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ANNOUNCEMENT
How to return money from an insurance annuity to UAPF?
According to the Law of the Republic of Kazakhstan On Amendments and Supplements to Certain Legislative Acts of the Republic of Kazakhstan on the Regulation and Development of the Insurance Market and the Securities Market, Banking Activities, a number of amendments are introduced to regulatory legal acts, including from September 12, 2022, Article 60 Law of the Republic of Kazakhstan On pension insurance in the Republic of Kazakhstan (hereinafter - the Law).
Clause 14 of Article 60 of the Law establishes that persons who have concluded a pension annuity contract have the right, no earlier than two years from the date of its conclusion, to apply to the insurance organization to change the terms of the contract in terms of reducing the amount of insurance benefits and returning money to the UAPF. The amount of money to be returned to the UAPF is equal to the difference between the redemption amount under the pension annuity contract on the date of its amendment and the amount of the insurance premium calculated on the basis of the amount of benefit determined by clause 2 of Article 59 of the Law on the date of amendment to the pension annuity contract.
In other words, the insurance organization must have an amount that ensures a lifelong monthly insurance benefit of not less than 70 percent of the subsistence minimum effective on the date of making changes to the pension annuity contract.
We emphasize that the effect of this clause also applies to legal relationships arising from pension annuity contracts concluded before the Law came into effect.
In order to return money to the UAPF, the contributor (beneficiary) from 12.09.2022 should apply to the insurance organization with which the contributor (beneficiary) has concluded a pension annuity contract, with an application to change the terms of the contract in terms of reducing the amount of insurance benefits and returning money to the UAPF.
ANNOUNCEMENT
As of September 1, UAPF transferred more than three trillion tenge to its depositors for housing and medical treatment
As of September 1, 2022, from January 2021, the UAPF has executed 1,330,675 applications from contributors (beneficiaries) to use pension savings to improve housing conditions. More than KZT3.1 trillion was transferred to the special accounts of Kazakhstanis opened in banks-authorized operators. The average amount of lump-sum pension benefits amounted to about KZT2.4 million.
Most of the executed applications were sent by residents of Almaty (17.61%), Nur-Sultan (14.02%), Mangistau region (10.35%). Detailed information is available on the website www.enpf.kz in the “Indicators” section - for what purposes do Kazakhstanis plan to use lump-sum pension payments and by regions (subsections “Lump-sum pension benefits for improving housing conditions by goals” and “Lump-sum pension payments for improving housing conditions”, respectively).
To date, authorized operators accepting applications for the use of part of pension savings are Otbasy Bank Housing Construction Savings Bank JSC, Halyk Bank of Kazakhstan JSC, Altyn Bank JSC, Bank CenterCredit JSC and Bank Freedom Finance Kazakhstan JSC. We emphasize that after receipt of a lump sum pension benefit to a special account opened with an authorized operator (Otbasy Bank Housing Construction Savings Bank JSC), the beneficiary provides the authorized operator with documents confirming the intended purpose of lump sum pension benefits within 20 working days from the date of their receipt (in accordance with paragraph 13 of the Rules for the use of lump-sum pension benefits to improve housing conditions in accordance with the legislation of the Republic of Kazakhstan). An exception is the replenishment of the contribution to housing construction savings for further accumulation in order to purchase a dwelling or build an individual residential building (including the acquisition of a land plot with a special purpose - individual housing construction. In this case, the beneficiary provides Otbasy Bank with documents confirming the intended purpose of lump-sum pension benefits in within 3 years from the date of their receipt. For other authorized operators (second-tier banks), applications for a lump-sum pension benefit and documents of the beneficiary by purpose are considered in the manner and terms established by the bank's internal documents. At the same time, the bank transfers lump-sum pension benefits according to their target appointment within 10 working days from the date of crediting the amounts of lump-sum pension benefits to the special accounts of the applicant (beneficiary) are returned to the UAPF.
The beneficiary may also return the transferred amount to the UAPF without waiting for the specified period by submitting to the authorized operator a corresponding application, which the authorized operator must execute within 3 (three) business days from the date of receipt of the application for a refund from the beneficiary.
It should be noted that KZT452.5 billion was returned to the individual pension saving accounts (IPSA) of contributors (beneficiaries) from authorized operators due to the fact that lump-sum pension benefits by Kazakhstanis were not used on time, at the request of the applicant and for other reasons
UAPF also executed 391,042 applications for medical treatment for a total amount of KZT305.2 billion. At the same time, the average withdrawal amount is about KZT0.8 million. At the same time, KZT31.5 billion was returned to the IPSA of contributors (beneficiaries) in the UAPF from the authorized operator (Otbasy Bank Housing Construction Savings Bank JSC), these funds were not used on time, according to the applicant's application and other reasons.
