On Retirement Insurance in the Republic of Kazakhstan

The Law of the Republic of Kazakhstan dated 21 June, 2013 No. 105-V

Unofficial translation

      This Law determines the legal and social grounds of retirement insurance of citizens in the Republic of Kazakhstan, regulates participation of the state bodies,, individuals and legal entities in realization of the constitutional right of citizens on retirement insurance.

Chapter 1. GENERAL PROVISIONS

Article 1. The basic concepts, used in this Law

      The following basic concepts shall be used in this Law:
      1) diversification – placement of retirement assets in various financial instruments in order of risk reduction of their losses in accordance with the requirements, established by the authorized body;
      2) print publication - periodical print publication, the list of which is determined by the authorized body;
      3) unified pension savings fund – a legal entity, carrying out an activity on attraction of pension contributions and pension payments;
      4) minimum pension – minimum amount of pension, established on the relevant financial year by the Law on the republican budget;
      5) voluntary pension savings fund - professional participants of the securities market, carrying out an activity on the basis of a license of the authorized body on portfolio management with right of involvement of voluntary pension contributions;
      6) voluntary pension contributions – money, contributed by the contributors on its initiative in a unified pension savings fund and (or) voluntary pension savings fund for the benefit of recipients of pension payments according to the procedure, determined by the legislation of the Republic of Kazakhstan and agreement on retirement insurance at the expense of voluntary pension contributions;
      7) an agreement on retirement insurance at the expense of voluntary pension contributions – an agreement, concluded by the unified pension savings fund and (or) voluntary pension savings fund of the one part, and contributor (recipient of pension payments) of the other part on establishment, change or termination of legal relations, linked with voluntary pension contributions, savings and reception of pension payments;
      8) the rate of voluntary pension contributions – an amount of payment in a unified pension savings fund and (or) voluntary pension savings fund, determined by the agreement on retirement insurance at the expense of the voluntary pension contributions;
      9) contributor of voluntary pension contributions – an individual or legal entity, effecting the voluntary pension contributions for the benefit of recipients of pension payments at the expense of its own funds in accordance with agreement on retirement insurance at the expense of the voluntary pension contributions;
      10) an individual retirement account – individual account of contributor (recipient of pension payments), on which the compulsory pension contributions or compulsory professional pension contributions, or voluntary pension contributions, investment income, fine and other receipts are considered in accordance with the legislation of the Republic of Kazakhstan and from which the pension payments are disbursed;
      11) pension savings fund – a legal entity, carrying out an activity on attraction of pension contributions and pension payments, validity of a license of which is terminated in accordance with paragraph 4 of Article 73 of this Law;
      12) pension – a set of pension payments from the authorized organization, unified pension savings fund, voluntary pension savings fund;
      13) retirement assets – money, securities, other financial instruments, intended for insurance and effecting of pension payments, transmissions, as well as other purposes, provided by this Law;
      14) an agreement of retirement annuity – an insurance agreement, according to which an insurant (recipient of pension payments) is obliged to transfer the amount of pension savings to the insurance organization, an insurance organization is obliged to make the insurance payments for the benefit of insurant (recipient of pension payments) for the life term or during particular period of time;
      15) pension savings – money of contributor (recipient of pension payments), considered in its individual pension account, including the compulsory pension contributions, compulsory professional pension contributions and voluntary pension contributions, investment income, fine and other receipts in accordance with the agreements, this Law, the legislation of the Republic of Kazakhstan;
      16) pension payments from:
      an authorized organization – the state base pension payment and cash disbursements to individuals, having a labour experience not less than six months on 1 January, 1998, carried out in proportion of labour experience;
      unified pension savings fund and (or) voluntary pension savings fund – the payments of pension savings to the recipients of pension payments;
      17) recipient of pension payments (hereinafter – recipient) – an individual, to whom is admitted the pension payments from the authorized organization and (or) entitled to reception of pension payments from the unified pension savings fund and (or) voluntary pension savings fund;
      18) investment thesis – a document, determining the list of the investment objects, purposes strategies, conditions and restrictions of investment activity in relation of retirement assets, conditions of hedging and diversification of retirement assets;
      19) investment portfolio – a set of financial instruments, including into composition of retirement assets;
      20) manager of investment portfolio - professional participants of the securities market, carrying out an activity on management of investment portfolio on the basis of license of the authorized body, or foreign organization, carrying out an analogous type of activity in accordance with the legislation of the foreign state, satisfying to the requirements, established by the regulatory legal act of the National Bank of the Republic of Kazakhstan;
