Unified pension fund of Kazakhstan

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Today, the pension system of the Republic of Kazakhstan is undergoing significant changes. Relatively recently, various pension funds of Kazakhstan operated on the territory of the republic, which meant competition, and hence the possibility of competition among themselves for attracting clients. However, for several years this system did not give good results. The financial crisis has become a severe test for non-governmental organizations, which, in turn, had to assume all obligations to compensate for the losses of depositors. Therefore, it was decided to merge the pension funds of Kazakhstan into one, which will be directly subordinated to state structures. On the one hand, this implies control, and on the other, a guarantee of the safety of depositors' money.

First and leading

The People's Pension Fund of Kazakhstan from the first day of its opening began to enjoy the greatest confidence of citizens. If you look at official data, you can see that about 40% of all pension savings throughout the country are concentrated here. Remaining 60%distributed among other funds. Such indicators allow the PF of Halyk Bank to be the main investor not only in the Republic of Kazakhstan, but also abroad. The pension fund of the People's Bank of Kazakhstan is chosen by every fourth working citizen, and the number of depositors is constantly growing.

Merge structures

Up until 2014, every resident of the country had a choice of where to keep their money. True, no one could control them. How it looked: every month 10% is deducted from your salary, and a third-party organization disposes of them at its discretion, receives profit, which it is in no hurry to share with its investors. The pension funds of Kazakhstan demonstrated their insolvency, and it was decided to merge these structures.

In April 2014, the chairman of the UAPF fund announced that from today all deposits are transferred to the UAPF. The savings were transferred in the amount in which they were formed at the time of transfer. Pension funds of Kazakhstan reported on disbursed funds.

Currently

All clients of the former funds became UAPF depositors. On the one hand, they didn't have much of a choice, since there was no other alternative, but on the other hand, they were assured that the deposits were now secure. Moreover, the state will monitor not only the safety, but also the multiplication of these amounts. In other words, Kazakhstan's pension fund has become a more transparent system. Now citizens can receive full information about their savings, including bank statementsfund.

Data on contributors

The Unified Pension Fund of Kazakhstan already in 2014 opened about 2.5 million individual accounts for its new depositors, each of which is assigned to one of the depositors. At the same time, agreements on voluntary pension provision were concluded, there were about one and a half million of them in total. The merging of funds took place in the regular mode, strictly in accordance with the approved procedures. The transfer of pension assets took place on one banking day.

Information support

The accumulative pension fund of Kazakhstan assumes full transparency of the state of accounts for depositors. People need to know what is happening with their money and how much they can expect when they retire. In the spring of 2017, the introduction of a centralized notification of citizens about savings was introduced. To do this, you just need to tell the nearest branch how you want to receive them.

Data can come in the form of an SMS message or in the form of an e-mail statement. In addition, having received an individual password, you can enter the site yourself and view the replenishment of your account. Information about investment savings or losses incurred by the fund, which also become a problem for ordinary citizens, will also be posted here.

New technologies

Today, EPNF has developed and implemented a mobile application for smartphones and tablets. Now you do not need to take printouts or request data. Straight fromusing your phone, you can open an individual page and view the statement, contact the nearest branch and receive new information about the fund.

The application works in two languages, so it will be convenient for the entire population of Kazakhstan. In order to authorize the application, you need to enter your login and password, with which the contributor enters the UAPF website. If you don’t have one, then you will need to go to any branch and get the data.

Using pension money

This is the question most people care about. Deducting 10% of their salary every month, they do not have the ability to control the deposits of these funds, and also use them if there is a serious need for it. A reasonable question arises: why can a bank or fund, at its own discretion, risk pension money, sometimes invest it in unprofitable financial institutions, and a person is deprived of the opportunity to receive part of the accumulated, even if he is in dire need?

I would like to note that the pension model is not static. She is constantly changing. The world experience is being studied, the appeals and wishes of contributors are being calculated. Indeed, early withdrawal of funds is an actual problem. There are people who need money today, for example, to pay for the treatment of a serious illness.

Preconditions for payouts

When the funds were unbundled, the ability to receive funds before retirement was practicallyzero. Only after the unification of all assets and accounts of depositors in the UAPF, it became possible to create a single database and keep records of savings. And only now, 18 years after the creation of the pension system, the funds in a separate pension account have become any significant. This made it possible to talk not only about ensuring the life of a person in retirement, but also about increasing well-being before entering a well-deserved rest.

Purpose

It is still impossible to withdraw money from a pension fund in Kazakhstan, but this issue is constantly being studied. Turning to world experience, we see that these funds cannot be taken for current expenses. An obligatory condition is the exclusively intended purpose of the use of pension funds. It could be a life-saving transaction or paying off part of a mortgage loan to buy a single home. Experts argue that the free disposal of accumulated funds should not be allowed, because otherwise in a few decades we will have a whole generation left without a livelihood. This money has a strictly defined purpose - to ensure life after retirement. And only after accumulating a sufficient amount, it will be possible to start using them ahead of schedule.

How much should be in the account

So, today a model is being developed, based on which a person must first accumulate a financial cushion that will ensure his life in retirement, and after exceeding this threshold, gradually begin to use these funds. But speechis not about their complete withdrawal. After the depositor turns 50 (for women) or 55 (for men), he has the right to transfer his savings to one of the insurance companies, after which the latter begins to accrue payments in accordance with the concluded agreement.

Pension annuity

This is another concept that future pensioners will have to get acquainted with. It is with the help of this program that you will be able to receive your money before the retirement age. As mentioned above, people can get them through insurance companies. After evaluating the accumulated amount, the company accrues an annual payment, which will increase annually by 5%.

But it's not that simple. To exercise this right, a woman must have at least 8,800,000 tenge in her account at the time she turns 50. A man under 55 must earn at least 6,300,000. After the conclusion of the contract, you will receive 10% of this amount to your bank account within a week. And then every year - 25%. For example, if at the time of the conclusion of the contract there were 10,000,000 tenge on the account, then the one-time payment will be 1,000,000 tenge, and the annual payments will be 400,000. They are assigned for life.

Features of annuity

Payments are assigned on an ongoing basis, until the end of a person's life. In addition, under the contract, you can set a period for heirs from 0 to 30 years. The insurance company makes it possible to receive an additional lump sum payment of up to 8% of the amount of savings. And of course, indexation will be carried out every year. While it is expected to be5%, but it is quite possible that over time this amount will change upwards. You can follow further changes in the work of the pension fund on the official website.