Kazakhstani pension system guarantees the safety of mandatory pension contributions, taking into account inflation. This is spelled out in paragraph 1 of Article 207 of the Code "Social Code of the Republic of Kazakhstan", as well as in the Rules for the implementation of these guarantees by the state.
According to the rules , participants of the accumulative pension system can get the right to calculate the payment of the difference between the amount of actually made mandatory pension contributions, mandatory professional pension contributions taking into account the level of inflation and the amount of pension savings generated from mandatory pension contributions, mandatory professional pension contributions.
This payment is a lump sum and is calculated according to special formulas.
Who is entitled to receive state guarantee payments
The right on the calculation of the payment of the state guaranted to:
- persons who have reached retirement age, on the date of reaching retirement age;
- persons who have been assigned with disabilities of groups 1 and 2, as of the date of withdrawal of pension savings from the UAPF;
- foreigners and stateless persons who left for permanent residence outside the Republic of Kazakhstan, as of the date of withdrawal of pension savings from UAPF;
- heirs of a person entitled to receive payment in the event of his death.
The attorney can apply for thesubmission of documents for the calculation of the payment amount (if there he has a notarized power of attorney).
Where to apply
Pensioners by age who are already recipients of pension payments, the difference in the payment of the state guarantee is calculated on a proactive basis without the need to submit an application and additional documents after the appointment of the basic pension payment.
The remaining persons who are entitled to calculate the amount of the difference under the state guarantee apply to the branches of the NJSC SC Government for Citizens - public service centers and provide the following documents:
- Application;
- Identity document;
- information about the bank account number of the recipient.
Foreigners provide the following documents:
- Application;
- international passport;
- information about the bank account number;
- in case if his attorney addresses on behalf of a foreigner, then all copies of the necessary documents must be notarized.
Attorneys must provide their own identity document, the original power of attorney or a notarized copy of it.
According to paragraph 8 of Chapter 2 of the Rules, in the event of the death of a person entitled to pay the difference, the amount of the difference payment is made to the heir in the manner established by the Civil Code of the Republic of Kazakhstan.
In this case, the heir submits the following:
- Statement on the form.
- identity document of the heir (passport of a citizen of the Republic of Kazakhstan, identity card of a citizen of the Republic of Kazakhstan, certificate of a stateless person, residence permit of an alien in the Republic of Kazakhstan, foreign passport);
- a notarized copy of the death certificate of the person entitled to pay the difference;
- the original or a notarized copy of the certificate of the right to inheritance, or the original or a notarized copy of the agreement on the division of inherited property, a court decision that entered into legal force;
- information about the bank account number of the heir.
The procedure for consideration of appeals
NJSC SC “Government for Citizens”, within 2 working days from the date of acceptance of the application, requests from the UNPF information about the availability of an individual retirement account and amounts of pension savings generated from mandatory pension contributions and (or) mandatory professional pension contributions.
The UAPF provides the requested information to NJSC SC Government for Citizens within 2 business days.
NJSC SC Government for Citizens within 1 business day from the moment of receiving information reconciles information on the amount of pension savings received from the UAPF with the amount of mandatory pension contributions, mandatory professional pension contributions, taking into account the inflation rate for the relevant period.
The formulas used in calculating the amount of the difference payment are set out in paragraph 13 of Chapter 3 of the Rules.
NJSC SC Government for Citizens forms within 3 working days after the calculation of the amount of the difference payment forms and sends the recipient an electronic case file (ECF) to the authorized social welfare authority.
The authorized body within 5 working days from the date of receipt of the ECF decides on the appointment or refusal of the appointment, indicating the reasons for the refusal to pay the difference and sends it to the branch of the NJSC SC Government for Citizens.
NJSC SC Government for Citizens informs the applicant within 2 working days about the appointment or refusal to appoint (indicating the reasons for the refusal) the difference payment by sending an SMS alert to the applicant's mobile phone indicated in the application.
Next NJSC SC Government for Citizens interacts with the authorized bodies on the part of the transfer of budgetary funds.
Upon receipt of budget funds, NJSC SC Government for Citizens forms payment orders with the payment purpose code 030 in accordance with the payment schedule and transfers the difference payment amounts to the beneficiary’s bank account opened with second-tier banks or organizations engaged in certain types of banking operations opened on the territory of the Republic of Kazakhstan.
Examples of calculating the state guarantee
The payment of the state guarantee is calculated by the formula:
The amount of payment under the state guarantee = amount (MPC+CPI) - amount (APF), where:
• MPC+CPI - the amount of contributions, taking into account the level of inflation;
• APF - the amount of pension savings in the UAPF.
If in the fund as a result of investment, the amount of pension savings was greater than the amount of pension contributions, taking into account the level of inflation, the state guarantee will not be paid.
Example 1:
Askarov Azamat Armanovich, born on 25.03.1960
The moment of the right to pension payments from UAPF JSC in connection with the achievement of the retirement age – 25.09.2018
At the time of eligibility – 25.09.2018, the amount of mandatory pension contributions (MPC) is 55 241.70 tenge.
The amount of MPC, taking into account the level of inflation (MPC+CPI) – 161 714.57 tenge.
The amount of pension savings in the UAPF, taking into account investment income (APF) – 116 178.62 tenge.
Calculation of the amount of payment under the state guarantee: the sum of the MPC+CPI minus the sum of the APF - 161 714.57 - 116 178.62 = 45 535.95.
Total amount of payment under the state guarantee is 45 536 tenge .
Example 2:
Ivanova Galina Sergeyevna, born on 15.09.1957
The moment of the right to pension payments from UAPF JSC in connection with the achievement of the retirement age – 15.09.2015
At the time of eligibility – 15.09.2015, the amount of mandatory pension contributions (MPC) is 489 326.93 tenge.
The amount of MPC taking into account the level of inflation (MPC+CPI) is 577 889.53 tenge
The amount of pension savings in the UAPF, taking into account investment income (APF) is 579 864.24 tenge.
Calculation of the amount of payment under the state guarantee: the amount of the MPC+CPI minus the amount of the APF is 577 889.53 - 579 864.24 = - 1 974.71 , that is, the amount of payment under the state guarantee is not allowed and the refusal decision is made by the authorized body .
