UAPF depositors have the right to use part of their pension savings not only to improve housing conditions and (or) pay for treatment, but also to transfer to investment management companies managing the investment portfolio (UIP).
The depositor's pension savings can be transferred to the management of the UIP:
- in an amount not exceeding the difference between the actual amount of the depositor's pension savings in the UAPF and the threshold of minimum sufficiency of pension savings;
- in an amount not exceeding the balance of pension savings on the depositor's account in the UAPF, if there is a concluded pension annuity agreement with an insurance company providing for lifetime payments.
We remind you that from April 1 of this year, the thresholds for the minimum sufficiency of pension savings (PMD), calculated for 2022, come into force. Earlier, in pursuance of the instructions of the President K-Zh. Tokayev by the Decree of the Government of the Republic of Kazakhstan dated December 13, 2021 No. 875, the validity period of the PMD, calculated for 2021, was extended until April 1, 2022.
Thus, since the PMD for 2022 begins to take effect from April 1, 2022, it is possible to transfer the pension savings of the UIP according to the values of the PMD calculated for 2021, according to statements, until March 31, 2022, inclusive. Information about the values of PMD is available on the UAPF website at the link https://www.enpf.kz/ru/services/withdrawal/withdrawal-check .php
In order to transfer pension savings to one or more UIPS, the depositor must apply to the UAPF with an application. The application can be submitted through the personal account on the enpf website.kz or by personal contact to any regional branch of the UAPF.
The UAPF transfers pension savings to the trust management of the UIP within thirty calendar days after the date of receipt of the application from the depositor. The remaining part of the depositor's pension savings will continue to be managed by the National Bank.
Pension savings transferred to the investment management of the UIP do not relate to withdrawals of lump-sum pension payments (as in the case of withdrawals for the purpose of improving housing conditions and/or treatment) and will not be subject to individual income tax at the time of their transfer to the UIP.
After the initial transfer of pension assets to the trust management of the UIP, the depositor has the right to:
- not more than once a year to submit an application to the UAPF for the transfer of their pension savings in trust management from one UIP to another UIP;
- submit to the UAPF an application for the return of pension savings held in the trust management of the UIP to the trust management of the National Bank (not earlier than two years after the initial transfer of pension savings to the trust management of the UIP).
Including 10 calendar days before the depositor reaches retirement age, the depositor's pension savings are returned to the investment management of the National Bank.
Recall that after receiving pension assets from the UAPF, the UIP invests them in authorized financial instruments specified in the Rules for the Implementation of Investment Portfolio Management Activities approved by Resolution No. 10 of the Board of the National Bank of the Republic of Kazakhstan dated February 3, 2014, and provided for in the Investment Declaration of the UIP.
According to the Law on Pension Provision, UIPS have the right to charge a commission for investment management. The maximum value of the remuneration of the UIP may not exceed 7.5% of the investment income received. The actual amount of the commission fee is approved annually by the management body of the UIP and may 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, a guarantee of the safety of pension savings, taking into account the level of inflation, is in effect. When transferring pension savings to the management of the UIP, the guarantee of the state is replaced by the guarantee of the management company to ensure the minimum level of profitability of pension assets, which is calculated based on the weighted average yield of pension assets transferred to the management of the UIP operating in the market.