ANNOUNCEMENT
From January 1, 2024, employer’s compulsory pension contributions (ECPC) are introduced
The Social Code of the Republic of Kazakhstan, which comes into force on July 1, 2023, contains rules governing the introduction of employer’s compulsory pension contributions (ECPC).
From January 1, 2024, the functions of the UAPF will be supplemented by ECPC accounting, which will be carried out at the expense of the employer’s own funds and only for employees born after January 1, 1975. The ECPC value is calculated from the monthly income of each employee: from January 1, 2024 in the amount of 1.5% with an annual increase to 5% in 2028.
“The burden for the employer on the wage fund is reduced due to the fact that contributions are growing in stages. According to the Social Code, ECPC will not be paid by employers for all employees, but only for those born in 1975 and later. Therefore, benefit payments from ECPC will begin to be received by employees who will retire only in 2038,” explained Zhanat Kurmanov, Chairman of the Executive Board of the Unified Accumulative Pension Fund JSC.
The monthly income of an employee, accepted for the calculation of ECPC, must not be less than the minimum wage and should not exceed 50 times the minimum wage established for the corresponding financial year by the law on the republican budget.
For employers - tax agents who have chosen to pay ECPC as part of a single payment specified in Chapter 89-1 of the Code of the Republic of Kazakhstan "On taxes and other obligatory payments to the budget" (Tax Code), the share of the employer's compulsory pension contributions in the rate of a single payment from wages employee is: from January 1, 2024 - 7%; from January 1, 2025 - 10.5%; from January 1, 2026 - 14.1%; from January 1, 2027 - 17.4%; from January 1, 2028 - 19%.
ECPC are paid to the UAPF by employers (as tax agents) through the State Corporation "Government for Citizens" with lists of employees - individuals for whom ECPC are transferred.
It should be noted that, unlike the individual funded pension system, pension savings at the expense of ECPC are notional funded, therefore they are not the property of the employee, are not inherited, and cannot be transferred, at the choice of the contributor, to a management company for trust investment management and/or to an insurance company. organization for the purchase of a pension annuity, and they are not covered by the state guarantee of the safety of pension savings.
The UAPF was established on August 22, 2013 on the basis of GNPF APF JSC. The UAPF founder and shareholder 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. UAPF pension assets are managed by the National Bank of the Republic of Kazakhstan. From January 1, 2016, the functions for developing proposals to improve the management of pension assets were transferred to the National Fund Management Council. In accordance with the pension legislation, the UAPF attracts compulsory pension contributions, compulsory occupational pension contributions, voluntary pension contributions, pension benefits, individual accounting of pension accumulations and benefits, provides the contributor (beneficiary) with information on the status of his pension accumulations (for more information visit www.enpf.kz)
Chairman of the Executive Board of UAPF JSC is designated as a member of the Steering Committee of the ISSA European Network (IEN)
The International Social Security Association (ISSA) was founded in 1927 under the auspices of the International Labor Organization and is the leading international organization that unites government agencies, organizations and departments in the field of social security. The organization has over 320 member organizations in 150 countries of the world with headquarters in Geneva (Switzerland). UAPF has been a member of the ISSA since May 1, 2015.
At the ISSA World Forum in October 2022, the Chairman of the Executive Board of UAPF JSC Zhanat Kurmanov designated as a member of the Steering Committee of the ISSA European Network (IEN) for the triennium 2023-2025. Documentary confirmation of this status was received the other day.
The Steering Committee (SC) of the IEN is composed of CEOs from member organizations within Europe. The Committee is engaged in public work on the implementation of the program of events of the ISSA in the European region and aims to enhance the opportunities for relevant topical exchanges between member institutions in Europe. Its activities are jointly supported by the IEN Secretariat and the ISSA General Secretariat.
The Steering Committee provides guidance to the planning and implementation of the IEN activities. The members of the Steering Committee are nominated by the current ISSA Bureau Members
IEN organizes events on priority themes of the European member institutions, the main focus of which is to increase opportunities for the exchange of experience using interactive and engaging methodologies.
UAPF answers topical questions
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, pay for medical 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, medical 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 KZT70,000, the minimum pension is KZT53,076, the minimum size of the state basic pension benefit will be KZT24,341, and the minimum subsistence level - KZT40,567. 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 KZT6,440,000. 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 compulsory 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 benefits not less than the minimum pension (in this case, the base benefit is also taken into account in the total amount of pension benefits).
