1) Good afternoon! Now I have a delay on a consumer loan and a trial is being prepared. Can bailiffs take my pension savings from the UAPF on account of the debt? In this case, will I be left without a pension in the future?
According to paragraph 3 of Art. 50 of the Law of the Republic of Kazakhstan On Pension Provision in the Republic of Kazakhstan (hereinafter referred to as the Law), seizure or foreclosure, including on pension savings on the debts of the contributor (beneficiary), is not allowed.
Also, in accordance with paragraph 14) of Art. 98 of the Law of the Republic of Kazakhstan On Enforcement Proceedings and the Status of Bailiffs, pension savings on the debts of the contributor (beneficiary) are monetary amounts that cannot be levied.
Thus, the pension savings available on your individual pension saving account cannot be seized by a bailiff or any third party.
2) My spouse is a foreign citizen, but he works for a Kazakh company and regularly makes pension contributions to the UAPF. Now he has accumulated an amount above the new threshold of sufficiency for withdrawal, can he exercise this right?
In accordance with Article 2 of the Law of the Republic of Kazakhstan On Pension Provision in the Republic of Kazakhstan, foreigners permanently residing in the territory of the Republic of Kazakhstan enjoy the right to pension provision on an equal basis with citizens of the Republic of Kazakhstan, unless otherwise provided by laws and international treaties.
According to subparagraph 14) of Article 1 of the Law of the Republic of Kazakhstan On Identity Documents, a document proving the identity of a foreigner on the territory of the Republic of Kazakhstan and confirming that he has received a permit for permanent residence in the Republic of Kazakhstan is a residence permit of a foreigner in the Republic of Kazakhstan (hereinafter referred to as a residence permit) .
Consequently, foreigners permanently residing in the Republic of Kazakhstan on the basis of a residence permit have the right to use part of their pension savings in order to improve their living conditions and (or) pay for treatment, as well as to transfer it to trust management of an investment portfolio manager, subject to the requirements established by law.
3) Hello! For the past three months I have not had a permanent job and, accordingly, I have not had deductions to the UAPF for this period. Before that, I had a stable “white” salary and I had a small amount accumulated in the Pension Fund and I would like to know if my savings in the Fund can “burn out”?
Your pension savings, regardless of the amount of savings, are your property and are kept in your individual pension saving account (hereinafter referred to as IPSA) until retirement age or other grounds for their payment. It is important to remember that the money on the IPSA is stored in the UAPF indefinitely and does not have a specific expiration date.
According to Article 5 of the Law of the Republic of Kazakhstan On Pension Provision in the Republic of Kazakhstan, the state guarantees recipients the safety of compulsory pension contributions, compulsory occupational pension contributions (hereinafter referred to as CPC, COPC) in the UAPF in the amount of actually paid CPC, COPC, taking into account the inflation rate at the time of reaching persons of retirement age established by the Law, as well as in cases and in the manner determined by the Law and other regulatory legal acts of the Republic of Kazakhstan.
In addition, pension contributions on the IPSA are invested by the pension asset trust manager - the National Bank of the Republic of Kazakhstan (hereinafter referred to as the NBRK) in various financial instruments. The NBRK invests pension assets in accordance with the list of financial instruments permitted to be acquired at the expense of pension assets, approved by the Government of the Republic of Kazakhstan, and investment limits in accordance with the UAPF Investment Declaration.
The objectives of investing pension assets are to ensure the safety of pension assets and to obtain real returns in the long term at a risk level that makes it possible to ensure the safety of the value of pension assets with a high degree of return.
At the same time, the investment income resulting from investment is a variable value, i.e. is not a strictly defined value, as provided for in bank deposit agreements, which clearly define the amount of remuneration for a certain period, and depends on many factors, including the market value of securities and changes in exchange rates.
4) Good afternoon! At the moment I am engaged in private transportation via the application, I do not make any pension contributions. Can I make compulsory pension contributions for myself??
According to subparagraph 8 of paragraph 7 of Article 24 of the Law of the Republic of Kazakhstan On Pension Provision in the Republic of Kazakhstan, the withheld (accrued) CPC are transferred to the State Corporation by individuals who are payers of the single aggregate payment (hereinafter referred to as the SAP).
Thus, you can pay in your favor the SAP, which provides for a simplified procedure for registering the activities of informally employed citizens. Self-employed or independent workers are individuals who independently carry out activities for the production (sale) of goods, works and services in order to generate income without state registration of their activities, with the exception of individual entrepreneurs (IE), persons engaged in private practice (PE), founders (participants) of a business partnership and founders, shareholders (participants) of a joint-stock company, members of a production cooperative. In other words, these are those who earn their living without an officially concluded employment contract with employers.
