LAW OF THE REPUBLIC OF KAZAKHSTAN

of June 20, 1997 No. 136-I

About provision of pensions in the Republic of Kazakhstan

This Law determines legal and social basis of provision of pensions of citizens in the Republic of Kazakhstan, regulates participation of state bodies, physical persons and legal entities, irrespective of patterns of ownership, in realization of constitutional right of citizens on provision of pensions.

Section 1. Bases of provision of pensions

Chapter 1. General provisions

Article 1. The basic concepts used in this Law

In this Law the following basic concepts are used:

1) the automated information system - the software of the accumulation pension fund necessary for implementation of accounting of pension assets by it and accumulatings on the individual retirement account and providing reliability, safety and information security from unauthorized access;

2) social individual code - the permanent individual code assigned for the citizen, and also persons to whom the right to provision of pensions according to this Law extends;

3) diversification - placement of pension assets in different financial instruments for the purpose of decrease in risk of their losses according to the requirements established by authorized body;

4) control - opportunity to determine decisions of the legal entity, arising in the presence of one of the following conditions:

immediate or indirect possession by one person independently or together with one or several persons in more than fifty percent of shares in the authorized capital or placed (less exclusive and redeemed by society) shares of the legal entity or opportunity availability to vote independently in more than fifty percent of shares of the legal entity;

opportunity availability at one person independently to choose at least a half of structure of governing body or executive body of the legal entity;

inclusion of the financial reporting of the legal entity, except for the financial reporting of the special finance company created according to the legislation of the Republic of Kazakhstan on project financing and securitization in the financial reporting of the legal entity according to the audit report;

availability of possibility of one person independently or together with one or several persons to determine decisions of the legal entity owing to the agreement (supporting documents) or otherwise in the cases provided by regulatory legal act of authorized body;

5) the printing edition - periodic printing editions which list is determined by authorized body;

6) the parent organization - the legal entity who has control over other legal entity;

7) minimum pension - the minimum size of retirement benefits established by the law on the republican budget for the corresponding financial year;

8) voluntary pension contributions - the money placed by investors on the initiative in the accumulation pension funds for benefit of the receiver of retirement benefits according to the procedure, determined by the legislation of the Republic of Kazakhstan and the pension provision agreement at the expense of voluntary pension contributions;

9) rate of voluntary pension contributions - the amount of payment in the accumulation pension fund determined by the pension provision agreement at the expense of voluntary pension contributions;

10) the investor of voluntary pension contributions - the physical person or legal entity performing at the expense of own means voluntary pension contributions for benefit of the receiver of retirement benefits according to the pension provision agreement at the expense of voluntary pension contributions;

11) voluntary professional pension contributions - the money placed on the initiative by investors in the accumulation pension funds for benefit of workers according to the list of professions which is determined by the Government of the Republic of Kazakhstan according to the procedure, established by the legislation of the Republic of Kazakhstan and the pension provision agreement at the expense of voluntary professional pension contributions;

12) rate of voluntary professional pension contributions - the amount of payment in the accumulation pension fund determined by the pension provision agreement at the expense of voluntary professional pension contributions and this Law;

13) the investor of voluntary professional pension contributions - the physical person or legal entity performing at the expense of own means voluntary professional pension contributions for benefit of the worker according to the pension provision agreement at the expense of voluntary professional pension contributions;

14) the individual retirement account - the personal personalized account of the investor (the receiver of retirement benefits) in the accumulation pension fund on which either voluntary pension contributions or voluntary professional pension contributions, investment revenue, penalty fee and other receipts according to the legislation of the Republic of Kazakhstan are considered its obligatory and from which retirement benefits are made;

15) the accumulation pension fund - the legal entity performing activities for attraction of pension contributions and retirement benefits, and also activities for investment management of pension assets according to the procedure, established by the legislation of the Republic of Kazakhstan;

16) separate accounting in the accumulation pension fund - non-inclusion of pension assets in the balance sheet of the accumulation pension fund as legal entity;

17) indirect possession (vote) by shares of the accumulation pension fund or the organization exercising investment control of pension assets - opportunity to determine decisions of the accumulation pension fund or the organization exercising investment control of pension assets, the large member of the accumulation pension fund or the organization exercising investment control of pension assets or persons who jointly are the large member of the accumulation pension fund or the organization exercising investment control of pension assets through shareholding (shares in the authorized capital) legal entities;