You can get acquainted with the current statistics on the use of pension savings for treatment on the website www.enpf.kz in the section "Indicators" - "Lump-sum pension benefits for medical treatment".
As of September 1 of this year, KZT8.7 billion were transferred to the investment portfolio manager (IPM), the UAPF executed 5,878 applications. The average transfer amount is about KZT1.5 million. Detailed statistics on the transfer of pension savings to trust management is also available on the enpf.kz website in the section "Indicators" - "Transfer of pension savings to management companies".
At the moment, UAPF has concluded agreements on trust management of pension assets with four IPMs. You can get acquainted with information about them and study their investment declarations on the website enpf.kz in the section "Services" - "Register of Investment Portfolio Managers".
Recall that after receiving pension assets from the UAPF, the IPM invests them in permitted financial instruments specified in the Rules for the implementation of investment portfolio management activities, approved by the Resolution of the Board of the National Bank of the Republic of Kazakhstan dated February 3, 2014 No. 10, and provided for in the Investment Declaration of the IPM
Under the Law on Pension Provision, IPMs are entitled to charge an investment management fee. The maximum amount of remuneration of the IPM cannot exceed 7.5% of the received investment income. The actual amount of the commission fee is annually approved by the management body of the IPM and may change no more than once a year.
During the period when pension savings are under the management of the National Bank until the depositor reaches the retirement age, there is a guarantee of the safety of pension savings, taking into account the level of inflation. When transferring pension savings to the management of the IPM, the state guarantee is replaced by the guarantee of the management company to ensure the minimum level of profitability of pension assets, which is calculated based on the weighted average return on pension assets transferred to the management of the IPM operating on the market.
As of June 1, 2022, pension savings in the amount of KZT12.8 trillion were formed on the accounts of contributors of the Unified Accumulative Pension Fund.
The main amount of pension savings was formed at the expense of compulsory pension contributions (CPC) and amounted to KZT12.4 trillion. The amount of pension savings on compulsory occupational pension contributions (COPC) amounted to KZT374.5 billion, the amount of pension savings on voluntary pension contributions (VPC) amounted to about KZT2.6 billion.
Incoming flows, in particular, contributions this year continue to increase. For five months of 2022, pension contributions in the total amount of about KZT661.9 billion were received on the accounts of contributors, which exceeded the figure for the same period in 2021 by 29% or KZT147.2 billion. It should be noted that the growth occurred in all types of contributions. Of the total contributions, 95.1% are receipts to the UAPF from the CPC - KZT629.3 billion (an increase of 28% over the past 12 months), KZT31.4 billion were received from the COPC (an increase of 37%), KZT1.2 billion (an increase of 402%) was transferred as VPC.
The number of individual pension saving accounts in the UAPF as of June 1, 2022 also increased over the year and amounted to 11.9 million units (an increase of 2.7%). The largest number of accounts opened for compulsory pension contributions (CPC) - 10,872,201 units. The number of accounts formed at the expense of the COPC increased over the year by 8.8% and amounted to 569,957 units. It should be noted that a significant increase in VPC is due to the fact that unclaimed amounts of guarantee compensation for depositors were transferred from the Kazakhstan Deposit Guarantee Fund (KDGF) to UAPF for crediting to individual pension accounts (IPA) to account for voluntary pension contributions (VPC).
Since the beginning of the year, UAPF has paid KZT947.5 billion. Most of the payments were lump-sum pension benefits (LSPB) for the improvement of housing conditions and medical treatment - KZT840.6 billion. Old age pension benefits amounted to KZT42.4 billion, inheritance payments - KZT28.6 billion, pension benefit payments in connection with leaving for permanent residence outside the Republic of Kazakhstan - KZT20.9 billion, about KZT11.7 billion were transferred to insurance organizations, payments for burial - KZT2.3 billion and disability benefit payments - KZT1.0 billion.
It should be noted that the amount of the average monthly benefit according to the schedule from the UAPF (in connection with reaching the retirement age) amounted to KZT29,360, and the maximum amount of the monthly pension benefit was KZT707,326.
The 20th meeting of the Public Council under the UAPF was held on June 24, 2022. The following issues were on the agenda: investment strategies of investment portfolio managers (IPM), as well as the Corporate Development Strategy of UAPF JSC for 2022-2026.
All 4 IPMs that have concluded trust management agreements with UAPF JSC told the Council members about their companies and the main areas of pension asset management. Recall that the amount of savings transferred to date to the IPMs is about KZT9 billion.
The main message of all speeches by representatives of investment portfolio management companies was that pension assets are long-term investments and it is advisable to analyze the results of investment activities for a period of at least three to five years. The current turbulence in the financial and economic markets is short-lived, but at the same time it requires a response. So, according to the Deputy Chairman of the Board of BCC Invest JSC Viktor Kyshpanakov, in today's conditions it is very important to preserve the savings of contributors. For this reason, BCC Invest JSC decided not to invest in assets that may contain geopolitical risks. Thus, even taking into account the high yield offered, it was not originally planned to invest in the instruments of the countries now participating in the conflict.
