THE RESOLUTION OF BOARD OF THE AGENCY OF THE REPUBLIC OF KAZAKHSTAN ON REGULATION AND DEVELOPMENT OF THE FINANCIAL MARKET

of June 7, 2023 No. 52

About approval of Rules of accounting and forming of contingent pension liabilities, including forming and use of reserve funds, calculation procedures and structures of reserve funds

According to Items 3 and 4 of article 57 of the Social code of the Republic of Kazakhstan Board of the Agency of the Republic of Kazakhstan on regulation and development of the DECIDES: financial market

1. Approve Rules of accounting and forming of contingent pension liabilities, including forming and use of reserve funds, calculation procedure and structure of reserve funds.

2. Declare invalid the resolution of Board of National Bank of the Republic of Kazakhstan of October 7, 2019 No. 166 "About approval of Rules of accounting and forming of contingent pension liabilities, forming and uses of reserve funds, calculation procedures and structures of reserve funds" (it is registered in the Register of state registration of regulatory legal acts at No. 19470).

3. To provide to department of the security market in the procedure established by the legislation of the Republic of Kazakhstan:

1) together with Legal department state registration of this resolution in the Ministry of Justice of the Republic of Kazakhstan;

2) placement of this resolution on official Internet resource of the Agency of the Republic of Kazakhstan on regulation and development of the financial market after its official publication;

3) within ten working days after state registration of this resolution submission to Legal department of data on execution of the action provided by the subitem 2) of this Item.

4. To impose control of execution of this resolution on the supervising vice-chairman of the Agency of the Republic of Kazakhstan on regulation and development of the financial market.

5. This resolution becomes effective since July 1, 2023 and is subject to official publication.

Approved by the Resolution of Board of the Agency of the Republic of Kazakhstan on regulation and development of the financial market of June 7, 2023 No. 52

Rules of accounting and forming of contingent pension liabilities, including forming and use of reserve funds, calculation procedure and structure of reserve funds

Chapter 1. General provisions

1. These rules of accounting and forming of contingent pension liabilities, including forming and use of reserve funds, the calculation procedure and structure of reserve funds (further – Rules) are developed according to the Social code of the Republic of Kazakhstan (further – the Code) and determine procedure for accounting and forming of contingent pension liabilities on conditional retirement accounts of physical persons for whom compulsory pension contributions of the employer (further – physical persons) in the single accumulation pension fund are listed (further – ENPF), forming and uses of reserve funds, and also calculation procedure and structure of reserve funds.

2. For the purposes of Rules the following basic concepts are used:

1) settlement date – date for which forming of contingent pension liabilities is made;

2) age cohort – the group of people combined by one calendar year of the birth;

3) retirement benefit - payment to physical persons for whom compulsory pension contributions of the employer on the bases provided by the Code are paid;

4) the specified expected cost – the expected (probable) cost of retirement benefits calculated (discounted) taking into account interest rate and period of time between settlement date and date of implementation of retirement benefit to the receiver of retirement benefits with use of the tables containing probabilities of approach of death;

5) reserve basis – set of the parameter values consisting of effective annual interest rate, the life table and rate of indexation of retirement benefits, and influencing the size of contingent pension liabilities;

6) tariff basis – set of the parameter values consisting of effective annual interest rate, the life table and rate of indexation of retirement benefits, and influencing the size of retirement benefit.

Chapter 2. Accounting and forming of contingent pension liabilities

3. Accounting and forming of contingent pension liabilities include opening of the conditional retirement account to physical person, accounting of data on the arrived compulsory pension contributions of the employer and other receipts according to the legislation of the Republic of Kazakhstan, forming of contingent pension liabilities, and also accounting of contingent pension liabilities and data on the size of retirement benefits at the expense of compulsory pension contributions of the employer for the corresponding financial year, and also closing of the conditional retirement account of physical person.

4. Opening of conditional retirement accounts in ENPF for accounting of compulsory pension contributions of the employer is performed based on the list of physical persons represented by the agent on payment of compulsory pension contributions of the employer to ENPF (further – the list of physical persons) in case of the transfer of compulsory pension contributions of the employer and (or) penalty fee according to the procedure established by internal regulations of ENPF.

In case of availability in ENPF of the conditional retirement account opened addressed to physical person, compulsory pension contributions of the employer are transferred into earlier opened conditional retirement account.

5. ENPF based on the list of physical persons performs registration of conditional retirement accounts of physical persons electronically.

