PRESS RELEASES

As previously reported, the Social Code comes into effect from July 1, 2023, which provides for a number of innovations regarding the accumulative pension system.

Over 1.7 million applications from approximately 1 million applicants, totaling more than 3.5 trillion tenge, have been fulfilled by the UAPF for the purpose of purchasing housing and/or medical treatment. It is worth noting that pension savings can be used by citizens an unlimited number of times within the amount of pension savings available for withdrawal from the UAPF for housing, medical treatment, or transfer to asset management companies.

From July 1 this year, the Social Code will come into force, which provides for a number of innovations regarding the pension system. 

Expansion of investment opportunities for contributors

UAPF pays special attention to ensuring the security and confidentiality of pension savings, adheres to high data security standards.

So, as part of strengthening cybersecurity for 2022-2023. a number of information systems were introduced to ensure the security of information resources. These innovations consist of a system for countering cyberattacks and protecting web servers, communication channels and information resources from DDoS attacks, a system for detecting and studying malicious activity on workstations and devices, as well as an information security event management system for detecting and analyzing threats. A two-factor authentication system has also been introduced, which significantly increases the efficiency of protecting information systems and services of the Fund.

8.3 million statements on the status of individual pension saving accounts (IPSA) issued by the Unified Accumulative Pension Fund to contributors (beneficiaries) for 4 months of the current year (between January 01, 2023 and May 01, 2023). Of these, 6.09 million (73.3%) were issued in electronic format, in automatic mode - 1.99 million (24%), in the offices of the Fund - 193.5 thousand (2.3%), through field service 28 .9 thousand (0.3%). Thus, the issuance of IPSA statements is the most popular service of UAPF.

The information disseminated by one of the foreign news aggregators with reference to the UAPF, that from the 1^st day of the next month of the current year, additional monthly cash payments to a certain (preferential) category of the population are introduced in Kazakhstan, does not correspond to reality.

For 4 months of 2023, the accounts of UAPF contributors received a net investment income in the amount of KZT469.04 billion, which exceeds the same period last year by KZT340.32 billion or 3.6 times.

Key indicators of UAPF as of May 1, 2023. 

As of May 1, 2023, pension savings in the amount of KZT15.68 trln were formed on the individual accounts of contributors (beneficiaries) of the Unified Accumulative Pension Fund. Since the beginning of the year, their growth as of May 1, 2023 amounted to KZT1 trln (6.9%). Compared to the same date last year, the volume of pension savings increased by KZT2.74 trln (or 21.1%).

The increase is formed taking into account incoming flows in the form of contributions and investment income, as well as outgoing - in the form of pension benefit payments, including according to the schedule and lump sums - for housing and medical treatment, for the purposes of inheritance, burial, departure for permanent residence, etc.

The pension system in Kazakhstan provides contributors (beneficiaries) with more and more opportunities to participate in the planning of pension capital and their material security after the end of employment. A competitive environment is being formed in the field of asset management with the possibility of their transfer to an investment portfolio manager (IPM) and the choice of different investment strategies. Subject to the sufficiency of pension savings, before the retirement age, they can be used to improve housing conditions or pay for medical treatment. The most far-sighted contributors (beneficiaries) when forming their future pension, in addition to the compulsory types of contributions, add voluntary.

The world leader among insurance companies and asset managers Allianz has released a new edition of its Global Pensions Report (API), according to which Kazakhstan's pension system has been assigned an API rating of 3.5 points as a result of an analysis of 75 pension systems around the world. Kazakhstan is ahead of its neighbors in the CIS, as well as Spain, Chile, Singapore, the United Arab Emirates and other countries. These results imply that Kazakhstan's pension system is slightly above average in terms of pension sustainability and adequacy compared to other countries analyzed by Allianz.

The UAPF annually, together with the Government for Citizens State Corporation (State Corporation), conducts a reconciliation to identify persons who have reached retirement age and have pension savings in the UAPF, while receiving pension benefits by age at the expense of budgetary funds, but who have not applied for benefit to UAPF.