ANNOUNCEMENT
Review of key indicators of the UAPF as of April 1, 2023:
Pension savings increased by 22.6% over the year
As of April 1, 2024, pension savings in the amount of KZT18.9 trln were formed on individual and conditional accounts of contributors (beneficiaries) of UAPF JSC. Since the beginning of this year, their increase as of April 1, 2024 amounted to about KZT1.02 trln (5.7%). Compared to the same date last year, the volume of pension savings increased by almost KZT3.5 trln or 22.6%.
The volume of pension contributions for 3 months of 2024 amounted to KZT623.6 bln, which is 27.9% or more than KZT136.2 bln higher than last year. It should be noted that an increase compared to the same period last year was demonstrated by compulsory pension contributions (CPC) - 20.2%, compulsory occupational pension contributions (COPC) - 22.1%, voluntary pension contributions (VPC) - 41.2%.
96.6% of the savings of Kazakhstanis were formed through CPC, the volume of which as of April 01, 2024 amounted to more than KZT18.2 trln (an increase for the year - 22.3%, since the beginning of the year - 5.5%). The amount of pension savings under COPC amounted to KZT599.7 bln, having increased by 25.8% over the year, and by 5.5% since the beginning of this year. The maximum increase (49% for the year, 11.3% since the beginning of the year) was shown by savings for voluntary pension contributions (VPC), the volume of which amounted to KZT5.9 bln.
From January 1, 2024, additional funds will be transferred to the pension accounts of contributors (beneficiaries) - employer compulsory pension contributions (ECPC). For 3 months of 2024, the amount of pension savings through the ECPC amounted to about KZT37.5 bln.
Net investment income accrued to individual and notional pension savings accounts of UAPF contributors since the beginning of the year amounted to about KZT569.5 bln.
Outgoing flows in the form of payments from the Unified Accumulative Pension Fund for 3 months of this year amounted to about KZT193 bln. At the same time, the bulk of this amount is made up of lump-sum pension benefits (LSPB) for improving housing conditions and treatment - about KZT83.7 bln, which is 2.4 times higher than last year.
Pension benefits in connection with reaching retirement age amounted to about KZT44.6 bln.
Inheritance payments were also made - KZT13 bln, benefit payments in connection with leaving for permanent residence outside the Republic of Kazakhstan - KZT7.7 bln, benefit payments to persons with disabilities - KZT790.3 mln, burial payments - KZT2.5 bln. An amount of about KZT40.8 bln was transferred to insurance organizations.
Note that the average monthly benefit payment according to the schedule from the Unified Accumulative Pension Fund (in connection with reaching retirement age) was 33,985 tenge, and the maximum amount was 945,752 tenge. Let us remind you that for the same period last year, the average monthly payment according to the schedule from the Unified Accumulative Pension Fund was 32,082 tenge, and the maximum monthly pension benefit payment amount was 742,692 tenge.
The number of individual pension savings accounts of contribustors (IPSA) in the UAPF as of April 1, 2024 is 12.4 million units, of which: 11.1 million - according to CPC, 671.1 thousand - according to COPC, 409.8 thousand - according to VPC.
The number of notional pension savings accounts (NPSA) in the UAPF as of April 1, 2024, which takes into account information about received ECPC and other income in accordance with the legislation of the Republic of Kazakhstan, amounted to more than 3.4 million units.
All relevant information on statistical data on pension assets, including by region of the republic, is posted on the enpf.kz website in the “Indicators” section.
UAPF was founded on August 22, 2013 on the basis of GNPF APF JSC. The founder and shareholder of the UAPF 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. Trust management of UAPF pension assets is carried out by the National Bank of the Republic of Kazakhstan. In accordance with the pension legislation, the UAPF attracts compulsory pension contributions, employer’s compulsory pension contributions, compulsory occupational pension contributions, voluntary pension contributions, as well as carries out enrollment and accounting of voluntary pension contributions formed at the expense of the unclaimed amount of guaranteed compensation for the guaranteed deposit, transferred by the organization carrying out mandatory guarantee of deposits, in accordance with the Law of the Republic of Kazakhstan "On mandatory guarantee of deposits placed in second-tier banks of the Republic of Kazakhstan", ensures the implementation of pension benefits. The Fund also carries out accounting of target assets and target requirements, accounting and crediting of target savings (TS) to target savings accounts, payments of TS to their recipients in bank accounts, accounting for returns of TS in the manner determined by the Government of the Republic of Kazakhstan within the framework of the National Fund for Children program (More details at www.enpf.kz).
