Modernization of pension system to continue until 2030 in Kazakhstan

Photo: Modernization of pension system to continue until 2030 in Kazakhstan / Kazakhstan

Astana, Kazakhstan, July 21
By Daniyar Mukhtarov - Trend:

Kazakhstan has developed a new concept for further modernization of the pension system until 2030, the press service of the Ministry of Labor and Social Welfare told Trend.

"The new concept involves three transformations. First - pension at basic level, the second - cumulative pension system, and the third - the introduction of a new notional pension," the ministry said.

The new concept will be implemented in two phases: in 2016 - 2020 and in 2020 - 2030.

"The order and conditions of assigning of the basic pension will be changed within the frame of the first phase. Namely, from July 1, 2017 is provided to transfer to the new order of assignment of the basic pension. It will be imposed only at general retirement age, depending on the length of participation in the pension system," the press service said.

At present, the basic pension is assigned in the same amount for all citizens who are retiring, regardless of work experience, and the amount of previously paid wages.

In regard to the introduction of the notional pension system, it will be formed by 5 percent of employers` contributions in favor of employees. It means that, individual retirement account is opened for every member of the single pension fund (ENPF) in which the amount of transferred contributions and pension rights are fixed.

Compulsory occupational pension contributions in the amount of 5 percent of payroll implemented by the employers have been introduced in addition to compulsory pension contributions of employees for the people, those who are working in harmful conditions from January 1, 2014.

Herewith, the employers deduct compulsory occupational pension contributions only for those types of industries, which belong to the harmful sphere, and only in favor of those who are engaged in them. The list of types of hazardous industries and the list of occupations list of workers employed therein, approved by the Kazakh government and will be reviewed periodically by taking into account the changes of working conditions.

Edited by CN

Follow us on Twitter @TRENDNewsAgency