1. Who has the right to early use of their pension savings in full, and who to partial use? What does that require?
Foreigners and stateless persons who have pension savings in the UAPF and who have left Kazakhstan can receive pension savings in full (minus individual income tax) before retirement age. To do this, they need to provide the fund (in person, by mail, or through an attorney or legal representative) with a package of documents, which can be found on the UAPF website. After this, pensions will be paid in a lump sum within ten working days.
Kazakh citizens who have retired due to long service can also use all their pension savings to improve their living conditions and (or) pay for medical treatment, namely:
- military personnel;
- employees of special government and law enforcement agencies;
- employees of the state courier service and other persons who have a length of service in military service, service in special state and law enforcement agencies, state courier service of at least 25 years and have reached the age limit established by law upon dismissal from service.
The full list of persons entitled to receive pension payments for long service is determined by Article 212 of the Social Code. To receive lump sum pension benefits to improve their living conditions, long-service pensioners can contact Otbasy Bank or other second-tier banks. To pay for medical treatment - only at Otbasy Bank.
At the same time, Kazakhstanis who have entered into a pension annuity agreement with a life insurance company can use all their pension savings early for housing and medical treatment, thereby ensuring that they receive monthly pension benefits of at least 70 percent of the subsistence level. A complete list of persons entitled to transfer pension savings to an insurance organization and the required package of documents for this is also listed on the official website of the fund.
We also inform you that persons who have pension savings in the UAPF, formed through compulsory pension contributions (CPC), can use part of their pension savings to improve their living conditions and pay for medical treatment:
- whose amount of pension savings exceeds the minimum sufficiency threshold. At the same time, a one-time pension payment cannot exceed the difference between the amount of pension savings at the expense of CPC and (or) compulsory occupational pension contributions of the contributor (beneficiary) and the established minimum sufficiency threshold;
- accomplished pensioners who have savings in the UAPF. They can use up to 50 percent of the remaining amount for housing and/or medical treatment, but only if their total pension (including old-age pension, basic pension and benefit payments from the Unified Accumulative Pension Fund) is at least 40 percent of their previously received salary.
2. How does the UAPF deal with savings that remain unclaimed for a long time? In what cases is it possible to turn them into state revenue?
The provisions of the Social Code define an exhaustive list of grounds for making benefit payments of pension savings from the UAPF, including in connection with the death of the beneficiary (for funeral and (or) heirs). Consequently, the amounts of pension savings are subject to accounting by the UAPF until the amount is claimed by the beneficiary or his/her heir(s).
At the same time, in accordance with the Civil Code of the Republic of Kazakhstan, if there are no heirs by will and by law, or if none of the heirs has the right to inherit, or they all refused the inheritance, the inheritance is recognized as escheated property and becomes communal property at the place where the inheritance was opened.
Thus, an inheritance can be recognized as escheatable property only by a court decision on the basis of an application from local executive bodies of cities of republican significance, the capital, districts, cities of regional significance at the place of opening of the inheritance after one year from the date of opening of the inheritance.
3. What are the rules for transferring part of pension savings into trust for an investment portfolio manager (IPM). How much savings can I transfer according to the new rules??
The right to transfer pension savings to IPM trust management can be used by contributors of compulsory pension contributions (CPC), individuals for whom compulsory occupational pension contributions (COPC), voluntary pension contributions (VPC) are transferred, in an amount not exceeding:
- fifty percent of the amount of pension savings in the individual pension savings account (IPSA) of the CPC contributor, an individual for whom COPC are transferred, as of the date of receipt of this person’s application for (on) selection (change) of IPM. Upon subsequent transfer to IPM trust management, the amount of pension savings is determined taking into account previously transferred pension savings, taking into account IPM investment income (application must be submitted no more than once a year from the date of transfer of pension savings to IPM trust management);
Or
- not exceeding the amount of pension savings at the expense of CPC and (or) COPC on their individual pension insurance in the case of a concluded pension annuity agreement with an insurance organization;
- the amount of pension savings generated at the expense of VPC, subject to transfer to trust management of IPM, does not exceed the amount of available pension savings on the IPSA for VPC accounting.
