Starting from January 1, 2024, the provisions of the Social Code of the Republic of Kazakhstan and Rules No. 44 are put into effect, providing for the optimization of the procedure for transferring pension savings from the UAPF to insurance organizations under pension annuity agreements (hereinafter referred to as DPA).
Innovations in the legislation will allow depositors (recipients) from 01.01.2024 to apply only to the selected insurance company to conclude a DPA without further contacting the UAPF with an application for the transfer of pension savings to an insurance company.
At the same time, the procedure for transferring pension savings from the UAPF to an insurance company from 01.01.2024 is as follows:
Insurance organizations will transmit data on the concluded DPA of JSC State Credit Bureau (SCB) through the unified insurance database (ESDB), which is operated by SCB
On the basis of the relevant agreement with the UAPF, the SCB will transfer to the UAPF information about the concluded DPA received from insurance organizations. The procedure and timing of data exchange through the State Security Committee for DPA prisoners are regulated by Rules No. 44
Upon receipt of information from the SCB, in accordance with Rules No. 44, the UAPF will verify data on policyholders (persons who have concluded a DPA with an insurance company) with the available data in its information system and information systems of other government agencies, in accordance with which it will transfer pension savings to insurance organizations within 5 working days from the date of receipt of information from GKB about the DPA prisoner
The insurance company will notify the policyholder within 5 working days from the date of receipt of pension savings from the UAPF about their receipt, indicating the amount and the entry into force of the DPA.
We remind you that a pension annuity is a financial insurance instrument that allows you to receive a "pension" before the due date, provided that pension savings are sufficient to ensure a monthly insurance payment from an insurance company of at least 70 percent of the subsistence minimum effective on the date of conclusion by an individual of a DPA with an insurance company.
It should be noted that for persons who have transferred their pension savings to insurance organizations, the state guarantees the safety of mandatory pension contributions, mandatory occupational pension contributions to the UAPF in the amount of contributions actually made, taking into account the inflation rate, carried out during the period from the date of the last transfer of pension savings to insurance organizations until they reach the generally established retirement age. That is, the state guarantee of the safety of pension savings does not apply to pension savings transferred to insurance organizations.
Before deciding to transfer their pension savings to them, we recommend that you carefully study the terms of the DPA and analyze in detail both ways of receiving payments: from the UAPF or from an insurance company through the conclusion of a DPA.
Calculations on the calculator provided on the UAPF website can help in making a decision, allowing you to compare the amount of pension payments from the UAPF and possible insurance payments from an insurance company under the DPA.
Please also note that since September 2022, changes in pension legislation have come into force, according to which persons who have concluded a DPA have the right to apply to an insurance company no earlier than two years from the date of its conclusion with an application to change the terms of the DPA in terms of reducing the amount of insurance payments and returning money to the UAPF.
If we talk about current statistics, since the beginning of 2023, as of October 1, 2023, 4,037 citizens have transferred pension savings under DPA to insurance organizations in the amount of KZT 21.9 billion. At the same time, the amount of funds to be refunded received from insurance organizations upon changing the terms of the DPA amounted to 10.9 billion tenge from 1,927 depositors.
It should be noted that by accounting for over seventeen trillion tenge on more than twelve million depositors' accounts, the UAPF continues to expand the mobile capabilities of citizens and actively integrate digital technologies into its operations. For the purpose of operational maintenance, the UAPF exchanges data with information systems (databases) of government agencies, while ensuring the safety of personal data.
The pension system in Kazakhstan provides depositors with more and more opportunities for planning retirement capital and material security after retirement.
See the plot at the link:
https://youtu.be/MDk7pMEDnN8
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The UAPF was established on August 22, 2013 on the basis of JSC NPF GNPF. The founder and shareholder of the UAPF is the Government of the Republic of Kazakhstan represented by the State Property and Privatization Committee of the Ministry of Finance of the Republic of Kazakhstan. The trust management of pension assets of the UAPF is carried out by the National Bank of the Republic of Kazakhstan. Since January 1, 2016, the functions of developing proposals to improve the efficiency of pension asset management have been transferred to the National Fund Management Council. In accordance with pension legislation, the UAPF attracts mandatory pension contributions, mandatory occupational pension contributions, voluntary pension contributions, pension payments, individual accounting of pension savings and payments, provides the depositor (recipient) with information on the status of his pension savings (for more information on www.enpf.kz )