18) the large member of the accumulation pension fund or the organization exercising investment control of pension assets - physical person or legal entity (except as specified when such owner is the state or national managing holding, and also the cases provided by this Law) which according to written consent of authorized body can own directly or indirectly ten or more percent placed (less exclusive and redeemed) shares of the accumulation pension fund or the organization exercising investment control of pension assets or to have opportunity:

vote directly or indirectly in ten or more percent of voting shares of the accumulation pension fund or the organization exercising investment control of pension assets;

exert impact on the accepted accumulation pension fund or the organization exercising investment control of pension assets, decisions owing to the agreement or otherwise according to the procedure, determined by regulatory legal act of authorized body;

19) indirect possession by shares in the authorized capital or ownership (vote) of shares of the legal entity - opportunity to determine decisions of the legal entity, the large member of the legal entity or persons who jointly are the large member of the legal entity through ownership (vote) of shares (shares in the authorized capital) other legal entities;

20) pension - set of retirement benefits from authorized organization, the accumulation pension funds;

21) pension assets - the money, securities, other financial instruments intended for providing and implementation of retirement benefits and transfers, and also withdrawals from the accumulation pension funds;

22) the organization exercising investment control of pension assets - the legal entity exercising investment control of pension assets of the accumulation pension funds;

23) the agreement of retirement annuity - the insurance contract according to which the insurer (the receiver of retirement benefits) shall give to insurance company the amount of pension accruals and insurance company shall perform insurance payments for benefit of the insurer (the receiver of retirement benefits) for life or during the certain period of time;

24) pension accruals - the money of the investor (the receiver of retirement benefits) considered on its individual retirement account, including compulsory pension contributions, voluntary pension contributions and voluntary professional pension contributions, investment revenue, penalty fee, other receipts according to agreements, this Law, the legislation of the Republic of Kazakhstan;

25) the actual cost of pension accruals - the nominal value of pension accruals corrected on the consumer price index estimated by authorized body in the field of the state statistics;

26) the pension provision agreement - the agreement signed by the accumulation pension fund, on the one hand, and the investor and (or) the receiver of retirement benefits, on the other hand, about establishment, change or the termination of the legal relationship connected with pension contributions, accumulatings and receipt of payments;

27) retirement benefits from:

authorized organization - payment to the physical persons having working life at least six months as of January 1, 1998 performed in proportion to working life;

the accumulation pension funds - payments of pension accruals to receivers of retirement benefits;

28) the receiver of retirement benefits (further - the receiver) - physical person to which retirement benefits from authorized organization, and (or) the having right to retirement benefits from the accumulation pension fund are appointed;

29) the investment declaration - the document determining the list of investment objects, the purposes, strategy, conditions and restrictions of investing activities on pension assets, conditions of hedging and diversification of pension assets;

30) investment revenue - the money received as a result of investment of pension assets of the accumulation pension funds;

31) investment portfolio - set of the financial instruments which are part of pension assets;

32) bank custodian - the bank performing activities for fixing and accounting of the rights for securities, storage of documentary securities and accounting of money of the client;

33) the custodial agreement - the agreement on safe custody and accounting of securities and money signed by bank custodian and its client;

34) the state base retirement benefit - the monthly money payment provided to citizens of the Republic of Kazakhstan on achievement of the retirement age established by this Law;

35) compulsory pension contributions - the money placed according to this Law in the accumulation pension funds according to the procedure, established by the legislation of the Republic of Kazakhstan;

35-1) debt on compulsory pension contributions the compulsory pension contributions - estimated, withheld (added) and not listed in the accumulation pension funds;

36) the agent on payment of compulsory pension contributions (further - the agent) - physical person or legal entity, including the foreign legal entity performing activities in the Republic of Kazakhstan through permanent organization, and also branches, the representations of foreign legal entities estimating, holding (charging) and listing compulsory pension contributions according to the procedure, determined by the legislation of the Republic of Kazakhstan;

37) rate of compulsory pension contributions - the amount of payment in the accumulation pension fund expressed as a percentage of the income of the investor accepted for calculation of pension contributions;

38) the investor of compulsory pension contributions - the physical person which signed the pension provision agreement at the expense of compulsory pension contributions and having the individual retirement account in the accumulation pension fund;