Before transferring part of your pension savings to IPM trust management, it is recommended that you familiarize yourself with the current list of IPMs on the market, study their investment declarations on the UAPF website, reviews of investment activities, and learn more about the experience and performance results of the selected private company. You can get information about IPM and study their investment declarations on the website www.enpf.kz in the “Services” section - “Register of investment portfolio managers”. Detailed statistics on the transfer of pension savings to IPM trust management are also available on the website www.enpf.kz in the “Indicators” section - “Transfer of pension savings to management companies.”
We also note that pension savings can be transferred from one IPM to another no more than once a year. If you decide to return your savings to the management of the National Bank of the Republic of Kazakhstan (hereinafter referred to as the NBRK), this can be done no earlier than 1 year from the date of transfer of pension savings to IPM trust management.
Moreover, if pension savings were transferred several times to trust management of the same IPM in accordance with the application for the selection of IPM, then the return of pension savings to trust management of the NBRK is carried out no earlier than one year from the date of the initial transfer of pension savings to IPM trust management.
4. Which category of citizens of the Republic of Kazakhstan has the right to be exempt from paying pension contributions at the expense of CPC?
According to the Social Code of the Republic of Kazakhstan, persons with disabilities of the first and second groups are exempt from paying compulsory pension contributions (CPC) to the Unified Accumulative Pension Fund (UAPF), if the disability is established for an indefinite period. At the same time, the employer is allowed to withhold and transfer CPC to the UAPF based on the application of the above persons. Thus, Kazakhstanis with disabilities of the first or second groups, established indefinitely, have the right to submit an application at their place of work for consent to withhold CPC in the UAPF.
Persons with disabilities of the first and second groups, if the disability is established indefinitely, have the right to receive pension benefits from the UAPF according to the established schedule in the form of monthly pension benefits. The UAPF, with the consent of the contributor (recipient), provided in accordance with the Law of the Republic of Kazakhstan On Personal Data and Their Protection, independently requests information on the establishment of disability from the Centralized Data Bank of Persons with Disabilities information system of the Ministry of Labor and Social Protection of the Population of the Republic of Kazakhstan.
You can submit an application for payment of pension savings in person at the UAPF office or through an authorized person, through the Internet resource enpf.kz, as well as by post.
5. How can you confirm the length of service of employees of the EAEU member states? Is it possible to do this by contacting the UAPF??
The competent authorities in the Republic of Kazakhstan (hereinafter referred to as the RK) for confirming the work experience of workers within the framework of the Agreement on pension provision for workers of the member states of the Eurasian Economic Union of December 20, 2019 have determined:
1) The Committee of the Ministry of Labor and Social Protection of the Population of the Republic of Kazakhstan and its territorial divisions - in terms of confirming the work experience of workers acquired before 1998;
2) territorial divisions of the UAPF - in terms of confirming the work experience of workers since January 1, 1998 (according to the information system on the transfer of compulsory pension contributions).
Detailed information is available on the website enpf.kz in the “Services” section.
At the same time, before the transition to the use of the integrated system of the Eurasian Economic Union (hereinafter referred to as the EAEU), interaction between the competent authorities of the EAEU member states is carried out in paper form through the exchange of forms provided for in paragraph 3 of the Interaction Procedure[1], as well as documents necessary for the assignment and payment of pensions.
Thus, in order to confirm the work experience acquired by citizens of the EAEU member states on the territory of the Republic of Kazakhstan, in order for the right to arise in accordance with the legislation of the EAEU member state for which the applicant is applying for a pension, the competent authority of this EAEU member state must send the form “ Request" about the length of service in relation to such persons, depending on the period of work experience, to the above competent authorities of the Republic of Kazakhstan.
[1] The procedure for interaction between authorized bodies, competent authorities of the member states of the Eurasian Economic Union and the Eurasian Economic Commission on the application of the norms of the Agreement on pension provision for workers of the member states of the Eurasian Economic Union dated December 20, 2019, approved by the Decision of the Council of the Eurasian Economic Commission dated December 23, 2020 No. 122
