Due to the fact that from April 1, 2022, the thresholds for the minimum adequacy of pension savings will change and, accordingly, the amounts available for use for improving housing conditions and (or) medical treatment, as well as for transferring to investment portfolio managers, will change, we have prepared answers to frequently questions asked.
We hope this material will help you quickly and consciously make and implement the decision to use your pension savings.
1) Until what date can I apply to receive lump-sum pension benefits for the improvement of housing conditions and treatment under the "old" minimum sufficiency thresholds calculated for 2021?
Starting from April 1 of this year, the thresholds of minimum adequacy of pension savings (TMA) calculated for 2022 come into force. Earlier, by Decree of the Government of the Republic of Kazakhstan dated December 13, 2021 No. 875, pursuant to the instructions of President K-Zh. Tokayev, the validity period of TMA, calculated for 2021 in accordance with the methodology for determining TMA, was extended until April 1, 2022.
To exercise the right to use a part of pension savings, the contributor (beneficiary) must:
Please note that since the TMA for 2022 comes into force on April 1, 2022, the UAPF will make lump-sum pension benefits according to the TMA values calculated for 2021, according to applications received by the UAPF from authorized operators until March 31, 2022 inclusive. Therefore, we recommend submitting an application to your bank-authorized operator in advance - no later than March 28-29, 2022
2-3) How do I apply for a Lump-sum Pension Benefit for Home Improvement? How to apply for a lump sum pension benefit for medical treatment?
Contributors (beneficiaries) of UAPF JSC have the right to use part of pension savings to improve housing conditions and (or) pay for treatment that is not included in the guaranteed volume of free medical care and compulsory social health insurance, as well as to transfer investment management to private management companies.
The right to use part of their pension savings in order to improve their housing conditions and (or) pay for medical treatment in their favor or in favor of their spouse and close relatives can be used by the following persons who have pension savings in the UAPF formed from Compulsory Pension Contributions (CPC) and/or Compulsory Occupational Pension Contributions (COPC):
1) whose pension savings exceed the minimum pension savings adequacy threshold. At the same time, the lump-sum pension benefit cannot exceed the amount of the difference between the amount of pension savings due to the CPC and (or) COPC of the contributor (beneficiary) and TMA;
2) for which the size of the pension ensures the replacement rate of the average monthly income of the recipient at a level not lower than 40 percent, determined in the manner determined by the Government of the Republic of Kazakhstan. At the same time, the lump-sum pension payment cannot exceed 50 percent of the amount of pension savings due to the CPC and (or) COPC of the contributor (beneficiary) as of the date of receipt of the initial electronic notification from the authorized operator;
3) those who have entered into a pension annuity agreement with an insurance company. At the same time, the lump-sum pension benefit cannot exceed the amount of pension savings due to CPC and (or) COPC on the individual pension saving accounts of the contributor (beneficiary).
In order to exercise the right to use part of pension savings, contributors (beneficiaries) will first of all have to check their pension savings and make sure that the amount available for withdrawal is available on their individual pension saving account with the UAPF.
After checking their pension savings in the UAPF and making a decision to use part of the pension savings to improve their living conditions and (or) pay for treatment, contributors (beneficiaries) must contact the authorized operator through the authorized operator's Internet portal to open a special account and apply for a lump-sum pension benefit using an electronic digital signature (EDS). Authorized operators accepting applications for lump-sum pension benefits for improving housing conditions are Housing Construction Savings Bank Otbasy Bank JSC, Halyk Bank of Kazakhstan JSC, Altyn Bank JSC, Bank CenterCredit JSC and Freedom Finance Bank Kazakhstan JSC, for medical treatment - Housing Construction Savings Bank Otbasy Bank JSC.
When submitting an application for payment to an authorized operator, the contributor (beneficiary) must choose the method of paying individual income tax (IIT) for a lump-sum pension benefit (recall that when transferring contributions to the UAPF, IIT is not charged), indicating in the application for the withholding of IIT, which is also signed by EDS, the chosen method: immediately in full at the time of payment, or withhold the IIT in the deferred period (monthly in equal installments upon reaching retirement age according to the pension benefit payment schedule).
