Akimat of the Atbasar district
The administrative center of the district is the city of Atbasar. The distance from the city to the regional center of Kokshetau is 200 km and 250 km to the capital of the Republic of Kazakhstan, Nur—Sultan.
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How pension savings are protected in different countries
International experience shows that countries use various mechanisms to protect pension savings depending on the specifics of their national pension system. In most countries, the protection of pension system participants' rights is ensured by mechanisms such as insurance against the risk of default on pension payment obligations, state oversight of pension funds and management companies, and the establishment of requirements for their financial stability and risk management systems. Consequently, the primary focus is on creating a robust regulatory system, effective oversight, and the distribution of responsibilities between the state, funds, and management companies. In the United States, defined benefit (DB) corporate pension plans are protected by the federal insurance system through the Pension Benefit Guaranty Corporation (PBGC)[1], which ensures that employees' pension obligations under the corporate pension plan are met (up to statutory limits) in the event of the employer's default on the employee's retirement savings. In the United Kingdom, the Pension Protection Fund (PPF)[2] performs similar functions. Similar mechanisms exist in Germany. However, these insurance systems only apply to defined benefit (DB) corporate pension plans and do not apply to defined contribution (DC) pension plans. Some countries provide mechanisms to ensure a minimum return on pension savings. These can be set either in absolute nominal terms (e.g., Belgium, Switzerland, Malaysia, Singapore) or in relative terms, i.e., compared to a certain benchmark, such as the average return (in Latin American countries). In Belgium and Switzerland, legislation sets a minimum nominal rate of return on mandatory occupational pension funds, which is used to calculate the employer's obligations under its employee's pension plans. In several Latin American countries (Chile, Colombia, El Salvador), the minimum return is determined relative to the average return among the corresponding types of pension funds. If the pension fund manager (AFP) fails to meet the minimum return, the difference is covered by established reserves (guarantee reserve). A number of Asian countries also have minimum return requirements for pension savings. In Malaysia, the Employees' Pension Fund (EPF) guarantees a nominal return on pension savings of at least 2.5% per annum. In Singapore, the Central Provident Fund (CPF) provides a minimum nominal return of 2.5% to 4% per annum (depending on the account type). In virtually all OECD countries, the activities of pension funds and management companies are subject to risk-based government oversight, accompanied by strict requirements for capital adequacy, reserve formation, risk management systems, and compliance with professional investment standards for client assets. Thus, as funded pension systems develop, the emphasis is increasingly shifting to effective regulation, risk-based supervision, and expanding the rights and investment opportunities of contributors. Kazakhstan's pension system is also developing in this direction. As a reminder, legislative changes provide for expanded opportunities for citizens to manage their pension savings. Contributors will be able to independently select one or more management companies offering various investment strategies and portfolios and entrust them with the management of up to 100% of their savings. With expanding investment opportunities and the implementation of measures to improve pension provision, approaches to preserving pension savings are also changing. Effective January 1, 2027, the state guarantee will be to ensure the preservation of compulsory pension contributions and compulsory occupational pension contributions to the Unified Accumulative Pension Fund (UAPF) in the amount of actual contributions. The state's primary obligations, however, focus on maintaining the adequacy of the state component of pensions (basic and solidarity pensions). UAPF was founded on August 22, 2013 on the basis of GNPF APF JSC. The founder and shareholder of the UAPF is the Government of the Republic of Kazakhstan represented by the State Institution Committee of State Property and Privatization of the Ministry of Finance of the Republic of Kazakhstan. Trust management of UAPF pension assets is carried out by the National Bank of the Republic of Kazakhstan. In accordance with the pension legislation, the UAPF attracts compulsory pension contributions, employer’s compulsory pension contributions, compulsory occupational pension contributions, voluntary pension contributions, as well as carries out enrollment and accounting of voluntary pension contributions formed at the expense of the unclaimed amount of guaranteed compensation for the guaranteed deposit, transferred by the organization carrying out mandatory guarantee of deposits, in accordance with the Law of the Republic of Kazakhstan "On mandatory guarantee of deposits placed in second-tier banks of the Republic of Kazakhstan", ensures the implementation of pension benefits. The Fund also carries out accounting of target assets and target requirements, accounting and crediting of target savings (TS) to target savings accounts, payments of TS to their recipients in bank accounts, accounting for returns of TS in the manner determined by the Government of the Republic of Kazakhstan within the framework of the National Fund for Children program (More details atwww.enpf.kz) [1] Who we are | Pension Benefit Guaranty Corporation [2] https://www.ppf.co.uk/?utm
The new MAT methodology is aimed at ensuring the adequacy of future funded pensions.
