The accumulative pension system consists of 3 types of pension contributions: compulsory, compulsory occupational and voluntary pension contributions.
Briefly about the first two, the most popular:
- compulsory pension contributions, abbreviated as CPC, is 10% of our salary, which the employer transfers monthly to the employee's individual pension account in the UAPF;
- Compulsory occupational pension contributions or COPC are employer compensation for hazardous working conditions. The amount of such contributions is 5% of the employee's salary, but they are paid from the employer's budget. Citizens whose profession is related to work in mines for the extraction of minerals and other harmful or dangerous areas of activity are entitled to this type of contribution. The full list of such occupations is approved by the Government Decree and can be viewed on the website adilet.zan.kz.
We asked Mamila Mussabekova, Director of the Regional Development Department of UAPF JSC, to tell us more about the third type of contribution.
- Mamila Kurmanzhanovna, what are voluntary pension contributions and who can pay them?
- Voluntary pension contributions - VPCs - are an effective way to significantly replenish your pension capital. The name itself already assumes that anyone can do them, and not only for themselves, but also for their loved ones, including by transferring your minor children to the account. In the future, I'm sure they will appreciate it, and will be very grateful to you!
- Tell me, can legal entities contribute VPC?
- Of course, for example, legal entities can deduct VPC for their employees as a bonus to mandatory contributions. Moreover, VPCs transferred by the employer in favor of the employee are not considered as income of an individual, that is, they are not taxed. For the employer, such expenses are deductible when calculating corporate income tax, that is, the employer in this case also receives tax advantages.
- How to open a voluntary account with UAPF?
- VPC accounts, as well as for all types of contributions, are opened automatically in the pension fund upon receipt of the first installment, that is, the contributor does not need to visit the UAPF office. Identification of an individual in whose favor pension contributions are made is carried out according to personal data (full name, IIN, date of birth) indicated in the electronic format of the payment order when transferring VPC. All the necessary information: about the details of a valid document proving the identity of an individual, about the place of permanent residence, other information, UAPF will receive from the relevant information systems of state bodies.
You can transfer VPC through second-tier banks and branches of Kazpost JSC or submit an application to the employer, on the basis of which he will regularly transfer voluntary pension contributions to the UAPF in favor of the applicant or a third party specified in the application.
- I see, please tell us, how did it happen that unexpected amounts began to appear on the VPC accounts of some contributors?
- Yes, we are often asked this question, although we have already talked about it more than once.
This is due to the fact that in 2022 the procedure for transferring unclaimed amounts of guaranteed reimbursement of deposits from the Kazakhstan Deposit Guarantee Fund (KDIF) to the UAPF was launched. For several years, the unclaimed amounts of the depositors of the liquidated banks were in the KDIF. For many, the terms of circulation have long expired, therefore, at the legislative level, it was decided to transfer them to voluntary pension accounts in the UAPF. The most important thing for contributors is that from the moment the unclaimed amounts from the KDIF enter their IPSA, they are invested in the same manner as pension assets. That is, they "work" and bring investment income.
You can check the availability of receipts from the KDIF by viewing an extract from the IPSA on the websites of the UAPF and e-government, or in the UAPF mobile application.
- How popular are voluntary contributions among contributors?
- Now I can safely say that their popularity is growing. Judge for yourself, as of January 1, 2023, more than 358,000 VPC accounts were opened in the UAPF (more than 484% growth compared to last year), which accumulated about KZT3.6 billion (more than 107% growth over the year).
The growing interest of the population in this type of contributions means that our citizens have become more responsible for their future, think about it and plan!
- How do I get VPC payouts? Only together with the basic retirement pension?
- Not necessary. Citizens who have reached the age of 50, people with disabilities, foreigners and stateless persons who leave or have left for a permanent place of residence outside Kazakhstan, who have submitted documents determined by the legislation of the country, confirming the intention or fact of leaving, can receive payments from the accumulations of voluntary pension contributions, as well as persons who have pension savings on the VPC for at least five years.
- Thank you for the conversation, Mamila Kurmanzhanovna!
Interviewer Baqyt Ospanov