UAPF answers topical questions
I am 42 years old and I would like to withdraw some of my pension savings for medical treatment. How will the thresholds of sufficiency change for me from the new year and what are they connected with?
According to the law 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 their pension savings to improve housing conditions, pay for medical treatment that is not included in the guaranteed volume of free medical care and compulsory social health insurance.
Pension savings can be used by citizens an unlimited number of times within the amount of pension savings in the UAPF available for withdrawal for housing, medical treatment or transfer to management companies.
The minimum sufficiency thresholds are reviewed annually, since they are calculated using such social indicators as the minimum wage, minimum pension, subsistence minimum, which are indexed annually.
For 2023, it is envisaged that the minimum wage will be KZT70,000, the minimum pension is KZT53,076, the minimum size of the state basic pension benefit will be KZT24,341, and the minimum subsistence level - KZT40,567. Other socially significant indicators that are taken into account when calculating the thresholds have also been increased. Accordingly, the thresholds have also been changed. Information about what they will be like from January 1, 2023 is posted in the media, as well as on the enpf.kz website.
According to these indicators, the minimum sufficiency threshold for you in 2023 will be KZT6,440,000. Funds in excess of this amount can be used for treatment.
Recall that the law On Pension Provision in the Republic of Kazakhstan determines that "the threshold of minimum sufficiency of pension savings is the minimum amount of pension savings formed at the expense of compulsory types of pension contributions, necessary to ensure a monthly pension not lower than the minimum pension established by the law on republican budget.
In other words, the minimum sufficiency threshold is the minimum amount that must remain in the account so that the contributor, upon retirement, receives benefits not less than the minimum pension (in this case, the base benefit is also taken into account in the total amount of pension benefits).
Hello, my name is Sholpan and I turn 61 at the beginning of January 2023. So, I can already retire and where should I apply?
The Senate of the Parliament of the Republic of Kazakhstan considered and approved the draft Law of the Republic of Kazakhstan On amendments and additions to certain legislative acts of the Republic of Kazakhstan on issues of state youth policy and social security. This Law provides that from 01.01.2023 to 01.01.2028 the retirement age for women is planned to be set at 61, i.e. raising the retirement age for women is suspended until 01.01.2028. Based on this, you are entitled to pension benefits in connection with the onset of retirement age - at the age of 61.
Men are also entitled to pension payments upon reaching the age of 63 and persons with disabilities of the first and second groups, established indefinitely.
To assign an old-age pension and a state basic pension, as well as to receive payments from compulsory pension contributions and compulsory occupational pension contributions from the UAPF, it is necessary to apply with a single application and a package of documents only to the Public Service Center of the Government for Citizens State Corporation.
The beneficiary will also be provided with a proactive service (by default) for the payment of a state guarantee (the difference between the amount of contributions actually made, taking into account inflation and the amount of pension savings, if any). The first pension benefit from the UAPF will be made within ten working days from the date of registration of the application or within ten working days from the date the beneficiary becomes entitled to pension benefits from the UAPF. Subsequent monthly benefit payments from the UAPF will be made in accordance with the established pension benefit payment schedule.
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 beneficiary from the UAPF at a time (in 2023 - KZT636,912 = 12 * KZT53,076).
If the amount on the pension account is larger, then the monthly benefit will be calculated as follows: the amount of savings is multiplied by 6.5% and divided by 12.
In the event that the balance of pension savings on the IPSA after the next monthly benefit is less than 54 percent of the subsistence minimum established for the corresponding financial year by the law on the republican budget, this balance is paid together with the amount of the next benefit.
To make pension benefits from the UAPF, persons who are disabled of the first and second groups, if the disability is established indefinitely, must contact the UAPF - directly to the office or through the website in the "Electronic Services" section.
The list of required documents for receiving pension benefits is detailed on the UAPF website.
I have a small salary, but I would like to have a decent pension. How can I influence the amount of pension benefits?
The first thing that affects pension benefits is the regularity and timeliness of pension contributions. Voluntary pension contributions (VPCs) can also affect the amount of pension benefits.
VPC is the money that contributors contribute on their own initiative to the UAPF. They can be made both by individuals for their own benefit, and by individuals and legal entities for the benefit of a third party. At the same time, the amount and frequency of VPC payment are established by an individual or legal entity independently.