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 benefits 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 compulsory pension contributions and compulsory occupational 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 Government for Citizens State Corporation.
The beneficiary 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 benefit 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 beneficiary becomes entitled to pension benefits from the UAPF. Subsequent monthly benefit payments from the UAPF will be made in accordance with the established pension benefit 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 beneficiary from the UAPF at a time (in 2023 - KZT636,912 = 12 * KZT53,076).
If the amount on the pension account is larger, then the monthly benefit 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 IPSA after the next monthly benefit 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 benefit.
To make pension benefits from the UAPF, persons who are disabled of the first and second groups, if the disability is established indefinitely, must contact the UAPF - directly to the office or through the website in the "Electronic Services" section.
The list of required documents for receiving pension benefits is detailed on the UAPF website.
I have a small salary, but I would like to have a decent pension. How can I influence the amount of pension benefits?
The first thing that affects pension benefits is the regularity and timeliness of pension contributions. Voluntary pension contributions (VPCs) can also affect the amount of pension benefits.
VPC is the money that contributors contribute on their own initiative to the UAPF. They can be made both by individuals for their own benefit, and by individuals and legal entities for the benefit of a third party. At the same time, the amount and frequency of VPC payment are established by an individual or legal entity independently.
The basis for opening an individual pension saving account for VPC accounting is, among other things, the first voluntary pension contribution received by the UAPF. Thus, the contributor (beneficiary) does not need to visit the office of the Fund, the identification of an individual in whose favor VPCs are made will be carried out according to personal data (full name, IIN, date of birth) indicated in the electronic format of the payment order when transferring VPCs, and all necessary information: about the details of a valid document proving the identity of an individual, about the place of permanent residence, other information will be received by UAPF from the relevant information systems of state bodies.
The right to pension benefits from the UAPF at the expense of the VPC arises for the following persons who have pension savings:
1) who have reached the age of fifty;
2) who are disabled;
3) foreigners and stateless persons leaving or leaving for a permanent place of residence outside the Republic of Kazakhstan, who submitted documents, determined by the legislation of the Republic of Kazakhstan, confirming the intention or fact of departure;
4) having pension savings within the limits of the amounts of voluntary pension contributions and the investment income accrued on them, which are in the unified accumulative pension fund and (or) voluntary accumulative pension fund, for at least five years. That is, by starting to save money at the expense of VPC, for example, at the age of 20 or 30, at 25 or 35, respectively, you can start receiving your first benefits.
Recall that VPC can be paid to UAPF through second-tier banks (STB) or Kazpost JSC. Some STBs provide an opportunity to transfer contributions online (through a mobile application or self-service terminals). In addition, it is possible to submit an application to the employer, on the basis of which the latter will regularly transfer VPC to the UAPF in favor of the applicant or a third party.
Recently, I was diagnosed with a disability of group 2, can I get my pension savings for medical treatment ahead of schedule?
According to the Law On Pension Provision in the Republic of Kazakhstan, the right to receive pension benefits from the UAPF comes under certain conditions, including in the event of a disability of groups 1 and 2 for an indefinite period. UAPF is obliged to make pension benefits to beneficiaries in the manner established by the Government of the Republic of Kazakhstan. The specified procedure, including the calculation of the amount of the annual amount of pension benefits according to the established schedule from the UAPF, is determined by the Rules for making pension payments from pension savings formed at the expense of compulsory pension contributions, compulsory occupational pension contributions from the unified accumulative pension fund, and the Methodology for calculating the amount of pension benefits approved by Government Decree No. 1042 dated October 2, 2013. Thus, if disability of group 2 is established indefinitely, you can receive pension benefits from the UAPF on a monthly basis according to the established schedule.
In what cases the employer must pay compulsory occupational pension contributions to employees?
In accordance with the Law On Pension Provision in the Republic of Kazakhstan, compulsory occupational pension contributions (COPC) are set at 5% of an employee's monthly income. The accrual of COPC is carried out by employers at their own expense, in favor of employees employed in work with hazardous working conditions, whose professions are provided for by the list of industries, works, professions of employees (see Decree of the Government of the Republic of Kazakhstan dated December 31, 2013 No. 1562).
In case of exclusion from the list of hazardous working conditions, confirmed by the results of attestation of production facilities, the payment of compulsory occupational pension contributions by employers is not carried out,
COPC are the compensation of the employer for hazardous working conditions and it is the employer who implements them at his own expense in favor of the employee. This type of pension contributions was introduced in the republic from January 1, 2014.