Talgat Kamarov, Chairman of the Board of Centras Securities JSC, emphasized that in such a difficult time for all investment managers such a meeting, as a platform for the exchange of experience, should play a positive role. He also noted that the current situation with a low level of profitability is a reaction of investors to ongoing events, but in the long term, IPM should provide investors with a return that exceeds the rate of inflation.
Vitaliy Khon, Deputy Chairman of the Board of Halyk Global Markets JSC, spoke next. According to him, the investment strategy for managing the company's pension assets is to provide contributors with an annual return by reducing currency risks and maintaining a real positive value of assets. Also, a representative of Halyk Global Markets JSC spoke in detail about the principles of selecting financial instruments and the challenges that management companies face when managing pension assets, naming, for example, the imperfection of legal acts in terms of independent asset valuation, management costs compared to the size of assets under management and limited choice of custodian bank.
Chairman of the Board of Jusan Invest JSC Maxim Kabanov noted that now it is very important to tell people all the information about finance and investment in a simple language: “In fact, the financial market is quite complex and when we talk about it, 90% of citizens do not understand all the subtleties. We are now trying to convey to people that investing in your pension assets is important and has a huge world experience behind it.” Maxim Kabanov gave examples of long-term investment instruments, comparing the cumulative return of the model portfolio and the cumulative change in prices for primary and secondary housing, noting the long-term benefit of the first type of investment.
Discussing the speeches of IPM representatives, the Council members recommended to adhere to a single methodology for assessing pension assets in a portfolio managed by the National Bank of the Republic of Kazakhstan and IPM, or to note different approaches to assessing financial instruments in reporting.
In addition, Council members proposed to expand investment opportunities for a wider range of UAPF contributors at the choice of IPM, not limited to the minimum sufficiency threshold. Regarding this initiative, the Chairman of the Board of UAPF JSC Zhanat Kurmanov said that, unlike housing and medical treatment, when pension funds are withdrawn from the pension system, when transferred to IPM, the money remains in the system and their designated purpose is preserved. In this regard, together with the financial market on the AFC site, a proposal is being considered to change the conditions for transferring part of IPM's pension savings without reference to minimum sufficiency thresholds. At the same time, it may also be correct if in the future the calculation of sufficiency thresholds is based on the value of pension annuities.
Kamilya Fazylova, Director of the Strategic Development Department of UAPF JSC, reported to the Council on the development strategy of UAPF JSC for the next 5 years. She said that the new Corporate Development Strategy for 2022-2026, approved by the decision of the Board of Directors, was published on the corporate website enpf.kz. The previous Corporate Strategy was approved in 2017. It laid down the goals and objectives of the UAPF for the period up to 2021, which were fully implemented.
The new strategy provides that the UAPF will continue its development as a high-tech financial institution with a personalized approach to the formation and planning of funded pensions.
The corporate development strategy for 2022-2026 is based on the principles of social policy in accordance with the State Strategy "Kazakhstan-2050", the Concept for further modernization of the pension system of the Republic of Kazakhstan until 2030, the Concept for the development of financial technologies and innovations for 2020-2025.
According to its strategy, the UAPF defines its mission as "Reliable accounting of pension savings and provision of quality pension services available to every contributor". The fulfillment of this mission is based on such values as human-centeredness and customer orientation, commitment to quality, manufacturability, reliability, responsibility, transparency and openness. According to Fazylova, the achievement of the Fund's goals and tasks in the next five years should give a result, first of all, for contributors and beneficiaries, since it is their satisfaction with our work, receiving reliable, affordable and high-tech services that is the main sign of the quality of UAPF work.
All meeting materials, including IPM presentations, are presented on the enpf.kz website in the "Public Council" section - "Minutes of meetings, presentations".
ANNOUNCEMENT
UAPF fulfilled more than 1.7 million applications for housing and treatment
As of June 1, 2022, from January 2021, UAPF has fulfilled 1,323,432 applications from contributors (beneficiaries) to use pension savings to improve housing conditions. More than 3.1 trillion tenge was transferred to the special accounts opened in banks-authorized operators. The average amount of lump-sum pension payments amounted to about 2.4 million tenge.
Most of the executed applications were sent by residents of Almaty (17.63%), Nur-Sultan (13.98%), Mangistau region (10.36%). Detailed information is available on the website www.enpf.kz in the “Indicators” section – it provides the information on purposes of Kazakhstanis to using lump-sum pension payments by regions (subsections “Lump-sum pension payments for improving housing conditions by purpose” and “Lump-sum pension payments for improving housing conditions”, respectively).