6. Forming of contingent pension liabilities is performed separately on each receiver of retirement benefits on the basis of reserve basis in case of approach of conditions, stipulated in Item 1 article 222 of the Code.

7. Parameter values of reserve basis, except for rates of indexation of retirement benefits, match with parameter values of tariff basis, except for case when the reserve basis is more conservative, than tariff.

In case the reserve basis is more conservative, than tariff basis:

1) effective annual interest rate of reserve basis is less, than effective annual interest rate of tariff basis;

2) coefficients of the life table of reserve basis is less than coefficients of the corresponding tables of tariff basis on all age.

8. Contingent pension liabilities on the certain receiver of retirement benefits are equal to the specified expected cost of retirement benefits.

9. Contingent pension liabilities on all receivers of retirement benefits are calculated as the amount of contingent pension liabilities on all physical persons to which retirement benefits from ENPF are appointed to settlement date.

10. Accounting of compulsory pension contributions of the employer and other receipts according to the legislation of the Republic of Kazakhstan on social protection in the field of provision of pensions, contingent pension liabilities and data on the size of retirement benefits for the corresponding financial year on conditional retirement accounts of physical persons, and also accounting of means on the conditional retirement accounts intended for forming of reserve funds is performed in tenge.

11. Conditional retirement accounts are opened in day of receipt in ENPF of the list of physical persons for whom compulsory pension contributions of the employer and (or) penalty fee are listed.

12. The structure of the conditional retirement account contains obligatory data according to appendix to Rules.

13. Accounting of contingent pension liabilities is performed by ENPF by calculation of the cost of the conventional unit of pension liabilities determined as the specific size of cost of contingent pension liabilities.

14. For accounting of the arrived amounts which are not subject to accounting on the conditional retirement account in day of receipt the accounts payable account is opened (if necessary).

The procedure for transfer and (or) write-off of the other receipts on the account "the other amounts before examination" which are not subject to transfer on conditional retirement accounts or accounts payable accounts of physical persons is determined by internal regulations of ENPF.

15. The conditional retirement account in ENPF is closed after 1 (one) month on condition of lack of means on the account.

16. After closing of the conditional retirement account in ENPF assignment of number of the closed conditional retirement account to the conditional retirement account of other physical person is not allowed.

Chapter 3. Forming and use of reserve funds, calculation procedure and structure of reserve funds

17. Enter into structure of reserve funds:

1) the reserve funds created separately on each age cohort of physical persons (further – reserve funds on cohorts);

2) reserve fund on contingent pension liabilities.

18. Reserve funds on cohorts are created due to transfer from conditional retirement accounts of means:

1) in case of receipt of documents on death and (or) confirmatory data from information systems of state bodies on death and (or) about invalidity of identity documents of the citizen of the Republic of Kazakhstan or the residence permit of the foreigner in the Republic of Kazakhstan, or certificates of the stateless person issued by authorized body of the Republic of Kazakhstan in connection with departure of the foreigner or stateless person out of limits of the Republic of Kazakhstan on the permanent residence or cancellation to the foreigner or the stateless person of permission to permanent residence in the Republic of Kazakhstan, or in connection with loss of nationality of the Republic of Kazakhstan, getting out of nationality of the Republic of Kazakhstan the physical persons which did not reach retirement age according to the subitem 1) of Item 1 of article 222 of the Code in the last day of the calendar year preceding year of achievement of retirement age Item 1 of article 222 of the Code established by the subitem 1). Transfer from conditional retirement accounts of these persons is not performed in year of achievement of their age cohort of retirement age;

2) over the amount necessary for ensuring lifelong payments at the level of the double size of the subsistence minimum established for the corresponding financial year by the law on the republican budget, in the last day of the calendar year preceding year of achievement of retirement age according to the subitem 1) of Item 1 of article 222 of the Code;

3) over the amount necessary for ensuring lifelong payments at the level of the double size of the subsistence minimum established for the corresponding financial year by the law on the republican budget for completion date of the statement of physical person for purpose of retirement benefits according to the subitem 2) Item 1 of article 222 of the Code.

19. Reserve funds on cohorts are used by means of uniform distribution of the funds considered on conditional retirement accounts of reserve funds on cohorts, for conditional retirement accounts in each age cohort in the last day of the calendar year preceding year of achievement by age cohort of retirement age according to the subitem 1) of Item 1 of article 222 of the Code. Distribution is not performed on conditional retirement accounts from which transfer on conditional retirement accounts of reserve funds on cohorts according to the subitem 2) of Item 18 of Rules was performed earlier.

