5 questions November
As soon as the age and the amount of savings allowed, I transferred a part to the insurance company. Now I would like to return some part of it to the pension fund. Is it possible?
Since 2003 our citizens have the right to enter into pension annuity agreements with life insurance companies (hereinafter referred to as LIC). Such an agreement allows citizens to receive regular payments from LIC without waiting for retirement age, taking into account annual indexation (at least 5%) for life.
The Law of the Republic of Kazakhstan on the development of the insurance market, which came into force on 12 September, 2022, provides citizens with a pension annuity agreement with the right to partially return money from LIC back to IAPF.
To implement the Law, on 20 October, 2022, a relevant regulatory legal act (RLA) was adopted, which comes into force 10 calendar days after its official publication, namely from 8 November, 2022.
From this date, citizens who have pension annuity agreements can apply to the LIC with an application and return to IAPF a part of the insurance premium that exceeds the minimum cost of the pension annuity agreement.
To do this, the pension annuity agreement shall be renegotiated on new terms, which should ensure payments at a level not lower than 70% of the subsistence minimum.
Insurance organizations are obliged, within 20 calendar days from the date of the insured's application, to transfer the amount of money to be returned to IAPF.
Recently got a job as a courier in a small private company. How do I know if my individual account receives pension contributions and how to do it?
First, when you get a job, you must formalize your relationship with the employer by concluding an employment contract or a civil law contract. In both cases, the employer (tax agent) is obliged to transfer mandatory pension contributions (MPC) to your individual pension account on a monthly basis in the amount of 10% of your earnings. In order to make sure that he/she faithfully fulfills his/her obligations to transfer contributions, their receipt on the account must be monitored.
IAPF offers contributors various methods. As of today, the most popular is the personal profile on the Fund's website and in the IAPF mobile application.
Using an EDS or IIN and a password, you can enter your Personal Profile at any time and see your pension savings and receipt of funds.
To do this, go to the Fund's website, where in the upper right corner there is an icon with the corresponding inscription: "Personal Profile". Click on it and then select “Individual Profile”. For beginners, registration is required.
If you have an electronic digital signature, it will come in handy in two cases. Firstly, with the help of EDS, you simply enter your profile. But a digital signature has its own validity period, and although it is quite simple to re-register it on the egov portal, it is better to do the following with it right away. Go to the Personal Profile - in the section "Services" - making changes and additions to the details and select "Method of informing" - INTERNET.
If there is no EDS, then visit any IAPF branch once and choose the INTERNET there as a method of informing. After that, you can enter your personal profile using the IIN and the password you have chosen.
In the upper left corner there is a “Services” function, by clicking on which you will be taken to the general section of services. You need to get a statement from an individual pension account. Specify the period you are interested in, then the received statement can be downloaded to a computer or, if desired, sent by e-mail.
Through your personal profile, you can also track not only the state of the account, but also the status of consideration of applications for the payment of pension savings, change your details, make forecasts for your pension, etc.
For general advice on the pension system, there is a unified call-center at toll-free number 1418.
What payments exist in IAPF, and who has the right to them?
Persons who have reached retirement age: men - upon reaching 63 years old; women this year - upon reaching 60 and a half years old, in 2023 - 61 years old, have the right to pension payments from IAPF at the expense of mandatory pension contributions and professional pension contributions according to the established schedule.
The second category of recipients are persons with disabilities of the first and second groups, if the disability is established indefinitely.
To assign an old-age pension and a state basic pension, as well as to receive payments from mandatory pension contributions and mandatory professional pension contributions from IAPF, it is necessary to apply with a single application and a package of documents only to the Public Service Center of Government for Citizens State Corporation. The recipient will be provided with a proactive, that is, by default, service for the payment of a state guarantee.
To make pension payments from IAPF to persons with disabilities of the first and second groups, if the disability is established indefinitely, it is necessary to contact IAPF - directly to the office or through the website in the "Electronic Services" section.
The list of required documents for receiving pension payments is detailed on enpf.kz website.
