Who will be able to use part of their retirement savings?
According to the Law of the Republic of Kazakhstan "On Amendments and additions to some legislative acts of the Republic of Kazakhstan on the restoration of economic growth", the right to target use has:
- working citizens who have pension savings formed at the expense of mandatory pension contributions (OPV) and mandatory professional pension contributions (OPV). The right to targeted use is provided for citizens who have savings that exceed a certain threshold of minimum sufficiency, which is determined for each age separately.
- established pensioners (including pensioners from the number of law enforcement agencies) - within the limits of no more than 50% of the remaining amount of pension savings in the UAPF. The right is provided provided that the aggregate amount of their pension (including the old-age or superannuation pension, the basic pension) provides for the replacement of lost income at a level that meets international standards (at least 40%).
- persons who have concluded pension annuity contracts with insurance companies that provide them with lifetime annuity payments.
Within what limits is it possible to withdraw?
Investors who have total pension savings (MON) due to OPV and (or) OPV exceeds the minimum threshold for adequacy – within the difference between the actual amount of MON due to the OPV and (or) OPV and the threshold of minimal sufficiency PN subject to individual income tax (hereinafter – pit) depending on the method of retention of IDUs indicated in the statement filed by the depositor to the authorized operator (hereinafter EE).
Recipients (pensioners) whose pension amount or pension amount or monthly maintenance provides a replacement coefficient of the average monthly income of the recipient at a level not lower than 40 percent, determined in accordance with the procedure established by the Government of the Republic of Kazakhstan – within 50 percent of the amount of MON at the expense of OPV and (or) OPV taking into account IPN, depending on the method of withholding IPN specified in the application submitted by the UO.
Concluded agreement of pension annuity with an insurance company on the implementation of the insurance payments within the remainder of PN on individual pension accounts (hereinafter – IRS) with account of IDUs, depending on the way of holding pit.
How do I know if I am eligible for early withdrawal?
This can be done through your Personal Account on the enpf website.kz or in a mobile application, to access which the depositor needs an electronic digital signature (EDS can be obtained remotely on the portal egov.kz) or the IIN and password registered in the UAPF database.
At the same time, the depositor can immediately see the amount of pension savings due to OPV and (or) OPV available for withdrawal in order to improve housing conditions and (or) pay for treatment. The method of payment for IPN is chosen by the depositor independently and is indicated in the application submitted by him to the authorized operator.
There are two ways to pay for IPN:
- withholding of individual income tax with deferred payment on a monthly basis in equal shares in accordance with the schedule of pension payments established by UAPF JSC when the depositor reaches retirement age, or
- deduction of IPN in full at a time with a one-time pension payment for the purpose of improving housing conditions and (or) paying for treatment.
What is the algorithm for using pension savings?
To exercise the right to use a part of pension savings, citizens must first check their savings and make sure that the required amount exceeding the sufficiency threshold is available on their IPS.
The UAPF provides affordable and prompt ways to obtain a statement through the fund's website or mobile application.
Those who have made a decision on the targeted withdrawal of pension savings will be able to contact the authorized operator for the purchase of housing and treatment. The authorized operator reviews the application and all necessary documents provided by the applicant.
It should be noted that the repair of only purchased housing is provided, and not the current repair of existing housing.
After receiving a notification from the authorized operator, the UAPF will transfer pension savings for their crediting to special depositors ' accounts opened with the authorized operator.
For what purposes can pension savings be used?
According to the "Rules for the use of lump-sum pension payments for the purpose of improving housing conditions", lump-sum pension payments can be used, including with own and (or) borrowed funds, for the purpose of carrying out measures to improve housing conditions in the territory of the Republic of Kazakhstan, which are understood as:
1) purchase of housing, including through the execution of an agreement on equity participation in housing construction, lease with the right to purchase, privatization, installment payments, exchange of housing for the purpose of improving housing conditions.
2) construction of an individual residential building and (or) acquisition of a land plot (with the intended purpose-individual housing construction or personal subsidiary farm).
3) payment of the down payment to obtain a mortgage loan in the second tier banks, mortgage organizations for the purchase of the home, including through the registration of the contract on share participation in housing construction, lease buyouts, privatization, hire purchase, exchange homes to improve housing conditions, construction of individual houses and (or) on the acquisition of land (earmarked for individual housing construction or personal auxiliary farming).
It is allowed within the framework of one bank loan agreement to issue a mortgage housing loan for the purchase of housing and its repair.
4) replenishment of the Deposit under the contract on housing construction savings in order to obtain preliminary housing loan, interim loan, housing loan in the Bank for the purchase of the home, including through the registration of the contract on share participation in housing construction, lease buyouts, privatization, hire purchase, exchange homes to improve housing conditions, construction of individual houses (including the land purchase with the purpose – individual housing construction or personal subsidiary farming), as well as for the purpose of refinancing a mortgage housing loan.
It is allowed to issue a preliminary housing loan, an intermediate housing loan, a housing loan for the purchase of a home and its repair within the framework of one bank loan agreement.
In cases of acquisition/construction of real estate, including registration of the contract on share participation in housing construction, the privatization of installments, sharing the home with the aim of improving housing conditions, the recipient may use a lump-sum pension payment only for final payment for the acquired/real estate under construction (at acquisition/construction of real estate through multiple sources of funds (lump-sum pension payments, own and (or) other means), one-time pension payments can be used after making all payments at the expense of their own and (or) other funds).
The condition provided in this clause, does not apply to acquisition/construction of real estate by obtaining a mortgage housing loan, housing loan provisional, interim housing loan, housing loan, and the purchase of the home by executing a lease with option to buy.
The acquisition by recipients of the home under paragraph 3 of this regulation can be effected through registration of the preliminary contract of sale of a dwelling (other document) in apartment buildings, the construction of which is carried out with the participation of the authorized organization carrying out activities to ensure the completion of problematic objects of housing construction in accordance with the legislation of the Republic of Kazakhstan.
Is it possible to use pension savings for the purchase of housing by signing a lease agreement with the right to buy out or by signing a contract for equity participation in housing construction?
Possible. The acquisition by recipients of the home by executing a lease with option to purchase may be exercised only for those contracts which are concluded with a single operator housing according to the legislation of the Republic of Kazakhstan and JSC "Samruk Kazyna Construction". At the same time, recipients can use one-time pension payments for partial payment under the lease agreement with the right of redemption, including not involving the final payment for the dwelling.
The acquisition of housing by recipients through the execution of an agreement on shared participation in housing construction can be carried out in multi-apartment residential buildings, the completion of which is guaranteed by a single housing construction operator in accordance with the legislation of the Republic of Kazakhstan.
Can pension savings be used to refinance a previously borrowed loan?
Can. To refinance the subject mortgage loans, received in banks of the second level, the mortgage organizations for the purchase of the home, including through the registration of the contract on share participation in housing construction, lease buyouts, privatization, hire purchase, exchange homes to improve housing conditions, repair of dwelling, construction of individual houses (including the acquisition of land earmarked for individual housing construction or personal auxiliary farming).