The authorized operator within 2 (two) working days will send an electronic notification to the UAPF, which will contain information about the accepted application for payment, including data on the purpose of the withdrawal, full name, dated of birth, IIN, on the amount of the lump-sum pension benefit payment in the amount determined by the contributor (beneficiary), on the methods of withholding the IIT, with attaching to the electronic notification an application for withholding the PIT, also signed by the contributor's (beneficiary's) EDS.
After receiving an electronic notification from the authorized operator, the UAPF transfers the amount of the contributor's (beneficiary's) lump-sum pension benefit to the authorized operator within 5 working days, which in turn will credit it to the special account of the contributor (beneficiary). At the same time, the UAPF will make lump-sum pension benefits in accordance with the TMA values calculated for 2021, according to applications received by the UAPF from authorized operators until March 31, 2022 inclusive.
The amount of the lump-sum pension benefit can be on a special account of the contributor (beneficiary) opened with an authorized operator (Otbasy Bank JSC), in order to improve housing conditions - 20 working days, to pay for medical treatment - 45 working days. For other second-tier banks that are authorized operators in order to improve housing conditions - 10 working days.
During this period, the contributor (beneficiary) must provide the authorized operator with documents for the intended purpose. If they are not provided within the specified time, the amount of the lump-sum pension benefit will be returned by the authorized operator to the UAPF, which will credit them to the individual pension account of the contributor (beneficiary). An exception is the purpose of replenishing the contribution to housing construction savings for further accumulation in order to purchase a dwelling or build an individual residential house. In this case, the beneficiary submits to Otbasy Bank JSC documents confirming the intended purpose of lump-sum pension benefits within 3 years from the date of their receipt.
Thus, all appeals of contributors (beneficiaries) regarding the improvement of living conditions and (or) payment for treatment are considered by the authorized operator on the principle of "one stop" and a separate appeal to the UAPF by the contributor (beneficiary) will not be required, except for their independent online receipt information in the UAPF on the amount of pension savings available for withdrawal.
4) Why the enpf-otbasy.kz platform does not work?
The site www.enpf-otbasy.kz is run by Otbasy Bank JSC. For all questions, please contact the authorized operator represented by Otbasy Bank JSC.
5) Is it possible to apply again to Otbasy Bank if the amount exceeding the sufficiency threshold has already been accumulated?
If there is an amount available for withdrawal, you can use it an unlimited number of times. However, it should be noted that from April 1, 2022, the thresholds of minimum adequacy will be increased and the amount available for withdrawal, calculated through TMA, will change.
6) Why they refused to pay pension savings from the UAPF?
The main causes of failures and tips for their elimination and prevention in the future are presented below.
The first reason: the requested amount specified in the application exceeds the amount of pension savings available for withdrawal.
Recommendation: check up-to-date information about your pension savings, including information about the available amount (in your personal account on the enpf.kz website, in the UAPF mobile application, on the egov.kz portal) immediately before submitting an application to an authorized operator for receiving lump-sum pension benefits.
The second reason: the requested amount specified in the application exceeds the amount of pension savings available for withdrawal, taking into account the applications accepted for processing.
Recommendation: wait for the execution of previously sent applications.
Third reason: UAPF has information about the invalidity of the document (s) proving the identity (s).
Recommendation: indicate in the application a valid identity document, or apply to the PSC to obtain a new identity document.
Fourth reason: the contributor (beneficiary) submitted repeated, duplicate applications.
Recommendation: wait. In accordance with the law, within five working days from the date of receipt by the UAPF of an electronic notification from the authorized operator, the UAPF transfers the amount of the lump-sum pension benefit to the operator for subsequent crediting to the special account of the contributor (beneficiary) opened by the authorized operator.
If the authorized operator has not received an electronic notification from UAPF about the refusal to transfer the payment indicating the reason for the refusal, then the contributor (beneficiary) should wait five working days before the date of transfer of the amount of savings to his special account and not submit repeated applications to the authorized operator.
Recall that if the contributor (beneficiary) in the UAPF has an amount available for withdrawal, an application for its use by the EPO can be submitted an unlimited number of times. However, given the increase in minimum sufficiency thresholds from April 1, 2022, it is better to take into account the recommendations listed above and carefully check the application before submitting it to an authorized operator.
