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More work - more pension, June 27, 2018, the newspaper "Kazakhstanskaya Pravda"

For Kazakhstan pensioners who have worked for 33 years or more, the basic pension will increase by 2 times compared to 2017.

Since July 1 this year in our country for more than 2 million pensioners the size of the basic pension will be recalculated. Svetlana Zhakupova, vice minister of labor and social protection of the population of the Republic of Kazakhstan, tells how this will happen in an interview with KP.

- Svetlana Kabykovenovna, for those who are just going to retire, please explain what is a basic pension? Why did it become necessary to introduce a new methodology for its appointment?

- The state basic pension payment is a monthly payment that was introduced in 2005 in the course of implementing the tasks set by the President in his Address to the people of Kazakhstan on February 18, 2005, as a demo-grant (monetary payments to certain categories of the population on the basis of their demographic characteristics. .).

This payment has allowed increasing the incomes of older people, since it is granted regardless of the receipt of solidarity and funded pensions. In other words, every pensioner who has reached the retirement age receives this payment in addition to his old-age pension.

It should be noted that its size is growing every year. So, for the period since 2005, when the base pension was 3 000 tenge, its size grew more than 5 times, this year it made up 15 274 tenge.

- What is the need to change the methodology for assigning a basic pension, what problems will it solve?

- The answer to this question is contained in the Concept for further modernization of the pension system of the Republic of Kazakhstan until 2030, approved by the Decree of the President of the Republic of Kazakhstan from June 18, 2014 No. 841. This document contains an analysis of the current situation, trends, vision and The need to modernize the pension system in the country.

As is known, the pension system of Kazakhstan is represented in three levels: basic, solidarity and funded pensions. All these pension components in their totality should provide a replacement rate of income by pension payments that meets international standards - at least 40% of pre-retirement income.

The size of solidarity pensions is gradually decreasing, since the experience for its appointment is taken into account only until January 1, 1998, before the introduction of a funded pension system in Kazakhstan. Due to their age, persons who retire can not have the full required (men - 25 years, women - 20 years) work experience for this date. For example, in the current year men of 1955 and 1960 women are retiring. Provided that they started their labor activity at the age of 18, as of January 1, 1998, the man's work record will be about 25 years, women - about 20 years. If they started working later, they will already receive solidarity pensions in part.

As for the funded pension, its size is not very high, which is explained by a number of reasons: a short period of savings, the existence of informal labor relations and the informal sector in the economy, and a low level of pay for certain categories of workers. In this regard, within the modernization of the pension system is the task of improving its basic level.

Thus, the new methodology for calculating the basic pension is designed to solve the problems of pensioners who have a long working record but receive low or minimal pensions, establish a unified approach to determining its size, and encourage participation in the pension system and the formalization of labor relations.

- What is the essence of the methodology?

- If now the base pension is assigned to all in the same amount, then from the second half of the current year, its size will be set to each recipient individually, taking into account his seniority in the pension system. Thus, for citizens who have 10 or less years of experience in the pension system or do not have it at all, the basic pension will continue to be paid at a rate of 54% of the subsistence level. If the length of participation in the pension system is more than 10 years, then for every year over 10 basic pension increases by 2%, but the maximum size of the basic pension can not exceed 100% of the subsistence minimum.

The sizes of the basic pension depending on the length of service are given in the following table.

Aggregate work experience *

Shared from LW

Amount of BPB, KZT

< 10

54%

15 274

11

56%

15 839

12

58%

16 405

13

60%

16 970

14

62%

17 536

15

64%

18 102

16

66%

18 667

17

68%

19 233

18

70%

19 799

19

72%

20 364

20

74%

20 930

21

76%

21 496

22

78%

22 062

23

80%

22 627

24

82%

23 193

25

84%

23 759

26

86%

24 324

27

88%

24 890

28

90%

25 456

29

92%

26 021

30

94%

26 587

31

96%

27 153

32

98%

27 718

33 and more

100%

28 284

The total length of service is taken into account before the date of appointment of the basic pension, and includes: joint experience, recorded before January 1, 1998, and experience of participating in the accumulative pension system from January 1, 1998.

According to this principle all retired pensioners are recalculated basic pension.

For the first time, retiring from July 1, 2018, the size of the basic pension will also be set taking into account the new methodology.

- Do you have years of study in the university, military service, maternity leave in your seniority?

- With the new method of assigning a basic pension benefit to the length of participation in the pension system, the length of service will be taken into account on January 1, 1998, which is taken into account for the appointment of a solidarity pension. As you know, it includes training time in higher and secondary special educational institutions, service in the army, periods of care for young children under 3 years. Also, in periods of participation in the pension system, the periods for which compulsory pension contributions (CPC) was performed after January 1, 1998, are counted.

If for valid reasons a person could not participate in the accumulative pension system, then such socially important periods as the time for caring for young children under 3 years (for a total of 12 years), for invalids from childhood to 16, for a disabled person of the 1st group, a single invalid of the 2 nd group and a retired person in need of assistance, as well as for the elderly who have reached the age of 80.

- How will changes in the basic pension affect women, whose retirement age has been raised since the beginning of the year?

- Undoubtedly, in connection with the increase in the retirement age of women, not only does the amount of pension savings increase, but the length of their participation in the funded system also increases, which means that the base pension increases. This approach restores social justice - the more a person worked, the higher his pension.

- How does the recalculation of basic pensions occur, is there a danger of losing individual years of service with automatic recalculation?

- Do not worry, losing individual years of service will not happen. As part of the preparatory work for the upcoming recalculation of the basic pension, an inventory of all pension cases was carried out to determine the correctness of calculating the length of participation in the pension system for each recipient individually.

Recalculation is made without demanding additional documents, as information on the seniority is available in pension affairs, and information on the period for which mandatory pension contributions were made is in the database on transfer of mandatory pension contributions.

Retired people do not have to go anywhere, we have all the data to carry out the recalculation of the basic pension. Already, those who wish can receive a certificate-calculation of the basic pension, which contains detailed information on the length of participation in the pension system, through the e-government web portal or directly at the branch of the state corporation "Government for Citizens".

- What can you give recommendations for potential pensioners working in the shadow economy?

- I want to note that those who work in the shadow economy, at an old age, risk being without means of subsistence. If there is no work record and pension savings, then there will be neither the right to a solidarity pension nor a funded pension. The only thing these people can count upon reaching the retirement age is for a state guarantee in the form of a basic pension at the level of 54% of the subsistence minimum.

Therefore, potential pensioners working in the shadow economy, I recommend the following: to formalize labor relations, to participate in the accumulative pension system, to regularly enumerate the mandatory pension contributions provided by law.

Your future is in your hands!

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