      21) investment income – money, received (receivable) in the results of investment of retirement assets;
      22) a custodian bank– National Bank of the Republic of Kazakhstan for the pension savings fund or the bank second level for the voluntary pension savings funds, carry out record-keeping of financial instruments and money, confirmation of rights on them, keeping of documentary financial instruments with assumption of obligations on their safety in accordance with the legislative acts of the Republic of Kazakhstan;
      23) custodian agreement – an agreement of keeping and commission, concluded by the custodian bank and its client, determining procedure of provision of services to the client on custodial service;
      23-1) the State fund of social insurance – a legal entity, executing accumulation of social expenditures and payment of compulsory social insurance to the participants in the system, in relation of which appeared the case of social risk, including family members – dependent in the case of loss of breadwinner – a participant in the system of the compulsory social insurance;
      24) the state basic pension payment – monthly monetary payment, provided to the citizens of the Republic of Kazakhstan upon reaching the retiring age, established by this Law;
      25) compulsory pension contributions – money, contributed to the unified pension savings fund in accordance with this Law according to the procedure, established by the legislation of the Republic of Kazakhstan;
      26) arrears on compulsory pension contributions, compulsory professional pension contributions – calculated, deducted (charged ) and not transferred compulsory pension contributions, compulsory professional pension contributions in a unified pension savings fund within the time limits, established by this Law;
      27) an agreement on pension insurance at the expense of compulsory pension contributions, compulsory professional pension contributions – an affiliation agreement, conditions of which are adopted by the contributor (recipient) not otherwise than by accession to the proposed agreement in whole;
      28) the agent on payment of compulsory pension contributions, compulsory professional pension contributions (hereinafter – the agent) – an individual or legal entity, including the foreign legal entity, carrying out an activity in the Republic of Kazakhstan through permanent institution, as well as branches, representations of foreign legal entities, calculated, deducted (charged ) and transferred the compulsory pension contributions in a unified pension savings fund according to the procedure, determined by the legislation of the Republic of Kazakhstan;
      29) the rate of compulsory pension contributions – an amount of payment in a unified pension savings fund, expressed in percentagewise to the income of contributor of compulsory pension contributions, received for calculation of pension contributions;
      30) a contributor of compulsory pension contributions – an individual, having an individual pension account in a unified pension savings fund;
      31) compulsory professional pension contributions – money, contributed by the contributors of compulsory professional pension contributions in a unified pension savings fund for the benefit of employees, engaged in work with harmful (particularly harmful ) labour conditions;
      32) the rate of compulsory professional pension contributions – an amount of payment of contributor of compulsory professional pension contributions in a unified pension savings fund, expressed in percentagewise to the income of employee, received for calculation of pension contributions;
      33) a contributor of compulsory professional pension contributions – an employer, effecting the compulsory professional pension contributions for the benefit of employee at the expense of its own funds;
      34) central executive body – the state body, carrying out regulation in the scope of social population protection;
      35) prudential regulation – established economical requirements by the regulatory legal act of the authorized body for ensuring of financial stability of voluntary pension savings funds;
      36) insurance organization – legal entity, carrying out an activity on conclusion and implementation of ensurance agreement in a branch of “life insurance” on the basis of relevant license of the authorized body;
      37) redemption sum - a sum of money, which the insurant (recipient) is entitled to receive from the insurance organization upon early termination of the pension annuity contract;
      38) an authorized body – the state body, carrying out the state regulation, control and supervision of financial market and financial organizations;
      39) the bodies, appointed the pension payments from the authorized organization – authorized state bodies;
      40) an authorized organization (hereinafter – the Center) – republican state fiscal enterprise, created by the decision of the Government of the Republic of Kazakhstan;
      41) affiliated persons – individuals and legal entities (except of the state bodies, carrying out the control and supervisory functions within the frame of granted to them powers, and national holding administration), having the opportunity to directly and (or) indirectly determine decisions and (or) influence on decisions, adopted with each other (one of the person), as well as by virtue of concluded transaction. Existence of national holding administration in the composition of shareholders of voluntary pension savings fund shall not be the ground for determination of persons, affiliated in relation to each other.
      Footnote. Article 1 as amended by the Law of the Republic of Kazakhstan dated 10.01.2014 No. 156-V (shall be enforced from 01.01.2014).