In this case, the day of applying for a pension payment is considered:
- for recipients who have reached retirement age - the day of registration of the application by the State Corporation;
- for recipients with disabilities of the first and second groups, if the disability is established indefinitely - the date of receipt or submission of documents to IAPF.
Upon reaching the age of 45 years old by the contributor, with the sufficiency of pension savings of at least 70 percent of the subsistence minimum established by the law on the republican budget and effective as of 1 January of the corresponding financial year, it is possible to transfer their savings to an insurance company by concluding a pension annuity agreement.
In addition, foreigners and stateless persons who have left for permanent residence outside the Republic of Kazakhstan and who have submitted documents specified by the laws of the Republic of Kazakhstan, confirming the fact of departure, have the right to receive pension savings. In order to receive payments in connection with departure for permanent residence, it is necessary to go through the procedure for registering departure in the prescribed manner at the migration police, obtain citizenship of another state, and then submit the necessary package of documents to the Fund.
In the event of the death of a pensioner or a person who has pension savings in IAPF and has not reached retirement age, the savings shall be inherited in the manner prescribed by law. Moreover, IAPF shall pay a lump-sum payment for burial within 52 MCI to the person who carried out the burial of the deceased. Today it is 166 thousand 632 KZT.
My mother received an SMS message with the text that she has savings in IAPF. What is this? After all, she has been retired for five years already? Isn't this a “trick”?
IAPF together with Government for Citizens State Corporation annually carries out an annual reconciliation of persons who have reached retirement age and have pension savings in IAPF.
During the reconciliation process, IAPF specialists notify persons who have reached retirement age and receive a pension from the state budget about the need to apply for pension payments from IAPF.
Let us explain why this happens: in order to assign an old-age pension and a state basic pension, as well as to receive payments from mandatory pension contributions and mandatory professional pension contributions from IAPF, citizens need to apply with a single application and a package of documents only to the Public Service Center of Government for Citizens State Corporation.
However, until 2018, when, in all likelihood, your mother retired, there was no such service: upon reaching retirement age, citizens submitted documents separately to the State Corporation for receiving a basic pension and an old-age pension and separately to IAPF for receiving payments from pension savings. Some citizens who applied to the State Corporation and began to receive state payments did not apply for payments to IAPF.
It is for such persons who did not apply that work is carried out to assign pension payments from IAPF by sending an SMS message from the unified number of the State Corporation 1414 to the telephone number registered in the database of mobile citizens. It is enough for those who receive such messages to send a response message, other additional applications and submission of documents to IAPF or PSC are not required.
Further, payments from IAPF, together with pension payments by age, shall be credited to bank accounts that were previously provided to the State Corporation when assigning the state basic pension payment.
At the same time, the amount and term of pension payments from IAPF depend on the balance of pension savings on the individual pension account of the recipient.
My friend works without deducting pension contributions, he says that there is no guarantee that we will receive our pension savings? I would like to object to him, please state how it sounds in the law.
Kazakhstan is the only country in the world where there is a state guarantee of the safety of pension savings of citizens, taking into account the inflation rate at the time of retirement.
The Law “On Pension Provision in the Republic of Kazakhstan” (Article 5) guarantees recipients the safety of mandatory pension contributions and mandatory professional pension contributions to IAPF in the amount of actually paid contributions, taking into account the inflation rate at the time of obtaining the right to pension payments.
In other words, when a person retires, the return on his/her individual pension account is calculated in relation to the inflation rate for the entire period of being in the accumulative pension system. If the profitability of pension savings during this time is below the inflation rate, the state compensates for this difference.
Therefore, you can be sure that the savings of contributors are reliably protected and this does not depend on how situation in the financial markets and the situation with investment income develop.
Contributors receive the right to payment under the state guarantee upon reaching retirement age. In addition, people with disabilities of groups I and II have this right, if the disability is established indefinitely, persons who have left for permanent residence outside Kazakhstan, foreigners and stateless persons who transferred MPC, MPPC, heirs in the event of the death of a person entitled to payment under the state guarantee.