Kazakhstan closes another route to withdraw pension savings as regulator changes annuity buyout rules

Kazakhstan's Agency for Regulation and Development of the Financial Market (ARDFM) has changed how the buyout amount is calculated under pension annuity contracts. Under the new rules, when a client moves from one life insurance company to another, investment income will be counted within the funds intended for future pension payments. Previously, part of this income could be paid out to the client in cash as a one-time payment.

A pension annuity provides a lifetime pension funded by savings transferred from the Unified Accumulative Pension Fund (UAPF) to a life insurance company. Payments may begin before the retirement age if a person meets the requirements set by law.

The ARDFM board resolution will take effect 10 calendar days after its first official publication. Deputy Chairman Nurzhan Tursunkhanov said the change would ensure that the value of the contract is fully taken into account and help maintain the size of future pension payments.