Resolution of the Board of the National Bank of the Republic of Kazakhstan No. 132 dated November 27, 2020 established the following amounts of Commission remuneration of the joint-stock company "Unified accumulative pension Fund" for 2021:
1) 2.0 percent of the investment income;
2) 0.01 percent per month of pension assets.
It should be noted that according to article 53 Of the law "on pension provision in the Republic of Kazakhstan", the maximum amount of Commission remuneration for the UAPF is set at no more than 7.5 percent of investment income and 0.025 percent per month of pension assets.
Thus, the actual amounts of Commission established from January 1, 2021 are lower than the statutory limits:
- from the amount of investment income-3.75 times;
- from the pension assets of 2.5 times.
The Unified Accumulative Pension Fund, together with the National Bank of the Republic of Kazakhstan, annually works to reduce commission fees and optimize the Fund's expenses. Recall that the amount of UAPF commissions is determined annually by the Board of the National Bank. In particular, for 2020, the commission amount was significantly reduced from 5% to 2% of investment income and from 0.015% to 0.011% per month of pension assets.
In accordance with the law, the UAPF receives both types of Commission and covers all expenses, including those related to the investment management of pension assets. The growth of the UAPF's own capital and investment of its own assets allows for further reduction of the Commission fee.
The decrease in the relative and absolute values of Commission remuneration is the result of the work of the National Bank as a Trustee of pension assets, and the UAPF as a single operator for investment accounting of financial instruments, personalized accounting of individual pension accounts, and provision of pension services to depositors and recipients.
in general, commission costs for investment management and custodial services were reduced, administrative expenses of the uapf were reduced as a result of the work carried out to automate business processes and increase employee productivity, transfer most of the pension services to electronic format, as well as by covering part of administrative expenses from income from investing their own assets.
a significant reduction in the amount of commission fees has a positive effect on the growth of investment income and pension savings of depositors and recipients.