1. I heard that the Social Code provides for changes in payments from the UAPF according to the established schedule. Can you explain exactly what changes have been made?

There have been no significant changes in the procedure for making pension payments from the UAPF. 

From the date of entry into force of the Social Code, that is, from July 1, 2023, payments are made in accordance with the procedure established at the time of pension payments.

Previously, in accordance with the Methodology for calculating the amount of pension payments, approved by the Decree of the Government of the Republic of Kazakhstan dated 02.10.2013 No. 1042, the amount of the monthly pension payment was calculated from the amount of pension savings as of the date of the recipient’s application. 

For example, according to subparagraph 1) of paragraph 3 of Rules No. 521, if the amount of pension savings on the date of payment from the UAPF does not exceed twelve times the minimum pension established by the law on the republican budget for the corresponding financial year, this amount is paid to the recipient from the UAPF at a time.

Otherwise, the order of payments according to the schedule remained the same. In accordance with article 207, paragraph 1, of the Social Code, the assignment of pension payments by age is made:

At the same time, the assignment of pension payments by age to women is made:

from January 1, 2023 to January 1, 2028 - upon reaching the age of 61;

from January 1, 2028 - upon reaching 61.5 years;

from January 1, 2029 - upon reaching the age of 62;

from January 1, 2030 - upon reaching 62.5 years;

from January 1, 2031 - upon reaching the age of 63.

To assign payments according to the schedule in connection with the onset of retirement age, it is necessary to contact the Public Corporation “Government for Citizens”.

People with indefinite disability of group 1 or 2 should apply to the UAPF for payments. You can do this in one of the Fund’s branches or in your personal account on the website enpf.kz. In addition, recipients of this category can call a mobile group of UAPF specialists by submitting an electronic application on the enpf.kz website in the section “Electronic Services”.

2. Good afternoon, I recently got a job as a technologist at a chemical industry enterprise. My work is included in the list of industries, works, professions of workers engaged in work with harmful working conditions. Is my employer obliged to pay the compulsory occupational pension contributions on his own or withdraw them from my salary?

We explain that compulsory occupational pension contributions (COPC) are carried out by employers at their own expense in favor of employees engaged in work with harmful working conditions, whose professions are provided for by the list of industries, works, professions of employees, approved by Order No. 170 of the Minister of Labor and Social Protection of the Population of the Republic of Kazakhstan dated May 24, 2023.

It should be noted that the amount of compulsory occupational pension contributions (COPC) payable to the UAPF is 5% of the employee’s monthly income accepted for calculating COPC.

In case of exclusion of harmful working conditions, confirmed by the results of certification of production facilities, payment of compulsory occupational pension contributions by agents is not carried out.

An agent is exempt from paying compulsory occupational pension contributions to the UAPF for:

1) persons who have reached retirement age;

2) military personnel (except for compulsory-duty servicemen), employees of special state and law enforcement agencies, the state courier service, as well as persons whose rights to have special ranks, class ranks and wear uniforms are abolished from January 1, 2012;

3) recipients of pension payments for years of service.

3. Good afternoon, when I want to receive a service from the UAPF, I must consent to the collection and processing of personal data. What is it for?

Answering your question, we explain that the UAPF provides pension services to contributors (recipients) in accordance with the requirements of the law.

In the exercise of its legislative functions, the UAPF acts as the operator/owner of an information system containing personal data of depositors (recipients), their attorneys, and legal representatives.

When providing services, the UAPF exchanges information with information systems (databases) of third parties, which include state bodies and (or) state legal entities. The details of the identity document of the applicant in the UAPF information system, thanks to such an exchange, are relevant. We emphasize that your data is NOT transferred to individuals or other legal entities.

Due to interaction with government agencies and the exchange of information, the UAPF does not require copies of documents and (or) information from the applicant when providing pension services, if they are available in the information systems of state bodies and (or) state legal entities, that is, the UAPF provides prompt and efficient service that meets the requirements of the legislation of the Republic of Kazakhstan, excludes fraud.

Thus, in order to provide high-quality pension services by the UAPF, the personal data of contributors (recipients) / legal representatives / attorneys contained in the information systems of state bodies and (or) state legal entities is collected and processed.

4. Can I transfer 100% of my pension savings to private portfolio management companies?

We answer that no more than 50% of pension savings can be transferred to trust management at the expense of compulsory pension contributions (CPC) and compulsory occupational pension contributions (COPC) without taking into account the minimum sufficiency threshold by the investment portfolio manager (IPM) by choosing such a company independently.

Depositors who have voluntary pension savings will be able to transfer up to 100% of these pension savings to the IPM.

At the same time, it should be noted that the state provides a guarantee of the safety of pension savings only to that part of the savings that is under the jurisdiction of the National Bank of the Republic of Kazakhstan (NBRK). And the responsibility for the safety of pension savings transferred to personal management, and their profitability is borne by the company chosen by the depositor. Therefore, before transferring part of the pension savings to the trust management of the IPM, it is recommended to familiarize yourself with the current list of management companies on the market, study their investment declarations on the UAPF website, reviews of investment activities, learn more about the experience and results of the selected private company, and carefully consider possible risks. You can get more information about them and study their investment declarations on the website www.enpf.kz in the section “Services” – “Register of investment portfolio managers”. Detailed statistics on the transfer of pension savings at the expense of CPC and (or) COPC to trust management are also available on the website www.enpf.kz in the section “Indicators” – “Transfer of pension savings to management companies”.

5. Hello, please tell me, if I am dissatisfied with the results of the investment activities of the selected company that manages my pension assets, when will I be able to transfer them back under the management of the NBK?

In accordance with the Social Code of the Republic of Kazakhstan the period for the return of pension savings from the trust management of the IPM to the trust management of the NBRK has been reduced since 01.07.2023. That is, you can submit an application to the UAPF for the return of pension savings from the IPM to the trust management of the NBRK after 1 year from the date of their transfer to the trust management of the IPM (previously it was possible to apply only 2 years after the initial transfer of pension savings to the IPM).  

If pension savings have been transferred several times to the same IPM, the pension savings will be returned to the trust management of the NBRK no earlier than 1 year from the date of the initial transfer of pension savings to the IPM.

To transfer pension savings to one or more IPMs, as well as return savings under the management of the NBRK, the depositor must contact the UAPF with an application that can be submitted through a personal account on the UAPF website or by personal contact at any branch of the UAPF.

All the necessary information and step-by-step instructions for transferring part of pension savings at the expense of CPC and (or) COPC to IPM are available on the website www.enpf.kz in the section “Services” – “Transfer of part of pension savings to trust management”.