The purpose of the voluntary provident fund (PVD) is to encourage savings with voluntary contributions by employees and employers to ensure employees have savings for their post-retirement expenses.

The National Pension Fund (NPF) scheme is a mandatory pension plan that will be enforced for employees in the formal sector aged 15-60 years. As the PVD will continue to be available, the plan is to allow employees to choose between savings in NPF or a comparable PVD.

As such, rules and regulation on existing PVD needs to be revised to be consistent with the NPF. PVD plans that meets the requirements will be named Qualified Provident Fund (QPVD).