Article 2. The right of citizens to the retirement insurance

      1. Citizens of the Republic of Kazakhstan shall have a right to the retirement insurance according to the procedure, established by the legislation of the Republic of Kazakhstan.
      2. Foreigners and persons without citizenship, permanently residing in the territory of the Republic of Kazakhstan, shall be used a right to the retirement insurance equally with the citizens of the Republic of Kazakhstan, unless otherwise provided by the Laws and international treaties.

Article 3. The legislation of the Republic of Kazakhstan on retirement insurance

      1. The legislation of the Republic of Kazakhstan on retirement insurance shall be based on the Constitution of the Republic of Kazakhstan and consist of this Law, other regulatory legal acts of the Republic of Kazakhstan.
      2. If the international treaty, ratified by the Republic of Kazakhstan establishes the other rules, than those provided by this Law, the rules of international treaty shall be applied.

Article 4. The state guarantees on retirement insurance

      1. The state shall guarantee the retirement insurance to the citizens, retired on a pension until 1 January, 1998, maintaining the established amount of pension payments until 1 April, 1999, in subsequent periods, the pension payments will be made in accordance with paragraph 5 of Article 15 of this Law.
      2. The state basic pension payment shall be provided to the citizens of the Republic of Kazakhstan:
      1) receiving a pension until 1 January, 1998;
      2) reached retirement in accordance with Article 11 of this Law;
      3) military servants, servants of special state and law enforcement bodies, state courier service, to whom the special ranks, grade ranks are awarded, as well as the persons, the right of which to have the special ranks, grade ranks and wear the uniform is abolished from 1 January, 2012, having a right to reception of pension payments for the age in grade.
      The state basic pension payment shall be provided independently from reception of pension payments from the Center and (or) a unified pension savings fund and (or) voluntary savings pension fund, as well as the state social invalidity benefit.
      An amount of the state basic pension payment shall be established on the relevant financial year by the Law on republican budget with gradual approaching to the minimum living wage.
      The state basic pension payment shall be provided at the expense of budget means according to the procedure, determined by the Government of the Republic of Kazakhstan.
      Upon reaching the retiring age in accordance with paragraphs 1-3 of Article 11 of this Law, the state social allowances on the occasion of loss of breadwinner and according to age at the wish of the citizens shall be changed by the state basic pension payment according to the procedure, established by the legislation of the Republic of Kazakhstan.
      3. Increase of amounts of pension payments shall be annually made from the Center according to the procedure, determined by the Government of the Republic of Kazakhstan.
      4. The state shall guarantee the retirement insurance to the citizens, having a right to the seniority pension and registered this right in the bodies, granting and (or) making the pension payments until 1 January, 1998. In this case the pension, payment of which is accounted from the day of dismissal from office, granting the right to the pension for age in grade, shall be established to them. Conditions of paragraphs 1 and 3 of this Article and paragraph 5 of Article 15 of this Law shall be distributed to the awarded pension.
      Footnote. Article 4 as amended by the Law of the Republic of Kazakhstan dated 23.04.2014 No. 200-V (shall be enforced upon expiry of ten calendar days after its first official publication).

Article 5. Safe-conduct of pension savings

      1. The state shall guarantee the safety of compulsory pension contributions, compulsory professional pension contributions in a unified pension savings fund in the amount of actually contributed compulsory pension contributions, compulsory professional pension contributions in recognition of the rate of inflation as of the date of acquisition of a right by recipient to the pension payments according to the procedure, determined by this Law and other regulatory legal acts of the Republic of Kazakhstan.
      2. Safe-conduct of pension savings shall be provided as well by:
      1) accumulation of pension savings at the expense of compulsory pension contributions, compulsory professional pension contributions in a unified pension savings fund;
      2) exercising the investment control of the retirement assets of the unified pension savings fund by the National Bank of the Republic of Kazakhstan;
      3) regulation of activity of the unified pension savings fund by establishment of relevant requirements in relation of attraction the pension contributions and making the pension payments;
      4) regulation of activity of voluntary pension savings funds by establishment of relevant regulations and limits, as well as requirements, provided by the legislation of the Republic of Kazakhstan;
      5) establishment of requirements to the incorporators, shareholders and leading employees of voluntary pension savings funds, as well as to the amount and composition of its charter capital;
      6) establishment of requirements to the administrative servants of unified pension savings fund;
      7) establishment of requirement on keeping of retirement assets of unified pension savings fund in the National Bank of the Republic of Kazakhstan;
      8) establishment of requirement on keeping the financial instruments and money, including in a composition of retirement assets, exclusively in the custodies, not affiliated with the voluntary pension savings funds, by the voluntary pension savings funds;
      9) separate record-keeping of own funds and retirement assets of unified pension savings fund and voluntary pension savings fund, as well as establishment of control of their objective placement;
      10) establishment of requirements on diversification and reduction of risks upon placement of retirement assets;
      11) establishment of amount of commission remuneration, receiving by the unified pension savings fund, voluntary pension savings fund;
      12) obligations of annual performance of an audit of unified pension savings fund, voluntary pension savings fund;
      13) regular reporting of unified pension savings fund, voluntary pension savings fund before the relevant state bodies in the manner established by the legislation of the Republic of Kazakhstan;
      14) delivery of information to the contributor (recipient) on condition of its pension savings;
      15) offering of opportunity to the contributor (recipient) to transfer their pension savings, formed at the expense of voluntary pension contributions from the unified pension savings fund to the voluntary pension savings fund or from the voluntary pension savings fund to the unified pension savings fund or from one voluntary pension savings fund to another voluntary pension savings fund;
      16) voluntary insurance of pension savings in full or partially volume at the choice of contributor (recipient);
      17) carrying out of the record and assessment of retirement assets according to the procedure, established by the authorized body.
      Footnote. Article 5 as amended by the Law of the Republic of Kazakhstan dated 10.01.2014 No. 156-V (shall be enforced from 01.01.2014).

Article 6. The competence of the Government of the Republic of Kazakhstan in the scope of retirement insurance

