5 questions - April
The Law of the Republic of Kazakhstan On Pension Provision in the Republic of Kazakhstan provides that a lump-sum pension benefit is the amount of pension savings formed at the expense of the CPC and COPC, withdrawn by the contributor (beneficiary) from the UAPF in order to improve housing conditions and (or) pay for medical treatment, in in the manner prescribed by law.
The Law also states that pension savings are the money of a contributor (rbeneficiary) recorded on their individual pension saving account, including CPC and COPC and voluntary pension contributions, investment income, penalties and other receipts in accordance with agreements, this Law, legislation Republic of Kazakhstan.
If the minimum adequacy threshold allows you to use your pension savings, you can apply for lump sum pension benefits above the adequacy threshold an unlimited number of times.
Yes, of course, since, according to Article 3 of the Agreement on Pension Provision for Workers of the Member States of the Eurasian Economic Union dated December 20, 2019, the formation of pension rights for workers-citizens of the EAEU countries is carried out at the expense of pension contributions on the same conditions and in the same manner as and the formation of the rights of citizens of the state of employment.
In accordance with Article 1 of this Agreement in the Republic of Kazakhstan, pension contributions include, among other things, voluntary pension contributions (hereinafter referred to as VPC) to the UAPF.
We remind you that from May 1, 2021, the basis for opening an individual pension account for accounting for VPC is the first VPC received by the UAPF. The size and frequency of the VPC is determined by the contributor independently.
At the same time, the identification of the individual in whose favor the VPC is made will be carried out according to the personal data (full name, IIN, date of birth) indicated in the electronic format of the payment order when transferring the VPC, and all the necessary information: about the details of the current document proving the identity of the individual, about the place of permanent residence, other UAPF information will be obtained from the relevant information systems of state bodies.
Payment of VPC to UAPF can be made through second-tier banks or Kazpost JSC (hereinafter referred to as STB). Some STBs provide an opportunity to transfer fees online (through a mobile application or self-service terminals).
For information, we inform you that on the UAPF website (https://www.enpf.kz/ru/services/depositors/ipa/vpc.php ) you can find more detailed information.
When you enter the ENPF application, Personal Account on the enpf.kz website, in order to ensure the security of your personal information, we send an SMS code only to the number that is registered in the Fund's database in accordance with Article 57 "On the secrecy of pension savings" of the Law On Pension Provision in the Republic of Kazakhstan.
There are two ways to update personal data:
- on the site enpf.kz in the section "Electronic Services" select the subsection "Make changes and (or) additions to the details", enter the page using an electronic digital signature (EDS);
- through any branch of UAPF.
The accumulative pension system of Kazakhstan is designed in such a way that it is maximally protected from risks. For 23 years, despite a number of financial crises in the global economy, it has maintained stability. Today, Kazakhstan is the only country in the world where there is a state guarantee of the safety of citizens' pension savings from inflation. The Law On Pension Provision in the Republic of Kazakhstan guarantees beneficiaries the safety of compulsory pension contributions and compulsory occupational pension contributions to the UAPF in the amount of actually paid contributions, taking into account the inflation rate at the time of obtaining the right to pension benefits. If, by the time of retirement, savings are below inflation, then this difference is compensated to the beneficiary from the republican budget upon receipt of the first pension benefit payment from the UAPF.
If you have in mind the risks when making a decision on the use of pension savings, then we would like to draw your attention to the fact that the early withdrawal of pension savings will affect, first of all, the state of the individual pension saving account of the contributor who has withdrawn the money, and, as a result, his future pension benefits. Accounting for pension savings of citizens is carried out individually and the accumulation is formed from personal pension contributions, investment income and its personal withdrawals (or pension benefits), if any.
It must be understood that the funds that remain on the IPSA within the minimum sufficiency threshold allow the contributor to be provided with pension benefits in an amount not lower than the minimum pension. This is a small amount, which consists of benefits from the UAPF and the minimum basic pension, which is 54% of the subsistence level. In order to save on an individual pension saving account an amount sufficient to provide the beneficiary with at least a minimum benefit upon reaching retirement age, the thresholds for the sufficiency of pension savings are recalculated annually. At the same time, for a decent pension provision, it is necessary to have good savings, which are formed from regular, timely contributions, in full from the income received.
By the way, as an option, in your case, you can transfer your pension savings above the sufficiency threshold to investment portfolio management companies (IPM), that is, try to take a risk and become investor yourself and, possibly, get more income. Moreover, this amount will be returned to your pension account in the future and it will not be spent money, but multiplied, from which you will subsequently receive your pension benefits.
To do this, you need to familiarize yourself with the investment declaration of the manager and understand how and in what they will invest your funds. Now there are four IPMs on the market and you will find full information about them on the enpf.kz website.
A pension annuity is an agreement with an insurance organization, according to which you can start receiving a pension ahead of schedule.
To conclude an agreement, it is necessary to have a sufficient amount of pension savings in the UAPF, which will ensure payments of at least 70% of the subsistence minimum. The exact calculation is made in the insurance organization.
The following categories of citizens who have a sufficient amount of pension savings in the UAPF can transfer them to an insurance organization:
🔹 reached retirement age;
🔹 who have reached the age of 45 (with deferred annuity);
🔹 having a disability of 1 or 2 groups established indefinitely;
🔹 who have reached the age of 40, for whom the compulsory occupational pension contributions (COPC) have been paid in the aggregate for at least 60 calendar months.
Here it is necessary to clarify that a deferred pension annuity is a product that allows you to transfer pension savings to a life insurance company from the age of 45 and start receiving benefit payments from them until you officially retire (men upon reaching 55 years old, women upon reaching 52.5 years old from January 1, 2022 with an annual increase in the retirement age of women by half a year until reaching the age of 55 in 2027).
Further, in case of insufficiency of pension savings formed at the expense of CPC and/or COPC, pension savings formed at the expense of VPC can be used to conclude a pension annuity agreement.
If the amount of pension savings on the IPSA exceeds the amount of the pension annuity agreement, this difference is paid to the contributor (beneficiary) from the UAPF in the form of monthly pension benefits in the manner prescribed by the Pension Provision Law, or is used by the contributor (beneficiary) to amend the current pension annuity agreement in part of the increase in the amount of insurance benefits and insurance premium under a pension annuity agreement or for the conclusion of another pension annuity agreement with an insurance company.