Exclusive interview with the БЖЗҚ ЕНПФ YouTube channel on the occasion of the 25th anniversary of the Kazakhstan funded pension system
In continuation of the series of dialogues about the pension system of Kazakhstan on its 25th anniversary, a conversation was held with the Chairman of the Council of the Association of Financiers of Kazakhstan, Yelena Bakhmutova, who was at the forefront of reforming the pension system and took part in the development and implementation of bills on pension issues. Yelena Bakhmutova told in an interview with the БЖЗҚ ЕНПФ YouTube channel about the features and difficulties of the transition from a joint pension system to a funded pension system, the creation of Kazakhstan’s own model of a three-tier pension system, providing for a fair balance of distribution of responsibilities between citizens and the state, why the funded system is financially sustainable, the necessary conditions for its successful functioning and much more.
“The funded pension system has achieved an important goal: the costs of paying pensions that provide a basic level of support for citizens (safety cushion) have become absolutely predictable and acceptable for the state budget, which would have been impossible with a solidary pension system. Thanks to the funded component of the system, citizens have acquired personal responsibility for their future retirement income. This is the most fair system, when the state guarantees citizens a living wage, and everything else depends on the person himself.
In order for the future generation of pensioners to receive adequate benefits by the time the full cycle of formation of the funded pension system has completed for 40 years, it is necessary that the long-term assets that we have in the country in the form of pension assets, and this is over KZT15 trillion, work for the economy. This requires reliable and flexible regulation, effective supervision of pension asset management, as well as greater opportunities for investors and private management companies in the management process.
I want to see continuity in the funded pension system; its management should not be a dogma, while the interests of contributors and the entire country should always be put at the forefront,” Ylena Bakhmutova shared in an exclusive interview.
Watch part 1 of the interview with Ylena Leonidovna Bakhmutova on the БЖЗҚ ЕНПФ YouTube channel of from 18 September 2023 at the link https://www.youtube.com/watch?v=d8tDGijQLrs
Subscribe to the YouTube channel of the BZZK UAPF to receive interesting and useful information about the funded pension system.
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)