Reasons to create a single pension fund Done

Reasons to create a single pension fund Done by : Oteshova Dana Dyussupova Gaukhar

Nursultan Nazarbayev A. : “For improvement of pension system it is necessary to create a uniform pension fund, having transferred it accounts of all private accumulative pension funds, – the head of state told. – Such consolidation operated by National bank, will allow more effectively and to dispose safely of accumulation of our citizens”

What is the uniform accumulative pension fund? • The Uniform Accumulative Pension Fund (UAPF) is created in August, 2013 in Kazakhstan on the basis of the state accumulative pension fund (SAPF).

Main reasons and consequences of creating UAPF • 1 ) To provide safety of pension accumulation, transparency of activity and target control of management of pension assets. • 2 ) To lower rates of commissions twice: from 0, 05% to 0, 025 from pension assets and from 15% to 7, 5% from investment, the income. • 3 ) Increase in volume of pension accumulation due to increase of investment profitability.

Current system Usual productions: OPV (10%) Harmful and heavy productions : DPPV(5%) For January 1, 2013 the number of participants of voluntary professional pension system makes 4225 people, the volume of accumulation makes 133, 9 million tenges. Expecting system OPV (10%) + OPPV (5%) = 15% Employers will deduct OPPV only according to the list of the professions carried to harmful, which will be approved by the Government and periodically to be reconsidered (the forecast of 135 thousand people). Example: In Coal department JSC Arselor Mittal Temirtau only 31825 workers, from them in harmful working conditions - 13212 workers or 41, 5% are occupied. The fund of compensation makes 55, 4 billion tenge a year. At OPPV introduction in addition it is required on OPPV – 1, 1 billion tenge a year.