Accumulative Pension System of the Republic of Kazakhstan

Accumulative Pension System of the Republic of Kazakhstan , Bangkok, April 27 -28, 2005 Prepared by Gulnara Alimbayeva

Accumulative Pension Fund Custodian Asset Management Company

Functions of Accumulative Pension Fund: n n n collecting obligatory pension contributions keeping pension accounts of depositors and pension payments pension asset management (by license)

All accumulative pension funds are created in corporation form of organization. Accumulative pension fund cannot be stockholder of any other accumulative pension fund.

Pension Asset Management Company invests pension assets Custodian saves pension assets

Depositor One depositor - one Accumulative Pension Fund by one treaty Depositor Accumulative Pension Fund Depositor Accumulative Pension Fund

Types of pension contributions 1. Obligatory pension contributions required for paying in accumulative pension fund, are fixed in the amount of 10% of employees monthly income. 2. Voluntary pension contributions to accumulative pension funds are entered by depositor — physical person — in depositor’s favour from his income. Rate of voluntary pension contributions, its payment procedure and pension payments procedure are established according to agreement both pension sides of contract. 3. Voluntarybetween professional contributions are implemented by depositor from his own sources in favour of employees. Rate of voluntary professional pension contributions is established according to agreement between both sides of contract excepting rate more than 10 % of employees monthly income.

Individual choice By law every depositor can choose any accumulative pension fund

The main criteria of Individual choice

By law depositor can change Accumulative Pension Fund at most two per annual

At the beginning pension age (male - 63/ female - 58) depositor can choose one of the methods of pension payments

pension contributions investments in financial instruments (FSA list) investment revenues reimbursement of losses minus commission interest of accumulative pension fund Pension assets pension payments transfer of pension funds into another accumulative pension fund or insurance company

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