39) faultless goodwill - availability of the facts confirming professionalism, conscientiousness, lack of not removed or unspent conviction;

40) the central executive body - the state body performing regulation in the field of social protection of the population;

41) the bodies appointing retirement benefits from the Center - authorized state bodies;

42) the prudential standard rate - the economic requirements established by the legislation of the Republic of Kazakhstan for ensuring financial stability of the accumulation pension fund and the organization exercising investment control of pension assets;

43) insurance company (insurer) - the legal entity performing activities for the conclusion and execution of insurance contracts in industry "life insurance" based on the corresponding license of authorized body;

44) the redemption amount - amount of money which has the right to receive from insurance company the insurer (receiver) in case of early agreement cancelation of retirement annuity;

45) authorized body - National Bank of the Republic of Kazakhstan;

46) authorized organization (further - the Center) - the republican state state company created according to the decision of the Government of the Republic of Kazakhstan;

47) affiliirovanny persons - the physical persons or legal entities (except for the state bodies performing control and supervising functions within the powers conferred to them, and national managing holding) having opportunity directly and (or) indirectly to determine decisions and (or) to exert impact on accepted with each other (one of persons) decisions, including owing to the concluded bargain. Availability of national managing holding in shareholding structure of the accumulation pension fund is not the basis for determination affiliirovanny on the relation to each other of persons.

Article 2. Right of citizens to provision of pensions

1. Citizens of the Republic of Kazakhstan have the right to provision of pensions according to the procedure, established by the legislation of the Republic of Kazakhstan.

2. The foreigners and persons without citizenship who are constantly living in the territory of the Republic of Kazakhstan have the right to provision of pensions on an equal basis with citizens of the Republic of Kazakhstan if other is not provided by the laws and international treaties.

Article 3. Legislation of the Republic of Kazakhstan on provision of pensions

1. The legislation of the Republic of Kazakhstan on provision of pensions is based on the Constitution of the Republic of Kazakhstan and consists of this Law, other regulatory legal acts of the Republic of Kazakhstan.

2. If the international treaty ratified by the Republic of Kazakhstan establishes other rules, than those which contain in this Law are applied rules of the international treaty.

Article 4.

It is excluded

Article 5. The state guarantees on provision of pensions

1. The state guarantees provision of pensions to the citizens who retired till January 1, 1998 with preserving the established size of retirement benefits till April 1, 1999, in subsequent periods retirement benefits will be performed according to item 4 of article 13 of this Law.

2. The state base retirement benefit is performed to citizens of the Republic of Kazakhstan:

1) receiving pension till January 1, 1998;

2) reached retirement age according to article 9 of this Law;

3) to the military personnel, the staff of special state and law enforcement agencies which gives the special ranks, class ranks and also to persons which right to have special ranks, class ranks and to wear uniform are abolished with the January 1, 2012 having the right to retirement benefits for long service.

The size of the state base retirement benefit is annually established by the law on the republican budget for the corresponding financial year with step-by-step approach to subsistence minimum.

Payment of the state base retirement benefit is performed at the expense of budgetary funds according to the procedure, determined by the Government of the Republic of Kazakhstan.

In case of achievement of retirement age according to Items 1-3 of article 9 of this Law the public social benefits on the occasion of loss of the supporter and on age at the request of citizens can be replaced with the state base retirement benefit according to the procedure, established by the legislation of the Republic of Kazakhstan.

3. Increase in the sizes of retirement benefits from the Center is made annually according to the procedure, determined by the Government of the Republic of Kazakhstan.

4. The state guarantees provision of pensions to the citizens having pension entitlement on length of service and who registered it is right till January 1, 1998 in the bodies appointing and/or performing retirement benefits, in this case it establishes pension which payment begins after leaving of position. Conditions of Items 1 and 3 of this Article and item 4 of article 13 of this Law extend to the granted pension.

Article 6. Guarantee of safety of pension accruals

1. The state guarantees to receivers safety of compulsory pension contributions in the accumulation pension funds in the amount of actually brought compulsory pension contributions taking into account the rate of inflation at the time of acquisition of right by the receiver of the right to retirement benefits according to the procedure, determined by this Law and other legal acts of the Republic of Kazakhstan.

