The Law of the Republic of Kazakhstan “On Pension Security of the Republic of Kazakhstan” provides for a gradual increase in the retirement age of women from 2018 to 2027, it means for 10 years, 6 months annually.
This is mainly due to the decrease in the work experience as of January 1, 1998.
It should be noted that in connection with the introduction of a cumulative pension system, when assigning retirement benefit payments by age, the work experience is taken into account only until 1998, for work experience after January 1, 1998, retirement benefit payments are made for the accumulative pension system at the expense of the accumulated pension savings.
This means that women who retire after 2018 will receive a joint pension in relatively small amounts. If today we do not carry out this reform, then tomorrow the majority of women will be left without sufficient pension savings, and, therefore, without an adequate pension.
Under the conditions of a funded pension system, women need to be given the opportunity to participate in the funded pension system on an equal basis with men, which will increase the amount of their pension savings and lead to an increase in the size of their pension from the funded pension system.
At the same time, all existing benefits for the early retirement of women are retained.
Firstly, women who have given birth to five or more children and has 20 years of work experience are entitled to retire, as now, at 53 years old. At the same time, the length of service for small children will be counted in the seniority for assigning a pension, but not more than 12 years in total;
secondly, women who have lived for at least 5 years in the areas of emergency and maximum radiation risk of the Semipalatinsk nuclear test site, retire at the age of 45;
thirdly, women who participated in the accumulative pension system, in case of purchasing a retirement annuity with sufficient pension savings, have the right to early retirement (at 50.5 years in 2018).
At the same time, pension savings include mandatory pension contributions, mandatory professional pension contributions, and voluntary contributions. With a shortage of funds, you can use voluntary contributions paid by the beneficiaries themselves, as well as by third parties, to purchase an annuity.
Thus, the pension system consists of the following parts:
1) the state basic pension payment, the size of which ranges from 54% to 100% of the subsistence minimum, depending on the length of time that a particular recipient participates in the pension system (in 2018 from 15,274 tenges to 28,284 tenges).
2) a joint pension granted depending on the length of service (it takes at least 6 months as of January 1, 1998) and the average monthly income received in the pre-retirement period;
3) pension payments from the accumulative pension system at the expense of compulsory pension contributions, compulsory pension contributions by the employer and voluntary pension contributions.