Questions about the program "National Fund for Children" Printable version
Last update: 19.03.2024What is the National Fund for Children?
All children - citizens of Kazakhstan born since 2006 will annually receive deductions of fifty percent from the investment income of the National Fund of the Republic of Kazakhstan. The amounts accrued to children in previous years will continue to be invested as assets of the National Fund. Thus, an investment income will continue to add-up. Until the children reach the age of 18, the target payments will be accrued without the right to early withdrawal.
Who will get the payments?
All Kazakhstani citizens under the age of 18 (who were under the age of 18 before January 1, 2024) will get payments in USD to their accounts. Even if a child was not born a citizen of Kazakhstan, but acquired the citizenship later, the payment will still be provided out of the National Fund.
Those who have left Kazakhstan for permanent residence in another state lose the right to use the funds allocated by the National Fund. Also, the payments are not provided to children with a residence permit.
In case of a child`s death, parents will be able to receive money from the National Fund after the 18th anniversary of a child`s birth.
If no one applies for money within 10 years, the funds will be transferred to an individual pension account as voluntary pension contributions. It will be possible to get the money in accordance with the legislation of the Republic of Kazakhstan.
When the payments will be provided?
At the beginning of each year following the reporting year, children will receive funds from the National Fund in the form of target payments, including investment income for each year of participation in the program until the age of eighteen.
Amount of savings and conditions of funds utilization
Accounts will be opened by the UAPF JSC (applying to second-tier banks is not required) automatically based on the Individuals Database of the Ministry of Justice.
Every year in January, funds will be credited to the accounts of children in UAPF JSC until the age of 18 from the moment of participation in the project. Regular reports will be posted on the official website of the UAPF (enpf.kz).
Do I need to open an account for each child?
Special accounts in the Unified Accumulative Pension Fund will be opened automatically for each child. You don't need to apply for it. However, parents will have to check the correctness of data about each child:
• get a document certifying a child`s ID, including IIN (if this has not been done yet for some reason);
• check the availability and correctness of personal data (full name, date of birth, IIN, citizenship);
• check the availability of information about children in a personal account of e-Gov portal in the "Information about children" section.
If a child:
• has no identity document and no IIN, apply to the Public Corporation at the place of residence;
- • citizenship is missing or has not been established, or incorrectly indicated, it is necessary to contact the migration service at the place of residence.
When and how can I withdraw money?
When a child turns 18, the UAPF provides a target savings account to which the money will be transferred. An application and documents confirming the intended purpose are submitted to Kazpost JSC and second-tier banks. The above organizations act as authorized operators.
The money from the UAPF will be credited to recipients` accounts opened with an authorized operator in US dollars. If a recipient selects the intended purpose as "Payment for education outside the Republic of Kazakhstan", money conversion is not required. For other purposes, a recipient converts the target savings into KZT at the exchange rate relevant at the time of transfer.
Parents will be able to check the receipt of payments from the National Fund to children's accounts in February 2024.
For what purposes will a child be able to spend the funds received?
By the time, the children reach the age of 18, target savings are transferred to the target savings accounts in US dollars, cease to be invested and are intended for acquiring housing or education.
One of the authorized operators of the project is Otbasy Bank. Using its enpf-otbasy.kz platform it will be possible to use the funds for selected purposes, namely improvement of housing conditions or payment for education.
The platform also enables converting the funds into a required currency.
To use the enpf-otbasy.kz platform, you need to log-in using a digital signature. Then you need to open a current account for obtainment of payments from the UAPF under the National Fund for Children project.
If a participant of the National Fund for Children program has not been the bank customer up to this point, then a current account can be opened at the bank's branches with the help of consultants or via a video call available on the website.
If a participant of the National Fund for Children program is already a customer of Otbasy Bank, then a current account is opened on the platform only.
Afterwards, it is necessary to make a request for withdrawal of funds from the UAPF and select an intended use on the platform. After getting the money from the UAPF, the bank will check an application and the attached documents and, if the decision is positive, redirect the funds.
Storage of accumulated funds
Pursuant to the program, if upon reaching the age of 18 a citizen does not wish to use the funds for permitted purposes, the funds will be kept in the account for 10 years. After this period, the funds will be transferred to a recipient's retirement account.
More information about the National Fund for Children project is available on the special page of "Otbasy Bank".
Are the funds subject to taxation?
Amendments have been made to the Tax Code on exemption of target savings from taxation, also the exemption covers transfer of the savings to an individual pension account as voluntary pension contributions.
The following is prohibited in relation to the targeted savings out of the National Fund:
- seizure or foreclosure of money held in bank accounts.
- suspension of debit transactions on funds held in bank accounts.
- withdrawal of money without the consent of a recipient.
- temporary restriction for disposal of money held in the bank.
- individual income tax.
Is it possible to use targeted savings not in full, but in parts?
Funds available on a target savings account can be used an unlimited number of times within the limits of available savings according to the intended purpose provided that a recipient reaches the age of eighteen and has citizenship of the Republic of Kazakhstan.
We moved to our historical homeland which is Kazakhstan and we have the kandas status. Can our child participate in the National Fund for Children project?
According to the Law "On the Rights of the Child in the Republic of Kazakhstan", a citizen of the Republic of Kazakhstan who has not reached the age of eighteen is a participant in the project.
Pursuant to the Law "On Citizenship of the Republic of Kazakhstan", after acquiring the citizenship of the Republic of Kazakhstan, a child will be able to participate in the National Fund for Children project.