2. The guarantee of safety of pension accruals is also provided by means of:

1) licensing of activities of the accumulation pension funds for attraction of pension contributions and to implementation of retirement benefits;

2) licensing of the organization activity exercising investment control of pension assets on investment management of pension assets;

2-1) licensing of custodial activities of banks of the second level;

3) establishments of prudential standard rates for the organizations exercising investment control of pension assets and the accumulation pension funds;

3-1) regulations of activities of the accumulation pension funds by establishment of the relevant standards and limits providing their financial stability;

4) establishments of requirements to founders, leading employees and specialists of the accumulation pension funds and organizations exercising investment control of pension assets and also to the size and structure of their authorized capital;

5) establishments of the requirement of storage by the accumulation pension funds of money and securities only in the bank custodian not affiliated with the accumulation pension fund and the organization exercising investment control of pension assets;

6) it is excluded

7) conducting separate accounting of own means and pension assets of the accumulation pension funds, and also establishment of control of their target placement;

8) It is excluded

9) establishments of requirements for diversification and decrease in risks in case of placement of pension assets;

10) introductions of restrictions for the sizes of the commission fees earned by the accumulation pension funds;

11) obligation of annual carrying out audit of annual financial reports of the accumulation pension funds and organizations exercising investment control of pension assets;

12) the regular financial reporting of the accumulation pension funds and organizations exercising investment control of pension assets before the relevant state bodies in the procedure established by the legislation;

12-1) provisions to the investor and receiver of information on condition of its pension accruals;

13) provisions to the receiver of opportunity to transfer the pension accruals from one accumulation pension fund to another, but is not more often than two times a year;

14) voluntary insurance of pension accruals in full or partially at the choice of the receiver;

15) creations of system of insurance of pension assets.

Article 6-1. Competence of the Government of the Republic of Kazakhstan in the field of provision of pensions

The government of the Republic of Kazakhstan in the field of provision of pensions:

1) develops the main directions of state policy in the field of provision of pensions and will organize their implementation;

2) approves rules of implementation of the state base retirement benefit at the expense of budgetary funds, and also appointment and implementation of retirement benefits from the Center;

3) is approved by procedure and terms of calculation, deduction (charge) and transfer of compulsory pension contributions;

4) approves rules of withdrawal and budget contribution of the amounts of the compulsory pension contributions which are in addition established for judges in case of release of the judge from position for negative motives;

5) approves rules of implementation of retirement benefits from the pension accruals created at the expense of compulsory pension contributions, voluntary professional pension contributions from the accumulation pension funds and technique of implementation of calculation of the size of retirement benefits for the schedule;

6) approves translation rules of pension accruals from several accumulation pension funds in one in the presence at the investor (receiver) of two and more pension provision agreements at the expense of compulsory pension contributions with the different accumulation pension funds;

7) performs other functions assigned to it by the Constitution of the Republic of Kazakhstan, this Law, other laws of the Republic of Kazakhstan and acts of the President of the Republic of Kazakhstan.

Article 6-2. Competence of the central executive body in social protection of the population

The central executive body in the field of social protection of the population:

1) is developed by the list of professions of workers for benefit of which investors at the expense of own means perform voluntary professional pension contributions;

2) is developed by procedure for annual increase in the sizes of retirement benefits from the Center;

3) is developed by the list of works in organizations of forensic medical examination, in pathoanatomical departments of medical institutions for preferential calculation of working life for purpose of pensions from the Center in one-and-a-half size;

4) is developed by the list of seasonal industries in work during which complete season is set off in years of service for award of pension for year of work;

5) is developed by the list No. 1 of productions, works, professions, positions and indicators for calculation of the size of retirement benefits from the Center;

6) develops rules of forming of the database of investors (receivers) on compulsory pension contributions and the single list of the physical persons which signed the pension provision agreement at the expense of compulsory pension contributions;

7) develops rules of settlement according to obligations of the accumulation pension funds which arose in case of transfer of pension savings of investors (receivers);

8) develops procedure and terms of calculation, deduction (charge) and transfer of compulsory pension contributions in the accumulation pension funds;

9) develops rules of transfer of the compulsory pension contributions withheld and social individual code and (or) registration taxpayer number, and (or) the pension contract with the accumulation pension fund which is not listed by agents from the income of former employees which location is not known, due to the lack as of January 1, 2005;

10) develops rules of determination of the monthly income accepted for calculation of voluntary professional pension contributions;

Disclaimer! This text was translated by AI translator and is not a valid juridical document. No warranty. No claim. More info