How can I return pension savings from IPM trust management to the National Bank of the Republic of Kazakhstan?
With expanded opportunities for managing pension savings, citizens have the right, in accordance with the Social Code of the Republic of Kazakhstan, to transfer a portion of their savings from the trust management of the National Bank of the Republic of Kazakhstan (NBRK) to investment portfolio managers (IPMs), transfer funds from one IPM to another, and return pension funds from IPM management back to the NBRK.
Therefore, under current legislation, contributors have the right to reconsider previously made investment decisions based on their personal financial goals and preferences.
In response to inquiries regarding the procedure for returning pension funds from IPM management to the NBRK, the UAPF explains the conditions and steps involved in making this decision.
In accordance with paragraph 10, clause 1, Article 40, Chapter 5 of the Social Code of the Republic of Kazakhstan, contributors of co[pulsory pension contributions (CPC), individuals for whom employer’s compulsory pension contributions (ECPC), mandatory occupational pension contributions (COPC), voluntary pension contributions (VPC) have been transferred, and recipients of pension benefits from the Unified Accumulative Pension Fund (UAPF) have the right to submit an application to the Fund for the return of pension savings held in trust by an IPM to the trust management of the National Bank of the Republic of Kazakhstan no earlier than one year from the date of transfer of pension savings to the trust management of the IPM.
If pension savings have been transferred to the trust management of the same IPM several times, the return of pension savings to the National Bank of the Republic of Kazakhstan is carried out no earlier than one year from the date of the initial transfer of pension savings to trust management.
The procedure and timeframe for the transfer of pension assets from the trust management of an IPM to the trust management of the National Bank of the Republic of Kazakhstan are determined by the rules approved by the Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market (ARDFM).[1]
[1] Resolution of the Board of the Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market dated May 26, 2023 No. 28 "On approval of the Rules and terms for the transfer of pension assets to the trust management of an investment portfolio manager and the transfer of pension assets from one investment portfolio manager to another investment portfolio manager or the National Bank of the Republic of Kazakhstan"