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, 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, 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 70,000 tenge, the minimum pension is 53,076 tenge, the minimum size of the state basic pension payment will be 24,341 tenge, and the living wage - 40,567 tenge. 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 6,440,000 tenge. 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 mandatory 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 payments not less than the minimum pension (in this case, the base payment is also taken into account in the total amount of pension payments).
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 payments 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 mandatory pension contributions and mandatory professional 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 State Corporation "Government for Citizens".
The recipient 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 payment 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 recipient becomes entitled to pension payments from the UAPF. Subsequent monthly payments from the UAPF will be made in accordance with the established pension 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 recipient from the UAPF at a time (in 2023 - 636,912 tenge = 12 * 53,076).
If the amount on the pension account is larger, then the monthly payment 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 IPA after the next monthly payment 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 payment.