The Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market
Regarding the termination of a pension annuity agreement with a life insurance company and the return of the buyout amount to JSC "UAPF" (Unified Accumulative Pension Fund)
By entering into a pension annuity agreement, the contributor transfers their pension savings in the form of an insurance premium to a life insurance company (hereinafter – LIC) and, in return, receives the right to lifetime payments from the LIC.
According to paragraph 8 of Article 226 of the Social Code of the Republic of Kazakhstan, a pension annuity agreement may be terminated only at the initiative of the policyholder and only upon the conclusion of a new pension annuity agreement with another LIC, but not earlier than two years from the date of the initial agreement.
According to paragraph 13 of Article 226 of the Social Code of the Republic of Kazakhstan, persons who have concluded a pension annuity agreement have the right, no earlier than two years from the date of its conclusion, to apply to the insurance company with a request to amend the terms of the agreement by reducing the amount of annuity payments and returning part of the funds to the Unified Accumulative Pension Fund (UAPF).
The amount of funds to be returned to the UAPF is equal to the difference between the buyout amount under the pension annuity agreement as of the date of the amendment and the amount of the insurance premium calculated based on the payment amount specified in paragraph 2 of Article 225 of this Code on the same date.
Therefore, any other grounds for terminating a pension annuity agreement after it has entered into legal force, or for returning part of the funds to the UAPF, are not provided for by the legislation of the Republic of Kazakhstan.
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