent to borrowers via email, post and SMS.