It is provided that 50% of the investment income of the National Fund of the Republic of Kazakhstan will be accrued annually for all children the citizens of the Republic of Kazakhstan, who were born in 2006 and farthest. Whist, the average income over the eighteen years preceding the reporting year will be taken into account. The amounts accrued to the children’s accounts in the recent years will be re-invested in the structure of the National Fund assets. Thus, there will be accrued an incremental investment income. Upon attaining the age of 18, the purpose requirements will be maintained without early withdrawal.
Upon reaching the age of majority, the purpose requirements will be credited to the virtual savings account and upon the attainment of the age of majority, the adults will have the possibility to use the savings for two purposes - housing conditions improvement and tuition fee payment.
In this material, we will review the “National Fund for Children” program.
The recipient of purpose savings is entitled to receive thereof on the date of purpose savings credited to the internal savings account, not on the date of the majority attained.
An application for payoff of purpose savings and documents confirming the intended use of payments of purpose savings in order to improve housing conditions and (or) pay for education are provided by the recipient to authorized operators - second-tier banks, the National Postal Operator, which opens and maintains bank accounts for crediting payments of purpose savings.
The payoff of purpose savings from the UAPF to the authorized operator are proceeded in US dollars.
The recipients will be able to check the proceeds credited to the purpose savings accounts in February.
The program participants are citizens of the Republic of Kazakhstan who have not attained the age of eighteen years.
Thus, in 2024, citizens of the Republic of Kazakhstan are the program participants (in the SNPDB the citizenship is “Kazakhstan”) who have not attained the age of eighteen years (persons who were born in the period from 2006 to 2023), with the exception of the deceased (the date of death until 31.12.2023 inclusive).
Natural persons with revoked citizenship of the Republic of Kazakhstan, as well as citizens of the Republic of Kazakhstan who attained the age of 18 years and over 18 years old, are entitled to receive the purpose savings. Children with a residence permit are also not provided for receiving the money.
In the event of the death of a child who is participant or recipient of the purpose requirements, such purpose requirements shall be inherited in the manner established by laws of the Republic of Kazakhstan.
An heir or heirs shall apply for a payoff of purpose requirements once the purpose requirements are credited to the UAPF account.
Unclaimed purpose requirements of the deceased that are recipients of purpose requirements are maintained in the accounts of purpose requirements and are not accounted toward voluntary pension savings at the individual pension account.
If within a 10 years period since the recipient had attained the age of eighteen years old he has not withdrawn the purpose requirements, they are transferred to the individual pension account to account for voluntary pension savings. They can be received in accordance with legislation of the Republic of Kazakhstan.
In the year children have attained the age of majority, purpose savings are transferred to their purpose savings accounts (PSA) in US dollars, cease to be reinvested and are intended for housing and education.
One of the authorized project operators is Otbasy Bank. Through its platform enpf-otbasy.kz it will be possible to remotely use funds for the purposes: living conditions improvement or tuition fee payment.
There, on the platform, the one can exchange funds into the required currency.
To use the enpf-otbasy.kz platform, the one needs to log in to it using an electronic digital signature. Then the one needs to open a current account to credit the money from the Unified Pension Fund within the framework of “National Fund for Children” project.
If the participant of the “National Fund for Children” program has not yet been a bank client, then the account can be opened at the bank branches with the help of our consultants or via a video call by going to the bank’s website.
If the participant of the “National Fund for Children” program has already been a client of Otbasy Bank, then the account is opened only on the platform.
Then on the platform the one will need to make an enquiry to withdraw funds from the UAPF and select the purpose. Upon the money remittance from the UAPF, the bank will check the application and documents attached and, if it is positive, will credit the funds to the client’s account.
Maintaining the savings
According to the program, if, upon attaining the age of 18 years a citizen does not wish to use the funds for the permitted purposes, these funds will be maintained in the account within 10 years. Within this period, the money will be credited to the recipient's pension account.
More information about the “National Fund for Children” project can be found on the special page “ Otbasy Bank”.
Parents need to check the correctness of each minor child’s data:
If the child has none of the following:
Parents will be able to check the receipt of money from the National Fund to children's accounts in February 2024:
The project is being implemented as follows:
The National Bank of the Republic of Kazakhstan (the NB of the RK) will send a report containing information on the total amount of purpose requirements to the UAPF on an annual basis, pay out an average investment income and the amount of investment income accrued on the earlier generated purpose requirements of the participants of purpose requirements.
The UAPF will generate an e-roster of the purpose requirements participants (minor children the citizens of the Republic of Kazakhstan) based on the information from the State natural persons database on an annual basis (as of the end of the reporting year).
Per annum in January, the UAPF will calculate the amount of purpose requirements per child the participants of purpose requirements for the reporting year period and enter the data into the information system based on the information received from the National Bank of the Republic of Kazakhstan and number of the purpose requirements participants.
Clause 3 of Article 2 of the Law “On amendments and additions to some legislative acts of the Republic of Kazakhstan on the issues of remitting the funds from the National Fund of the Republic of Kazakhstan to the children, pay-off and use thereof” dated November 16, 2023 (the Law) it is stated that for the participants who were born before January 1, 2024, the number of accrued annual purpose savings is equal to the number of years attaining the age of majority, with the exception of cases provided for by this Law.
For example, if the child is 5 years old at the date of the project start, a portion of the National Fund investment income within a 13 years horizon will be accrued annually on his account, that is, until attaining the age of 18.
The program regular reports will be posted on the official website of the UAPF enpf.kz.