In accordance with paragraph 10 of the Pension Rules of the Unified Accumulative Pension Fund, approved by the Decree of the Government of the Republic of Kazakhstan dated September 18, 2013 No. 984 (hereinafter referred to as the Pension Rules), the UAPF approved an agreement on pension provision at the expense of the COPC, which establishes the rights, obligations and liability provided for by the Law of the Republic of Kazakhstan On Pension Provision in the Republic of Kazakhstan, as well as other features of the legal relationship between the UAPF, the individual for whom the COPC are transferred (the beneficiary of pension benefits at the expense of the COPC), and the agent.
COPC are paid in the national currency of the Republic of Kazakhstan no later than the 25th day of the month following the month of income payment. Business entities applying a special tax regime - in the manner and within the time limits stipulated by the tax legislation of the Republic of Kazakhstan.
Kazakhstanis received more than 15 million statements online
As of September 1, 2022, more than 22.3 million services have been provided by the Unified Accumulative Pension Fund to contributors and beneficiaries since the beginning of 2022. Of these, more than 15.2 million transactions were carried out in electronic format, and about 5.5 million in automatic mode. Thus, Kazakhstan citizens receive about 92.5% of pension services remotely.
UAPF contributors at the moment, literally in two or three clicks, can receive a statement from an individual pension saving account, make changes and additions to their details, receive a certificate of the presence of an IPSA, apply for the appointment of pension benefits in connection with the establishment of disability of group 1 or 2 indefinitely, as well as on voluntary pension contributions, track the status of an application for benefit, and much more. The most popular service among contributors is getting a statement from an individual pension saving account. As of September 1, contributors received more than 15 million statements online
The no-application service format provides for the automatic opening of individual pension accounts for accounting for compulsory pension contributions (CPC), compulsory occupational pension contributions (COPC) and voluntary pension contributions (VPC). Recall that if an individual does not have an open IPSA in the UAPF, it opens in the UAPF information system automatically upon receipt of the first contribution. In this case, the identification of an individual is carried out according to the personal data specified in the electronic format of the payment order when transferring the CPC, COPC or VPC. All the necessary information about the details of the current document and the place of residence of the contributor, UAPF receives from the information systems of state bodies. Thus, about 5.5 million services were provided to the Fund's contributors automatically.
To receive some services (for example, registration of pension benefits by inheritance or in connection with leaving for permanent residence), the provision of original documents is required, which can be provided by mail or in person, or through an attorney at the UAPF office. In addition, there are contributors who still prefer a personal appeal to the Fund's specialists. Therefore, more than 1 million services have been provided to contributors and beneficiaries through traditional in-person service in UAPF offices throughout Kazakhstan since the beginning of the year. Recall that the nearest branch of the Fund can be easily located on the enpf.kz website, or on the UAPF mobile application
About 56.5 thousand operations were performed during field service. This type of provision of the Fund's services is provided, first of all, for contributors (beneficiaries) belonging to the category of socially vulnerable segments of the population (disabled people of the 1st and 2nd groups, having disability indefinitely).
As part of the joint project of UAPF JSC and Kazpost JSC on the provision of pension services in remote settlements in the branches of the national postal operator, as of September 1, 2022, more than 7.5 thousand services were provided to the Fund’s contributors in 347 post offices.
UAPF pays special attention to the provision of high-quality consulting services and the development of information channels for contributors and beneficiaries of the Fund. As of September 1, 2022, over 612.2 thousand applications received through various communication channels with contributors and beneficiaries were processed.
We remind you that UAPF contributors and beneficiaries can get advice in the call center at 1418 (calls within Kazakhstan are free), as well as on the corporate website enpf.kz, via a chat bot in WhatsApp and Viber at +7 777 000 14 18 and on UAPF official pages on social networks Instagram, Facebook, VKontakte, Twitter, Telegram, Odnoklassniki.
UAPF published a detailed report on pension assets investment
Investment portfolios of pension assets managed by the NBRK and IPM as of September 1, 2022
Investment activity on management of pension assets is transparent. On the website enpf.kz in the section “Indicators – Investment activity”, detailed information on the investment of pension assets by the National Bank of the Republic of Kazakhstan (NB RK) and investment portfolio managers (IPM), as well as reviews of investment activity, is monthly posted. The information is currently updated as of September 1, 2022.
