Hello! I recently read the news on one of the portals that you can receive payments from the UAPF through voluntary pension contributions, even before reaching retirement age. Can you elaborate on what VPC is and how to start receiving benefits before age 63?
Voluntary pension contributions (VPC) are money that are contributed by contributors on their own initiative to the UAPF. They can be made both by individuals for their own benefit, and by individuals and legal entities for the benefit of a third party. At the same time, the amount and frequency of payment of the VPC are established by an individual or legal entity independently. Thus, for example, in June you can replenish your account by 5 thousand tenge, and in July by 10 thousand tenge, etc. However, in order to receive decent pension payments in the future, it is necessary to replenish the account regularly.
One of the advantages of paying VPC is that when an individual pays VPC to himself from his income, tax legislation provides for a tax deduction for the amount of VPC paid (i.e. paid VPC is not subject to IIT). In addition, from January 1, 2021, VPC paid by a tax agent (employer) at their own expense in favor of an employee is deductible when calculating corporate income tax. At the same time, the amounts of VPC paid by the employer in favor of the employee are not taken into account when taxing the employee's income.
It should be noted that from May 1 of this year, the basis for opening an individual pension account for accounting for VPC is, among other things, the first voluntary pension contribution received by the UAPF. Thus, you do not need to visit the office of the Fund, the identification of the individual in whose favor the VPC is made is carried out according to 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 a valid document proving the identity of an individual, about the place of permanent residence, UAPF receives other information from the relevant information systems of state bodies.
Concerning the age of payments due to VPC. According to paragraph 1 of Article 33 of the Law of the Republic of Kazakhstan "On Pension Provision in the Republic of Kazakhstan", the following persons with pension savings have the right to pension payments from the UAPF at the expense of the VPC:
1) who have reached the age of fifty;
2) who are disabled;
3) foreigners and stateless persons leaving or leaving for a permanent place of residence outside the Republic of Kazakhstan, who submitted documents, determined by the legislation of the Republic of Kazakhstan, confirming the intention or fact of departure;
4) having pension savings within the limits of the amounts of voluntary pension contributions and the investment income accrued on them, located in the unified accumulative pension fund and (or) voluntary accumulative pension fund, for at least five years.
Note that subparagraph 4) of paragraph 1 of this article entered into force on May 1, 2021. According to this innovation, all persons who have had VPV in the pension system for at least five years can receive payments under the VPC. Thus, having started saving money at the expense of the VPC, for example, at 25 or 35, respectively, at 30 or 40, you can start receiving your first payments.
Recall that the payment of VPC to the UAPF can be carried out through second-tier banks (STB) or Kazpost JSC. Some STBs provide an opportunity to transfer contributions online (through a mobile application or self-service terminals). In addition, it is possible to submit an application to the employer, on the basis of which the latter will regularly transfer VPC to the UAPF in favor of the applicant or a third party.