INFORMATIONAL MESSAGE
Prospects for the development of mandatory accumulative and mixed
pension systems
On September 28, 2023, Almaty hosted a high-level International round table "Prospects for the development of mandatory accumulative and mixed pension systems", which was attended by leading foreign and Kazakhstani experts. This event was held as part of the celebration of the 25th anniversary of the accumulative pension system of the Republic of Kazakhstan. The organizers of the Round Table were the Unified Accumulative Pension Fund of Kazakhstan (UAPF) in cooperation with the International Social Security Association (ISSA), which is a leading international organization uniting state institutions, organizations and departments in the field of social security.
Opening the solemn event, ISSA President Dr. Mohammed Azman noted that "The changing situation in pension systems and the problems associated with global aging trends require constant cooperation and innovation. The Round table offers a unique platform for experts, policy makers and stakeholders from around the world to exchange views, best practices and determine the course for the future of pension systems. Together we can explore innovative solutions, use technology and ensure that pension schemes remain reliable, adaptable and responsive to the changing needs of our society. This event is a landmark not only for Kazakhstan, but also for the world community interested in the development of pension systems."
During the Round Table, such topical issues as pension provision, multi-level pension models, challenges, opportunities and solutions in accumulative and mixed pension systems, communications, financial literacy of the population and pension planning were discussed.
Participants and guests of the Round Table were welcomed by:
Deputy Prime Minister of the Republic of Kazakhstan Tamara Duissenova, who presented an overview of the pension system in Kazakhstan;
Chairman of the Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market Madina Abylkasymova with a report on the stages of development of the pension asset management system in Kazakhstan;
Deputy Chairman of the National Bank of Kazakhstan Vitaly Tutushkin with a report on the main challenges of financial stability and adequacy of pension provision in Kazakhstan;
Member of the Board (Minister) for Economics and Financial Policy of the Eurasian Economic Commission Bakytzhan Sagintayev with a report on pension provision in the integration space of the Eurasian Economic Union;
Chairman of the Council of the Association of Financiers of Kazakhstan Elena Bakhmutova with a report on the challenges and prospects for financial market participants in the framework of the accumulative pension system.
The first part of the round table was completed by the Chairman of the Management Board of JSC "UAPF" Zhanat Kurmanov with a welcoming speech to the participants of the event and a report on the topic: "Accumulative pension system of Kazakhstan: current state and development prospects". In his speech, he noted that in Kazakhstan, as well as throughout the world, the number of people whose age exceeds 65 years is increasing. Therefore, the issue of providing the population after the end of work is particularly acute. The Chairman of UAPF JSC spoke about Kazakhstan's multi–level pension system, noting the increasing importance of the accumulative component, and also reported how the indicators for savings and the number of pension accounts have changed over the years of the UAPF's operation, gave forecasts for the further development of the system, including the main parameter of the effectiveness of the pension system - the replacement coefficient of lost income, which according to international standards should be at least 40 percent.
At the first panel session of the round table "Population aging and pension reform", its participants exchanged views and made presentations on the issues of evaluating the effectiveness of pension systems and the historical experience of their reform, using the potential of international social security standards to create sustainable pension systems and social protection systems, the experience of the best pension systems in the world, prospects for their development and etc .
The moderator was one of the architects of Kazakhstan's accumulative pension system and developers of pension reform Grigory Marchenko. Speakers at the session were Himanshi Jane, a Senior Specialist in Social Protection at the World Bank, Krum Markov, a specialist in legal issues in the field of social security at the ILO Department of Social Protection (Geneva, Switzerland), Dmitry Karasev, ISSA Regional Coordinator for Eurasia (Geneva, Switzerland), Guillermo Arthur, President of FIAP (Santiago, Chile), Senior Partner at Mercer Dr. David Knox (Melbourne, Australia), President of Greycells, Dr. Alejandro Bonilla-Garcia (Geneva, Switzerland).
The moderator of the second session on the topic "Coverage and awareness of the population" was a statesman, a well-known Kazakh financier, chairman of the OSF "Kazakhstan Khalkyna" Bolat Zhamishev, who is one of the developers of the concept of pension reform and an active participant in its implementation. The session discussed strategic solutions to expand the coverage of social and pension systems, ways to increase awareness and financial literacy in the field of pension provision, research on the level of financial literacy, etc.
Presentations were made by Senior Manager of the ISSA Social Security Development Department Guillaume Fillon (Geneva, Switzerland), representative of the Hebrew University, Dr. Abigail Hurwitz (Jerusalem, Israel), Senior Economist at Allianz SE, Dr. Michaella Grim (Munich, Germany), member of the Directorate of the Social Security Bank of Uruguay Ariel Ferrari (Montevideo Uragvai), management analyst OECD Financial Education Sonia Lalayan (Paris, France).
Oraz Zhandosov, a Kazakhstani economist, manager and statesman who was one of the authors of the reform of the pension system in Kazakhstan and, as Deputy Prime Minister, oversaw its formation in the most difficult early years, moderated at the third panel session on "Investment strategies, risk management and supervisory regulation". The session discussed the issues of global risk management research, modern standards and trends in the regulation and supervision of pension funds, long-term investment strategies for asset management in social security systems, international experience in investment activities of pension funds. The speakers were: Partner, National Head of Corporate Risk Management at KPMG Eduard Bertin-Muro (Toronto, Canada), IOPS President Ambrogio Rinaldi (Rome, Italy), Senior Advisor to the investment company Hassana, former Assistant to the Chairman of the General Organization for Social Insurance, Dr. Paul Sweeting (Riyadh, Saudi Arabia), Xiaoli Tang, Director General of the Bureau of Regulation of the Social Insurance Fund of the Ministry of Labor and Social Protection of the People's Republic of China (Beijing, China).
The panel session on the topic "The future of social and pension systems: prospects and key drivers of development" was moderated by Kazakh financier and banker Anvar Saidenov, who also stood at the origins of pension reform. The session discussed some of the most relevant topics of our time: client-oriented design and flexible methodologies in social security institutions, digitalization of pension plan management, artificial intelligence, the use of financial robot consultant technology in pension planning.
Speakers at the session were: Director of the ISSA Social Security Development Department Raul Ruzja-Frick (Geneva, Switzerland), Executive Director of the Agency for Supervision of the Mandatory Funded Pension System Eric Cheng (Hong Kong, China), independent expert Brian Lee-Archer (Canberra, Australia), Head of Investment Research and Academic Partnership at Amundi, Dr. Marie Briere (Paris, France)
26 reports on topical topics were presented at the conference, emphasizing the importance of pension provision worldwide and the further development of the accumulative pension system.
The presentations of all the speeches can be found on the enpf website.kz in a special section dedicated to the event.