It follows from the submitted reports: the total amount of pension assets under management as of September 1, 2022 amounted to about KZT14.0 trillion. At the same time, UAPF pension assets held in trust by the NB RK amounted to KZT13,965.12 bln. Pension assets under IPM management amounted to KZT9.13 bln.
Investment portfolio of pension assets managed by NB RK
As of September 1, 2022, within the framework of the directions approved by the Management Council of the National Fund of the Republic of Kazakhstan, the main investments of NB RK (as a trustee) in financial instruments are as follows:
˗ the main share in the UAPF PA portfolio is occupied by government securities of the Ministry of Finance of the Republic of Kazakhstan, the current value of which amounted to KZT6,235.81 bln. Their share in the portfolio was 44.65%. As of September 1, 2022, the weighted average yield to maturity on government securities of the Ministry of Finance of the Republic of Kazakhstan, denominated in tenge, was 11.3% per annum, in US dollars - 3.4% per annum.
˗ bonds of quasi-public organizations of the Republic of Kazakhstan with a current value of KZT1,714.32 bln (the share in the portfolio was 12.28%). The weighted average yield to maturity on bonds of quasi-public organizations of the Republic of Kazakhstan, denominated in tenge, amounted to 10.9% per annum, in US dollars - 5.5% per annum.
- bonds of second-tier banks of the Republic of Kazakhstan for the amount of KZT924.19 bln (6.62%). As of the reporting date, the weighted average yield to maturity on bonds of second-tier banks of the Republic of Kazakhstan amounted to 10.5% per annum.
- deposits in foreign banks as of the reporting date amounted to KZT704.12 bln. Their share in the portfolio was 5.04%. In the period under review, in order to maintain the return on the foreign exchange portfolio, deposits were placed in foreign banks denominated in US dollars for a total of 500.89 billion tenge with an average weighted yield of 2.67% per annum and a maturity of 1.8 months to 2 months.
- bonds of international financial organizations amounted to KZT378.85 bln. Their share in the portfolio amounted to 2.71%. The weighted average yield to maturity on bonds of international financial organizations amounted to 9.47% per annum.
In addition, the structure of the investment portfolio includes shares and depository receipts of issuers of the Republic of Kazakhstan KZT276.25 bln (share in the portfolio 1.98%), REPO 250.09 (1.79%), deposits in second-tier banks of the Republic of Kazakhstan KZT201.23 bln ( 1.44%), government securities of foreign states 140.80 (1.01%), NB RK deposits KZT31.20 bln (0.22%), corporate bonds of RK issuers - KZT 15.04 bln (0.11%), PPN - KZT11.49 bln (0.08%), corporate bonds of foreign issuers - KZT6.36 bln (0.05%), cash on investment accounts - KZT5.30 bln (0.04%) and other assets KZT21.42 bln (0.15%). It should be noted that KZT3,050.76 bln (share in the portfolio 21.85%) is in the index asset management, including GS of developed countries, GS of developing countries and assets under external management.
The investment portfolio broken down by currencies into which financial instruments purchased with pension assets are denominated is presented as follows:
investments in the national currency - 69.34%, in US dollars - 30.59%, in other currencies - 0.07% of the portfolio of pension assets.
As a result of investment activities, as well as due to the volatility of foreign exchange rates and changes in the market value of financial instruments, the amount of accrued investment income since the beginning of 2022 amounted to KZT718.05 bln.
Against the background of the aggravation of the geopolitical situation, increased volatility in global financial markets, accelerating inflation, as well as rising yields on bonds of developed and developing countries, the return on UAPF pension assets distributed to the accounts of contributors (beneficiaries) since the beginning of 2022 amounted to 5.18%.
At the same time, as of September 1, 2022, the return on pension assets for the last 12 months (from September 2021 to August 2022) for UAPF contributors (beneficiaries) amounted to 8.58%. The cumulative return for the period from April 2014, when the consolidation of pension assets was completed, to August 2022 amounted to 113.16%. For 8 years from 2014 to 2021, in annual terms, the return on pension assets of the UAPF is 9.68% per annum.
It is worth emphasizing that pension savings are long-term investments and it is advisable to analyze the amount of investment income for a period of at least 1 (one) year. Short-term data (weekly, monthly, etc.) are not indicative, because subject to constant changes in market conditions.
A detailed structure of the investment portfolio of financial instruments managed by NB RK with indication of issuers and an overview of investment activities are posted on the official website of the UAPF.
