1) Hello! I installed the app from the UAPF and now I check my statement every two or three days. I noticed that the amount changes all the time, but for some reason not only in plus, but also in minus. Explain why this is happening?
In the statement you see the amount of pension savings, which includes pension contributions and investment income from investing the funds received.
It should be recalled that pension contributions received to an individual pension account, which are recorded by the UAPF, are not just stored, but invested by the trustee of pension assets - the National Bank of the Republic of Kazakhstan (NBK) in various financial instruments. The National Bank invests pension assets in accordance with the list of financial instruments authorized for acquisition at the expense of pension assets approved by the Government of the Republic of Kazakhstan, and investment limits in accordance with the Investment Declaration of the UAPF.
You see daily changes in the amount of savings because it is recalculated and revalued daily in accordance with the results of investing pension assets.
Note that investment income is a variable value and can be both positive and negative in the short term.
It is important to remember that the funds of UAPF depositors in order to minimize risks are diversified by types, areas of investment, including currencies. For example, currently about 2/3 of investments are denominated in tenge and about 1/3 - in foreign currency, most of the latter - in US dollars.
In addition, investment income includes income in the form of remuneration on securities (deposits and other transactions), income in the form of market revaluation of financial instruments, income in the form of currency revaluation, income on assets under external management, etc.
For example, we can consider the accrual of investment income to the accounts of depositors and recipients in 2020. In January, net investment income amounted to +28.15 billion tenge, in February +111.7 billion tenge, in March +521.8 billion tenge, in April – 125.6 billion tenge, for the period from May to June 2, 2020 – 102.4 billion tenge.
As you can see, in March there was a large increase in investment income (+521.8 billion tenge), in April, May – early June, a decrease in investment income. But despite this, its total amount for the period from January to June 2, 2020 remains positive +433.6 billion tenge.
If we understand why March has become so profitable this year, let's go back a few months ago and it turns out that it was in March that the US dollar strengthened against tenge from 381 to 448 tenge per 1 US dollar. And then we saw the result. The positive currency revaluation of pension assets placed in foreign currency instruments affected a significant increase in net investment income on pension assets.
In April, on the contrary, there was a strengthening of the tenge exchange rate against the US dollar from 448 tenge to 424 tenge. The trend of strengthening of the national currency continued in May 2020. The tenge exchange rate rose to 411 per US dollar. The first days of June are also characterized by an increase in the exchange rate of the national currency to 402 tenge per 1 US dollar. Accordingly, there was a negative revaluation of pension assets placed in foreign currency instruments, which affected the decrease in investment income.
Therefore, we draw your attention to the fact that pension savings are long–term investments and it is advisable to analyze the amount of investment income for a period of at least one year.
2) I recently found out that I can transfer my pension savings from the UAPF to an insurance company under a pension annuity agreement. Is it possible to find out what amount I should have and what payments I will receive in case of money transfer, or if I stay in the UAPF?
Each depositor of the Unified Accumulative Pension Fund can independently calculate their future pension payments from both the UAPF and the insurance organization, using one of the most popular services on the fund's website – the Forecast Pension Calculator. In particular, it covers all pension components within the multi-level pension system of Kazakhstan: state basic pension and old-age pension (or solidary), as well as pension formed by mandatory pension contributions (OPV), mandatory occupational pension contributions (OPV) and voluntary pension contributions (DPV).
At the same time, if the projected amount of pension savings (formed at the expense of OPV, OPV and DPV) is sufficient to reach retirement age, a pop-up window will appear notifying the user about the possibility of concluding a pension annuity agreement with an insurance company in the future and receiving lifetime pension payments. The calculation immediately allows you to find out the forecasted amount of the annuity payment from the insurance company, thereby you will be able to compare it yourself with the payments according to the schedule from the UAPF.
Note that it is easy and very simple to perform calculations. To do this, you need to fill in all the necessary fields in the forecast calculator, such as date of birth, gender, work experience, amount of savings, etc. If you are registered in your personal account on the website enpf.kz , then the fields in the calculator are filled in automatically and the calculation of future payments is carried out literally in two or three clicks.
The results of calculating your future payments from the UAPF will be issued in three scenarios: pessimistic, realistic and optimistic. All three options take into account the expected level of profitability. At the same time, all forecast results are presented in real value terms (minus inflation of the corresponding forecast period). In addition, you will see the age and date of retirement, the number of years before the exhaustion of savings, etc.