We also remind you that all issues related to the submission of an application and the conditions for the targeted use of pension savings to improve housing conditions and (or) pay for treatment are considered by an authorized operator on a one-stop basis and a separate application to the UAPF is not required.
7) How to check the status of an application?
You can check the status of the application in the Personal Account on the portal of the authorized operator. After the application is accepted for processing by the UAPF, you can check its status in your personal account on the enpf.kz website or in the UAPF mobile application (in the "My applications for benefits / transfers" section).
8) How to find out the amount above the sufficiency threshold?
Information on the thresholds for the minimum adequacy of pension savings for each age is available on the enpf.kz website https://www.enpf.kz/ru/services/withdrawal/withdrawal-check.php . You can familiarize yourself with individual calculations of the sufficiency threshold in your personal account on the enpf.kz website or in the UAPF mobile application, where you can check online information on the amount of pension savings available for withdrawal/transfer
9) Why non-residents do not open an account with Otbasy Bank?
This issue does not fall within the competence of UAPF JSC. Please address your appeal to Otbasy Bank JSC "by short phone number 300. Call from a mobile phone is free.
10) Due to the increase in the adequacy threshold from April 1, 2022, will these changes affect pensioners, who can now receive up to 50% of the remaining pension savings?
The right to use part of their pension savings in order to improve housing conditions in their favor or to their spouse or close relatives, and (or) to pay for medical treatment for themselves or their spouse or close relatives, can be used by the following persons who have pensions in the UAPF savings formed from compulsory pension contributions (CPC) and (or) compulsory occupational pension contributions (COPC):
1) whose pension savings exceed the minimum pension savings adequacy threshold. At the same time, the lump-sum pension benefit cannot exceed the amount of the difference between the amount of pension savings due to the CPC and (or) COPC of the contributor (beneficiary) and TMA;
2) for which the size of the pension ensures the replacement rate of the beneficiary's average monthly income at a level of at least 40 percent, determined in the manner determined by the Government of the Republic of Kazakhstan. At the same time, the lump-sum pension benefit cannot exceed 50 percent of the amount of pension savings due to the CPC and (or) COPC of the contributor (beneficiary) as of the date of receipt of the initial electronic notification from the authorized operator;
3) those who have entered into a pension annuity agreement with an insurance company. At the same time, the lump-sum pension benefit cannot exceed the amount of pension savings due to CPC and (or) COPC on the individual pension accounts of the contributor (beneficiary).
Thus, if the amount of the pension is at least 40 percent of the lost average monthly income, the pensioner will be able to use within 50 percent of his savings.
11) How to cancel an application?
This issue does not fall within the competence of UAPF JSC. Please address your request to authorized operators.
12) What documents need to be uploaded on the Otbasy Bank platform and how to upload them?
This issue does not fall within the competence of UAPF JSC. Please address your appeal to Otbasy Bank JSC by short phone number 300. Call from a mobile phone is free.
13) What amount should be indicated in the application for deferred tax or one-time withholding tax?
For the convenience of contributors (beneficiaries), in the statement from the individual pension saving account in the personal account on the enpf.kz website or in the UAPF mobile application, the electronic government indicates two options for the amount available for withdrawal: with a one-time and deferred withholding of individual income tax (IIT)
When submitting an application for a lump-sum benefit of pension savings to an authorized operator, the contributor (beneficiary) must independently choose the method of paying the IIT for a lump-sum pension payment (recall, when transferring contributions to the UAPF, the IIT is not charged), indicating the chosen method in the application for withholding the IIT, which is also signed electronic digital signature (EDS): immediately in full at the time of payment or withhold the IIT in the deferred period (monthly in equal installments upon reaching retirement age according to the pension payment schedule).
14) How to give in to a relative?
This issue does not fall within the competence of UAPF JSC. Please address your request to authorized operators.
15) How to transfer money from UAPF to a deposit in Otbasy Bank?
For the intended use of a lump-sum pension benefit (LSPB) in terms of replenishing a deposit in Otbasy Bank JSC, an application is submitted through the enpf-otbasy.kz platform. For more information, please contact this website or call the short phone number 300. Call free from mobile phone.