Actual questions on UAPF
Foreigners and stateless persons who have pension savings in the UAPF and who have left Kazakhstan can receive pension savings in full (minus individual income tax) before retirement age. To do this, they need to provide the fund (in person, by mail, or through an attorney or legal representative) with a package of documents, which can be found on the UAPF website. After this, pensions will be paid in a lump sum within ten working days.
Kazakh citizens who have retired due to long service can also use all their pension savings to improve their living conditions and (or) pay for medical treatment, namely:
- military personnel;
- employees of special government and law enforcement agencies;
- employees of the state courier service and other persons who have a length of service in military service, service in special state and law enforcement agencies, state courier service of at least 25 years and have reached the age limit established by law upon dismissal from service.
The full list of persons entitled to receive pension payments for long service is determined by Article 212 of the Social Code. To receive lump sum pension benefits to improve their living conditions, long-service pensioners can contact Otbasy Bank or other second-tier banks. To pay for medical treatment - only at Otbasy Bank.
At the same time, Kazakhstanis who have entered into a pension annuity agreement with a life insurance company can use all their pension savings early for housing and medical treatment, thereby ensuring that they receive monthly pension benefits of at least 70 percent of the subsistence level. A complete list of persons entitled to transfer pension savings to an insurance organization and the required package of documents for this is also listed on the official website of the fund.
We also inform you that persons who have pension savings in the UAPF, formed through compulsory pension contributions (CPC), can use part of their pension savings to improve their living conditions and pay for medical treatment:
- whose amount of pension savings exceeds the minimum sufficiency threshold. At the same time, a one-time pension payment cannot exceed the difference between the amount of pension savings at the expense of CPC and (or) compulsory occupational pension contributions of the contributor (beneficiary) and the established minimum sufficiency threshold;
- accomplished pensioners who have savings in the UAPF. They can use up to 50 percent of the remaining amount for housing and/or medical treatment, but only if their total pension (including old-age pension, basic pension and benefit payments from the Unified Accumulative Pension Fund) is at least 40 percent of their previously received salary.
The provisions of the Social Code define an exhaustive list of grounds for making benefit payments of pension savings from the UAPF, including in connection with the death of the beneficiary (for funeral and (or) heirs). Consequently, the amounts of pension savings are subject to accounting by the UAPF until the amount is claimed by the beneficiary or his/her heir(s).
At the same time, in accordance with the Civil Code of the Republic of Kazakhstan, if there are no heirs by will and by law, or if none of the heirs has the right to inherit, or they all refused the inheritance, the inheritance is recognized as escheated property and becomes communal property at the place where the inheritance was opened.
Thus, an inheritance can be recognized as escheatable property only by a court decision on the basis of an application from local executive bodies of cities of republican significance, the capital, districts, cities of regional significance at the place of opening of the inheritance after one year from the date of opening of the inheritance.
The right to transfer pension savings to IPM trust management can be used by contributors of compulsory pension contributions (CPC), individuals for whom compulsory occupational pension contributions (COPC), voluntary pension contributions (VPC) are transferred, in an amount not exceeding:
- fifty percent of the amount of pension savings in the individual pension savings account (IPSA) of the CPC contributor, an individual for whom COPC are transferred, as of the date of receipt of this person’s application for (on) selection (change) of IPM. Upon subsequent transfer to IPM trust management, the amount of pension savings is determined taking into account previously transferred pension savings, taking into account IPM investment income (application must be submitted no more than once a year from the date of transfer of pension savings to IPM trust management);
Or
- not exceeding the amount of pension savings at the expense of CPC and (or) COPC on their individual pension insurance in the case of a concluded pension annuity agreement with an insurance organization;
- the amount of pension savings generated at the expense of VPC, subject to transfer to trust management of IPM, does not exceed the amount of available pension savings on the IPSA for VPC accounting.
