1) Hello! Can you explain with an example how a person with savings of about 5 million tenge will receive a pension payment?
The amount of the monthly pension payment from the Unified Accumulative Pension Fund is defined as one-twelfth of the annual amount of pension payments calculated in accordance with the Methodology for calculating the amount of pension payments approved by the Decree of the Government of the Republic of Kazakhstan dated 02.10.2013 No. 1042.
We remind you that since April 1, 2021, changes in the Methodology have come into force, according to which the annual amount of pension payments in the first year of pension payments is calculated as the product of the amount of pension savings by the rate of pension savings payments – 6.5% (the amount of pension savings * 6.5% / 12 = the amount of monthly payments in the first year).
In subsequent years, the amount of the monthly pension payment is recalculated by an annual increase in the amount of the monthly pension payment for the previous year by the indexation rate of pension payments – 5%.
Let 's give an example:
MON amount = 5,000,000 tenge
Annual amount of pension payments in the first year: 5 000 000*6,5% = 325 000 tenge;
The amount of monthly pension payment in the first year: 325,000 / 12 months = 27 083.33 tenge;
The amount of the monthly pension payment for the second year: 27 083.33+5% = 28 437.50 tenge.
For recipients of certain categories: people with disabilities of group 1 or 2, established indefinitely, as well as people who worked in harmful and dangerous industries, whose savings were formed due to mandatory occupational pension contributions in aggregate for at least sixty months, the new Method of calculating pension payments provides for correction increasing coefficients.
At the same time, for persons satisfying more than one of the above conditions, the correction factor with the highest value is applied.
It should be added that the monthly pension payment from the UAPF is carried out in the amount of at least 70 percent of the subsistence minimum established for the corresponding fiscal year by the law on the republican budget (For example, in 2022 this amount is 25,212.6 tenge = 70% * 36018).
If the amount of pension savings on the date of application does not exceed twelve times the minimum pension established by the law on the republican budget for the corresponding financial year, this amount is paid to the recipient from the UAPF at a time (in 2022 555,624 tenge = 12 * 46,302).
In addition, if the balance of pension savings on the IPS after the next monthly payment is less than 70% of the subsistence minimum established for the corresponding fiscal year by the law on the republican budget, this balance is paid together with the amount of the next payment.
Recall that in addition to payments from the UAPF, the pensioner is entitled to payments from the state budget in the form of a basic and solidary pension.
The basic pension is paid to all persons who have reached retirement age. Its size depends on the length of service of the person retiring.
Solidary pension - is paid if there is at least 6 months of work experience, worked out as of January 1, 1998.
For the appointment and payments from the state budget and the UAPF in connection with the achievement of retirement age, recipients must promptly contact the divisions of the State Corporation "Government for Citizens" (PSC) at their place of residence.
2) Good afternoon! I read that last year an Agreement on pension provision came into force for citizens of the EAEU countries. However, I am a citizen of Tajikistan myself and our country is not a member of the EAEU. I work in sales in Almaty. I would like to ask you if I have the right to participate in the pension system of Kazakhstan and whether my employer has to make pension contributions for me?
In accordance with article 2 of the Law "On Pension Provision in the Republic of Kazakhstan", foreigners and stateless persons permanently residing in the territory of the Republic of Kazakhstan enjoy the right to pension provision on an equal basis with citizens of the Republic of Kazakhstan, unless otherwise provided by laws and international treaties.
Foreigners who have received a permanent residence permit in the Republic of Kazakhstan in accordance with the procedure determined by the Ministry of Internal Affairs of the Republic of Kazakhstan are recognized as permanent residents in the Republic of Kazakhstan.
Thus, according to the Law of the Republic of Kazakhstan "On Identity Documents", the document certifying the identity of a foreigner in the territory of the Republic of Kazakhstan and confirming the receipt of a permanent residence permit in the Republic of Kazakhstan is a residence permit of a foreigner in the Republic of Kazakhstan (residence permit).
Thus, only those foreigners who permanently reside on the territory of the Republic of Kazakhstan on the basis of a residence permit are entitled to pension provision in the Republic of Kazakhstan.