      The Government of the Republic of Kazakhstan in the scope of retirement insurance:
      1) develop the basic directions of the state policy in the scope of retirement insurance and organize its implementation;
      2) approve the rules of provision the state basic pension payment at the expense of the budget funds, as well as award and effecting the pension payments from the Center;
      3) approve the procedure and terms of calculation, deduction (charge) and transfer of compulsory professional pension contributions in a unified pension savings fund;
      4) approve the rules of withdrawal and transfer of the sum of compulsory pension contributions, additionally established to the judges, to the budget, in the case of dismissal the judge from office on negative appeals;
      5) approve the rules of effecting the pension payments from the pension savings, formed at the expense of compulsory pension contributions, compulsory professional pension contributions from the unified pension savings funs and the method of effecting the calculation of amount of the pension payments;
      6) approve the list of productions, works, professions of employees, engaged in work with harmful (particularly harmful ) labour conditions, for the benefit of which the compulsory professional pension funds are effected at the expense of own funds by the contributors of compulsory professional pension contributions;
      6-1) approve the rules of carrying out of compulsory professional pension contributions;
      6-2) approve the rules of subsidization of compulsory pension contributions to the recipients of social payments in case of loss of income in connection with childcare upon reaching the age of one year from the State fund of social insurance;
      6-3) approve the rules of implementation of the guarantees of the state to the recipients of pension payments on safety of compulsory pension contributions, compulsory professional pension contributions in a unified pension savings fund in the amount of actually contributed compulsory pension contributions, compulsory professional pension contributions in recognition of the rate of inflation as of the date of acquisition of a right by recipient to the pension payments;
      7) adopt a decision on creation, reorganization or liquidation of a unified pension savings fund according to the procedure, provided by the Laws of the Republic of Kazakhstan;
      8) exercise other functions, imposed on it by the Constitution of the Republic of Kazakhstan, this Law, other Laws of the Republic of Kazakhstan and acts of the President of the Republic of Kazakhstan.
      Footnote. Article 6 as amended by the Law of the Republic of Kazakhstan dated 10.01.2014 No. 156-V (shall be enforced from 01.01.2014).

Article 7. The competence of the central executive

      The central executive body shall:
      1) develop the list of productions, works, professions of employees, engaged in work with harmful (particularly harmful ) labour conditions, for the benefit of which the compulsory professional pension funds are effected at the expense of own funds by the contributors of compulsory professional pension contributions;
      2) develop the procedure of annually increase of the amounts of pension payments from the Center;
      3) develop the list of the works in organizations, carrying out the medical examination and pathological-anatomical diagnostic for preferential calculation of the labour experience for award of pension payments from the Center in a half rate;
      4) develop the list of seasonal sectors of industry, the work of which is counted in experience for award the pension payments for a year of work;
      5) develop and approve the rules of database creation of the contributors (recipients) on the compulsory pension contributions, compulsory professional pension contributions and a unified list of individuals, concluded an agreement on retirement insurance at the expense of compulsory pension contributions, compulsory professional pension contributions;
      6) develop the procedure and terms of calculation, deduction (charge) and transfer of compulsory pension contributions, compulsory professional pension contributions in a unified pension savings fund;
      7) develop the rules of calculation of compulsory pension contributions, deducted and not transferred from the incomes of former employees, location of which is unknown, by the agents, due to the absence of the social individual code and (or) taxpayer identification number, and (or) pension agreement with pension savings fund on 1 January, 2005;
      8) develop and approve the rules of presentation of information to the Center by the unified pension savings fund on concluded and terminated agreements with the contributors (recipients) on retirement insurance at the expense of compulsory pension contributions, compulsory professional pension contributions with the use of electronic document management;
      9) develop the rules of effecting the pension payments from the pension savings, formed at the expense of compulsory pension contributions, compulsory professional pension contributions from the unified pension savings fund and the method of effecting the calculation of amount of the pension payments;
      9-1) develop the rules of effecting the compulsory professional pension contributions;
      9-2) develop the rules of subsidization of compulsory pension contributions recipients of social payments in case of loss of income in connection with childcare upon reaching the age of one year from the State fund of social insurance to the;
      9-3) monitor the sum of actually contributed compulsory pension contributions, compulsory professional pension contributions of contributors (recipients) in recognition of the rate of inflation on the relevant financial year;
      9-4) develop the rules of implementation of the guarantees of the state to the recipients of pension payments on safety of compulsory pension contributions, compulsory professional pension contributions in a unified pension savings fund in the amount of actually contributed compulsory pension contributions, compulsory professional pension contributions in recognition of the rate of inflation as of the date of acquisition of a right by recipient to the pension payments;
      9-5) organize the preparation and personnel development on issues of retirement insurance;
      10) exercise other powers, provided by this Law, other Laws of the Republic of Kazakhstan, acts of the President of the Republic of Kazakhstan and the Government of the Republic of Kazakhstan.
      Footnote. Article 7 as amended by the Law of the Republic of Kazakhstan dated 10.01.2014 No. 156-V (shall be enforced from 01.01.2014).

Article 8. The competence of the authorized body

      An authorized body shall:
      1) develop and approve the rules of carrying out an activity of the unified pension savings fund and (or) voluntary pension savings funds;
      2) develop and approve the rules of transfer of pension savings from the unified pension savings fund to the voluntary pension savings fund, from the voluntary pension savings fund to the unified pension savings fund, as well as from one voluntary pension savings fund to another voluntary pension savings fund;
      3) develop and approve the rules of charging of the commission remuneration by the unified pension savings fund;
      4) specify requirements to the attorneys, specified in paragraph 2 of Article 35 of this Law, and the order of their choice;
      5) exercise other functions, provided by this Law, other Laws of the Republic of Kazakhstan and acts of the President of the Republic of Kazakhstan.

Chapter 2. PROCEDURE OF EXERCISING THE RETIREMENT INSURANCE FROM THE CENTER

Article 9. The right to reception the pension payments from the Center

      The right to reception the pension payments from the Center shall be guaranteed to the citizens upon occurrence of the conditions established by this Law.
      The right of reassignment the pension payments from the Center, granted to them on age in grade until 1 January, 1998, shall be granted to the pensioners, reached retirement.