16) Is it possible to apply for an LSPB transfer on weekends?
Applications through the portals of authorized operators can be submitted any day and at any time of the day (24/7). However, it is important to remember that the processing of submitted applications takes place only on business days due to the fact that reconciliation is taking place with authorized operators, UAPF, custodian banks, etc. In other words, all transactions related to transactions take place exclusively during business hours.
It should be noted that in connection with the upcoming holidays and weekends, the UAPF call-center will additionally work on Saturday, March 19 and March 26, 2022 from 9-00 to 18-00 to provide consulting services to depositors (recipients
17) How to apply for the transfer of part of the pension savings to the investment portfolio manager?
First of all, you need to check if you have funds on an individual pension saving account available for transfer by the investment portfolio manager, in your personal account on the enpf.kz website or in the UAPF or e-government mobile application.
Next, you need to choose an investment portfolio manager (IPM).
At the moment, the UAPF has concluded agreements on trust management of pension assets with four UIPs that meet all the requirements established by the Agency of the Republic of Kazakhstan for the regulation and development of the financial market (ARRFR), have a license to operate in the securities market (investment portfolio management activities):
First Heartland Jysan Invest JSC
Halyk Global Market JSC (Subsidiary of the Halyk Bank of Kazakhstan JSC
BCC Invest JSC – Subsidiary of the Bank CenterCredit JSC
Centras Securities JSC
Information about each of the IPMs (including the investment declaration, as well as information about the IPM commission fee) is posted on the enpf.kz website in the "Services" section - "Transfer of part of pension savings to IPM's trust management". An overview of the investment activities of management companies can also be found on the website enpf.kz in the section "Indicators" - "Overview of investment activities" or "Brief overview of the investment portfolio of pension assets".
Recall that after receiving pension assets from UAPF, IPM invests them in permitted financial instruments specified in the Rules for the implementation of investment portfolio management activities, approved by the 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.
Under the Law on Pension Provision IPMs are entitled to charge an investment management fee. The maximum amount of IPM remuneration cannot exceed 7.5% of the received investment income. The actual amount of the commission is annually approved by the IPM management body and can change no more than once a year.
During the period when pension savings are under the management of the National Bank until the depositor reaches retirement age, there is a guarantee of the safety of pension savings, taking into account the level of inflation. When transferring pension savings to the management of IPM, the state guarantee is replaced by the guarantee of the management company to ensure the 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 on the market.
In order to transfer pension assets to IPM trust management, the contributor submits to the UAPF an application for the choice of IPM in the form and with the attachment of the documents established by the internal documents of the UAPF, by personal appeal or through the UAPF Internet resource, signed with an EDS.
If an online service is selected, you need to go to the "Services" subsection on the UAPF website, then - "Transfer of pension savings to trust management of the investment portfolio manager", then fill in all the required fields. The address and contact details will appear automatically from the database of the UAPF automated information system.
Prior to the signing by the contributor through the EDS of the application for the choice of IPM, a notification is displayed about the need to contact the authorized operator's Internet resource if the contributor intends to transfer pension savings in order to improve housing conditions and (or) pay for medical treatment. In the Personal Account of an individual, it is possible to submit an application for cancellation of a previously submitted application for the choice of IPM, which the contributor (beneficiary) can submit before the moment of its execution by the UAPF (if the Personal Account has the status "Accepted for processing").
Carefully enter the details of the pension agreement, select from the proposed IPM directory, indicate the transfer amount, sign the application with a personal electronic digital signature. You can also track the status of execution, as well as cancel the application in the Personal Account.
Contributors have the right, among other things, to provide to the UAPF:
an application for the return of pension savings held in IPM's trust management to the NBRK's trust management (not earlier than two years after the initial transfer of pension savings to IPM's trust management);
not more than once a year, an application to change the IPM to transfer their pension savings to trust management from one IPM to another IPM in the manner prescribed by the regulatory legal act of the authorized body.
UAPF transfers pension assets to IPM trust management within thirty calendar days after the date of receipt of the application in the amount corresponding to the amount of pension savings specified in this application.