Recall that in Kazakhstan there is a model of the state guarantee of the safety of pension savings. In accordance with Article 5 of the Law of the Republic of Kazakhstan On Pension Provision in the Republic of Kazakhstan, the state guarantees recipients the safety of compulsory pension contributions and compulsory occupational pension contributions to the UAPF in the amount of actually made contributions, taking into account the inflation rate at the time of obtaining the right to pension benefits.
Investment Portfolio Managers
The total amount of funds managed by IPM is KZT9.13 bln.
Pension assets held in trust by Jusan Invest JSC amounted to 4.09 KZT bln. They were used to purchase: shares of Exchange Traded Funds (ETF) they account for 30.95%, NB RK notes (22.11% of the portfolio), government securities of the Ministry of Finance of the Republic of Kazakhstan (17.34%), REPO (17.16% of the portfolio). funds on investment accounts (12.44%), Note that 63.96% of the portfolio is presented in tenge, 36.04% in US dollars.
As a result of investment activities, the return on pension assets managed by Jusan Invest JSC has amounted to 1.49% since the beginning of the year.
A detailed structure of the investment portfolio of financial instruments managed by Jusan Invest JSC, indicating issuers, is presented on the UAPF website.
As of September 1, 2022, pension assets held in trust by Halyk Global Markets JSC amounted to KZT2.58 bln. In the portfolio structure, reverse repo (no more than 90 calendar days) is 51.73%, equity instruments of foreign issuers (ETF Units) 15.07%, bonds of quasi-public organizations of the Republic of Kazakhstan 9.53%, cash on accounts 8.85%, bonds second-tier banks of the Republic of Kazakhstan 5.68%, MFIs 4.71%, corporate bonds of organizations of the Republic of Kazakhstan - 4.45%. Investments in the national currency amounted to 78.26% of the portfolio, in US dollars - 21.74%. Return on pension assets managed by Halyk Global Markets JSC from 01.01.2022 until 01.09.2022 amounted to 1.19%.
A detailed structure of the investment portfolio of financial instruments managed by Halyk Global Markets JSC with indication of issuers is presented on the UAPF website.
Pension assets held in trust by BCC Invest JSC as of September 1 this year amounted to KZT1.49 bln. They are distributed in government bonds of the Republic of Kazakhstan 43.04%, shares (ETF for indices) 20.92%, bonds of quasi-public organizations of the Republic of Kazakhstan 9.64%, shares and depository receipts of foreign issuers 8.61%, bonds of IFIs 6.16%, bonds of second-tier banks of the Republic of Kazakhstan 5.38%, corporate bonds of issuers-residents of the Republic of Kazakhstan 5.10%, cash on investment accounts 1.04%, other assets (accounts receivable, overdue debt, provisions) 0.11%. 70.16% of the portfolio was invested in instruments in national currency, 29.84% in US dollars.
As a result of investment activities, the return on pension assets managed by BCC Invest JSC has amounted to 0.82% since the beginning of this year.
A detailed structure of the investment portfolio of financial instruments managed by BCC Invest JSC with an indication of issuers is presented on the UAPF website.
As of September 1, 2022, UAPF pension assets held in trust by Centras Securities JSC amounted to KZT0.97 bln. They are invested in government securities of the Ministry of Finance of the Republic of Kazakhstan 53.89%, cash on investment accounts 19.39%, REPO 16.17%, shares and depositary receipts of issuers of the Republic of Kazakhstan 8.73%, equity instruments of foreign issuers (ETF Units) 1.82%. 81.95% of the portfolio was invested in instruments in national currency, 18.05% in US dollars.
As a result of investment activities, the profitability of pension assets managed by Centras Securities JSC since the beginning of 2022 amounted to 2.07%.
A detailed structure of the investment portfolio of financial instruments managed by Centras Securities JSC with an indication of issuers is presented on the UAPF website.
Recall that after receiving pension assets from UAPF, IPM invests them in permitted financial instruments specified in the Rules for the implementation of investment portfolio management activities, approved by the Resolution of the Board of the National Bank of the Republic of Kazakhstan dated February 3, 2014 No. 10, and provided for in the IPM Investment Declaration.
When transferring pension savings to IPM management, the state guarantee is replaced by the guarantee of the management company to ensure the minimum level of profitability of pension assets. The minimum level of return is calculated based on the weighted average return on pension assets transferred to the management of an IPM operating on the market.
Things to know when inheriting pension accumulations
In accordance with Articles 31, 32, and 33 of the Law of the Republic of Kazakhstan “On Pension Provision in the Republic of Kazakhstan”, in the event of the death of a person who has pension accumulations of compulsory, compulsory occupational, and voluntary pension contributions, they are all inherited in the manner established by the legislation of the Republic of Kazakhstan.