Article 10. The category of citizens, having the right to reception of pension payments from the Center

      1. Pension payments from the Center shall be effected to the following categories of citizens:
      1) receiving a pension until 1 January, 1998;
      2) reached retirement in accordance with the paragraphs 1-3 of Article 11 of this Law;
      3) military servants, servants of special state and law enforcement bodies, state courier service, to whom the special ranks, grade ranks are awarded, as well as the persons, the right of which to have the special ranks, grade ranks and wear the uniform is abolished from 1 January, 2012, having a right to reception the pension payments for the age in grade.
      2. In case of death of the recipient of the pension payments from the Center, as well as recipient of the state basic pension payment, the one-time payment to burial in the amount of 15,7 fold monthly calculation index, established on the relevant financial year by the Law on republican budget shall be paid from the Center to his (her) family or person, executed the burial.
      3. In case of death of the recipient of the pension payments from the Center, being participant or disabled veteran of the Great Patriotic War, the one-time payment to burial in the amount of 36,6 fold monthly calculation index, established on the relevant financial year by the Law on republican budget shall be paid from the Center to his (her) family or person, executed the burial.
      Footnote. Article 10 as amended by the Laws of the Republic of Kazakhstan dated 10.01.2014 No. 156-V (shall be enforced from 01.01.2014); dated 31.03.2014 No. 180-V (shall be enforced from 01.04.2014); dated 23.04.2014 No. 200-V (shall be enforced upon expiry of ten calendar days after its first official publication).

Article 11. Award of pension payments from the Center

      1. Award of pension payments from the Center shall be effected:
      from 1 July, 2011 – for men upon reaching the age of 63, women upon reaching the age of 58.
      Upon that award of pension payments from the Center to the women shall be effected:
      from 1 January, 2018 – upon reaching 58,5 years;
      from 1 January, 2019 – upon reaching 59 years;
      from 1 January, 2020 – upon reaching 59,5 years;
      from 1 January, 2021 – upon reaching 60 years;
      from 1 January, 2022 – upon reaching 60,5 years;
      from 1 January, 2023 – upon reaching 61 years;
      from 1 January, 2024 – upon reaching 61,5 years;
      from 1 January, 2025 – upon reaching 62 years;
      from 1 January, 2026 – upon reaching 62,5 years;
      from 1 January 2027 – upon reaching 63 years.
      2. Citizens, residing in the zones of extremely and maximum radiation risk during the period from 29 August, 1949 to 5 July, 1963 at least 5 years, shall have a right to award of pension payments in accordance with the Law of the Republic of Kazakhstan “On social protection of citizens, injured in consequence of nuclear tests on Semipalatinsk nuclear test site”:
      1) men – upon reaching 50 years upon labour experience not less than twenty five years on 1 January, 1998;
      2) women - upon reaching 45 years upon labour experience not less than twenty years on 1 January, 1998.
      3. Women, given birth (adopted, adopted) to 5 and more children and brought up them to the age of eight, shall have a right to retirement pension upon reaching 53 years.
      4. Pension payments according to the age, shall be admitted from the Center in a full volume upon reaching the age, established in paragraphs 1-3 of this Article, to the following categories of citizens:
      1) men – upon existence of labour experience not less than twenty five years on 1 January, 1998 and men from the number of persons, specified in paragraph 2 of Article 64 of this Law as of the date of dismissal. Upon that for the persons, specified in paragraph 2 of Article 64 of this Law, the service shall be counted in a labour experience during the period from 1 January, 1998 until dismissal upon condition, that the compulsory pension contributions in the pension savings funds or unified pension savings fund is not executed during this period;
      2) women – upon existence of labour experience not less than twenty five years on 1 January, 1998 and men from the number of persons, specified in paragraph 2 of Article 64 of this Law as of the date of dismissal. Upon that for the persons, specified in paragraph 2 of Article 64 of this Law, the service shall be counted in a labour experience during the period from 1 January, 1998 until dismissal upon condition, that the compulsory pension contributions in the pension savings funds or unified pension savings fund is not executed during this period;
      5. Pension payments according to the age shall be admitted in incomplete volume to the categories of citizens, specified in paragraphs 1-3 of this Article, upon absence of their right to reception of pension payments in a full volume from the Center depending upon existence of their labour experience not less than six months on 1 January, 1998 and persons, specified in paragraph 2 of Article 64 of this Law at the time of dismissal from the service.
      6. Pension payments according to the age shall be counted in incomplete volume according to the procedure, established by the legislation of the Republic of Kazakhstan, as the share from the total pension payment proportionally to available a labour experience on 1 January, 1998. Upon that for the persons, specified in paragraph 2 of Article 64 of this Law, the service shall be counted in a labour experience during the period from 1 January, 1998 until dismissal upon condition, that the compulsory pension contributions in the pension savings funds or unified pension savings fund is not executed during this period.
      Footnote. Article 11 as amended by the Law of the Republic of Kazakhstan dated 10.01.2014 No. 156-V (shall be enforced from 01.01.2014).

