Use of pension savings as of February 1, 2023
For housing
In January 2023, more than KZT7.1 billion of pension savings were transferred from the UAPF to the special accounts of Kazakhstanis opened in banks-authorized operators to improve their living conditions. Thus, 3,061 applications of contributors (beneficiaries) were executed. The average amount of a one-time pension payment amounted to 2.3 million tenge. For comparison, in January 2022, UAPF completed 50,060 applications for improving housing conditions for a total amount of about KZT76.2 billion. Then the average withdrawal amount was about 1.5 million tenge.
In just two years (since January 2021) as of February 1, 2023, UAPF has executed 1,348,461 applications. The amount of early withdrawals is approaching KZT3.2 trillion. At the same time, the average amount seized per one application for the period is about KZT2.4 million.
On the website www.enpf.kz in the “Indicators” section, information is updated every working day on the purposes for which Kazakhstanis used / plan to use lump-sum pension benefits, incl. by regions (subsections "Lump-sum pension benefits for improving housing conditions by purpose" and "Lump-sum pension benefits for improving housing conditions", respectively).
Most often (35.7% of all executed applications or 64.3% of the transferred amounts) is the acquisition of a dwelling in the ownership of civil law transactions (final settlement) and the construction of an individual residential building (if the land is owned). About 21% of applications (8.2% of the transferred amounts) are for replenishment of the deposit in housing construction savings for further accumulation. Approximately the same number (20.87%) of applications - for use by contributors (beneficiaries) of pension savings under the system of housing construction savings. About 13% of the listed lump-sum benefits were directed to this. About 20% of applications (12% of lump-sum benefits) were executed for the purpose of using a mortgage housing loan - from the initial payment to refinancing and full repayment.
Please note that statistics are given for applications executed by UAPF. On the side of authorized operators, the goals of Kazakhstanis may change or the funds may return to the individual pension accounts of contributors (beneficiaries) in the UAPF. KZT462.7 billion was returned to the IPSA from authorized operators due to the fact that lump-sum pension benefits were not used within the time limits established by law, at the request of the applicant and for other reasons. Of these, KZT2.27 billion were returned in January 2023.
For medical treatment
Since January 2021, as of February 1, 2023, UAPF has executed 404,512 applications for medical treatment for a total amount of KZT322.2 billion. The average amount of withdrawals for treatment for the period amounted to about KZT0.8 million. At the same time, in January 2023, 2,537 applications were executed in the amount of KZT3.2 billion. The average amount of withdrawals for treatment in January 2023 amounted to about KZT1.3 million.
At the same time, KZT32.5 billion was returned to the IPSA of contributors (beneficiaries) in the UAPF from the authorized operator (Housing Construction Savings Bank Otbasy Bank JSC). These funds were not used within the time limits established by law, at the request of the applicant and for other reasons.
You can get acquainted with the current statistics on the use of pension savings for medical treatment on the website www.enpf.kz in the section "Indicators" - "Lump-sum pension benefits for medical treatment".
To private management
As of February 1, 2023, the investment portfolio manager (IPM) transferred KZT8.8 billion for the entire period based on 5,933 applications. The total number of unique applicants is 3,405, which means that there are depositors who have decided to transfer part of their savings to several management companies. The average transfer amount is about KZT1.5 million.
At the same time, the total amount of funds under the management of the IPM, taking into account investment income, is about KZT9.5 billion.
As of February 1, 2023, there are five IPMs in the market: Jusan invest JSC, BCC Invest JSC, Centras Securities JSC, Halyk Global Markets JSC, Halyk Finance JSC. You can get acquainted with information about them and study their investment declarations on the website enpf.kz in the section "Services" - "Register of Investment Portfolio Managers".
Detailed statistics on the transfer of pension savings to trust management is also available on the enpf.kz website in the section "Indicators" - "Transfer of pension savings to management companies".
Recall that after the initial transfer of pension assets to the trust management of the IPM, the contributor has the right not more than once a year to submit an application to the UAPF for the transfer of his pension savings to the trust management from one IPM to another IPM. 50 applicants used this right: according to 70 applications, the UAPF made a transfer from one IPM to another for a total amount of KZT176 million.
Recall that after receiving pension assets from the UAPF, the UIP invests them in permitted financial instruments specified in the Rules for the implementation of investment portfolio management activities, approved by the Resolution of the Board of the National Bank of the Republic of Kazakhstan dated February 3, 2014 No. 10, and provided for in the Investment Declaration of the UIP.
Under the Law on Pension Provision, IPMs are entitled to charge an investment management fee. The maximum amount of remuneration of the IPM cannot exceed 7.5% of the received investment income. The actual amount of the commission fee is annually approved by the management body of the IPM and may change no more than once a year.
Up-to-date information on the IPM commission for 2023 is available on the enpf.kz website in the section: “Services” - “Register of Investment Portfolio Managers.
Also, contributors have the right to submit an application to the UAPF for the return of pension savings held in trust management of the IPM to the trust management of the National Bank, but not earlier than two years after the initial transfer of pension savings to the trust management of the IPM. Since the transfer of pension savings began in February 2021, this period has not yet expired. So far, as of February 1, 2023, UAPF statistics record the automatic return of pension savings from the trust management of the UIP to the trust management of the National Bank of the Republic of Kazakhstan in the amount of KZT33 million. The reasons for auto-return are the achievement of retirement age, the death of the contributor, as well as the departure for permanent residence outside the Republic of Kazakhstan.
During the period when pension savings are under the management of the National Bank until the contributor reaches the retirement age, there is a guarantee of the safety of pension savings, taking into account the level of inflation. When transferring pension savings to the trust management of the IPM, the state guarantee is replaced by the guarantee of the management company to ensure the minimum level of profitability of pension assets, which is calculated based on the weighted average return on pension assets transferred to the management of the IPM operating on the market.
The UAPF was established on August 22, 2013 on the basis of GNPF APF JSC. The UAPF founder and shareholder is the Government of the Republic of Kazakhstan represented by the State Institution “Committee of State Property and Privatization” of the Ministry of Finance of the Republic of Kazakhstan. UAPF pension assets are managed by the National Bank of the Republic of Kazakhstan. From January 1, 2016, the functions for developing proposals to improve the management of pension assets were transferred to the National Fund Management Council. In accordance with the pension legislation, the UAPF attracts compulsory pension contributions, compulsory occupational pension contributions, voluntary pension contributions, pension benefits, individual accounting of pension accumulations and benefits, provides the contributor (beneficiary) with information on the status of his pension accumulations (for more information visit www.enpf.kz)