In Kazakhstan, to ensure the adequacy of future pensions for citizens and bring the pension system in line with international standards, changes are planned to the Methodology for Calculating Minimum Adequacy Thresholds (MAT). The purpose of revising the MAT calculation method (Methodology) is to increase the requirements for the minimum amount of pension savings necessary to ensure the adequacy of future funded pensions and to gradually increase the labor income replacement rate (IRR) of contributors through pension benefits at retirement age (taking into account minimum international standards). Why was there a need for change? According to the current Methodology, the MAT amounts are set annually based on calculations taking into account approved socio-economic indicators, projected calculations of future pension contributions depending on the minimum wage and investment returns. However, the current Methodology has a number of shortcomings: high dependence on long-term macroeconomic forecasts, resulting in annual volatility in MAT amounts; no guarantee that the contributor will actually pay future pension contributions; deminished amounts of future pension benefits. According to the current Methodology for determining MAT, it is assumed that if a portion of pension savings is withdrawn, the contributor will continue to regularly make compulsory pension contributions (CPCs) until retirement. In this case, the future funded pension will be approximately 50,000 tenge, which corresponds to the current subsistence minimum (SM). However, in practice, contributions may be received irregularly or not at all. In this case, the current MAT amounts will not provide the expected minimum payments, and the amount of future pension benefits will be lower than the SM. Moreover, even with regular contributions and ensuring the accumulation volume at the level of the current MAT amounts, the funded pension at the level of about 50 thousand tenge will amount to less than 15% of the current median salary[1]. What does the new Methodology propose? The proposed new Methodology for Determining the MAT aims to provide citizens with a higher and more predictable level of pension benefits. According to the new approach, after withdrawing savings above the MAT, the future funded pension will be equal to at least 40% of the median salary (according to the Bureau of National Statistics of the Agency for Strategic Planning and Reforms of the Republic of Kazakhstan, in the fourth quarter of 2025, it was 339,912 tenge). Moreover, in the proposed Methodology, threshold values will no longer depend on future contributions or annual projected changes in many macroeconomic indicators. MAT values will be determined based on long-term factors, including demographic tables of Kazakhstan's population, regularly updated by the United Nations (UN), taking into account national statistics. Accordingly, future pension amounts will be predictable for citizens and will gradually approach the target indicators of OECD countries. The MAT amount, as currently, will depend on the contributor's age: the closer a person is to retirement age, the higher the MAT level must be to secure a future pension. The classic formula for calculating the present value of a future pension benefit will be used to determine the MAT. In other words, the new formula determines the minimum savings amount, i.e., the MAT amount that must already be in the contributor's individual pension savings account (IPSA) to ensure the target pension. Furthermore, the impact of inflation and investment returns is taken into account when calculating future payments, meaning future benefits will grow in real terms, taking inflation into account. Thus, the new Methodology for Determining MAT increases the requirements for the minimum amount of pension savings required to provide a future funded pension, ensuring an adequate replacement rate for a contributor's labor income through pension benefits. Furthermore, this Methodology will bring the MAT calculation system closer to international pension standards and reduce the risk of insufficient pension savings at retirement. International Standards and Global Experience As a reminder, according to Convention 102 of the International Labour Organization (ILO), the minimum acceptable level of pension provision is IRR of at least 40%. In European Union (EU) countries, the average minimum pension is approximately 60% of the minimum wage. In Organisation for Economic Co-operation and Development (OECD) countries, the average minimum wage is approximately 50% of the median wage. International experience shows that the option of early withdrawal of pension savings has been used in a number of countries as an anti-crisis measure in strictly limited amounts in exceptional situations related to economic upheaval and the need to support the population, including during the COVID-19 pandemic. It should be emphasized, however, that pension savings are primarily intended to provide income for citizens in old age. Therefore, regular withdrawal of pension funds before retirement can lead to a critical decline in the amount of savings and, consequently, to a reduction in the amount of future pension benefits. In the long term, this increases the risk of insufficient retirement income in old age. Therefore, the option of using a portion of pension savings for alternative purposes remains, but approaches to determining the amount of funds available for withdrawal are being refined, taking into account the need to ensure citizens have an adequate and stable level of pension benefits in the future. The calculation of the MAT under the new Methodology in Kazakhstan will be adapted to real conditions and aims to bring it closer to the pension provision practices of advanced countries. The updated methodology will allow for the determination of the minimum level of pension savings required to be retained in the Individual Pension Savings Account (IPSA), so that, if a portion of the savings is withdrawn, the future funded pension will not be lower than the target indicators and will provide a stable pension income for citizens at retirement age. UAPF was founded on August 22, 2013 on the basis of GNPF APF JSC. The founder and shareholder of the UAPF is the Government of the Republic of Kazakhstan represented by the State Institution Committee of State Property and Privatization of the Ministry of Finance of the Republic of Kazakhstan. Trust management of UAPF pension assets is carried out by the National Bank of the Republic of Kazakhstan. In accordance with the pension legislation, the UAPF attracts compulsory pension contributions, employer’s compulsory pension contributions, compulsory occupational pension contributions, voluntary pension contributions, as well as carries out enrollment and accounting of voluntary pension contributions formed at the expense of the unclaimed amount of guaranteed compensation for the guaranteed deposit, transferred by the organization carrying out mandatory guarantee of deposits, in accordance with the Law of the Republic of Kazakhstan "On mandatory guarantee of deposits placed in second-tier banks of the Republic of Kazakhstan", ensures the implementation of pension benefits. The Fund also carries out accounting of target assets and target requirements, accounting and crediting of target savings (TS) to target savings accounts, payments of TS to their recipients in bank accounts, accounting for returns of TS in the manner determined by the Government of the Republic of Kazakhstan within the framework of the National Fund for Children program (More details atwww.enpf.kz) [1] The median salary is an indicator that divides all salaries into two equal parts: 50% of employees receive less than this amount, and 50% receive more.