To date, the authorized operators accepting applications for the use of a part of pension savings are the followings: “House Construction Savings Bank” Otbasy Bank JSC, “Halyk Bank of Kazakhstan” JSC, Altyn Bank JSC, Bank CenterCredit JSC and “Freedom Finance Bank Kazakhstan” JSC. We emphasize that after receipt of a lump sum pension benefit to a special account opened with an authorized operator (“House Construction Savings Bank” Otbasy Bank JSC), the recipient provides the authorized operator with documents confirming the intended purpose of lump sum pension benefit within 20 working days from the date of their receipt (in accordance with paragraph 13 of the Rules for the use of lump-sum pension payments to improve housing conditions in accordance with the legislation of the Republic of Kazakhstan). An exception is the replenishment of the contribution to housing construction savings for further accumulation in order to purchase a dwelling or build an individual residential building (including the acquisition of a land plot with a specified purpose - individual housing construction). In this case, the recipient provides Otbasy Bank with documents confirming the intended purpose of lump-sum pension benefits in within 3 years from the date of their receipt. For other authorized operators (second-tier banks), applications for a one-time pension benefit and documents of the recipient by purpose are considered in the manner and terms established by the bank's internal documents. At the same time, the bank transfers lump-sum pension benefits for their intended purpose within 10 working days from the date of crediting the amounts of lump-sum pension benefits to the special accounts of an applicant (recipient). In case of failure to provide the authorized operator with supporting documents within the prescribed period, these funds are subject to return to the UAPF.
The recipient can also return the transferred amount to the UAPF without waiting for the specified period by submitting to the authorized operator a corresponding application, which the authorized operator must execute within 3 (three) business days from the date of receipt of the application for a refund from the recipient.
It should be noted that 446.4 billion tenge was returned to the individual pension accounts (IPA) of contributors (beneficiaries) from authorized operators due to the fact that lump-sum pension payments by Kazakhstanis were not used within the prescribed time frame, at the request of an applicant and for other reasons.
UAPF also executed 384,969 applications for treatment for a total amount of 298.0 billion tenge. At the same time, the average withdrawal amount is about 0.8 million tenge. At the same time, 29.2 billion tenge was returned to the IPA of depositors (beneficiaries) in UAPF from the authorized operator (“House Construction Savings Bank” Otbasy Bank JSC), these funds were not used in a timely manner, at the request of the applicant and for other reasons.
You can get acquainted with the current statistics on the use of pension savings for treatment on the website www.enpf.kz in the section "Indicators" - "Lump-sum pension payments for treatment".
As of June 1st of the current year, the investment portfolio manager (IPM) transferred 8.7 billion tenge, while UAPF executed 5,870 applications. The average transfer amount is about 1.5 million tenge. Detailed statistics on the transfer of pension accumulations to trust management is also available on the website enpf.kz in the section "Indicators" - "Transfer of pension savings to management companies".
At the moment, UAPF has concluded agreements on trust management of pension assets with four IPMs. You can get acquainted with information about them and study their investment declarations on the website enpf.kz in the section "Services" - "Register of Investment Portfolio Managers".
Recall that after receiving pension assets from UAPF, the IPM invests them in permitted financial instruments specified in the Rules for the implementation of investment portfolio management activities, approved by the Resolution of the Board of the National Bank of the Republic of Kazakhstan dated February 3, 2014 No. 10, and provided for in the Investment Declaration of the IPM.
Under the Pensions Law, IPMs are entitled to charge an investment management fee. The maximum amount of remuneration of IPM cannot exceed 7.5% of the received investment income. The actual amount of the commission is annually approved by the governing body of the IPM and may change no more than once a year.
Before the beginning of retirement age and during the period when pension accumulations are under the management of the National Bank, there is a guarantee on pension savings, which takes into account the level of inflation. When transferring pension savings to the management of IPM, the state guarantee is replaced by the guarantee of a management company to ensure the minimum level of profitability of pension assets, which is calculated based on the weighted average profitability of pension assets transferred to the management of IPM operating on the market.
The UAPF was established on August 22, 2013 on the basis of GNPF APF JSC. The UAPF founder and shareholder is the Government of the Republic of Kazakhstan represented by the State Institution “Committee of State Property and Privatization” of the Ministry of Finance of the Republic of Kazakhstan. UAPF pension assets are managed by the National Bank of the Republic of Kazakhstan. From January 1, 2016, the functions for developing proposals to improve the management of pension assets were transferred to the National Fund Management Council. In accordance with the pension legislation, the UAPF attracts compulsory pension contributions, compulsory occupational pension contributions, voluntary pension contributions, pension benefits, individual accounting of pension accumulations and benefits, provides the contributor (beneficiary) with information on the status of his pension accumulations (for more information visit www.enpf.kz)
How do UAPF contributors receive information about their savings?
