Kazakhstani pension system guarantees safety of mandatory pension contributions with regard to inflation. This is stated in paragraph 1 of Article 5 Law "On pension provision in the Republic of Kazakhstan", as well as in the Rules for implementation of these guarantees by the state. According to the rules, accumulative pension system participants can get the right to refund the the difference between the amount of actually made mandatory pension contributions, mandatory professional pension contributions with regard to inflation and the amount of pension savings generated from mandatory pension contributions, mandatory professional pension contributions. This payment is a lump sum and based on information requested from SSPF the State corporation makes the calculation of difference for refund according to special formulas.
Who is entitled to receive state guarantee payments
The right on the refund of state guarantee is entitled to the following:
The attorney can apply for the refund (if there is a notarized power of attorney).
Where to apply
To find out whether you are eligible for payment of the state guarantee, it will be more convenient to use a special online service, which is located in the left block of the main page of the eGov.kz portal.
! If a citizen has already applied for this payment previously or he does not have the right to make this payment, then this service will report it.
The pensioners by age who have already received the pension payments are entitled to the difference of state guarantee that is calculated on a proactive basis without the need to submit an application and additional documents after they are assigned with a basic pension payment. The remaining persons who are entitled to receive the difference under the state guarantee apply to the branches of the NJSC SC Government for Citizens- public service centers and provide the following documents:
The foreigners provide the following documents:
Attorneys must provide their own identity document, the original power of attorney or a notarized copy of it.
According to paragraph 8 of Chapter 2 of the Rules, in the event of the death of a person entitled to pay the difference, the amount of the difference payment is made to the heir in the manner established by Civil Code of the Republic of Kazakhstan.
In this case, the heir submits the following:
The NJSC SC “Government for Citizens”, within 2 working days from the date of acceptance of the application, requests from the SAPF information about the availability of an individual retirement account and amounts of pension savings generated from mandatory pension contributions and (or) mandatory professional pension contributions.
The SAPF provides the requested information to the NJSC SC “Government for Citizens” within 2 business days.
The NJSC SC “Government for Citizens” within 1 business day from the moment of receiving information reconciles the information on the amount of pension savings received from the SAPF with the amount of mandatory pension contributions, mandatory professional pension contributions, taking into account the inflation rate for the relevant period.
The formulas used in calculating the amount of the difference payment are set out in paragraph 13 of Chapter 3 of the Rules.
The NJSC SC “Government for Citizens” forms within 3 working days after the calculation of the amount of the difference payment forms and sends the recipient an electronic template (ET) to the authorized social security authority.
The authorized body within 5 working days from the date of receipt of the ET decides on the appointment or refusal of the appointment, indicating the reasons for the refusal to pay the difference and sends it to the branch of the NJSC SC “Government for Citizens”.
The NJSC SC “Government for Citizens” informs the applicant within 2 working days about the appointment or refusal to appoint (indicating the reasons for the refusal) the difference payment by sending an SMS alert to the applicant's mobile phone indicated in the application.
Next, the NJSC SC “Government for Citizens” interacts with the authorized bodies on the part of the transfer of the budgetary funds.
Upon the receipt of budget funds, the NJSC SC “Government for Citizens” forms the payment orders with the payment purpose code 030 in accordance with the payment schedule and transfers the difference payment amounts to the beneficiary’s bank account opened with second-tier banks or organizations engaged in certain types of banking operations opened on the territory of the Republic of Kazakhstan.
The payment of the state guarantee is calculated by the formula: The amount of payment under the state guarantee = amount (MPC+CPI) - amount (PS), where:
If in the fund as a result of investment, the amount of pension savings was greater than the amount of pension contributions, taking into account the level of inflation, the state guarantee will not be paid.
Example 1: Askarov Azamat Armanovich was born on 25.03.1960. The moment of the right to pension payments from SAPF JSC in connection with the achievement of the retirement age is 25.09.2018. At the time of eligibility 25.09.2018, the amount of mandatory pension contributions (MPC) is 55,241.70 tenge. The amount of MPC, taking into account the level of inflation (MPC+CPI) – 161,714.57 tenge. The amount of pension savings in the SAPF, taking into account investment income (PS) – 116,178.62 tenge.
Calculation of the amount of payment under the state guarantee: the sum of the MPC+CPI minus the sum of PS: 161,714.57-116,178.62=45,535.95. Total amount of payment under the state guarantee is 45,536 tenge.
Example 2: Ivanova Galina Sergeyevna was born on 15.09.1957. The moment of the right to pension payments from SAPF JSC in connection with the achievement of the retirement age is 15.09.2015. At the time of eligibility 15.09.2015, the amount of mandatory pension contributions (MPC) is 489,326.93 tenge. The amount of MPC taking into account the level of inflation (MPC+CPI) is 577,889.53 tenge. The amount of pension savings in the SAPF, taking into account the investment income (PS) is 579,864.24 tenge. The calculation of the amount of payment under the state guarantee: the amount of the MPC+CPI minus the amount of PS is 577,889.53- 579, 864.24 = (-) 1,974.71, that is, the amount of payment under the state guarantee is not eligible and the refusal decision is made by the authorized body.