Article 12. Period of pension payments from the Center

      Pension payments from the Center shall be inclusively admitted for life and effected on the month of death.

Article 13. Calculation of the labour experience for award of pension payments from the Center

      1. Upon calculation of the labour experience for award of pension payments from the Center shall be counted:
      1) work on a contract, paid by the individuals and legal entities;
      2) military service;
      3) service in the special state and law enforcement bodies, state courier service;
      4) state service;
      5) entrepreneurial activity;
      6) time care of disabled persons of the first group, lonely disabled persons of the second group and retirement pensioner, in need of assistance, as well as older people, reached the age of eighty;
      7) time care of disabled persons at the age up to 16 years, suffered from the effects of nuclear testing, ecological disasters or infected with human immunodeficiency virus or AIDS;
      8) time care of full time mother of minors, but not more than until reaching of every child the age of 3 within 12 years in total;
      9) time of detention in custody, serving punishment in places of detention and deportation of citizens, unfoundedly instituted criminal proceedings and repressed, but subsequently rehabilitated;
      10) residence time of employable citizens in temporally occupied territory of former USSR and persons (of all ages) in the territory of other states in the period of Great Patriotic War, where they were forcibly evacuated, detention in fascist concentration camps (ghetto and other places of places of forced imprisonment during the war), if in the specified periods these persons did not commit crimes against the Native country;
      11) residence time in disability of unemployed disabled war veterans and equated with them disabled persons;
      12) period of residence abroad of spouse (spouse) of employees of former Soviet institutions, institutions of the Republic of Kazakhstan and international organizations, but not less than 10 years in total;
      13) period of residence of spouses of persons of officer personnel, ensigns, midshipmen, military servants, serving under the contract and military servants of extended service with the spouses in the localities, where an opportunity of their employment by profession is absent, but not more than 10 years;
      14) period of residence of spouses (spouse) of the servant of special state body with the latest in the localities, where the opportunity of her (his) employment by profession is absent, but not more than 10 years;
      15) education in higher education institution, as well as in the preliminary courses, specialized secondary educational establishments, academies, schools and courses on personnel training, raising of qualification and requalification, postgraduate centre, doctorate and clinical residency, as well as spiritual (religious) education organizations in the territory of the Republic of Kazakhstan and abroad;
      16) service in paramilitary security services, special communications bodies and mine rescue units independently from departmental affiliation and availability of special or military rank;
      17) other work upon payment of deductions to social insurance.
      2. Upon privileged calculation of labour experience for award of pension payments from the Center shall be also counted:
      1) military service in the composition of acting army in the period of military operations, as well as upon performance of military duty, as well as time spent in partisan units and commands in the period of military operations, as well as residence time under treatment in medical treatment facilities due to war injuries according to the procedure, established for calculation of time of this service upon award of pension payments to military servants for age in grade;
      2) the work, as well as a civilian employee personnel and service, except of the military service, provided by subparagraph 1) of this paragraph, during the Great Patriotic War – in a double amount;
      3) work in the Leningrad city in the period of its blockade during the Great Patriotic War from 8 September, 1941 to 27 January, 1944 – in treble;
      4) residence time of citizens at the age of 12 years and older in the Leningrad city in the period of its blockade during the Great Patriotic War from 8 September, 1941 to 27 January, 1944 – in a double amount;
      5) residence time of persons in the territory of other states in the period of Great Patriotic War, where they were forcibly evacuated, as well as residence time in fascist concentration camps (ghetto and other places of places of forced imprisonment during the war), if in the specified periods these persons did not commit crimes against the Native country - in a double amount;
      6) time of detention in custody, serving punishment in places of detention, deportation, bringing to forced labour with limitation of freedom, in penal colony settlement and compulsory medical treatment, illegally institute criminal proceedings and repressed, subsequently rehabilitated, - in treble;
      7)the work and military service in the districts, adjoining to the Semipalatinsk nuclear test site, during the period from 29 August, 1949 to 5 July, 1963 - in treble, and from 6 July, 1963 to 1 January, 1992 – in a half amount;
      8) the work in antiplague institutions, infectious establishments for the treatment of persons, infected with human immunodeficiency virus or AIDS – in a double amount, in organizations, carrying out the medical examination and pathological-anatomical diagnostic, - on the list of works, approved by the Government of the Republic of Kazakhstan – in a half amount;
      9) the work on water transport during full navigation period is counted as a year of work;
      10) the work during full season in organizations of seasonal sectors of industry independent from their departmental affiliation - on the list approved by the Government of the Republic of Kazakhstan, shall be counted in the length of service as a year of work.
      Footnote. Article 13 as amended by the Laws of the Republic of Kazakhstan dated 10.01.2014 No. 156-V (shall be enforced from 01.01.2014); dated 23.04.2014 No. 200-V (shall be enforced upon expiry of ten calendar days after its first official publication).

Article 14. Approval of labour experience

      1. A labour experience for calculation of pension payments from the Center shall be approved by the labour book in a period up to 1 January, 1998.
      2. A labour experience shall be established on the basis of documents, confirming information on work, or court decision in the absence of labour book or relevant notes in it.
      3. A labour experience of citizens, carrying out an activity in accordance with subparagraphs 5) and 17) of paragraph 1 of Article 13 of this Law shall be approved by the documents on payment of insurance contributions in a Pension fund of the Republic of Kazakhstan, created until 1 January, 1998.