Obtaining an extract from your individual pension account (IPA) is a legally enshrined right of UAPF contributors (beneficiaries). You can find out about the status of your pension savings in the following ways:
electronically:
- by e-mail to the address provided in UAPF;
- through a personal account;
by personal appeal directly to the UAPF office;
through postal services.
The most popular method of informing is through a personal account on the enpf.kz website or in the UAPF mobile application, which was used by more than 6.3 million IPA owners, which is almost 20 times more than in 2014.
Another format for remote access to information on the state of pension savings is the receipt of an extract from the IPA by e-mail to the address provided by the contributor (recipient) in UAPF, according to the schedule chosen by him (monthly, quarterly, semiannually or annually). At the time of entry, the schedule does not drop out, by default it is set annually. By the beginning of the second half of this year, almost 800 thousand people chose this way of informing.
Now IPAs for all types of pension contributions to UAPF have been opened on an unannounced basis. When opening an IPA, the method of providing UAPF with information on the state of pension savings is automatically determined as “by personal contact with UAPF”, which a contributor (recipient) has the right to change independently.
In order to determine or change the method of obtaining information, a contributor (recipient) must conclude an appropriate agreement directly at UAPF office or on the UAPF website. It should be noted that:
- on the UAPF website, you can choose only one method - “through your personal account”;
- a contributor (recipient), using the EDS, can obtain information on the state of pension savings through the website and mobile application of UAPF and e-government without concluding an agreement.
The personal way of informing continues to be popular. More than 3.1 million contributors receive statements from the individual pension account directly at the UAPF offices.
About 1 million contributors (recipients) prefer to receive an extract from IPA by traditional postal communication, the number of which has noticeably decreased. So, for example, in June 2014 there were 4 million, that is, 4 times more. We remind you that if a contributor (recipient) has chosen this method of informing, then he must inform UAPF within 10 calendar days of all changes affecting the fulfillment of UAPF obligations, including a change in address of residence.
In addition, UAPF reminds you of the need to regularly check your pension savings in any way convenient for you in order to be sure of the timely transfer of pension contributions and plan your future.
The UAPF was established on August 22, 2013 on the basis of GNPF APF JSC. The UAPF founder and shareholder is the Government of the Republic of Kazakhstan represented by the State Institution “Committee of State Property and Privatization” of the Ministry of Finance of the Republic of Kazakhstan. UAPF pension assets are managed by the National Bank of the Republic of Kazakhstan. From January 1, 2016, the functions for developing proposals to improve the management of pension assets were transferred to the National Fund Management Council. In accordance with the pension legislation, the UAPF attracts compulsory pension contributions, compulsory occupational pension contributions, voluntary pension contributions, pension benefits, individual accounting of pension accumulations and benefits, provides the contributor (beneficiary) with information on the status of his pension accumulations (for more information visit www.enpf.kz)
ANNOUNCEMENT
Why should young people think about retirement today?
UAPF takes an active part in the weeks of financial awareness for young people, held by representatives of financial organizations with the support of the Agency of the Republic of Kazakhstan for the regulation and development of the financial market.
A round table Financial awareness as a factor in improving the well-being of the population was held at Turan University in the format of training lectures for more than 100 students, undergraduates, and doctoral students and teachers. In addition to UAPF JSC, the event was attended by representatives of the financial regulator, the Financial Monitoring Agency of the Republic of Kazakhstan, the KMF-Demeu Fund and the First Credit Bureau. UAPF specialists gave a lecture on the topic: Why you need to think about pensions now: everything about the pension system of Kazakhstan.
During the meeting, the students learned about how the pension system of Kazakhstan works. Particular attention was paid to the fact that in our country there is a multi-level pension provision, which consists of state and accumulative pensions. Since the role of the accumulative component is growing from year to year, during the lecture we dwelled in detail on contributions to the UAPF - compulsory pension contributions (CPC), compulsory occupational pension contributions (COPC) and voluntary pension contributions (VPC). Of great interest were the topics of investment management and receiving services online, as well as the possibility of calculating future pensions using a predictive pension calculator.
- It is very pleasant that the students listened to our lectures with attention and interest. After all, as you know, current pensioners receive the main part of their pensions from the state budget, and the pension of today's students will depend mainly on themselves. Therefore, it is important to teach them the skills of savings planning now, - noted the lecturer, leading specialist of the field service department of the branch of UAPF JSC in Almaty, Talgat Kabanbayev.
The event was held in SOS children's village of Almaty for the second time. The target audience was teen-agers who received their first lessons in pension financial literacy.
UAPF plans to continue its outreach work in the future, including meetings with students, on a regular basis, so that young people already now understand how important it is to replenish their pension account constantly and in full in order to adequately meet old age.
