1) Please tell us more about voluntary pension contributions.

Kazakhstan's funded pension system includes the following types of contributions: compulsory contributions (10% of an employee's salary, deducted monthly by the employer), compulsory occupational pension contributions (5% of the income of workers in hazardous occupations, paid by the employer from their own budget), and employer’s compulsory pension contributions (ECPC) starting in 2024 for all employees born in 1975 and later (from 1.5% in 2024, gradually increasing to 5% in 2028). There are also voluntary pension contributions (VPC), which can be made by both individuals and legal entities. Individuals contribute for themselves and/or their loved ones from their own income, while legal entities contribute for their employees and/or third parties. It's worth noting that citizens pay VPC voluntarily, independently determining the amount and frequency of contributions. This is one of the advantages of this type of contribution.

2) Please tell me how I can make voluntary pension contributions? Can my employer do this?

Voluntary pension contributions (VPC) can be made by both individuals and legal entities. Individuals contribute for themselves and/or their dependents from their own income, while legal entities contribute for their employees and/or third parties.

Voluntary pension contributions can be transferred through second-tier banks or by submitting an application to the employer, who will then transfer the contributions to the UAPF for the stated benefit.

An IPSA for VPC accounting is opened automatically without an application based on:

- lists of individuals submitted by agents to the UAPF when transferring VPC;

- an initial contribution received by the UAPF from an individual for themselves or for a third party when transferring VPC.

3) How and when can I start receiving benefits through voluntary pension contributions?

Pension benefits through the VPC can be received before reaching retirement age, starting at age 50. They are also provided to individuals with disabilities, as well as foreigners and stateless persons who have permanently resided outside the Republic of Kazakhstan, unless otherwise provided by the laws of the Republic of Kazakhstan and international treaties ratified by the Republic of Kazakhstan.

We remind you that individuals who have reached the age of fifty or who have a disability can apply to the UAPF for VPC benefits through their personal account on the UAPF website or mobile app, as well as at a Fund office.

Detailed information on the VPC payment procedure is available on the UAPF website in the "Services"/"VPC Benefits" section.

You can easily monitor your pension savings from all types of contributions 24/7 in your personal account on the enpf.kz website.

4) In what cases are pension benefits from voluntary pension contributions assigned automatically?

In accordance with amendments to the Social Code of the Republic of Kazakhstan, which provide for pension benefits from the VPC in the manner and under the conditions specified in the VPC pension agreement and the UAPF pension rules, a no-application procedure for pension benefits from the VPC has been introduced since March 2026 for individuals who have reached retirement age and who have pension savings in the UAPF through the VPC and who have not previously applied to the UAPF for payment due to reaching the age of fifty or disability.

The no-application procedure for pension payments from the VPC (if any) provides for:

• automatic assignment of UAPF pension benefit payments from the VPC upon application to the State Corporation in the prescribed manner for a pension from the state budget and payments from compulsory pension contributions (CPC) and/or compulsory occupational pension contributions (COPC) in connection with reaching retirement age;

• pension benefit payments from the VPC as part of a proactive service based on the annual verification with the State Corporation of the availability of budget-funded old-age pension payments and/or state basic pension payments for the specified individuals in the information system of the authorized body in the field of social protection.

The non-declaration procedure was adopted to establish a unified approach to pension benefit payments from the UAPF for individuals who have reached retirement age. This innovation optimizes pension payments from the VPC and eliminates the risk of unclaimed pension savings from the VPC by individuals who have reached the generally established retirement age and who have not previously applied to the UAPF for payment due to reaching the age of fifty or disability.

Pension benefits from the VPC will be made in a lump sum if the amount of pension savings from the VPC does not exceed twelve times the minimum pension established by the law on the republican budget and in effect as of January 1 of the corresponding financial year (in 2026 – 828,588 tenge (12 * 69,049)) or until the pension savings are depleted, according to a monthly schedule, combined with payments from mandatory contributions. However, the recipient may apply to the UAPF to change the terms of VPC payments.

5) Are voluntary pension contributions inherited?

In the event of the death of an individual with pension savings, including those from voluntary pension contributions, they are inherited in accordance with the procedure established by Kazakhstan law. Specifically, pension savings are inherited by will or by law. If there is no will or if the will only determines the fate of the entire inheritance, as well as in other cases, then inheritance by law takes effect.

6) Are voluntary pension contributions invested? Can they be transferred to investment portfolio managers?

Voluntary pension contributions, like all types of compulsory contributions, are invested and generate income for contributors. By default, pension assets are managed by the National Bank of the Republic of Kazakhstan. However, contributors have the right to transfer pension savings to investment portfolio managers (IPMs), which offer various investment strategies with varying levels of return and risk. While compulsory and compulsory occupational pension savings can be transferred to IPMs up to 50%, voluntary pension savings can be transferred to IPMs for management in full.

The transfer of IPM savings occurs upon the contributor's application, which can be submitted electronically through their personal account on the fund's website or at any UAPF branch. Based on investment results, the management company can be changed, but no more than once a year. Thus, participation in pension asset management is another advantage of VPC.