1. Could you please tell me when the 'National Fund for Children' program will start, and which financial institution will accumulate the contributions? How will the registration of potential program participants be conducted?
From January 1, 2024, upon the order of the head of state, the launch of the "National Fund for Children" program is planned. However, parents and other legal representatives of children will see the first contributions from February 2024, as the relevant institutions require a month for calculations and accurate counting of minors.
The Unified Accumulative Pension Fund (UAPF) is responsible for the accounting of targeted requirements (obligations), targeted assets, and targeted accumulations in targeted accumulative accounts (hereinafter referred to as TAA). The UAPF is also responsible for making payments of targeted accumulations.
It is worth noting that the UAPF possesses extensive practical experience in implementing socially significant programs. It has unique information technology systems for personalized accounting and remote services, as well as a well-developed regional network to provide accessible services to the population.
It is envisaged that the National Bank of the Republic of Kazakhstan will annually submit to the UAPF a report on the formation and usage of the National Fund. This report will contain information on 50% of the averaged investment income (hereinafter referred to as AII) of the National Fund, the AII rate, and the amount of income accrued to previously formed targeted requirements of participants.
Annually, in January, the UAPF will provide the Ministry of Justice of the Republic of Kazakhstan with an electronic list of children, i.e., participants of targeted requirements. This list will be independently compiled based on information obtained from the State Database "Individuals" as of the end of December 31 of the reporting year, for the purpose of reconciliation.
Based on the information received from the National Bank of the Republic of Kazakhstan regarding the 50% of the averaged investment income (AII) of the National Fund and the reconciliation document signed by the UAPF with the Ministry of Justice of the Republic of Kazakhstan, the UAPF will calculate the amount of targeted requirements for each participant and enter this data into the information system.
Regular reports on the program will be posted on the official website of the UAPF at enpf.kz.
2. Which category of citizens in the Republic of Kazakhstan falls within the scope of the "National Fund for Children" program? What is the procedure for receiving the accumulated amount?
According to the program, every child - a citizen of Kazakhstan under the age of 18, will be annually credited with 50% of the investment income of the National Fund of the Republic of Kazakhstan (hereinafter referred to as the National Fund). Upon reaching 18 years old, the participant of the program will have a targeted accumulative account (TAA) opened in the UAPF, from which funds can be used for housing and/or education through authorized operators, namely "Kazpost" and second-tier banks. After the transfer of funds to the TAA, they cease to be invested.
The UAPF will make payments of targeted accumulations in US dollars to the bank accounts of the recipients, opened with the authorized operator - "Kazpost" and second-tier banks. It is worth noting that residents of Kazakhstan who have reached the age of 18 will receive payments in tenge at the exchange rate set by the National Bank on the day of issuance.
3. How to register your children and verify their inclusion in the corresponding list?
It is important to note that parents do not need to gather any documents, open accounts, or visit any authorities, including the UAPF. The only thing parents need to do at the moment is to check the presence and accuracy of the Individual Identification Number (IIN) of their minor child on the portal egov.kz. The program will be implemented automatically, based on the existing information in the state database.
Information about whether a minor resident of Kazakhstan is a participant in the program can be obtained in your personal account on the portal egov.kz. Reports on the program will also be posted on the website enpf.kz.
4. Is it possible to withdraw the allotted funds prematurely? Does a child have the right to receive them when moving abroad for permanent residence? What happens to the accumulations in the event of the child's death before or after the age of 18?
Before children reach the age of 18, targeted requirements and investment income will be accrued without the right to an early withdrawal. It is important to note that upon reaching adulthood, the recipient has the right to use the accumulated amount only for education or housing.
Individuals who have permanently relocated from Kazakhstan to another country lose the right to use funds from the National Fund.
In the event of the death of a child before or after the age of 18, the accumulations will be inherited according to the procedure established by the civil legislation of the Republic of Kazakhstan. The accumulations will be transferred to a bank account opened by the authorized operator for the child's heirs, who may be close relatives or legal representatives.
5. Will children who turn 18 in 2024 be included in the Program, and what amount will they receive?
Children who are citizens of the Republic of Kazakhstan and turn 18 in 2024 will have targeted requirements accrued for the year 2023 (the year in which the child is still under 18).
The calculation of the amount of targeted requirements for one child for the year 2023 will be carried out after reconciling data with the Ministry of Justice of the Republic of Kazakhstan (regarding the number of children in Kazakhstan as of the end of December 31, 2023) and obtaining information from the National Bank (regarding the total amount of targeted requirements accrued to children from the National Fund).