In addition, on the enpf website.kz it is also possible to calculate the amount of pension savings for the current year, sufficient to transfer to an insurance company, for this you will need a pension calculator in the column "Transfer of savings to CSJ",
3) Good afternoon! I would like to clarify with you, I received a payment of 42,500 tenge twice during the state of emergency, can this affect my pension account?
The Unified Accumulative Pension Fund has nothing to do with the social payment of 42,500 tenge. Social payments to citizens who have lost income due to the introduction of the state of emergency in the amount of the minimum wage are made from the State Social Insurance Fund (GFSS).
The assets of the State Social Insurance Fund are funds accumulated from social contributions and intended for social payments in the event of cases of social risk provided for by the law "On Compulsory Social Insurance". Cases of social risk, for example, include loss of work, disability, loss of breadwinner, loss of income due to pregnancy and childbirth, loss of income due to adoption of a newborn child (children), loss of income due to being on parental leave after reaching the age of one year.
But the pension assets of the UAPF are the depositors' own money (pension contributions and investment income) on their individual pension accounts, intended for pension payments in accordance with the law "On Pension Provision in the Republic of Kazakhstan".
In addition, the state guarantees the safety of your savings in the UAPF. Thus, in accordance with article 5 of the Law, the state guarantees recipients the safety of mandatory pension contributions, mandatory occupational pension contributions to the UAPF in the amount of actually paid mandatory pension contributions, mandatory occupational pension contributions, taking into account the level of inflation.
4) I would like to know if pension payments from JSC "UAPF" are subject to individual income tax? If so, in what size?
According to Articles 320 and 326 of the Tax Code of the Republic of Kazakhstan, as amended by Article 33 of the Law of the Republic of Kazakhstan "On the Enactment of the Code of the Republic of Kazakhstan "On Taxes and Other Mandatory Payments to the Budget" (hereinafter referred to as the Law), payments related to income in the form of pension payments subject to taxation and the tax rate, applied to income in the form of pension payments.
In particular, according to Article 320 - The taxpayer's income is taxed at a rate of 10 percent. With the exception of income in the form of dividends received from sources in the Republic of Kazakhstan, they are taxed at the rate of 5 percent.
According to Article 326 - Income in the form of pension payments subject to taxation includes payments made by a Single Accumulative pension Fund:
1) from taxpayers' pension savings formed at the expense of:
mandatory pension contributions in accordance with the legislation of the Republic of Kazakhstan;
mandatory occupational pension contributions in accordance with the legislation of the Republic of Kazakhstan;
voluntary pension contributions in accordance with the terms of the pension provision agreement at the expense of voluntary pension contributions;
2) natural persons-residents of the Republic of Kazakhstan who have reached retirement age and have left for permanent residence outside the Republic of Kazakhstan in accordance with the Law of the Republic of Kazakhstan "On Pension provision in the Republic of Kazakhstan";
3) natural persons-residents of the Republic of Kazakhstan who have not reached retirement age and have left for permanent residence outside the Republic of Kazakhstan in accordance with the Law of the Republic of Kazakhstan "On Pension provision in the Republic of Kazakhstan";
4) individuals in the form of pension savings inherited in accordance with the procedure established by the legislation of the Republic of Kazakhstan;
5) to individuals in the form of a one-time payment for the burial of a deceased person who has pension savings, in accordance with the procedure established by the legislation of the Republic of Kazakhstan.
5) Hello! I recently read an article about the Norwegian Pension Fund, as it turned out, a huge amount has accumulated in their Fund, which simply has nowhere to spend, why does our UAPF have smaller pension assets?
The comparison is incorrect, because despite its name, pension provision for Norwegian citizens is not the initial and priority task of the Norwegian State Pension Fund. This Fund, which belongs to the state, is both a savings and stabilization fund and is designed to ensure the sustainability of the public sector. The annual tranches from the Fund owned by the Norwegian Parliament to the state budget do not have a strictly targeted purpose for providing pension payments, it is simply one of the sources of financing for the Norwegian budget, and the funds allocated to them can be directed to various sectors of the economy and life of the Scandinavian country.
Another difference between the GPF and the UAPF is that, unlike the Kazakh Fund, the assets of the Norwegian Fund are not personalized savings of citizens, but are essentially the stabilization fund of the national welfare of Norway. Thus, according to the principle of formation of savings and strategic goals, the Norwegian State Pension Fund is more correct to compare with the National Fund of the Republic of Kazakhstan (which was created exactly according to the Norwegian model at the time), and not with the UAPF, where personal pension savings of Kazakhstanis are formed.