5 questions – UAPF answers
1) Good afternoon! Now I have a delay on a consumer loan and a trial is being prepared. Can bailiffs take my pension savings from the UAPF on account of the debt? In this case, will I be left without a pension in the future?
According to paragraph 3 of Art. 50 of the Law of the Republic of Kazakhstan On Pension Provision in the Republic of Kazakhstan (hereinafter referred to as the Law), seizure or foreclosure, including on pension savings on the debts of the contributor (beneficiary), is not allowed.
Also, in accordance with paragraph 14) of Art. 98 of the Law of the Republic of Kazakhstan On Enforcement Proceedings and the Status of Bailiffs, pension savings on the debts of the contributor (beneficiary) are monetary amounts that cannot be levied.
Thus, the pension savings available on your individual pension saving account cannot be seized by a bailiff or any third party.
2) My spouse is a foreign citizen, but he works for a Kazakh company and regularly makes pension contributions to the UAPF. Now he has accumulated an amount above the new threshold of sufficiency for withdrawal, can he exercise this right?
In accordance with Article 2 of the Law of the Republic of Kazakhstan On Pension Provision in the Republic of Kazakhstan, foreigners 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.
According to subparagraph 14) of Article 1 of the Law of the Republic of Kazakhstan On Identity Documents, a document proving the identity of a foreigner on the territory of the Republic of Kazakhstan and confirming that he has received a permit for permanent residence in the Republic of Kazakhstan is a residence permit of a foreigner in the Republic of Kazakhstan (hereinafter referred to as a residence permit) .
Consequently, foreigners permanently residing in the Republic of Kazakhstan on the basis of a residence permit have the right to use part of their pension savings in order to improve their living conditions and (or) pay for treatment, as well as to transfer it to trust management of an investment portfolio manager, subject to the requirements established by law.
3) Hello! For the past three months I have not had a permanent job and, accordingly, I have not had deductions to the UAPF for this period. Before that, I had a stable “white” salary and I had a small amount accumulated in the Pension Fund and I would like to know if my savings in the Fund can “burn out”?
Your pension savings, regardless of the amount of savings, are your property and are kept in your individual pension saving account (hereinafter referred to as IPSA) until retirement age or other grounds for their payment. It is important to remember that the money on the IPSA is stored in the UAPF indefinitely and does not have a specific expiration date.
According to Article 5 of the Law of the Republic of Kazakhstan On Pension Provision in the Republic of Kazakhstan, the state guarantees recipients the safety of compulsory pension contributions, compulsory occupational pension contributions (hereinafter referred to as CPC, COPC) in the UAPF in the amount of actually paid CPC, COPC, taking into account the inflation rate at the time of reaching persons of retirement age established by the Law, as well as in cases and in the manner determined by the Law and other regulatory legal acts of the Republic of Kazakhstan.
In addition, pension contributions on the IPSA are invested by the pension asset trust manager - the National Bank of the Republic of Kazakhstan (hereinafter referred to as the NBRK) in various financial instruments. The NBRK invests pension assets in accordance with the list of financial instruments permitted to be acquired at the expense of pension assets, approved by the Government of the Republic of Kazakhstan, and investment limits in accordance with the UAPF Investment Declaration.
The objectives of investing pension assets are to ensure the safety of pension assets and to obtain real returns in the long term at a risk level that makes it possible to ensure the safety of the value of pension assets with a high degree of return.
At the same time, the investment income resulting from investment is a variable value, i.e. is not a strictly defined value, as provided for in bank deposit agreements, which clearly define the amount of remuneration for a certain period, and depends on many factors, including the market value of securities and changes in exchange rates.
4) Good afternoon! At the moment I am engaged in private transportation via the application, I do not make any pension contributions. Can I make compulsory pension contributions for myself??
According to subparagraph 8 of paragraph 7 of Article 24 of the Law of the Republic of Kazakhstan On Pension Provision in the Republic of Kazakhstan, the withheld (accrued) CPC are transferred to the State Corporation by individuals who are payers of the single aggregate payment (hereinafter referred to as the SAP).
Thus, you can pay in your favor the SAP, which provides for a simplified procedure for registering the activities of informally employed citizens. Self-employed or independent workers are individuals who independently carry out activities for the production (sale) of goods, works and services in order to generate income without state registration of their activities, with the exception of individual entrepreneurs (IE), persons engaged in private practice (PE), founders (participants) of a business partnership and founders, shareholders (participants) of a joint-stock company, members of a production cooperative. In other words, these are those who earn their living without an officially concluded employment contract with employers.
