About 1.9 million applications of Kazakhstanis for the purchase of housing and (or) medical treatment were executed by UAPF JSC (hereinafter - UAPF, Fund) as of October 1, 2023, according to which about KZT3.7 trillion were transferred to special accounts opened in banks-authorized operators. As is known, pension savings can be used by citizens many times within the limits of the amount of pension savings in the UAPF available for withdrawal for housing, medical treatment or transfer to management companies.
Housing
In the period from January to September 2023, the UAPF executed more than 1.4 million applications from contributors (beneficiaries) in order to use pension savings to improve housing conditions. The UAPF transferred about KZT3.3 trillion to special accounts of Kazakhstanis. The average amount of lump sum pension benefit is about KZT2.3 million.
The most active were residents of Almaty (23.12% of the total amount transferred to authorized operators), Mangistau region (16.28%), Astana (13.86%). On the website www.enpf.kz in the “Indicators” section you can find detailed information about the purposes for which Kazakhstanis plan to use one-time pension payments and by region (subsections “Lump sum pension benefits to improve housing conditions by purpose” and “Lump sum pension benefits to improve housing conditions”, respectively).
The purposes for which contributors (beneficiaries) use their savings are the following: 34.94% of all applications are the acquisition of housing ownership through civil transactions (final settlement), 21.18% of applications are for the purpose of replenishing contributions to housing construction savings for further accumulation, 15.77% of applications - for partial repayment of debt on a housing mortgage loan (including within the framework of financing by an Islamic bank), 15.19% - for partial repayment of debt on a mortgage loan through the housing construction savings system.
Authorized operators accepting applications for the use of part of pension savings are Otbasy Bank Housing Construction Savings Bank JSC, Halyk Bank of Kazakhstan JSC, Altyn Bank JSC, Bank CenterCredit JSC and Bank Freedom Finance Kazakhstan JSC.
At the same time, KZT488.86 billion was returned to individual pension saving accounts (IPSA) of contributors (beneficiaries) from authorized operators due to the fact that lump sum pension benefits by Kazakhstanis were not used within the established time frame, at the request of the applicant and other reasons.
Medical Treatment
The UAPF executed 457,513 applications for treatment in the amount of KZT391.79 billion. The average amount seized is about KZT0.86 million. Over 96% of applications from Kazakhstanis were executed for the provision of dental services, 2.5% of applications for ophthalmological services. Less than 1% of pension savings were used for other medical areas.
At the same time, an amount of KZT35.13 billion was returned to the UAPF for IPSA of contributors (beneficiaries), these funds were not used within the established time frame at the request of the applicant and other reasons.
You can view the latest statistics on the use of pension savings for treatment on the website www.enpf.kz in the “Indicators” section - “Lump sum pension benefits for medical treatment”.
Private Management
As of October 1 of this year, investment portfolio managers (IPM) have transferred over KZT12.7 billion since February18, 2021, and 9,240 applications have been executed by the UAPF. The average transfer amount is about KZT1.4 million. Detailed statistics on the transfer of pension savings to trust management are also available on the enpf.kz website in the “Indicators” section - “Transfer of pension savings to management companies.”
At the moment, the UAPF has concluded agreements on trust management of pension assets with five IPMs. You can get information about them and study their investment declarations on the enpf.kz website in the “Services” section - “Register of investment portfolio managers.” Note that out of an amount of about KZT12.7 billion - 39.4% or KZT5 billion tenge was transferred to Jusan Invest JSC, 22.6% or KZT2.9 billion was transferred to Halyk Global Markets JSC, 16.7% or 2.1 billion are in BCC Invest JSC, 13.3% or KZT1.7 billion - in Halyk Finance JSC, 8% or just over KZT1 billion - in Centras Securities JSC.
Let us remind you that from July 1, 2023, contributors have the opportunity to transfer up to 50% of their savings to IPM through compulsory types of contributions (CPC and COPC) without taking into account the adequacy threshold. Savings generated through voluntary pension contributions can be transferred to IPM in the amount of 100%. During July-September 2023, 2,479 Kazakhstanis took advantage of this right, transferring 3.8 billion tenge to the portfolio manager according to 3,240 applications for transfer.
After the initial transfer of pension assets to trust management by IPM, the contributor has the right, no more than once a year, to submit an application to the UAPF for the transfer of his pension savings to trust management from one IPM to another. During the period from March 16, 2022 to September 30, 2023, 122 applicants changed their IPM according to 173 applications for transfer from one IPM to another for a total amount of KZT403 million.
From July 1, 2023, the period for returning pension savings from the trust management of IPM to the trust management of the NBRK has been reduced from two years to one year. From March 15 to September 30, 2023, the UAPF executed 693 applications from 418 Kazakhstanis to transfer funds to the NBRK from IPM in the amount of about KZT2.5 billion. As a result, IPM manages about KZT11.8 billion, taking into account investment income.
Let us remind you that after receiving pension assets from the UAPF, IPM invests them in permitted financial instruments specified in the Rules for the implementation of investment portfolio management activities, approved by Resolution of the Board of the National Bank of the Republic of Kazakhstan dated February 3, 2014 No. 10, and provided for in the IPM Investment Declaration.
During the period when pension savings are under the management of the National Bank of the Republic of Kazakhstan until the contributor reaches retirement age, there is a guarantee of the safety of pension savings taking into account the level of inflation. When transferring pension savings under the management of IPM, the state guarantee is replaced by a guarantee from the management company to ensure a minimum level of return on pension assets, which is calculated based on the weighted average return on pension assets transferred to the management of IPM operating in 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)