20. The current value of reserve funds on cohorts taking into account distribution of means according to Item 19 of Rules, for the end of calendar year makes 0 (zero) tenge.

21. The reserve fund on contingent pension liabilities is created due to transfer of funds from conditional retirement accounts of physical persons:

For 1) for date of approach of the right to retirement benefits according to whom subitem 1) of Item 1 of article 222 of the Code according to the data on the periods specified in lists of the physical persons arriving in ENPF from The Government for Citizens State corporation (further – the State corporation), compulsory pension contributions of the employer in total less than sixty calendar months, in the last day of calendar year of realization of the right to retirement benefits according to the subitem 1) of Item 1 of article 222 of the Code are listed;

2) being persons with disability of the first and second group if disability is established it is termless for whom for date of realization of the right to retirement benefits according to the subitem 2) of Item 1 of article 222 of the Code according to the data on the periods specified in lists of the physical persons arriving in ENPF from the State corporation compulsory pension contributions of the employer in total less than sixty calendar months, in the last day of calendar year of realization of the right to retirement benefits according to the subitem 2) of Item 1 of article 222 of the Code are listed;

3) over the amount necessary for ensuring lifelong payments at the level of the double size of the subsistence minimum established for the corresponding financial year by the law on the republican budget in case of approach of the conditions provided by the subitem 1) of Item 1 of article 222 of the Code;

4) reached retirement age and not exercised the right to retirement benefits after 1 (one) calendar year from the date of approach of the right to retirement benefits according to the subitem 1) of Item 1 of article 222 of the Code;

5) in case of receipt of documents on death and (or) confirmatory data from information systems of state bodies on death and (or) about invalidity of identity documents of the citizen of the Republic of Kazakhstan or the residence permit of the foreigner in the Republic of Kazakhstan, or certificates of the stateless person issued by authorized body of the Republic of Kazakhstan in connection with departure of the foreigner or stateless person out of limits of the Republic of Kazakhstan on the permanent residence or cancellation to the foreigner or the stateless person of permission to permanent residence in the Republic of Kazakhstan, or in connection with loss of nationality of the Republic of Kazakhstan, getting out of nationality of the Republic of Kazakhstan physical persons, in year of achievement of retirement age until realization of the right to retirement benefits according to the subitem 1) Item 1 of article 222 of the Code.

22. The reserve fund on contingent pension liabilities is used:

1) for replenishment of means on conditional retirement accounts if for date of approach of the conditions provided by the subitem 1) of Item 1 of article 222 of the Code, means on the conditional retirement account are lower than the amount necessary for ensuring lifelong payments at the level of the double size of the subsistence minimum established for the corresponding financial year by the law on the republican budget. Replenishment is performed on the amount of the missing difference, but no more amount which is earlier charged off the conditional retirement account according to the subitem 2) of Item 18 of Rules;

2) for transfer on conditional retirement accounts according to the statement on the amount of earlier charged off money in case of receipt of wrong data on death and (or) about invalidity of identity documents of the citizen of the Republic of Kazakhstan or the residence permit of the foreigner in the Republic of Kazakhstan, or certificates of the stateless person issued by authorized body of the Republic of Kazakhstan in connection with departure of the foreigner or stateless person out of limits of the Republic of Kazakhstan on the permanent residence or cancellation to the foreigner or the stateless person of permission to permanent residence in the Republic of Kazakhstan, or in connection with loss of nationality of the Republic of Kazakhstan, getting out of nationality of the Republic of Kazakhstan physical persons;

3) for transfer on conditional retirement accounts according to the statement of physical persons for whom compulsory pension contributions of the employer, on the amount of earlier charged off money according to the subitem 4) of Item 21 of Rules are listed.

23. Questions of accounting and forming of contingent pension liabilities, and also repeated opening of conditional retirement accounts in ENPF which are not settled by Rules are regulated according to internal regulations of ENPF.

Appendix

to Rules of accounting and forming of contingent pension liabilities, forming and uses of reserve funds, calculation procedure and structure of reserve funds

The structure of the conditional retirement account contains the following obligatory data:

A BBBBBB CC DD..., where:

A	- designation like pension contribution	1 figure	Means type of pension contribution where "4" - compulsory pension contributions of the employer.
ВВВВВВ	- number of the balance sheet account	2, 3, 4, 5, 6, 7th figures	Mean the account of the chart of accounts.
CC	- code of the region (area)	8, 9th figures	Code of the region (area) - figure "00"
DD	- ENPF code	10, 11th figures	The ENPF code - figures "00"

 

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