New Pension Law

On 21 June 2013, President of Kazakhstan has signed the Law “On pension provision in the Republic of Kazakhstan” (hereinafter – the Pension Law) and “On amendments to some legislative acts on pension provision in the Republic of Kazakhstan.

These laws are aimed at improving and development of pension system, its financial stability, conservation and growth of the pension savings and transparency of the pension assets management.

What’s new?

•\tRetirement age for women. According to the Pension Law gradual increase of the retirement age for women is provided from 1 January 2018 from 58 to 63 years;

•\tEstablishing the Unitary Pension Savings Fund (UPSF), the founder and shareholder of which shall be the Government of RoK, and management of pension assets shall be performed by the National Bank of RoK;

•\tIntroduction of compulsory professional pension contributions paid by employer in the amount of 5% of monthly employee’s income;

•\tAdditional mandatory pension payment at state expense for working women during their leave for the child birth and child care leave. Total payments to accumulative pension fund will be increased up to 10% of the latest income;

•\tNon-discrimination. Introduction of rules prohibiting the employer to place the information on vacancies for employment containing the requirements of a discriminatory nature;

•\tThe law provides additional guarantees for the employees aged 55 years and above or until retirement age, e.g positive decision of the special committee, consisting from equal number of representatives of the employers and employees shall be received prior termination of the employment contract;

•\tIntroduction of the provisions on preventing the arrest of mandatory pension contributions, mandatory occupational pension contributions, pension assets and retirement savings.

The Law is effective from 2 July 2013.

The Law “On amendments to some legislative acts on pension provision issues in the Republic of Kazakhstan” introduces amendments to the 10 codes and 26 laws. All amendments are mainly related to the creation UPSF.

The present review includes only brief information about introduced changes. Should you need additional information, do not hesitate to contact us.

Information contained in this Client Update is of general nature and cannot be used as legal advice or recommendation. Please seek for a specific advice in relation to any questions. Please note that Kazakhstan and Turkmenistan are emerging economies and their legislation and legal systems are in constant development. Should you have any questions or would like to discuss subjects addressed in this Client Update please contact us.