According to Article 774 of the Tax Code (Code of the Republic of Kazakhstan dated December 25, 2017 No. 120-VI On taxes and other obligatory payments to the budget), SAP payers are individuals who carry out entrepreneurial activities without registering as an individual entrepreneur, who simultaneously meet the following conditions:
1) paid SAP;
2) do not use the labor of employees;
3) provide services exclusively to individuals who are not tax agents, and (or) sell exclusively to individuals who are not tax agents, agricultural products of personal subsidiary plots of their own production, with the exception of excisable products. At the same time, the amount of income of the SAP payer received as a result of carrying out the activities specified in this subparagraph for the calendar year must not exceed 1175 times the amount of the monthly calculation index (MCI) established by the SAP Public Budget Law and effective as of January 1 of the corresponding financial year. Individuals are recognized as SAP payers from the date on which such payment is made until the last day of the month for which SAP is paid.
For the convenience of distributing payments between the budget and funds, SAP will be paid by self-employed citizens in the total amount by depositing SAP in cash or by bank transfer through banks or organizations that carry out certain types of banking operations in one payment order to the bank account of the Government for Citizens State Corporation, which distributes SAP on individual income tax (10% of the budget), social contributions (SFSS 20%), CPC (UAPF 30%) and contributions to compulsory health insurance (FSMI 40%).
SAP payment to self-employed individuals allows: to be a member of the compulsory social health insurance system, to pay CPC and, depending on the length of participation in the pension system, to have the right to receive a basic pension payment, to receive social benefits in cases of disability, job loss, loss of a breadwinner, pregnancy and childbirth, adoption or adoption of a child, caring for a child under one year old.
In addition, in order to receive higher pension benefits in the future, you can pay voluntary pension contributions (hereinafter referred to as VPC) in your favor. At the same time, the amount and frequency of VPC payment are established by an individual or legal entity independently.
On VPC, as well as on CPC, investment return is accrued, which can significantly increase your savings.
It should be noted that the basis for opening an individual pension saving account for VPC accounting is the first voluntary pension contribution received by the UAPF. Thus, the contributor (beneficiary) does not need to visit the Fund's office, the identification of an individual in whose favor VPCs are made is carried out according to personal data (full name, IIN, date of birth) indicated in the electronic format of the payment order when transferring VPCs, and all the necessary information: about the details of a valid document proving the identity of an individual, about the place of permanent residence, UAPF receives other information from the relevant information systems of state bodies.
VPC can be paid to UAPF through second-tier banks (hereinafter referred to as STB) or Kazpost JSC. Some STBs provide an opportunity to transfer contributions online (through a mobile application or self-service terminals). In addition, it is possible to submit an application to the employer, on the basis of which the latter will regularly transfer VPC to the UAPF in favor of the applicant or a third party.
5) Hello! My grandmother receives a good pension, but she saves almost half for her funeral, thus depriving herself of some shopping or rest. She does not believe that after her death, her family will be paid pension savings from the UAPF for her funeral, is this true?
The money accumulated on individual pension saving accounts is the property of the contributor (beneficiary) and is stored in the UAPF indefinitely, even in the event of his/her death.
In accordance with the provisions of paragraph 5 of Article 50 of the Law of the Republic of Kazakhstan On Pension Provision in the Republic of Kazakhstan (hereinafter referred to as the Law), in the event of the death of the beneficiary, as well as the person who has pension savings and has not reached the generally established retirement age, his family or the person who paid for burial, UAPF is paid a lump-sum benefit for burial within the amount of 52.4 times the monthly calculation index established for the corresponding financial year by the law on the republican budget, but not more than the funds available on the individual pension saving account.
If the balance of pension savings on the beneficiary's individual pension saving account after the lump-sum benefit for burial amounts to an amount not exceeding the minimum pension established for the corresponding financial year by the law on the republican budget, this balance is paid as a payment for burial.
If pension savings remain on the pension account after a one-time benefit for burial, they are inherited in the manner prescribed by the legislation of the Republic of Kazakhstan.
Inheritance of pension savings is carried out by will or by law. When there is no will or does not determine the fate of the entire inheritance, as well as in other cases established by civil law, inheritance by law takes place.
According to the Civil Code of the Republic of Kazakhstan, in order to acquire an inheritance, the heir must accept it by filing at the place of opening of the inheritance to a notary or authorized in accordance with the law to issue a certificate of the right to inheritance to an official of an application for acceptance of the inheritance or an application for issuing a certificate of the right to inheritance. The inheritance must be accepted within six months from the date of the opening of the inheritance, i.e. within six months from the date of death of the testator.
At the request of the heir who missed the deadline for accepting the inheritance (Article 1072-2 of the Civil Code of the Republic of Kazakhstan), the court may restore this deadline and recognize the heir as having accepted the inheritance if the heir missed this deadline for good reasons and provided that the heir who missed the deadline, established for the acceptance of the inheritance, went to court within six months after the reasons for missing this period have disappeared. In accordance with the Civil Code of the Republic of Kazakhstan, successors are divided into seven stages, including, first of all, the right to inherit under the law is received in equal shares by the children of the testator, including adopted children, spouses and parents.
In accordance with Article 1083 of the Civil Code of the Republic of Kazakhstan, if there are no heirs either by will or by law, or none of the heirs has the right to inherit, or all of them have renounced the inheritance, the inheritance is recognized as escheated property.
Escheated property passes into communal ownership at the place of opening of the inheritance.