A new methodology for calculating minimum adequacy thresholds for pension savings has come into force
In compliance with the requirements of Government Resolution No. 422 of the Republic of Kazakhstan dated May 21, 2026, the UAPF published minimum adequacy thresholds (MAT) for pension savings calculated for 2026, taking into account changes to the Calculation Methodology, in the media and on its own website. According to the new Methodology, MAT amounts are determined based on target indicators for future pension benefits and are calculated for each age of the contributor using a standard formula for calculating the present value of monthly benefits. The formula takes into account long-term demographic (national demographic tables) and financial (interest rates and indexation of benefits) factors to achieve stability and predictability in the amount of future payments for citizens. The present value formula for benefits is based on international practice for calculating the savings required for targeted benefits. The calculation results are less susceptible to change when macroeconomic forecasts are revised. However, the calculations still use socioeconomic indicators such as the minimum old-age pension and minimum wage, which are determined annually by the law on the republican budget. However, the formula does not take into account future pension contributions from the moment of withdrawal until reaching retirement age. This minimizes the risk that, after using part of the savings, the contributor will receive a low funded pension in the future. However, the right to use part of the pension savings for alternative purposes (housing and medical treatment) is retained. Pensioners whose pension is at least 40% of their lost income can use their savings; they can withdraw up to 50% of their savings for housing and medical treatment. Citizens who have entered into a pension annuity agreement, as well as pensioners who receive a state pension based on length of service, can fully use the remaining funds in their pension account. The ability to use savings above the minimum adequacy threshold remains, but approaches to determining the amount of funds available for withdrawal are being refined, taking into account the need to ensure citizens have adequate and stable pension benefits in the future. MATs have increased by 79% or more depending on the contributor's age: the closer to retirement, the higher the requirements for the future pension benefit, and the larger the amount required in the pension account. Therefore, MATs for people approaching retirement age more than double. This means that pension savings will remain in their accounts, will be further invested, and pension benefits will increase significantly. Under the previous Methodology, benefits after withdrawal would have amounted to approximately 15% of the median salary; under the new Methodology, they will be approximately 40% of the median salary. Thus, the new methodology for determining MAT is transparent and more predictable for contributors and is aimed at ensuring a stable pension income for citizens at retirement age in accordance with international standards. UAPF was founded on August 22, 2013 on the basis of GNPF APF JSC. The founder and shareholder of the UAPF is the Government of the Republic of Kazakhstan represented by the State Institution Committee of State Property and Privatization of the Ministry of Finance of the Republic of Kazakhstan. Trust management of UAPF pension assets is carried out by the National Bank of the Republic of Kazakhstan. In accordance with the pension legislation, the UAPF attracts compulsory pension contributions, employer’s compulsory pension contributions, compulsory occupational pension contributions, voluntary pension contributions, as well as carries out enrollment and accounting of voluntary pension contributions formed at the expense of the unclaimed amount of guaranteed compensation for the guaranteed deposit, transferred by the organization carrying out mandatory guarantee of deposits, in accordance with the Law of the Republic of Kazakhstan "On mandatory guarantee of deposits placed in second-tier banks of the Republic of Kazakhstan", ensures the implementation of pension benefits. The Fund also carries out accounting of target assets and target requirements, accounting and crediting of target savings (TS) to target savings accounts, payments of TS to their recipients in bank accounts, accounting for returns of TS in the manner determined by the Government of the Republic of Kazakhstan within the framework of the National Fund for Children program (More details atwww.enpf.kz)