The right to use part of their pension savings for targeted needs can be used by:
- Working citizens who have pension savings formed from mandatory pension contributions (MPC) and mandatory professional pension contributions (MPPC). The right for intended use will be provided for citizens with savings exceeding a certain threshold of sufficiency; it will be determined for each age separately.
- Actual pensioners (including law enforcement agency pensioners) - within no more than 50% of the remaining amount of pension savings in the UAPF, providing that the total size of their pension (including retirement or seniority pension, basic pension) guarantees replacement of lost income at a level that meets international standards (at least 40%).
- Persons who have entered into retirement annuity contracts with insurance companies which provide them with life annuity payments.
According to the UAPF, as of December 1, more than 761 thousand working depositors can exercise the right of early use with a total volume of more than 2.4 trillion tenge. The average amount of savings exceeding the amount of sufficiency is about 3.2 million tenge.
To exercise the right to use part of their pension savings, people, first of all, should check their savings and make sure that the required amount exceeding the sufficiency threshold is available.
The UAPF provides accessible and prompt ways to obtain a statement through the fund's website or mobile application. It is possible to get the statement remotely, 24/7, without visiting the UAPF offices.
Those who decide to withdraw part of their pension savings will be able to contact an authorized operator for housing and medical treatment, which will be determined by the Government. It is expected that Otbasy Bank will act as such an operator.
After reviewing the depositor's documents, the authorized operator will send a notification to the UAPF for the transfer of pension savings in the amount determined and specified by the depositor in his application.
The depositor will have the right to choose the method of payment of the individual income tax (IIT) when paying out pension savings (let us remind, when transferring contributions, the IIT has not been charged). People can choose to defer the IIT payment or pay it in full when paying savings to improve housing conditions and (or) pay for medical care.
The UAPF is to transfer pension savings within 5 working days after receiving a notice from the authorized operator. The authorized operator will credit the savings to special accounts within 1 business day.
Pension savings can be kept in special accounts for no more than 45 working days. During this period, the savings must be used for their intended purpose or returned to the depositor's pension account in the UAPF.
People will also be able to participate in the management of their savings through self-selection of Investment Portfolio Managers (IPMs) that offer different investment strategies. To transfer a part of pension savings that exceed the sufficiency threshold the depositor will be able to submit an application to the UAPF in the form and with the required documents attached. The application to the UAPF can be submitted by personal appeal or through the enpf.kz Internet resource using an electronic digital signature.
UAPF, as a regulated financial market participant, will enter into trust agreements with companies, custodian agreements with custodian banks, as well as agreements with an authorized operator for housing and treatment. Thus, the unified accounting and monitoring of pension savings will retain.
Source: https://www.enpf.kz/ru/about/press-center/news/index.php?ELEMENT_ID=11486
Photos are from open sources.
