COUNTRY OVERVIEW
“SINGLE
ACCUMULATIVE
PENSION FUND” JSC
Country
Overview
The Republic of Kazakhstan is a transcontinental country in Central Asia and Eastern
Europe, the vast majority of its territory being located in Central Asia. With its territory of
2,727,300 sq km (1,053,000 sq mi) ranked as the 9th largest country in the world, it is also the
world's largest landlocked country. Kazakhstan is a member of the CIS, EAEU, UN, OSCE,
EAPC and the OIC.
Capital city – Astana; largest city – Almaty (former capital). National currency – Tenge (KZT).
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COUNTRY OVERVIEW (continued)
“SINGLE
ACCUMULATIVE
PENSION (continued)
FUND” JSC
Country
Overview
Politics and Economy
Population
Population: 17.4 mln. people
The Republic of Kazakhstan
is a unitary state with
presidential regime
Age
Structure
(2014)
0-15 – 28%
16-62 – 62%
63 & older – 10%
Working population (APFs’ members)
(Jun. 2015): 8.5 mln. People
Main industry: Oil & Gas
(9th place in the world)
GDP:
2014 – 104.4%, or US$ 217.9 bn
2013 – 106.0%, or US$ 231.9 bn
2012 – 105.0%, or US$ 203.5 bn
Average monthly income (Jun. 2015):
USD 667
Retirement age:
men – 63
women – 58*
Longevity (2014):
average – 71.6 years
men – 67.1 women – 75.9
Natural population growth rate
increased from 6.2% (2003) to
15.6% (2014)
* In accordance with 2013 Reform women’s retirement age will gradually increase from 58 to 63 and be equal to men’s (starting
2018 through 2027)
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PENSION SYSTEM BACKGROUND
“SINGLE ACCUMULATIVE PENSION FUND” JSC
1997 – reformation of the pension system of Kazakhstan and establishment of the first State Accumulative Pension Fund that later was
renamed into “GNPF” APF” JSC
2013 – second reform of accumulative pension system of Kazakhstan. Establishment of the Single Accumulative Pension Fund on the
basis of “GNPF” APF” JSC by means of integration of pension assets and liabilities under pension provision agreements of all private
APFs
New pension system includes the following components:
Pay-as-you-go system – inherited from the USSR and based on “solidarity of generations”; the state budget is the source of
pension benefits. Amount of pension benefits depends on length of service. At present, this type of pension is paid to pensioners
with at least 6 months of service records as of January 01, 1998.
Compulsory accumulative system with defined contributions
1)
2)
Compulsory pension contributions in the amount of 10% of monthly income are contributed by all working citizens of
Kazakhstan and foreigners permanently residing in Kazakhstan to their individual accounts in SAPF.
Compulsory occupational pension contributions are made by employers at their own cost in benefit of those employees who
work in hazardous conditions, in the amount of 5% of employees’ monthly income as per the List of Productions, Works and
Professions.
Notional savings accounts shall be introduced on 01.01.2018. This component shall combine PAYG and accumulative
principles. Accumulations are to be accounted as notional liabilities on members’ individual pension accounts. This type of
compulsory pension contributions shall be paid by employers at their own cost, in the amount of 5% of employees’ monthly
income. Pension benefits shall be paid upon retirement only. These are not to be inherited.
Voluntary pension system. This component is available to both individuals and the employers (occupational plans). Amount
of contributions and other terms and conditions depend on the Individual Voluntary Pension Provisions Agreements. VPS is not
developed in Kazakhstan.
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ACCUMULATIVE PENSION SYSTEM REFORM 2013
“SINGLE ACCUMULATIVE PENSION FUND” JSC
Establishment of the Single Accumulative Pension Fund on the basis of “GNPF” APF” JSC via
integration of pension assets and liabilities under pension provision agreements of all private APFs
SAPF pension assets management is assigned to NB RK.
 with participation of the Board of SAPF pension assets management under the President of
Kazakhstan (development of recommendations on the list of allowed types of assets for SAPF
pension funds allocation)
Functions of SAPF custodian bank have been assigned to NB RK
The State guarantee on safety of pension assets (including the inflation factor) remains intact
The ownership right on pension savings has not been changed either
For employees of hazardous work conditions,
additionally, compulsory occupational pension contributions at employer’s own costs in the
amount of 5% of monthly income have been introduced since January 1st, 2014
Women’s retirement age shall be gradually increased from 58 to 63 and be equal to men’s,
starting 2018
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CONSOLIDATION SCHEDULE
”SINGLE ACCUMULATIVE PENSION FUND” JSC
Pension assets of consolidated APFs
(in KZT bn.)