Inheritance of pension accumulations is carried out by will or by law. When there is no will or if it does not determine the fate of the entire inheritance, as well as in other cases established by civil law, inheritance by law takes place.
According to Section 6 (Inheritance Law) of the Civil Code of the Republic of Kazakhstan, in order to acquire an inheritance, the heir must accept it by applying for acceptance of the inheritance or an application for issuing a certificate of right to inheritance at the place of opening of the inheritance to a notary or authorized body in accordance with the law to issue a certificate of the right to inheritance. The inheritance may be accepted within six months from the date of the opening of the inheritance, i.e. within six months from the date of death of the testator.
To simplify the procedure, as well as optimization of the interaction between UAPF and notaries on these issues, the Ministry of Justice of the Republic of Kazakhstan, the Republican Chamber of Notaries, NIT JSC, and UAPF concluded an Agreement on the interaction of the state information system "Unified notarial information system" E-notariat "and the information system of UAPF (hereinafter referred to as the Agreement).
Under the Agreement, notaries through the implemented service can send online requests to the UAPF to obtain information about the balances and cash flows on individual pension accounts (hereinafter referred to as IPA) of deceased persons, without sending written requests.
After receiving from a notary a certificate of the right to inheritance in the form of pension accumulations available on an IPA of a deceased person, the heir or his authorized representative must apply with a package of documents to UAPF. A complete list of documents is available here: enpf.kz
If the list of documents is provided by the heir in full, UAPF makes a transaction within 10 working days from the date of receipt or receipt of documents by UAPF.
It is important to note! The payment of inherited pension accumulations is carried out exclusively:
An heir or an authorized representative, including those on the basis of a certificate of the right to inheritance, has the right to receive information from UAPF on the status of pension accumulations of a deceased person in the form of an extract from IPA with a QR code that contains a web link to the electronic version of the statement from the IPA, certified by the electronic digital signature of the authorized person of UAPF. At the same time, the web link for verifying the authenticity of the submitted extract from the IPA is available within 1 (one) month from the date of issuance of the extract from the IPA.
Unclaimed amounts of depositors' guarantee compensation are credited to individual pension saving accounts to account for voluntary pension contributions to the UAPF
In July of this year, the procedure for transferring unclaimed amounts of guarantee compensation of depositors of Capital Bank Kazakhstan JSC from the Kazakhstan Deposit Guarantee Fund (KDGF) to their individual pension saving accounts (IPSA) was completed to account for voluntary pension contributions (VPC) to the UAPF. Thus, unclaimed amounts of guarantee compensation were transferred to 41,134 depositors of the specified bank.
At the same time, in the UAPF database for 36,279 depositors, new IPSA were opened for accounting for VPC, and for the rest of the depositors, the amounts were credited to existing IPSA for accounting for VPC.
The unclaimed amount of the guarantee compensation is transferred to the UAPF to be credited to the VPC IPSA, provided that the depositor's personal data contained in the register of KDGF depositors correspond to the data available in the UAPF, if there is a valid document proving the identity of the depositor, as well as IPSA with pension savings at the expense of compulsory pension contributions and/or compulsory occupational pension contributions and/or VPCs.
Depositors, that is, contributors (beneficiaries) did not need to specifically contact the UAPF to open IPSA, since the transferred amounts are automatically credited to IPSA for VPC (if any), in their absence, VPC IPSA are opened in UAPF in an undeclared manner (i.e. automatically) including upon receipt by the UAPF from KDGF of the unclaimed amount of the guarantee compensation. It should be noted that the unclaimed amounts of guarantee compensation credited to IPSA for VPC are invested in the same manner as other pension assets.
For information, we inform you that you can check the availability of receipts from KDGF by viewing a statement from IPSA on the websites of the UAPF and e-government, or in the UAPF mobile application.
Recall that earlier, unclaimed amounts of guarantee compensation of depositors of eight banks (Kazinvestbank JSC, Eximbank Kazakhstan JSC, Delta Bank JSC, Qazaq Banki JSC, AsiaCredit Bank JSC, Valut Transit Bank JSC, Tengri Bank JSC, Bank Astana JSC) were transferred to UAPF from KDGF. Thus, unclaimed amounts of 270,849 IPSA were transferred from KDGF to UAPF to account for VPC.
