INFORMATION NOTICE
Now all individual pension accounts in the UAPF are opened automatically
On October 12, 2021, the President of the Republic of Kazakhstan signed the Law of the Republic of Kazakhstan “On Amendments and Additions to Certain Legislative Acts of the Republic of Kazakhstan on the Issues of Social Protection of Certain Categories of Citizens” (hereinafter referred to as the Law), within the framework of which the relevant amendments were made, including to the Law of the Republic Kazakhstan "On pension provision in the Republic of Kazakhstan".
According to these changes, from October 26, 2021, individual pension accounts (IPA) for accounting for mandatory professional pension contributions (MPPC) in the UAPF will be opened automatically upon receipt of the first contribution.
The information systems of the UAPF are prepared for a new procedure for opening an IPS for accounting for MPPC, similar to opening an IPA in the UAPF for other types of pension contributions.
Recall that the non-declared procedure for opening an IPS is valid:
- from January 8, 2019 in respect of mandatory pension contributions;
- from May 1, 2021 in respect of voluntary pension contributions.
Identification of an individual in whose favor the MPC is transferred will be carried out according to his personal data (full name, IIN, date of birth) indicated in the electronic format of the payment order when transferring the MPC, and all the necessary information: about the details of a valid identity document of an individual, about the place of permanent residence, UAPF will receive other information from the relevant information systems of state bodies.
The agent (payer) of the MPPC is the employer, who is obliged to make contributions from his own funds in favor of the employee in the amount of 5 percent of his monthly income, accepted for calculating pension contributions in the manner determined by the Government of the Republic of Kazakhstan.
Recall that those citizens who work in harmful and dangerous areas of activity have the right to pension savings at the expense of the OPPV. The list of such professions is approved by the Decree of the Government of the Republic of Kazakhstan "On approval of the List of industries, works, occupations of workers in favor of which contributors of mandatory professional pension contributions at their own expense make mandatory professional pension contributions" dated December 31, 2013 No. 1562.
Legislative changes on the automatic opening of an IPA for accounting of MPPC will significantly facilitate the fulfillment of obligations for the transfer of MPPC by agents: there is no need, together with an employee, to fill out an application for opening an IPA for accounting of MPPC with the provision of a specific list of documents containing more than 10 items to the UAPF.
For reference: Compulsory professional pension contributions are paid in the national currency of the Republic of Kazakhstan - no later than the 25th day of the month following the month in which income is paid. Business entities applying a special tax regime - in the manner and within the time limits stipulated by the tax legislation of the Republic of Kazakhstan.
The tax authorities control the transfer of MPPC. If the employer does not timely transfer the MPPC to the employee's IPA (subject to the actual payment and receipt of income by the employee), the tax authorities collect from the employer and are subject to transfer to the UAPF MPPC with accrued penalties in the amount of 2.5 times the official refinancing rate established by the authorized body for each day of delay.