2
0
1
3
Respublica APF 11.10.13
Otan APF 29.10.13
Capital APF 18.11.13
On the beginning of consolidation process
(01.10.2013):
Atameken APF 09.12.13
•Number of SAPF individual savings accounts was
2.2 mln
• SAPF pension assets amounted to 740 mlrd KZT
Astana APF 06.01.14
2
0
1
4
On April 1, 2014 pension assets and liabilities
of all APFs were consolidated in SAPF
NefteGaz-dem APF 23.01.14
Grantum APF10.02.14
Ular Umit APF 03.03.14
NBK APF 26.03.14
On the moment of consolidation accomplishment
(01.04.2014):
• Number of SAPF individual savings accounts
came to 9.5 mln
• SAPF pension assets amounted to 3.96 trn KZT
During consolidation SAPF accepted:
• KZT 3 035 bn
• 6.5 mln of individual pension agreements
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ACUMMULATIVE PENSION SYSTEM STRUCTURE
“SINGLE ACCUMULATIVE PENSION FUND” JSC
President of the Republic
of Kazakhstan
Government of the
Republic of Kazakhstan
Shareholder
Council on pension assets
management
• Suggestions on increasing SAPF pension
assets management effectiveness
• Suggestions on the list of allowed
instruments for SAPF pension assets
allocation, and its approval
• Consideration of annual report on Single
accumulative pension fund activity
• Pension assets
management и
Правительство Республики Казахстан в лице Комитета государственного
имущества
• Custody services
SingleМинистерства
accumulative
National
Bank of the Казахстан - единственный акционер
приватизации
финансов
Республики
• Approval of pension assets Investment
pension fund
Republic of Kazakhstan
declaration
• Financial supervision
- Consulting members on pension accumulative system matters
- Opening of individual savings accounts for compulsory pension
contributions, compulsory occupational pension contributions, and voluntary
pension contributions
- Distribution of pension benefits and/or transfers of pension savings to
annuities
- Individual savings accounts balance statements
- Book keeping of pension assets and liabilities
- Distribution of investment income on individual pension savings accounts
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SAPF: GENERAL INFORMATION
“SINGLE ACCUMULATIVE PENSION FUND” JSC
YEAR OF
FOUNDATION
The Fund was established on September 24, 1997 by the Resolution 1372
of the GRK (“State Accumulative Pension Fund” CJSC)
REREGISTRATION
On August 22, 2013 the State Justice Authorities re-registered “GNPF”
APF” JSC as “Single Accumulative Pension Fund” Nonprofit Joint Stock
Company
SHAREHOLDER
100% of SAPF stock belongs to the Government of the Republic of
Kazakhstan represented by the Committee for State Property and
Privatization under the Ministry of Finance of Kazakhstan
100% SAPF stock is transferred into the trust management of the National
Bank
NATIONAL BANK
OF KAZAKHSTAN
FUNCTIONS
• SAPF pension assets manager
• Custodian bank
• Collection of compulsory pension contributions
• Collection of compulsory occupational contributions since 01.01.2014
• Collection of voluntary pension contributions
• Pension savings distributions
• Pension assets records keeping
• Investment portfolio records keeping
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STRATEGY 2015-2019: GOALS AND TASKS
SINGLE ACCUMULATIVE PENSION FUND, JSC
TASKS
GOALS
 Building public trust to SAPF
as
to
a
sustainable
accumulative
pension
system operator
 Financial education of Kazakhstan people in the area of
pension provisions
 Development of the package of pension services
 Building of an impeccable
communications system
reputation
through
 Development of individual-oriented service system
 High-quality
customer
service conforming with the
best practices standards
 Increase in number of SAPF electronic services
subscribers
 Building a team of professionals
 Enhancement of infrastructure and IT
 Transparent management of SAPF members’ accounts
 Safety and growth of pension
savings at SAPF
 Efficient management of SAPF members’ pension assets
and accounts
 Implementation of the new notional pension savings
component since 2018
 Building an integral risk management system in SAPF
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REGIONAL NETWORK
“SINGLE ACCUMULATIVE PENSION FUND” JSC
18 Regional Branch Offices
236 service centres across the Republic
>3.7 mln. customers’ applications in 2014 year
>75 thsd. calls answered by the Call-center
per year
1 595 people of regional network staff
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SERVICE PROVISION CHANNELS
“SINGLE ACCUMULATIVE PENSION FUND” JSC
Mobile
applications
Personal account
at www.enpf.kz
log-in via
password or
digital signature
Visits to SAPF
Customer
Centers
Mail (regular or
e-mail)
s
SAPF
Call center
8 800 080 1177
Social
networks:
E-government
web portal &
Public Service
Centres
Single State
Contact Center
1414
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PENSION CONTRIBUTIONS SCHEME
“SINGLE ACCUMULATIVE PENSION FUND” JSC
авыпс
Pension agreement.
Opening of
individual pension
savings account
EMPLOYER
SAPF
MEMBER
Data verification
Pension Contribution
Transfer Order
Information
Employment
contract
NATIONAL BANK
CUSTODIAN BANK
State Center for
Benefit
Pension contributions
Payments
Pension contributions transfer
EMPLOYER BANK
BENEFITS DISTRIBUTION SHEME
“SINGLE ACCUMULATIVE PENSION FUND” JSC
авыпс
Benefit accrual and
payment order
Application for benefit
SAPF
NATIONAL BANK
CUSTODIAN BANK
MEMBER / BENEFICIARY
Benefit payment
Money transfer
MEMBER/
BENEFICIARY’
BANK
PENSION ASSETS MANAGEMENT SHEME
“SINGLE ACCUMULATIVE PENSION FUND” JSC
авыпс
The President of the Republic of Kazakhstan appoints the members of
the Pension Assets Management Board
Pension Assets Management Board
State Center of
Benefit Payments
Either directly or via
pension assets
management company
Investment Portfolio
Financial instruments
(equities, bonds,
securities, deposits,
refined precious
metals)
Investment return
NBRK
(Pension Assets
Manager /
Custodian bank)
SAPF
Daily distribution of
investment return amoung
individual pension savings
accounts of all members
PENSION SCHEME CORE INDICES (2015, 1H)
“SINGLE ACCUMULATIVE PENSION FUND” JSC
Net pension assets
Pension contributions, incl.:
compulsory
compulsory occupational
voluntary
Pension distributions
Transfers to annuities
«Net» investment income
(in bn. KZT)
(in mln. US$)
4 922.16
336.12
26 434.78
1 805.18
319.81
16.25
0.06
1 717.58
87.28
0.32
66.25
355.81
7.55
40.55
141.41
759.48
(or 3.36% for 6 month of 2015,
the inflation rate - 1.4%)
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