At the same time, if the depositor missed the deadline for pay the guarantee compensation payment for a good reason and their funds were transferred to the UAPF, before the date of entering information into the National Register of Business Identification Numbers on the forced liquidation of a member bank (final liquidation of a member bank), or prior to becoming eligible for VPC pension benefits, they may apply to the KDGF for a benefit payment, attaching documents confirming the circumstances that prevented the timely filing of the application. Valid reasons include the following circumstances: the depositor entering military service, the depositor being outside the Republic of Kazakhstan or in places of deprivation of liberty, accepting the depositor's inheritance and other reasons related to the acquisition or opening of the inheritance, as well as other circumstances established by the court. Based on the results of consideration of the application, the KDGF sends a notification to the UAPF, which, in turn, will return the unclaimed amount of the guarantee compensation to the KDGF.
For reference: the right to pension benefit payment from the UAPF at the expense of the VPC arises for the following persons who have pension savings in the UAPF:
1) who have reached the age of fifty;
2) who are disabled;
3) foreigners and stateless persons leaving or leaving for a permanent place of residence outside the Republic of Kazakhstan, who submitted documents, determined by the legislation of the Republic of Kazakhstan, confirming the intention or fact of departure;
4) who have pension savings within the limits of VPC amounts and the investment income accrued on them, which have been in the UAPF for at least five years.
As of August 1, UAPF has fulfilled more than 1.7 million applications for the use of pension accumulations for housing and treatment
As of August 1, 2022, from January 2021, UAPF has executed 1,328,015 applications from contributors (beneficiaries) for the use of pension accumulations to improve housing conditions. More than 3.1 trillion tenge was transferred to the special accounts of Kazakhstanis opened in banks-authorized operators. The average amount of lump-sum pension payments amounted to about 2.4 million tenge.
Most of the executed applications were sent by residents of Almaty (17.60%), Nur-Sultan (14.03%), Mangistau region (10.35%). Detailed information is available on the website www.enpf.kz in the “Indicators” section - for what purposes do Kazakhstanis plan to use lump-sum pension payments and by regions (subsections “Lump-sum pension payments for improving housing conditions by goals” and “Lump-sum pension payments for improving housing conditions, respectively”).
To date, the authorized operators accepting applications for the use of a part of pension accumulations are Housing Construction Savings Bank Otbasy Bank JSC, Halyk Bank of Kazakhstan JSC, Altyn Bank JSC, Bank CenterCredit JSC and Freedom Finance Bank Kazakhstan JSC". We emphasize that after receipt of a lump sum pension payment to a special account opened with an authorized operator (Housing Construction Savings Bank Otbasy Bank JSC), the recipient provides the authorized operator with documents confirming the intended purpose of lump sum pension payments within 20 working days from the date of their receipt ( in accordance with paragraph 13 of the Rules for the use of lump-sum pension payments to improve housing conditions in accordance with the legislation of the Republic of Kazakhstan). An exception is the replenishment of the contribution to housing construction savings for further accumulation in order to purchase a dwelling or build an individual residential building (including the acquisition of a land plot with a designated purpose - individual housing construction. In this case, the recipient provides Otbasy Bank with documents confirming the intended purpose of lump-sum pension payments in within 3 years from the date of their receipt. For other authorized operators (second-tier banks), applications for a one-time pension payment and documents of the recipient by purpose are considered in the manner and terms established by the bank's internal documents. At the same time, the bank transfers lump-sum pension payments for their intended purpose within 10 working days from the date of crediting the amounts of lump-sum pension payments to the special accounts of the applicant (recipient). In case of failure to provide the authorized operator with supporting documents within the prescribed period, these funds are subject to return to UAPF.
The recipient can also return the transferred amount to UAPF without waiting for the specified period by submitting to the authorized operator a corresponding application, which the authorized operator must execute within 3 (three) business days from the date of receipt of the application for a refund from the recipient.
It should be noted that 450.6 billion tenge was returned to the individual pension accounts (IPA) of contributors (beneficiaries) from authorized operators due to the fact that lump-sum pension payments by Kazakhstanis were not used within the established time frame, according to the applicant's application and for other reasons.
UAPF also executed 388,824 applications for treatment for a total amount of 302.5 billion tenge. At the same time, the average withdrawal amount is about 0.8 million tenge. At the same time, 31.3 billion tenge was returned to the IPAs of depositors (beneficiaries) in UAPF from the authorized operator (Housing Construction Savings Bank Otbasy Bank JSC), these funds were not used on time, at the request of the applicant and for other reasons.
