B. Nurymbetov explained the issues of targeted use of pension savings
The Minister of Labor and Social Protection of the Population of the Republic of Kazakhstan, Birzhan Nurymbetov, at a briefing on the implementation of the Address of the Head of State dated September 2 of the current year, held at the press center of the Government, gave clarifications on the possibility of the targeted use of part of their pension savings by Kazakhstanis for improving housing conditions, treatment for transfer to the management of financial companies.
According to the minister, the right to withdraw part of the savings from the Unified Pension Fund (hereinafter referred to as the UAPF) for the above needs will be used by:
1. Citizens of working age who have pension savings – part of the amount that exceeds the so-called “sufficiency threshold” (about 529.7 thousand people).
The basic principle is that pension savings are necessary for the future pension provision of citizens from the accumulative pension system (hereinafter – NPS). Therefore, a certain amount must remain in the retirement account. In addition to this amount, citizens will be able to use it at their choice for the above needs.
2. Successful pensioners who have savings in the UAPF – up to 50% of the remaining amount (about 178.4 thousand people).
For this category of citizens, the total pension (including old-age pension, basic pension, and payments from the UAPF) must be at least 40% of the amount of lost income (previously received wages).
3. Citizens who have already issued a pension annuity and have more savings – the remaining amount in the UAPF (about 13.3 thousand people).
“Thus, more than 721 thousand Kazakhstanis will be able to use the opportunity of targeted use of part of pension savings,” Birzhan Nurymbetov said.
Under the “threshold of sufficiency”, according to the head of the MLSPP, the minimum required amount of pension savings for a contributor of a certain age is considered, which, taking into account future regular 10% pension contributions to the UAPF from his income (not lower than the minimum wage), will allow providing pension payments, not below the minimum pension up to 82 years.
The main parameters of the “sufficiency threshold”:
– the same for women and men;
– will be recalculated for new recipients, based on the emerging parameters (profitability, inflation, the size of the minimum payment, etc.);
– calculated for each age starting from 20 years.
“According to preliminary calculations, for example, for citizens aged 30 years, the“ threshold of sufficiency ”will be 2 million 518 thousand tenge. In addition to this amount, they can withdraw at choice for the above needs. For 35 years – 2 million 961 thousand tenge; 40 years – 3 million 437 thousand tenge; 45 years – 3 million 947 thousand tenge; 50 years – 4 million 495 thousand tenge; 55 years – 5 million 084 thousand tenge; 59 and more years – 5 million 586 thousand tenge. Achievement of these “threshold” amounts is quite affordable for permanently working citizens with income at the level of the average monthly wage in the country, “the minister explained.
Birzhan Nurymbetov also noted that the above categories of citizens can use part of their pension savings in order to improve their living conditions or to pay for treatment for themselves, spouses, or close relatives (grandparents, parents, children, grandchildren, brothers-sisters). For targeted use, it will also be possible to combine the funds of the specified family members.
“If the established requirements are met, there are no restrictions on the number of seizures; it is allowed that citizens can reuse part of their pension savings for the same or for a different purpose, ”he stressed.
The use of part of pension savings to improve housing conditions provides for the possibility of acquiring housing (in the primary and secondary market) or a land plot, refinancing or repayment of mortgage loans (in any second-tier bank, under any program), building, or repairing one’s own housing and other options for improving housing conditions. Housing purchased using pension savings can only be sold after 5 years.
It is proposed that the newly created Otbasy Bank ( Zhilstroisberbank JSC, hereinafter – HSSB) be designated as an authorized operator for the targeted use of paid pension savings to improve housing conditions, on the basis of the “one window” principle.
The procedure for improving housing conditions through payments of pension savings is approved by the Ministry of Industry and Infrastructure Development of the Republic of Kazakhstan.
It is assumed that in order to use part of the pension savings to pay for treatment, the contributor will apply to specially created commissions at health departments (regions, cities of republican significance). Having received the conclusion of the commission on the need to provide medical care, after choosing a clinic for treatment, the depositor applies to the Authorized Operator for the targeted use of the paid pension savings to pay for the treatment (to be determined by the Government of the Republic of Kazakhstan).
The rules for sending citizens to receive medical care through payments of pension savings will be determined by the Ministry