Contributors' pension savings consist of pension contributions and accrued investment income. The investment of pension assets is carried out by the National Bank of the Republic of Kazakhstan and Investment Portfolio Managers (IPM).
With the adoption of the Social Code on July 1, 2023, contributors are given the right to transfer up to 50% of pension savings at the expense of CPC and (or) COPC to IPM, regardless of the adequacy threshold, voluntary pension contributions (VPC) - within the available amount in the individual pension saving account (IPSA). In addition, contributors who have entered into pension annuity agreements with insurance companies, providing them with lifetime annuity benefits, can transfer their pension savings in full to IPM.
The Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market (authorized body) has developed special requirements for IPM. IPMs have a license to manage an investment portfolio, successful experience in the market and managing client assets, positive results of financial and economic activities over the past few years, a sufficient amount of equity capital to cover losses associated with investing pension assets and are included in the register of the authorized body. In addition, the IPM must enter into an agreement with the UAPF on the trust management of pension assets, and also have a tripartite custodial agreement with the UAPF and the custodian bank.
Today, the register of IPMs that meet all the requirements for managing pension assets includes five IPMs: Jusan invest JSC, BCC Invest JSC, Centras Securities JSC, Halyk Global Markets JSC, Halyk Finance JSC. Their list is posted on the website enpf.kz.
Pension asset managers - the National Bank and IPM have their own strategy for investing pension assets and independently determine the structure of the investment portfolio within the framework of the investment declaration. Thus, IPMs themselves determine which financial instruments, within the list of those permitted in accordance with the Rules for the implementation of investment portfolio management activities, will be used for investing pension assets. These can be financial instruments in various sectors of the economy, different currencies in Kazakhstan and abroad.
Before transferring part of your pension savings from CPC and/or COPC into trust for IPM, it is recommended that you familiarize yourself with information about them and study their investment declarations. This can be done on the website www.enpf.kz in the “Services” section - “Register of investment portfolio managers”. Detailed statistics on the transfer of pension savings at the expense of CPC and (or) COPC into trust management are also available on the website www.enpf.kz in the “Indicators” section - “Transfer of pension savings to management companies”. IPMs are entitled to charge investment management fees not to exceed 7.5% of investment income. The actual amount of the commission is approved annually by the IPM management body and can change no more than once a year. Current information on IPM commissions for 2023 is also posted on the enpf.kz website in the section: “Services” - “Register of investment portfolio managers”.
After choosing the IPM that best suits your investment preferences, you need to contact the UAPF with an application to transfer pension savings at the expense of CPC and (or) COPC into trust management of one or more IPMs. This can be done in your personal account on the enpf.kz website using an electronic digital signature or by visiting one of the UAPF offices.
Pension savings at the expense of CPC and (or) COPC are transferred within 30 calendar days from the date of receipt of the application. It can be canceled before the UAPF transfers the declared amount to IPM. The status of consideration can be checked in your personal account on the Fund’s website.
Pension savings from CPC and (or) COPC can be transferred from one IPM to another no more than once a year. If you decide to return the savings to the management of the NBRK, this can be done 1 years after the transfer of pension savings at the expense of CPC and (or) COPC from the NBRK to IPM.
10 working days before the contributor reaches retirement age, all pension savings at the expense of the contributor’s CPC and (or) COPC are returned under the investment management of the National Bank.
During the period when pension savings are under the management of the National Bank until the contributor reaches retirement age, a guarantee of the safety of pension savings taking into account the level of inflation is in effect. When transferring pension savings into trust management by IPM, the state guarantee is replaced by a guarantee from the management company to ensure a minimum level of return on pension assets, which is calculated based on the weighted average return on pension assets transferred to the management of IPM operating on the market. The minimum return and weighted average return on pension assets are calculated monthly and published on the official website of the National Bank of the Republic of Kazakhstan.