You can get acquainted with the current statistics on the use of pension savings for treatment on the website www.enpf.kz in the section "Indicators" - "Lump-sum pension payments for treatment".
As of August 1 of this year, the investment portfolio manager (IPM) transferred 8.7 billion tenge, UAPF executed 5,877 applications. The average transfer amount is about 1.5 million tenge. Detailed statistics on the transfer of pension savings to trust management is also available on the website enpf.kz in the section "Indicators" - "Transfer of pension savings to management companies".
At the moment, UAPF has concluded agreements on trust management of pension assets with four IPMs. You can get acquainted with information about them and study their investment declarations on the website enpf.kz in the section "Services" - "Register of Investment Portfolio Managers".
Recall that after receiving pension assets from UAPF, the IPM invests them in permitted financial instruments specified in the Rules for the implementation of investment portfolio management activities, approved by the Resolution of the Board of the National Bank of the Republic of Kazakhstan dated February 3, 2014 No. 10, and provided for in the Investment Declaration of the IPM.
Under the Pensions Law, IPMs are entitled to charge an investment management fee. The maximum amount of remuneration of the IPM cannot exceed 7.5% of the received investment income. The actual amount of the commission is annually approved by the governing body of the IPM and may change no more than once a year.
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 IPM, the state guarantee is replaced by the guarantee of the management company to ensure the minimum level of profitability of pension assets, which is calculated on the basis of the weighted average profitability of pension assets transferred to the management of the IPM operating on the market.
A new option from UAPF - Legal Entity Office
UAPF continues to work on improving pension services. This time, the Fund has launched a convenient and timely project Legal Entity Office, which will facilitate and simplify the transfer of employee pension contributions to the employer.
This was discussed on March 18, 2022 at the Open Day held at the UAPF on the topic “Office of a Legal Entity. UAPF Online Service for Business Owners” in an online format.
This service is intended for employers who are tax agents whose duties include transferring employee pension contributions and allows you to generate, edit and print payment orders for the payment of compulsory pension contributions, compulsory occupational pension contributions and voluntary pension contributions.
As part of this service, you can see a list of employees for whom it is necessary to send payments to the fund, with the ability to edit (delete and add employees). In addition, this service allows you to view all data on previously generated payment orders in the payment history.
Access to the office of a legal entity is provided to the first manager with the right to sign or a person authorized to sign financial documents only if there is an electronic digital signature for legal entities issued by the National Certification Center of the Republic of Kazakhstan.
More than ____ people took part in the Open Day event, including heads of enterprises, individual entrepreneurs, participants in small and medium-sized businesses, as well as other categories of the Fund's contributors.
The main objective of the event was successfully implemented: both contributors and employers received information on getting acquainted with the personal account of a legal entity, electronic services of UAPF JSC for legal entities, as well as with the list of services available to them as contributors.
The meeting was of great interest among employers, both in terms of medium and small businesses, and among its larger participants.
Announcement
"UAPF" JSC invites you to the "Open Doors Day"
Topic: "Digital UAPF: everything for the convenience of contributors"
On December 10, 2021, the UAPF is holding an "Open Doors Day" in an online format.
The purpose of the event is to develop and improve the quality of the Fund's pension services, ensure equal access for participants to pension services through the development of direct, electronic and remote service formats, as well as expanding the service delivery channels.
At the meeting, the Fund's specialists will tell about the possibility of obtaining a set of information and consulting services on pension provision, the work of a pension calculator, online services of the UAPF, as well as using the digital (electronic) version of the ID card of a citizen of the Republic of Kazakhstan when visiting the Fund's offices in order to:
An open doors day is held for all categories of the Fund's contributors wishing to receive information about pension services. The UAPF specialists will tell the participants of the event about the different ways to obtain them, as well as what to do if you come to the UAPF office and forgot your ID card at home.
Also during the meeting, UAPF specialists will also provide individual consultations on other issues of interest to participants.
We remind you that the Open Doors Day will be held online on December 10 at (10.00). In order to take part in the event, you must register. Each participant needs to follow the link (https://enpf.webex.com/enpf/onstage/g.php?MTID=e2659a5768dae2d790778f41bbdc29f1f). Then enter the number of the event meeting: (2511 027 9880) and the password of the event meeting: (10022021).
"UAPF" JSC is waiting for its contributors, recipients and all comers to the "Open Doors Day"!