According to Article 774 of the Tax Code (Code of the Republic of Kazakhstan dated December 25, 2017 No. 120-VI On taxes and other obligatory payments to the budget), SAP payers are individuals who carry out entrepreneurial activities without registering as an individual entrepreneur, who simultaneously meet the following conditions:
1) paid SAP;
2) do not use the labor of employees;
3) provide services exclusively to individuals who are not tax agents, and (or) sell exclusively to individuals who are not tax agents, agricultural products of personal subsidiary plots of their own production, with the exception of excisable products. At the same time, the amount of income of the SAP payer received as a result of carrying out the activities specified in this subparagraph for the calendar year must not exceed 1175 times the amount of the monthly calculation index (MCI) established by the SAP Public Budget Law and effective as of January 1 of the corresponding financial year. Individuals are recognized as SAP payers from the date on which such payment is made until the last day of the month for which SAP is paid.
For the convenience of distributing payments between the budget and funds, SAP will be paid by self-employed citizens in the total amount by depositing SAP in cash or by bank transfer through banks or organizations that carry out certain types of banking operations in one payment order to the bank account of the Government for Citizens State Corporation, which distributes SAP on individual income tax (10% of the budget), social contributions (SFSS 20%), CPC (UAPF 30%) and contributions to compulsory health insurance (FSMI 40%).
SAP payment to self-employed individuals allows: to be a member of the compulsory social health insurance system, to pay CPC and, depending on the length of participation in the pension system, to have the right to receive a basic pension payment, to receive social benefits in cases of disability, job loss, loss of a breadwinner, pregnancy and childbirth, adoption or adoption of a child, caring for a child under one year old.
In addition, in order to receive higher pension benefits in the future, you can pay voluntary pension contributions (hereinafter referred to as VPC) in your favor. At the same time, the amount and frequency of VPC payment are established by an individual or legal entity independently.
On VPC, as well as on CPC, investment return is accrued, which can significantly increase your savings.
It should be noted that the basis for opening an individual pension saving account for VPC accounting is the first voluntary pension contribution received by the UAPF. Thus, the contributor (beneficiary) does not need to visit the Fund's office, the identification of an individual in whose favor VPCs are made is 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 the necessary information: about the details of a valid document proving the identity of an individual, about the place of permanent residence, UAPF receives other information from the relevant information systems of state bodies.
VPC can be paid to UAPF through second-tier banks (hereinafter referred to as 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.
5) Hello! My grandmother receives a good pension, but she saves almost half for her funeral, thus depriving herself of some shopping or rest. She does not believe that after her death, her family will be paid pension savings from the UAPF for her funeral, is this true?
The money accumulated on individual pension saving accounts is the property of the contributor (beneficiary) and is stored in the UAPF indefinitely, even in the event of his/her death.
In accordance with the provisions of paragraph 5 of Article 50 of the Law of the Republic of Kazakhstan On Pension Provision in the Republic of Kazakhstan (hereinafter referred to as the Law), in the event of the death of the beneficiary, as well as the person who has pension savings and has not reached the generally established retirement age, his family or the person who paid for burial, UAPF is paid a lump-sum benefit 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 not more than the funds available on the individual pension saving account.
If the balance of pension savings on the beneficiary's individual pension saving account after the lump-sum benefit for burial amounts to an amount not exceeding 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.
If pension savings remain on the pension account after a one-time benefit for burial, they are inherited in the manner prescribed by the legislation of the Republic of Kazakhstan.
Inheritance of pension savings is carried out by will or by law. When there is no will or does not determine the fate of the entire inheritance, as well as in other cases established by civil law, inheritance by law takes place.
According to the Civil Code of the Republic of Kazakhstan, in order to acquire an inheritance, the heir must accept it by filing at the place of opening of the inheritance to a notary or authorized in accordance with the law to issue a certificate of the right to inheritance to an official of an application for acceptance of the inheritance or an application for issuing a certificate of the right to inheritance. The inheritance must be accepted within six months from the date of the opening of the inheritance, i.e. within six months from the date of death of the testator.
At the request of the heir who missed the deadline for accepting the inheritance (Article 1072-2 of the Civil Code of the Republic of Kazakhstan), the court may restore this deadline and recognize the heir as having accepted the inheritance if the heir missed this deadline for good reasons and provided that the heir who missed the deadline, established for the acceptance of the inheritance, went to court within six months after the reasons for missing this period have disappeared. In accordance with the Civil Code of the Republic of Kazakhstan, successors are divided into seven stages, including, first of all, the right to inherit under the law is received in equal shares by the children of the testator, including adopted children, spouses and parents.
In accordance with Article 1083 of the Civil Code of the Republic of Kazakhstan, if there are no heirs either by will or by law, or none of the heirs has the right to inherit, or all of them have renounced the inheritance, the inheritance is recognized as escheated property.
Escheated property passes into communal ownership at the place of opening of the inheritance.