We remind you that individual pension accounts (IPS) in the UAPF are opened automatically in an undeclared manner:
- to account for mandatory pension contributions (OPV) – from January 8, 2019;
- to account for voluntary pension contributions (DPV) – from May 1, 2021;
- to take into account mandatory occupational pension contributions (OPP) – from October 26, 2021.
At the same time, the identification of the individual in whose favor pension contributions are transferred is carried out according to his personal data (full name, IIN, date of birth) indicated in the electronic format of the payment order when transferring OPV, OPV and DPV, and all the necessary information: about the details of the valid identity document of the individual, about the place of permanent residence, other information the UAPF receives from the relevant information systems of state bodies.
3) I am 65 years old and now I am a current pensioner, but recently I found a small part-time job again and got a job as a security guard in one company. Now I have a question, will my employer transfer 10% of my salary to the UAPF? After all, I already receive pension payments from you.
In accordance with subparagraph 1) paragraphs 2 and 3 of Article 24 of the Law of the Republic of Kazakhstan "On Pension Provision in the Republic of Kazakhstan" individuals who have reached retirement age are exempt from paying mandatory pension contributions and mandatory occupational pension contributions to the UAPF in accordance with paragraph 1 of Article 11 of the Law of the Republic of Kazakhstan "On Pension Provision in the Republic of Kazakhstan".
We remind you that the generally established retirement age is 63 years for men, 60.5 years for women in 2022, with an annual increase of six months until the age of 63 in 2027.
4) Tell me, is it true that pension payments from the UAPF are taxed? What part of citizens can count on tax deductions?
The Tax Code of the Republic of Kazakhstan defines payments related to income in the form of pension payments subject to taxation and the tax rate applied to income in the form of pension payments.
Thus, according to Article 326 of the Tax Code, the income in the form of pension payments subject to taxation includes payments made by the UAPF:
1) from taxpayers' pension savings formed at the expense of: mandatory pension contributions in accordance with the legislation of the Republic of Kazakhstan mandatory occupational pension contributions in accordance with the legislation of the Republic of Kazakhstan;
voluntary pension contributions in accordance with the terms of the pension provision agreement at the expense of voluntary pension contributions;
2) natural persons-residents of the Republic of Kazakhstan who have reached retirement age and have left for permanent residence outside the Republic of Kazakhstan in accordance with the Law of the Republic of Kazakhstan "On Pension provision in the Republic of Kazakhstan";
3) natural persons-residents of the Republic of Kazakhstan who have not reached retirement age and have left for permanent residence outside the Republic of Kazakhstan in accordance with the Law of the Republic of Kazakhstan "On Pension provision in the Republic of Kazakhstan";
4) individuals in the form of pension savings inherited in accordance with the procedure established by the legislation of the Republic of Kazakhstan;
5) to individuals in the form of a one-time payment for the burial of a deceased person who has pension savings, in accordance with the procedure established by the legislation of the Republic of Kazakhstan.
According to Article 320 of the Tax Code, the taxpayer's income, with the exception of income in the form of dividends received from sources in the Republic of Kazakhstan, is taxed at the rate of 10 percent.
According to paragraph 3 of Article 353 of the Tax Code , the amount of taxable income in the form of pension payments from the UAPF is determined in the following order:
the amount of income in the form of pension payments subject to taxation,
minus
the amount of adjustment for individual income tax provided for in paragraph 1 of Article 341 of the Tax Code.
minus
the amount of tax deductions in the manner and amounts specified in paragraph 1 of Article 345 and in subparagraphs 2) and (or) 3) of paragraph 1 of Article 346 of the Tax Code;
According to Article 345 of the Tax Code, a tax deduction is applied to income in the form of pension payments subject to taxation in the following amounts:
1) for payments provided for in subparagraph 1) of Article 326 of the Tax Code - in the amount of a 14-fold monthly calculation index established by the law on the republican budget and effective on the date of accrual of income in the form of a pension payment, for each month for which the pension payment is made;
2) for payments provided for in subparagraph 2) of Article 326 of the Tax Code - in the amount of 168 times the monthly calculation index established by the law on the republican budget and effective on the date of accrual of income in the form of a pension payment.
The adjustment for individual income tax (hereinafter – IPN) in accordance with subparagraph 18) of paragraph 1 of Article 341 of the Tax Code includes payments for burial, if there is a death certificate or death certificate, within 94 times the size of the minimum calculated indicator.