As of November 01, 2023, KZT3.7 trillion was transferred to special accounts of Kazakhstanis opened in authorized operator banks, UAPF JSC (hereinafter - UAPF, Fund) for the purpose of purchasing/improving housing and (or) pay for medical treatment in accordance with 1.9 million applications. Let us remind you that contributors (beneficiaries) have the right to use savings an unlimited number of times within the amount of pension savings in the UAPF available for withdrawal for housing, medical treatment or for transfer to trust management of management companies.
For housing
Since January 2021, as of November 1, 2023, the UAPF has fulfilled over 1.42 million applications from contributors (beneficiaries) to use pension savings to improve housing conditions. The UAPF transferred about KZT3.31 trillion to special accounts of Kazakhstanis. The average amount of one-time pension benefits was about KZT2.32 million.
The greatest activity in this direction was shown by residents of Almaty (23.14% of the total amount transferred to authorized operators), Mangistau region (16.24%), Astana (13.86%). On the website www.enpf.kz in the “Indicators” section there is detailed information: for what purposes Kazakhstanis apply for lump sum pension benefits and by region (subsections “Lump sum pension benefits for improving housing conditions by purpose” and “Lump sum pension benefits for improving living conditions" respectively).
34.83% of all applications of investors (recipients) were executed for the acquisition of ownership of a home under civil law transactions (final settlement), 21.24% of applications - in order to replenish the contribution to housing construction savings for further accumulation, 15.81% of applications - for partial repayment of debt on a mortgage loan (including within the framework of financing by an Islamic bank), 15.26% - for partial repayment of debt on a mortgage loan through the housing construction savings system.
Today, authorized operators accepting applications for the use of part of pension savings are Otbasy Bank Housing Construction Savings Bank JSC, Halyk Bank of Kazakhstan JSC, Altyn Bank JSC, Bank Center Credit JSC and Freedom Finance Kazakhstan Bank JSC.
It should be noted that KZT492.83 billion was returned to individual pension saving accounts (IPSA) of contributors (beneficiaries) from authorized operators due to the fact that lump sum pension benefits by Kazakhstanis were not used within the established time frame, at the request of the applicant and other reasons.
Medical treatment
The UAPF executed 464.66 thousand applications for medical treatment in the amount of KZT401.52 billion. The average withdrawal amount is KZT0.86 million. 97.6% of applications from Kazakhstan use savings for dental services, 1.4% of applications - to obtain ophthalmological services. 1% of pension savings was used for other medical areas.
At the same time, KZT35.58 billion was returned to the IPSA of contributors (beneficiaries) in the UAPF; these funds were not used within the established time frame, at the request of the applicant and for other reasons.
You can view the latest statistics on the use of pension savings for medical treatment on the website www.enpf.kz in the “Indicators” section - “Lump sum pension benefits for medical treatment”
Private management
As of November 1 of this year from February 18, 2021, about KZT14.43 billion have been transferred to investment portfolio managers (IPMs), and over 10.6 thousand applications have been executed by the UAPF. The average transfer amount is about KZT1.36 million. Detailed statistics on the transfer of pension savings to trust management are also available on the enpf.kz website in the “Indicators” section - “Transfer of pension savings to management companies.”
At the moment, the UAPF has concluded agreements on trust management of pension assets with five pension insurance companies. You can get information about them and study their investment declarations on the enpf.kz website in the “Services” section - “Register of investment portfolio managers.” Note that out of KZT14.43 billion - 37.66% or KZT5.43 billion was transferred to Jusan Invest JSC, 21.29% or KZT3.07 billion to Halyk Global Markets JSC, 16.3% or KZT2.35 billion in BCC Invest JSC, 17.42% or over KZT2.5 billion in Halyk Finance JSC, 7.34% or KZT1.06 billion in Centras Securities JSC.
Let us remind you that from July 1, 2023, contributors have the opportunity to transfer up to 50% of their savings to the IPM through compulsory types of contributions (CPC and COPC) without taking into account the adequacy threshold. Savings generated through voluntary pension contributions can be transferred to the IPM in the amount of 100%. During July-October 2023, 4,230 Kazakhstanis took advantage of this right, transferring about KZT5.5 billion to portfolio managers according to 4,608 applications for transfer.
After the initial transfer of pension assets to the trust management of the IPM, the conributor has the right, no more than once a year, to submit an application to the UAPF for the transfer of his pension savings to trust management from one IPM to another. During the period from March 16, 2022 to October 31, 2023, 165 applicants changed their IPM: UAPF executed 187 applications for transfer from one IPM to another for a total amount of KZT443 million.
From July 1, 2023, the period for returning pension savings from the trust management of the IPM to the trust management of the NBRK has been reduced from two years to one year. From March 15 to October 31, 2023, the UAPF executed 771 applications for the transfer of funds to the NBRK from the IPM for a total amount of KZT2.8 billion.
Let us remind you that after receiving pension assets from the UAPF, the IPM invests them in the permitted financial instruments specified in the Rules for the implementation of investment portfolio management activities, approved by 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.
During the period when pension savings are under the management of the National Bank of the Republic of Kazakhstan until the investor 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 pension investment system, the state guarantee is replaced by a guarantee from the management company to ensure a minimum level of return on pension assets, which is calculated based on the weighted average return on pension assets transferred to the management of the pension investment system operating on the market.