Before transferring part of your pension savings to IPM trust management, it is recommended that you familiarize yourself with the current list of IPMs on the market, study their investment declarations on the UAPF website, reviews of investment activities, and learn more about the experience and performance results of the selected private company. You can get information about IPM and study their investment declarations on the website www.enpf.kz in the “Services” section - “Register of investment portfolio managers”. Detailed statistics on the transfer of pension savings to IPM trust management are also available on the website www.enpf.kz in the “Indicators” section - “Transfer of pension savings to management companies.”
We also note that pension savings can be transferred from one IPM to another no more than once a year. If you decide to return your savings to the management of the National Bank of the Republic of Kazakhstan (hereinafter referred to as the NBRK), this can be done no earlier than 1 year from the date of transfer of pension savings to IPM trust management.
Moreover, if pension savings were transferred several times to trust management of the same IPM in accordance with the application for the selection of IPM, then the return of pension savings to trust management of the NBRK is carried out no earlier than one year from the date of the initial transfer of pension savings to IPM trust management.
According to the Social Code of the Republic of Kazakhstan, persons with disabilities of the first and second groups are exempt from paying compulsory pension contributions (CPC) to the Unified Accumulative Pension Fund (UAPF), if the disability is established for an indefinite period. At the same time, the employer is allowed to withhold and transfer CPC to the UAPF based on the application of the above persons. Thus, Kazakhstanis with disabilities of the first or second groups, established indefinitely, have the right to submit an application at their place of work for consent to withhold CPC in the UAPF.
Persons with disabilities of the first and second groups, if the disability is established indefinitely, have the right to receive pension benefits from the UAPF according to the established schedule in the form of monthly pension benefits. The UAPF, with the consent of the contributor (recipient), provided in accordance with the Law of the Republic of Kazakhstan On Personal Data and Their Protection, independently requests information on the establishment of disability from the Centralized Data Bank of Persons with Disabilities information system of the Ministry of Labor and Social Protection of the Population of the Republic of Kazakhstan.
You can submit an application for payment of pension savings in person at the UAPF office or through an authorized person, through the Internet resource enpf.kz, as well as by post.
The competent authorities in the Republic of Kazakhstan (hereinafter referred to as the RK) for confirming the work experience of workers within the framework of the Agreement on pension provision for workers of the member states of the Eurasian Economic Union of December 20, 2019 have determined:
1) The Committee of the Ministry of Labor and Social Protection of the Population of the Republic of Kazakhstan and its territorial divisions - in terms of confirming the work experience of workers acquired before 1998;
2) territorial divisions of the UAPF - in terms of confirming the work experience of workers since January 1, 1998 (according to the information system on the transfer of compulsory pension contributions).
Detailed information is available on the website enpf.kz in the “Services” section.
At the same time, before the transition to the use of the integrated system of the Eurasian Economic Union (hereinafter referred to as the EAEU), interaction between the competent authorities of the EAEU member states is carried out in paper form through the exchange of forms provided for in paragraph 3 of the Interaction Procedure[1], as well as documents necessary for the assignment and payment of pensions.
Thus, in order to confirm the work experience acquired by citizens of the EAEU member states on the territory of the Republic of Kazakhstan, in order for the right to arise in accordance with the legislation of the EAEU member state for which the applicant is applying for a pension, the competent authority of this EAEU member state must send the form “ Request" about the length of service in relation to such persons, depending on the period of work experience, to the above competent authorities of the Republic of Kazakhstan.
[1] The procedure for interaction between authorized bodies, competent authorities of the member states of the Eurasian Economic Union and the Eurasian Economic Commission on the application of the norms of the Agreement on pension provision for workers of the member states of the Eurasian Economic Union dated December 20, 2019, approved by the Decision of the Council of the Eurasian Economic Commission dated December 23, 2020 No. 122