To assign both a basic and solidary pension from the state budget, and pension payments from the UAPF at the expense of mandatory pension contributions and (or) mandatory occupational pension contributions, you need to apply with a single application and a package of documents to the divisions of the State Corporation "Government for Citizens" (PSC) at the place of residence.
You can do this 10 days before reaching retirement age.
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.
From January 2021, depositors and recipients can participate in investing their pension savings by independently choosing an investment portfolio management company (IPM).
Currently, the UAPF has concluded agreements on the trust management of pension assets with 4 companies that meet all the requirements established by the Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market (ARRFR), have a license to operate in the securities market (investment portfolio management activities)
* JSC "BCC Invest"
* Centras Securities JSC
Information about each of the UIPS (including the investment declaration, as well as information about the commission fee of the UIP) is posted on the enpf website.kz in the "Services" section -"Transfer of part of pension savings to the trust management of the UIP". An overview of the investment activities of management companies can also be found on the enpf website.kz in the "Indicators" section-"Overview of investment activity" or "Brief overview of the investment portfolio of pension assets".
After receiving pension assets from the UAPF, the UIP invests them in authorized financial instruments specified in the Rules of Investment Portfolio Management Activities approved by Resolution No. 10 of the Board of the National Bank of the Republic of Kazakhstan dated February 3, 2014 and provided for in the Investment Declaration of the UIP.
According to the Law on Pension Provision, UIPS have the right to charge a commission for investment management. The maximum value of the remuneration of the UIP may not exceed 7.5% of the investment income received. The actual amount of the commission fee is approved annually by the management body of the UIP and may change no more than once a year.
It is important to know that during the period when pension savings are under the management of the National Bank until the depositor reaches 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 UIP, the guarantee of the state 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 yield of pension assets transferred to the management of the UIP operating in the market.
Payments from the UAPF are made in accordance with the Methodology approved by the Decree of the Government of the Republic of Kazakhstan dated October 2, 2013 No. 1042 (with amendments introduced from April 1, 2021). According to this Method, payments from the UAPF to persons retiring are calculated as follows: the amount of pension savings is multiplied by the rate of pension savings payments – 6.5% and divided by 12. It turns out the amount of monthly payments from the UAPF in the first year of their receipt. For recipients of certain categories: persons with a disability of group 1 or 2, if the disability is established indefinitely, as well as recipients of pension payments for whom mandatory occupational pension contributions have been paid in aggregate for at least sixty months, the Methodology for calculating pension payments provides correction coefficients.
In subsequent years, the amount of the monthly pension payment increases annually by the indexation rate of pension payments – 5%.
Thus, since January 1, 2022, last year's pension payments from the UAPF have been indexed by 5%.
It should be noted that the monthly pension payment from the UAPF is carried out in the amount of at least 70% of the subsistence minimum (the subsistence minimum in 2022 is 36,018 tenge). Accordingly, from January 1, 2022, the minimum payment from the UAPF will be 25,212.60 tenge (36,018 *70%).
If the amount of pension savings on the date of application for payment 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 tenge).
At the same time, it should be noted that for pensioners who have realized the right to receive pension payments before January 1, 2018, in 2022, the calculation is as follows: the annual amount of their pension payment is the largest amount of the thirty-fold minimum pension (in 2022, 30 x 46,302 = 1,389,060 tenge) and the product of the amount of pension savings by the coefficient of the current value of pension savings at the appropriate age of the recipient. Payments are made according to the previously selected schedule.
Recall that pension payments from the UAPF are carried out until the retirement savings on the individual pension account are exhausted.
The Law of the Republic of Kazakhstan "On Pension Provision in the Republic of Kazakhstan" (hereinafter referred to as the Law) defines that the threshold of minimum sufficiency of pension savings is the minimum amount of pension savings formed at the expense of mandatory pension contributions and (or) mandatory occupational pension contributions required to ensure a monthly pension not lower than the minimum pension established by the law on republican budget.
The thresholds for the minimum sufficiency of pension savings (hereinafter referred to as PMD) are calculated annually according to the Methodology for determining the PMD approved by the Decree of the Government of the Republic of Kazakhstan dated January 6, 2021 No. 1. This Methodology is an open regulatory legal act and is freely available on the Internet, including on the UAPF website. The Methodology describes in great detail the algorithm for calculating the PMD.
Thus, when calculating the PMD, the UAPF uses the appropriate parameters established by the Methodology, including those presented on an annual basis by the Ministry of Labor and Social Protection of the Population of the Republic of Kazakhstan agreed with the Ministry of National Economy of the Republic of Kazakhstan.
At the same time, the Decree of the Government of the Republic of Kazakhstan dated December 13, 2021 No. 875 amended the Decree of the Government of the Republic of Kazakhstan dated January 6, 2021 No. 1, according to which it is established that the PMD calculated for 2021 is valid until April 1, 2022.
Taking into account the above, and also including that the size of the PMD is reviewed annually by the UAPF, in your case, the PMD will be:
from April 25, 2021 to March 31, 2022 inclusive, 3 million 220 thousand tenge;
from April 1, 2022 to April 24, 2022 inclusive - 5 million 490 thousand tenge;
from April 25, 2022 to December 31, 2022 inclusive - 5 million 640 thousand tenge.
We note that on the part of the UAPF, the amount available for withdrawal is checked taking into account the PMD on the day of receipt of an electronic notification from an authorized operator.
If a civil law contract (GPH) is concluded with an individual who is not a tax agent, then you have the right to make contributions in your favor in the amount of at least 10% of the income received, but not more than 10% of the 50-fold minimum wage established for the relevant fiscal year by the law on the republican budget (the minimum wage in 2022 is 60 thousand tenge).
If the GPH contract is concluded with a tax agent (sole proprietor, legal entity, as well as a person engaged in private practice), then in the absence of payment, he does not make mandatory pension contributions to your individual pension account.
Since at the moment you do not receive income, you can independently make deductions of voluntary pension contributions (DPV) in your favor at the expense of your income, through second-tier banks. The amount and frequency of payment of the DPA are set by an individual independently.
If you are not an individual entrepreneur, you can also make deductions within the framework of a single aggregate payment (ESP). According to Article 774 of the Tax Code of the Republic of Kazakhstan dated December 25, 2017 No. 120-VI "On taxes and other mandatory payments to the budget", natural persons engaged in entrepreneurial activity without registration as an individual entrepreneur who simultaneously meet the following conditions are recognized as ESP payers:
1) paid the ESP;
2) do not use the labor of hired workers;