The basis for opening an individual pension saving account for VPC accounting is, among other things, the first voluntary pension contribution received by the UAPF. Thus, the contributor (beneficiary) does not need to visit the office of the Fund, the identification of an individual in whose favor VPCs are made will be carried out according to personal data (full name, IIN, date of birth) indicated in the electronic format of the payment order when transferring VPCs, and all necessary information: about the details of a valid document proving the identity of an individual, about the place of permanent residence, other information will be received by UAPF from the relevant information systems of state bodies.
The right to pension benefits from the UAPF at the expense of the VPC arises for the following persons who have pension savings:
1) who have reached the age of fifty;
2) who are disabled;
3) foreigners and stateless persons leaving or leaving for a permanent place of residence outside the Republic of Kazakhstan, who submitted documents, determined by the legislation of the Republic of Kazakhstan, confirming the intention or fact of departure;
4) having pension savings within the limits of the amounts of voluntary pension contributions and the investment income accrued on them, which are in the unified accumulative pension fund and (or) voluntary accumulative pension fund, for at least five years. That is, by starting to save money at the expense of VPC, for example, at the age of 20 or 30, at 25 or 35, respectively, you can start receiving your first benefits.
Recall that VPC can be paid to UAPF through second-tier banks (STB) or Kazpost JSC. Some STBs provide an opportunity to transfer contributions online (through a mobile application or self-service terminals). In addition, it is possible to submit an application to the employer, on the basis of which the latter will regularly transfer VPC to the UAPF in favor of the applicant or a third party.
Recently, I was diagnosed with a disability of group 2, can I get my pension savings for medical treatment ahead of schedule?
According to the Law On Pension Provision in the Republic of Kazakhstan, the right to receive pension benefits from the UAPF comes under certain conditions, including in the event of a disability of groups 1 and 2 for an indefinite period. UAPF is obliged to make pension benefits to beneficiaries in the manner established by the Government of the Republic of Kazakhstan. The specified procedure, including the calculation of the amount of the annual amount of pension benefits according to the established schedule from the UAPF, is determined by the Rules for making pension payments from pension savings formed at the expense of compulsory pension contributions, compulsory occupational pension contributions from the unified accumulative pension fund, and the Methodology for calculating the amount of pension benefits approved by Government Decree No. 1042 dated October 2, 2013. Thus, if disability of group 2 is established indefinitely, you can receive pension benefits from the UAPF on a monthly basis according to the established schedule.
In what cases the employer must pay compulsory occupational pension contributions to employees?
In accordance with the Law On Pension Provision in the Republic of Kazakhstan, compulsory occupational pension contributions (COPC) are set at 5% of an employee's monthly income. The accrual of COPC is carried out by employers at their own expense, in favor of employees employed in work with hazardous working conditions, whose professions are provided for by the list of industries, works, professions of employees (see Decree of the Government of the Republic of Kazakhstan dated December 31, 2013 No. 1562).
In case of exclusion from the list of hazardous working conditions, confirmed by the results of attestation of production facilities, the payment of compulsory occupational pension contributions by employers is not carried out,
COPC are the compensation of the employer for hazardous working conditions and it is the employer who implements them at his own expense in favor of the employee. This type of pension contributions was introduced in the republic from January 1, 2014.
In accordance with paragraph 10 of the Pension Rules of the Unified Accumulative Pension Fund, approved by the Decree of the Government of the Republic of Kazakhstan dated September 18, 2013 No. 984 (hereinafter referred to as the Pension Rules), the UAPF approved an agreement on pension provision at the expense of the COPC, which establishes the rights, obligations and liability provided for by the Law of the Republic of Kazakhstan On Pension Provision in the Republic of Kazakhstan, as well as other features of the legal relationship between the UAPF, the individual for whom the COPC are transferred (the beneficiary of pension benefits at the expense of the COPC), and the agent.
COPC are paid in the national currency of the Republic of Kazakhstan no later than the 25th day of the month following the month of income payment. Business entities applying a special tax regime - in the manner and within the time limits stipulated by the tax legislation of the Republic of Kazakhstan.