Article 15. Calculations of the amount of pension payments from the Center

      1. Calculation of pension payments in a full volume from the Center shall be made at the rate of 60 percent of average monthly income, determined in accordance with Article 16 of this Law.
      2. Calculation of the amount of pension payments from the Center shall be made on the basis of average monthly income for any three consecutive years, independent from interruption in work from 1 January, 1995.
      The amount of average monthly income, received in the period of work in the Russian organizations of the "Baikonur" complex, shall be established accordingly to the income, from which the compulsory pension contributions and pension savings funds or unified pension savings fund are made according to the procedure, determined by the central executive body.
      3. The amount of average monthly income shall be established according to the income, approved by the certificate of incomes, issued by the employer, to the persons, worked in the Russian organizations of the “Baikonur” complex.
      Calculation of pension payments shall be made on the basis of level of income, paid in the currency of Russian Federation, at the official rate of national currency of the Republic of Kazakhstan to the foreign currencies, established by the authorized body on the day of application for award of pension payments.
      4. The amount of pension payments for each full worked year until 1 January, 1998 in excess of required labour experience shall be increased by 1 percent, but not more than 75 percent of income, considered for calculation of pension payments.
      5. Maximum amount of pension payments, granted until 1 January, 1998, except of the amounts of pension payments, to the participants and disabled veteran of the Great Patriotic War, military servants, law enforcement officials, state courier service, procuracy, former State investigation committee of the Republic of Kazakhstan and persons, the pension which is admitted until 1 January, 1998 on a special terms on the list No.1 of productions, works, professions, offices and indices, approved by the Government of the Republic of Kazakhstan and on the results of assessment of workplaces, may not exceed 75 percent from the amount of 41- fold of monthly calculation index, established on the relevant financial year by the Law on republican budget.
      Footnote. Article 15 as amended by the Laws of the Republic of Kazakhstan dated 31.03.2014 No. 180-V (shall be enforced from 01.04.2014); dated 23.04.2014 No. 200-V (shall be enforced upon expiry of ten calendar days after its first official publication).

Article 16. Determination of income for calculation of pension payments from the Center

      1. All types of payment for labour and other incomes, the list of which is established by the Government of the Republic of Kazakhstan shall be included in the income for award of pension payments from the Center.
      2. Income for award of pension payments over 3 years of work shall be determined by division of total income by thirty-six for 36 consecutive calendar months.
      3. Income for award of pension payments from the Center may not exceed the amount of 41- fold monthly calculation index, established on the relevant financial year by the Law on republican budget.
      Footnote. Article 16 as amended by the Law of the Republic of Kazakhstan dated 31.03.2014 No. 180-V (shall be enforced from 01.04.2014).

Article 17. Procedure of application for award of pension payments from the Center

      1. An application on award of pension payments from the Center on place of residence of the citizen with annexion of documents, approving the labour experience and income, necessary for charge of pension payments.
      2. Award of pension payments from the Center shall be made by the body, admitting the pension payments from the Center.
      3. The body, admitting the pension payments from the Center, shall be obliged to give an explanation on issues of award to pensions and render assistance to citizens in preparation of relevant documents.

Article 18. Time for consideration of documents for award of pension payments from the Center

      1. Consideration of documents for award of pension payments from the Center shall be carried out by the body, admitting the pension payments from the Center during ten business days from the date of presentation of documents.
      2. The body, admitting the pension payments from the Center shall inform an applicant on it, not later than five business days after rendering of relevant decision.
      3. In case of refusal in award of pension payments from the Center, the body, admitting the pension payments from the Center shall be obliged to motivate the reasons for rejection in written form and return presented documents to the applicant.
      Footnote. Article 18 as amended by the Law of the Republic of Kazakhstan dated 10.01.2014 No. 156-V (shall be enforced from 01.01.2014).

Article 19. The terms of award of pension payments from the Center

      1. Pension payments from the Center shall be admitted from the date of application for award of pension payments from the Center.
      2. The day of application for award of pension payments from the Center shall be considered a day of simultaneous filing of an application and necessary documents from the Center.

