1.Good afternoon, the coronavirus pandemic is raging all over the world. I work in the restaurant sector and at the moment we were sent on vacation without maintenance. Unfortunately, like many, our money runs out, and products are getting more expensive every day. I have a small amount of 200 thousand tenge in my account at the UAPF, could I withdraw it ahead of schedule before retiring?
At the moment, it is not possible to withdraw funds ahead of schedule from the Unified Accumulative Pension Fund. According to the Law of the Republic of Kazakhstan “On pension provision in the Republic of Kazakhstan”, the rights of individuals to pension assets are classified as property rights, and can be used exclusively for the purposes specified by the Law, including and for making pension payments in accordance with the legislation of the Republic of Kazakhstan.
So, the right to pension payments from UAPF at the expense of compulsory pension contributions are available to persons who have pension savings in UAPF:
1) men who have reached retirement age upon reaching 63 years; women after reaching 59.5 years from January 1, 2020. From January 1, 2021 - 60 years, from January 1, 2022 - 60.5 years, from January 1, 2023 - 61 years, from January 1, 2024 - 61.5 years, from January 1, 2025 - 62 years, from January 1, 2026 - 62.5 years, from January 1, 2027 - 63 years);
2) if pension savings are sufficient to ensure payment of not less than the minimum pension by concluding a pension annuity agreement with an insurance company. Men after 55 years of age and women after 51.5 years with
January 1, 2020;
3) disabled people of the first and second groups, if the disability is established indefinitely;
4) foreigners and stateless persons who have left for permanent residence outside the Republic of Kazakhstan, who have submitted documents specified by the legislation of the Republic of Kazakhstan confirming the fact of departure.
Thus, the UAPF is entitled to make pension payments only in the above cases stipulated by the legislation of the Republic of Kazakhstan.
We want to remind you that for citizens who have lost income during the state of emergency, in particular, as in your case, in connection with going on forced leave without pay, payments are made from the State Social Insurance Fund (GFSS). The amount of social benefits per employee will be one minimum wage, or 42.5 thousand tenge per month. Details can be found on the e-Government portal at egov.kz, or on the website 42500.enbek.kz
My mother is 54 years old, at the moment she is not officially employed, she is engaged in the sale of actually made products. We, her sons, also help her with money, but she is very worried that she now has a short work experience. How can she increase her seniority before retiring so that in the future she can receive basic pension and payments from the UAPF? Is paying the CAP enough?
Yes, in your case, paying a Single Gross Payment should be a good solution. To become a payer of the CAP: no need to register with the tax authorities; you only need to pay the set amount of a single aggregate payment. The monthly payment of the CAP will be: 1 MCI (2651 tenge) - for individuals living in cities of republican significance, the capital and regional significance; 0.5 MCI (1325.5 tenge) - for individuals living in other settlements. Payment is made through second-tier banks in one amount to the account of the State Corporation Government for Citizens (PSCs). To make a payment, opening a current account with a bank is not required. The amount of a single aggregate payment is distributed by the State Corporation in the following proportion: 10% - individual income tax (PIT); 20% - social contributions (SD); 30% - mandatory pension contributions (OPV); 40% - deductions for compulsory health insurance (OSMS). For persons who have reached retirement age, the entire amount of the payment is recognized as individual income tax, distribution to social payments is not made.
Thus, the CAP gives the right to participate in a funded pension system and receive a pension payment depending on the length of service in the system and the accumulated savings. This will allow your mother to receive a basic pension, depending on the confirmed work experience. In addition, after paying the CAP, she becomes a member of the compulsory social health insurance system and gets access to medical services, unlimited in amount and type, with the right to choose a medical institution, and she will also be able to receive social benefits in cases of disability, job loss, loss of breadwinner , and other cases provided by law.
Also, in order to ensure a decent retirement in the future and replenish the mother’s retirement account, you or your mother can make voluntary pension contributions.