Somehow, on the advice of a friend, I transferred part of my retirement savings to an insurance company. Can I return them to the UAPF?
The Law of the Republic of Kazakhstan dated 12.07.2022 No. 138-VII "On Amendments and additions to some Legislative Acts of the Republic of Kazakhstan on regulation and development of the insurance market and securities market, banking activities" amended and supplemented regulatory legal acts, including the Law of the Republic of Kazakhstan "On Pension Provision in the Republic of Kazakhstan Kazakhstan" (hereinafter – the Law).
Thus, in accordance with the amendments and additions that entered into force on 12.09.2022, which also apply to legal relations arising from pension annuity agreements (hereinafter referred to as DPA) concluded before 12.09.2022, persons who have concluded a DPA have the right to apply to an insurance company with an application for changing the conditions of the DPA in terms of reducing the amount of insurance payments and returning money to the UAPF. The amount of money to be refunded to the UAPF is equal to the difference between the redemption amount under the DPA on the date of making changes to it and the amount of the insurance premium calculated based on the amount of payment determined by paragraph 2 of Article 59 of the Law on the date of making changes to the DPA. According to paragraph 2 of Article 59 of the Law, the amount of a monthly insurance payment from an insurance company cannot be lower than 70 percent of the subsistence minimum (1.4 times the subsistence minimum in the case of a pension annuity agreement between two persons), effective on the date of conclusion of the DPA.
The procedure for transferring the redemption amount to the UAPF under the DPA is determined by the provisions of the Rules for Concluding a pension annuity agreement with an insurance company and transferring pension savings (redemption amount) to an insurance company, a single accumulative pension fund under a pension annuity agreement, approved by Resolution No. 73 of the Board of the Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market dated October 20, 2022, which entered into force effective from 08.11.2022, according to which the sending insurance company is obliged, within 20 (twenty) calendar days from the date of receipt of the application for changing the conditions of the DPA, to transfer the money to be refunded to the UAPF for crediting them to the latter within 5 (five) working days to the individual pension accounts of the depositor (depositors) and (or) the recipient (recipients) and (or) the policyholder (policyholders) in the manner determined by the internal documents of the UAPF.
Thus, you have the right to apply to the insurance company with which you have concluded the DPA, and return to the UAPF part of the insurance premium exceeding the minimum cost of the DPA, if available.