ANNOUNCEMENT
Every month, Kazakhstanis receive more than 3 million statements from individual pension saving accounts from the UAPF
The Unified Accumulative Pension Fund for the three months of the current year (between January 01, 2022 and April 01, 2022) provided its contributors with 11.8 million services.
Contributors (beneficiaries) received over 93% of UAPF services in a convenient electronic format. Recall that the Fund's services can be received literally in a matter of minutes, without leaving home. For example, on the website and in the UAPF mobile application, contributors can at any time and anywhere receive a statement from an individual pension saving account, make changes and additions to their details, receive a certificate of the presence of an IPSA, apply for the appointment of pension benefits in connection with the establishment of disability 1 or 2 groups indefinitely, as well as for voluntary pension contributions, track the status of an application for pension benefit and much more. We emphasize that out of the total number of online services, 8.1 million (or 68.49%) were provided on the UAPF website or mobile application.
In addition, UAPF has developed an application-free service format. It includes, for example, the automatic opening of individual pension accounts for accounting for compulsory pension contributions (CPC), compulsory occupational pension contributions (COPC) and voluntary pension contributions (VPC). Recall that if an individual does not have an open IPSA in the UAPF, it opens in the UAPF information system automatically upon receipt of the first installment. In this case, the identification of an individual is carried out according to the personal data specified in the electronic format of the payment order when transferring the CPC, COPC or VPC. All the necessary information about the details of the current document and the place of residence of the contributor, UAPF receives from the information systems of state bodies. Since the beginning of the year, 2.9 million services or 24.66% of the total volume have been rendered without application.
494,741 services were provided to contributors through traditional face-to-face service in UAPF subdivisions throughout Kazakhstan. Recall that the nearest branch of the Fund can be easily clarified on the enpf.kz website or on the UAPF mobile application. As part of the joint project of UAPF JSC and Kazpost JSC on the provision of pension services in remote settlements in the branches of the national postal operator, as of April 1, 2022, 3,634 services were provided to fund contributors in 347 post offices. UAPF also has field service departments, since the beginning of the year they have carried out 16,847 operations. This department provides services for processing applications for opening individual pension saving accounts for recording compulsory occupational pension contributions (including applications for joining a pension agreement at the expense of compulsory occupational pension contributions). Also, contributors (beneficiaries) belonging to the category of socially vulnerable segments of the population (disabled people of the 1st and 2nd groups, having disabilities indefinitely) are served in compliance with sanitary and epidemiological measures.
It should be noted that the most popular service among UAPF contributors is the issuance of statements - 9,679,844 transactions (about 68% in electronic form), followed by accepted applications for the LSPB (in automatic mode) - 1,389,315, etc.
UAPF pays special attention to the provision of high-quality consulting services and the development of information channels for contributors and beneficiaries of the Fund. As of April 1, 2022, 312,391 requests were processed.
We remind you that UAPF contributors and beneficiaries can get advice in the call center at 1418 (calls within Kazakhstan are free), as well as on the corporate website enpf.kz, via a chat bot in WhatsApp and Viber at +7 777 000 14 18 and on UAPF official pages on social networks Instagram, Facebook, VKontakte, Twitter, Telegram, Odnoklassniki.
ANNOUNCEMENT
UAPF together with the State Corporation will provide pensioners with a service for the payment of pension savings from the Fund in a proactive format
As of March 1, 2022, the UAPF information system contains more than 175 thousand contributors (beneficiaries) who have reached retirement age and have pension savings, but have not applied for their pension benefit.
According to the results of the reconciliation conducted between the UAPF and the Government for Citizens State Corporation, a part of persons from this category of contributors (beneficiaries) receive pension benefits by age at the expense of budgetary funds and a telephone number is registered in the database of mobile citizens for them.
In this regard, for contributors (beneficiaries) who have reached retirement age, but have not applied to the Fund for the payment of pension savings, from April 27, 2022. The State Corporation will begin work on the assignment of pension benefits from the UAPF in a proactive format by sending an SMS message to the telephone number of the contributor (beneficiary) registered in the database of mobile citizens.
In order to receive pension benefits from the UAPF in accordance with the schedule of pension benefit payments from the State Corporation by age and the state basic pension payment to the bank accounts of contributors (beneficiaries) previously submitted to the State Corporation when assigning a pension, the contributor (beneficiary) must send a response message in Kazakh or Russian
- when receiving a proactive service, the application and submission of documents to the UAPF and (or) PSC are not required;
- the amount and term of pension benefits from the UAPF depends on the balance of pension savings on the IPSA of the contributor (beneficiary).
If the amount of pension savings on the date of provision of the proactive service for receiving pension benefits from the UAPF does not exceed 12 times the minimum pension established by the law on the republican budget (in 2022, 555,624.00 tenge), this amount will be paid in a lump sum, taking into account the withholding of individual income tax.