Monthly payments from the unified national pension fund will be calculated in a new way in Kazakhstan

Monthly payments from the unified national pension fund will be calculated in a new way in Kazakhstan

From April 1, 2021, Kazakhstan will use a new method for calculating the amount of pension payments.

The size of the monthly pension payment from the UNPF is determined as 1/12 of the annual amount of pension payments, calculated in accordance with the methodology.  From January 1, 2021, the monthly pension payment from the UNPF must be at least 70% of the subsistence minimum (previously, at least 54% of the subsistence minimum).  Thus, in 2021, the size of the monthly pension payment from the UNPF in 2021 is at least 24,011.4 tenge.

According to the updated methodology for calculating the amount of pension payments, from April 1, 2021, the annual amount of pension payments in the first year of making pension payments will be calculated as the product of the amount of pension savings by the rate of payments of pension savings – 6.5%.  In subsequent years, the size of the monthly pension payment will be recalculated by annually increasing the size of the monthly pension payment for the previous year by the rate of indexation of pension payments – 5%.

In addition, the modified methodology provides for adjustment multiplying factors for recipients of certain categories:

– people with disabilities of 1 or 2 groups, established indefinitely;

– people who worked in hazardous and hazardous industries, whose savings were formed at the expense of compulsory professional pension contributions in the aggregate for at least 60 months.

For persons meeting more than one of the above conditions, the correction factor with the largest value is applied.

The new method for calculating the amount of pension payments applies to relations that arose from April 1, 2021.  For persons who have exercised their right to receive pension payments from the UNPF before January 1, 2018, the annual pension payment is at least thirty times the minimum pension (in 2021, 30 x 43,272 = 1,298,160 tenge).  Payments are made according to the previously selected schedule.

To persons who have exercised their right to receive pension payments from the UNPF from January 1, 2018 to March 31, 2021 (inclusive), according to the new method for calculating the amount of pension payments, from January 1, 2022, monthly pension payments will be increased by the rate of indexation of pension payments in the amount of  5%, with subsequent annual indexation.

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