1) Hello! In the WatsApp messenger, my brother sent the news that you can buy a car at the expense of pension savings from the UAPF, is this true and how much can you count on?
According to the Law of the Republic of Kazakhstan dated 02.01.2021 No. 399-VI "On amendments and additions to certain Legislative Acts of the Republic of Kazakhstan on the restoration of economic growth", citizens have the right to use part of pension savings to improve housing conditions and (or) pay for treatment that is not included in the guaranteed amount of free medical care and mandatory social health insurance, as well as for transfer to investment management to private management companies.
In accordance with the provisions of Articles 30, 31 and 32 of the Law of the Republic of Kazakhstan "On Pension Provision in the Republic of Kazakhstan" (hereinafter-the Law), the following persons who have pension savings in the UAPF formed at the expense of mandatory pension contributions (OPV) and (or) mandatory occupational pension contributions (OPV) can use the right to use part of their pension savings in order to improve housing conditions in their favor or their spouse (spouse), or close relatives and (or) to pay for treatment for themselves or their spouse (spouse), or close relatives:
1) the amount of pension savings that exceeds the threshold of the minimum sufficiency of pension savings.
At the same time, a one-time pension payment may not exceed the amount of the difference between the amount of pension savings due to the OPV and (or) the OPV of the depositor (recipient) and the threshold of minimum sufficiency of pension savings calculated according to the Methodology for determining the threshold of minimum sufficiency of pension savings approved by the Government of the Republic of Kazakhstan as of the date of receipt of an electronic notification from an authorized operator;
2) whose pension amount, and for the persons specified in paragraph 7 of Article 11 of the Law, the amount of pension and 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 determined by the Government of the Republic of Kazakhstan. When calculating the replacement coefficient of the average monthly income, the recipient's income preceding the retirement date is taken into account, but not more than the average monthly income in the republic.
At the same time, a one-time pension payment may not exceed 50 percent of the amount of pension savings at the expense of the depositor's (recipient's) OPV and (or) OPV as of the date of receipt of the initial electronic notification from the authorized operator;
3) who have concluded a pension annuity agreement with an insurance company.
At the same time, a one-time pension payment may not exceed the amount of pension savings at the expense of OPV and (or) OPV on the individual pension accounts of the depositor (recipient).
Thus, pension savings can be used exclusively for the purposes and in accordance with the procedure established by the legislation of the Republic of Kazakhstan. At the same time, pension savings cannot be used to buy a car or pay for consumer loans.
2) Good day! My name is Mikhail, I would like to open a retirement account for myself. What documents do I need to provide? Or can the employer do everything for me?
Since 2019, according to paragraph 2 of Article 37 of the Law of the Republic of Kazakhstan "On Pension Provision in the Republic of Kazakhstan", the opening of an individual pension account (IPS) in the UAPF for accounting for mandatory pension contributions (OPV) is carried out automatically, respectively, there is no need for individuals to apply to the UAPF to open an IPS for accounting for OPV.
Thus, in order to open an IPS in the UAPF for accounting for OPV, an individual does not need to apply to the UAPF for the purpose of filing an application. If there is no account, it is opened in the UAPF information system automatically when the first payment is received. The identification of an individual is carried out using the personal data specified in the electronic format of the payment order when transferring the pension contribution, and the UAPF receives all the necessary information about the details of the current document and other details from the information systems of state bodies.
3) Hello! Sometimes, I see how various people write in the comments on social networks that the money in the UAPF is "dead weight" and is not invested anywhere, is this information correct? And what is your current profitability?
Pension savings of UAPF depositors are continuously invested and work for the depositor. Only in the first half of the year from January 1 to July 1, 2021, net investment income in the amount of 753.3 billion tenge was accrued to the accounts of UAPF depositors, which is almost 210 billion tenge or 39% more than in the first half of last year. The yield on the pension assets of the UAPF under the management of the National Bank of the Republic of Kazakhstan since the beginning of the year was 6.1%, with inflation of 4.6%. At the same time, the yield for the last 12 months was 12.1%, while inflation for the same period was 7.9%.
The amount of depositors ' pension savings is recalculated and revalued weekly in accordance with the results of investing pension assets. Investment income includes income in the form of remuneration on securities (deposits and other transactions), income in the form of market revaluation of financial instruments, income in the form of currency revaluation, income on assets under external management, etc.
Detailed information on the investment of pension assets by the National Bank of the Republic of Kazakhstan (NBRK), investment portfolio managers (UIP), as well as investment activity reviews as of July 1, 2021 are available on the enpf website.kz in the section "Indicators-Investment activity".
In general, the investment income provided by the National Bank since the merger of all pension assets into the UAPF amounted to more than 5.4 trillion tenge. As of July 1, 2021, the share of net investment income in the total amount of pension savings is 36.3%.
It should be noted that in addition to the National Bank, UAPF depositors can transfer part of their savings to investment portfolio management companies (UIP). At the moment, the UAPF has concluded an agreement on the trust management of pension assets with four UIPS. You can get acquainted with the information about them and study their investment declarations on the enpf website.kz in the "Services" section - "Register of investment portfolio managers".
Recall that after receiving pension assets from the UAPF, the UIP invests them in authorized financial instruments specified in the Rules for Managing the Investment Portfolio, approved by Resolution No. 10 of the Board of the National Bank of the Republic of Kazakhstan dated February 3, 2014, and provided for in the Investment Declaration of the UIP.
In addition, during the period when pension savings are under the management of the National Bank until the depositor reaches retirement age, a guarantee of the safety of pension savings, taking into account the level of inflation, is valid. When transferring pension savings to the management of the UIP, the state guarantee is replaced by the guarantee of the management company to ensure the minimum level of profitability of pension assets. The minimum level of profitability is calculated based on the weighted average yield of pension assets transferred to the management of a UIP operating on the market.
4) Good afternoon! I apologize for such a question, but we are all mortals and I would like to ask what happens to our pension savings if a person does not live to retire? Do you have any payments for burial, or does all the money just go to the budget?
Pension savings are the property of the depositor. In the event of the death of a depositor or recipient, as well as a person who has pension savings in the UAPF and has not reached retirement age in accordance with paragraphs 1-3 of Article 11 of the Law, his family or the person who carried out the burial, the UAPF is paid a one-time payment for burial within the amount of 52.4 times the monthly calculation index established for the corresponding financial year by the law on the republican budget, but no more than the funds available on the IPS. If the balance of pension savings on the recipient's IPS after making a one-time payment for burial amounts to an amount not exceeding the amount of the minimum pension established for the corresponding financial year by the law on the republican budget, this balance is paid as a payment for burial.
In addition, the provisions of articles 31 and 32 of the Law determine that in the event of the death of a person who has pension savings in the UAPF at the expense of mandatory pension contributions and mandatory occupational pension contributions, they are inherited in accordance with the procedure established by the legislation of the Republic of Kazakhstan.
5) I have a sufficient amount in my account to transfer my pension savings from the UAPF to an insurance organization under a pension annuity agreement. Is it possible to find out what amount of payments I should have in the case of a money transfer, and if I stay in the UAPF?
Each depositor of the Unified Accumulative Pension Fund can independently calculate their future pension payments from both the UAPF and the insurance organization, using one of the most popular services on the fund's website – the Forecast Pension Calculator. It covers all components of the pension within the multi-level pension system of Kazakhstan: the state basic pension and the old-age pension (or solidary), as well as the pension formed at the expense of mandatory pension contributions (OPV), mandatory occupational pension contributions (OPV) and voluntary pension contributions (DPV).