The Accounts Committee was invited to check the expenses of the UAPF

Photo: Ruslan Pryanikov

Deputy Amanzhan Zhamalov asks to consider the issue of transferring the Unified Accumulative Pension Fund (UAPF) to the direct jurisdiction of the government, reports the correspondent of the business information center

“Today, the National Bank is the fiduciary manager of pension assets in Kazakhstan. It directs the investment policy and supervises its activities itself. The assets of the pension fund, first of all, consist of deductions from Kazakhs for a amount of 10% of income. From 2023, additional contributions amounting to 1.5% for each worker will be added by employers. I am talking about this because a pension is not charity, but the right that a person earns in old age worthy,” said Amanzhan Zhamalov at the plenary meeting of the mazhilis, addressing the head of the government with a request for a deputy.

According to the deputy, during 7 months of 2022, the profitability of the assets of the UAPF was only 9.6% per year, and the annual inflation is already 16.1% today. “In other words, the real profitability of pension savings is negative. It can be firmly said that UAPF does not have an effective investment strategy. 44% of the fund’s assets are invested in bonds of the Ministry of Finance, the main profitability of the UAPF is again provided at the expense of the budget,” said Amanzhan Zhamalov.

He recalled that in his message the Head of State announced an increase in basic and solidarity pensions. An additional 421,000 million tenge from the budget will be allocated for this purpose.

“And that despite the fact that as of August 1, UAPF manages an astronomical amount of 14 billion tenge. This amount is equal to the annual budget of Kazakhstan… In fact, the billions of revenues and expenses of this organization are removed from the budget procedures and the control of the Committee of Accounts”, stressed the Mazhilism.

According to the deputy, today the administrative expenses of the UAPF reached 13,000 million tenge. For example, the annual administrative costs of the Ministry of Labor and Social Protection of the Population do not exceed 10 billion tenge.

“Only 7.9 billion tenge were spent on the remuneration of UAPF employees… The question is: at whose expense is this “financial abundance”? The answer is very simple: at the expense of Kazakhs. Or rather, by the contributions that pay to the UAPF. The Fund charges each depositor a commission on the amount of investment income and pension assets. In 2021, the commission of the UAPF exceeded 15 billion tenge. In addition, the fund receives income from operations with securities In 2021, the total income of the UAPF amounted to almost 35 billion tenge, and the net profit – 23.4 billion tenge,” said the deputy.

According to Amanzhan Zhamalov, over the years of its existence, the UAPF has amassed cumulative profits of 211 billion tenge thanks to the commissions collected on the pension contributions of Kazakhs.

He offered:
– The Accounts Commission to verify the validity and effectiveness of UAPF expenses.
– The Government, as the sole shareholder, withdraws retained profits of 211,000 million tenge from the UAPF as dividends to the budget and directs them to address social issues, for example, the problem of the category of women with enough experience and savings to retire in 58 years if desired.
– Consider the transfer of the UAPF to the direct competence of the government, possibly under the control of the Ministry of Labor and Social Protection of the Population.

Photo: Ruslan Pryanikov



Since the beginning of the year, pensions for 1.9 trillion tenge have been paid to Kazakhs

The average amount of pension payments amounted to 109,224 tenge

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