INFORMATIONAL MESSAGE
Pension savings of Kazakhstanis have increased by 879 billion tenge since the beginning of the year
Key indicators of JSC "Unified Accumulative Pension Fund" as of April 1, 2020
Pension assets of JSC "UAPF", one of the most important financial institutions in Kazakhstan, increased by 879 billion tenge in the first quarter of 2020. Thus, the pension savings of our citizens exceeded 11.7 trillion tenge, the growth since the beginning of 2020 amounted to 8%.
The main amount of pension savings was formed by mandatory pension contributions (OPV) and amounted to 11.4 trillion tenge, having increased by 21% over the past 12 months. The amount of pension savings on mandatory professional pension contributions (OPP) amounted to 272.3 billion tenge (an increase of 30%), the amount of pension savings on voluntary pension contributions (DPV) exceeded 2 billion tenge (an increase of 10%).
It should be noted that the total number of individual pension accounts for all types of contributions of UAPF JSC exceeded 10 million, or rather - 10,698,980 units. The growth since April last year was 3%. Most of the IPS are still made up of mandatory pension contributions - 10.1 million, followed by mandatory professional pension contributions – 514.8 thousand accounts. Voluntary pension contributions also continue to grow steadily, there are 55,371 accounts in the UAPF as of April 1, 2020.
In the first quarter of 2020, pension contributions totaling 261.9 billion tenge were received to depositors' accounts, which exceeded the figures for the first 3 months of 2019 by 19%. Payments amounted to 45 billion tenge, most of which accounted for payments by age (16.7 billion tenge), for permanent residence outside the Republic of Kazakhstan (11.6 billion tenge), transfers to insurance organizations (8.4 billion tenge), heirs (7.1 billion tenge), burial (0.8 billion tenge).
It is particularly worth emphasizing that since the beginning of 2020, as of April 1, more than 661.7 billion tenge of investment income has been credited to the accounts of UAPF depositors, which is 564.8 billion tenge more compared to the same period last year, an impressive 583% increase. Recall that for the first quarter of 2019, net investment income amounted to only 96.9 billion tenge. At the same time, it is important to remember that as a result of investment activities due to the volatility of foreign exchange rates and changes in the market value of financial instruments, the amount of accrued investment income can always vary, and it must be considered in the long term.
As we can see, even in comparison of the two indicators of 2019 and 2020, investment income is not a fixed amount, depending on the value of financial instruments and the situation in the financial market as a whole. Therefore, a possible temporary decrease in the amount of investment income due to individual financial instruments is compensated in the future by diversifying the entire investment portfolio of pension assets over a longer period.
UAPF was established on August 22, 2013 on the basis of JSC "NPF "GNPF". The founder and shareholder of the UAPF is the Government of the Republic of Kazakhstan represented by the State Property and Privatization Committee of the Ministry of Finance of the Republic of Kazakhstan. The trust management of pension assets of the UAPF is carried out by the National Bank of the Republic of Kazakhstan. Since January 1, 2016, the functions of developing proposals to improve the efficiency of pension assets management have been transferred to the National Fund Management Council. In accordance with the pension legislation, the UAPF attracts mandatory pension contributions, mandatory occupational pension contributions, voluntary pension contributions, pension payments, individual accounting of pension savings and payments, provides the depositor (recipient) with information on the status of his pension savings (more on www.enpf.kz )