Increase in funeral payments

As previously reported, the Social Code, which will come into force on July 1, 2023, provides for a number of innovations regarding the funded pension system.

According to the amendments to the Social Code, in the event of the death of an individual with pension savings in the Unified Accumulative Pension Fund (UAPF), their family members will receive a one-time funeral payment from the deceased person's pension savings, up to an amount equal to 94 times the monthly calculation index (MCI) established for the relevant financial year by the law on the republican budget (LCR), but no more than the funds available in the individual pension account (IPA).

If the remaining pension savings in the deceased person's IPA after the one-time funeral payment is no more than the MCI, this remainder is paid as a funeral payment to the deceased's family members.

As a reminder, previously, applications for a lump sum funeral payment could also be submitted by individuals who performed the burial, and the payment was equal to 52.4 times the minimum monthly calculation index (MCI).

In the event of the death of an individual with pension savings in the ENPF, they are inherited in accordance with the procedure established by the legislation of the Republic of Kazakhstan.

For more information on the procedure, deadlines, and list of documents required for the UAPF to make funeral payments to heirs, please visit the ENPF website.

The ENPF was established on August 22, 2013, on the basis of JSC UAPF. 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 National Bank of the Republic of Kazakhstan exercises trust management of the UAPF's pension assets. Effective January 1, 2016, the functions of developing proposals to improve the efficiency of pension asset management were transferred to the National Fund Management Council. In accordance with pension legislation, the UAPF collects mandatory pension contributions, mandatory professional pension contributions, voluntary pension contributions, pension payments, individual accounting of pension savings and payments, and provides the contributor (recipient) with information on the status of their pension savings (more details at www.enpf.kz)