Article 20. The state monopoly in the scope of retirement insurance

      1. The Center shall carry out the following types of activity, relating to the state monopoly:
      1) organization and making payments of pension payments, benefits, non-recurring and other payments from the Center in accordance with the legislation of the Republic of Kazakhstan;
      2) database creation of contributors (recipients) on compulsory pension contributions, compulsory profession pension contributions and a unified list of individuals, concluded an agreement on retirement insurance at the expense of compulsory pension contributions, compulsory profession pension contributions;
      3) determination of amount of compulsory pension contributions, compulsory profession pension contributions, actually contributed by the contributor at the moment of acquisition of a right to pension payments in recognition of predicted rate of inflation for the next financial year;
      4) personified record of compulsory pension contributions, compulsory profession pension contributions and (or) fine;
      5) transfer of compulsory pension contributions, compulsory profession pension contributions and (or) fine from the agents in a unified pension savings fund;
      6) return of compulsory pension contributions, compulsory profession pension contributions and (or) fine of persons, not having a personal identification number and (or) agreements on retirement insurance and (or) in the requisites of which the mistakes are made, to the agent;
      7) return of compulsory pension contributions, compulsory profession pension contributions and (or) fine from the unified pension savings fund to the agent on his (her) application;
      8) formation and presentation of registers of payment documents of the agents on transferred to the account of the Center and returned of the amounts of compulsory profession pension contributions and (or) fine on it to the agent from the Center to the authorized body, carrying out the management in the scope of insurance of return of duties and other compulsory payments in the budget;
      9) formation of the layout of affairs of the recipients ofpension payments, benefits, non-recurring and other payments for award of payment by the body, admitting the pension payments from the Center;
      10) formation of automated and centralized databases and personified record of recipients of pension payments, benefits, non-recurring and other payments from the Center;
      11) interaction with the agents, a unified pension savings fund on issues of record, transfer, return of pension contributions and (or) fine on it;
      12) organizations of measures on ensuring of efficiency of unified information system of the central executive body;
      13) access organization of the employees of structural subdivisions of the central executive and local executive bodies, being the users of automated and centralized databases of the Center with observance with the requirements, established by the Laws of the Republic of Kazakhstan to disclosure of information, that is official, commercial, bank and other legally protected secret;
      14) provision of information services to the individuals and legal entities on types of activity of the Center in recognition of requirements of the legislation of the Republic of Kazakhstan on protection of the secret of pension savings;
      14-1) organization and transfer of compulsory pension contributions, deducted from the social payments at the expense of assets of the State fund of social insurance to the unified pension savings fund;
      14-2) transfer of compulsory pension contributions, subsidized at the expense of budget means to the recipients of social payment in case of loss of income due to the child care upon reaching them the age of the same year to the unified pension savings fund;
      15) other types of activity, provided by the Laws of the Republic of Kazakhstan.
      2. Prices for goods (works, services), produced and (or) realized by the entity of state monopoly, shall be established by the Government of the Republic of Kazakhstan.
      Footnote. Article 20 as amended by the Law of the Republic of Kazakhstan dated 10.01.2014 No. 156-V (shall be enforced from 01.01.2014).

Article 21. Procedure of making of pension payments from the Center

      1. Pension payments from the Center shall be made for the current month.
      2. Working pensioners shall have a right to reception of pension payments from the Center in a full amount in recognition of restrictions and cases, provided by paragraph 5 of Article 15 and Article 64 of this Law.
      3. Pension payments may be made on notarized power of attorney.
      4. Procedure of making the pension payments from the Center shall be determined by the Government of the Republic of Kazakhstan.

Article 22. Reception of pension payments from the Center for the last time

      1. The sum of pension payments, charged, but not demanded by the recipient shall be paid for the last time, but no more than three years before applying for their reception.
      2. The sums of pension payments, not received in a timely manner due to the fault of the body, admitting the pension payments from the Center, or the Center, shall be paid for the last time without time limitations.

Article 23. Deduction from pension

      1. Deduction from pension may be made in an executable manner, except of the cases of overpaid sums of pensions in consequence of mistakes upon award to pensions, when deductions are made on the basis of application of the recipient, as well as the cases of deductions of incomes of convicted, confined.
      2. Deductions from pension shall be made from the sum, due to the payment.
      3. More than 50 percent from the sum due to the payment may not be deducted from the pension.

Chapter 3. PAYMENT FROM PENSION CONTRIBUTIONS

Article 24. Payment of compulsory pension contributions, compulsory profession pension contributions

      1. The compulsory pension contributions, compulsory profession pension contributions in a unified pension savings fund shall subject to the payment of compulsory pension contributions, compulsory profession pension contributions on rates, determined by this Law, by the contributors.
      2. From the payment of compulsory pension contributions in a unified pension savings fund shall be released:
      1) persons, reaching retirement in accordance with paragraphs 1-3 of Article 11 of this Law;
      2) persons with disability of first and second groups, if the disability is permanently established. The payment of compulsory pension contributions in a unified pension savings fund shall be made upon the application of the persons, specified in this paragraph.
      3. Is excluded by the Law of the Republic of Kazakhstan dated 10.01.2014 No. 156-V (shall be enforced from 01.01.2014).
      3-1. The agent for the benefit of employees, reached retirement shall be released from the payments of compulsory profession pension contributions in a unified pension fund in accordance with paragraphs 1-3 of Article 11 of this Law.
      4. Military servants, servants of special state and law enforcement bodies, state courier service, to whom the special ranks, grade ranks are awarded, the persons, the right of which to have the special ranks, grade ranks and wear the uniform is abolished from 1 January, 2012, shall be released from the payment of compulsory pension contributions in a unified pension savings fund:
      1) to whom the pension payments are admitted until 1 January, 1998;
      2) to whom the pension payments from the Center are admitted in accordance with subparagraph 1) of paragraph 1 of Article 65 of this Law.
      5. The compulsory pension contributions, compulsory profession pension contributions shall be paid in native currency of the Republic of Kazakhstan.
      6. Deducted (charged) compulsory pension contributions, compulsory profession pension contributions shall be transferred to the Center by:
      1) the legal entities and individual entrepreneurs (except of applying the special tax regime for the entities of small business and peasant or farm enterprises), as well as private notaries, private officers of justice and lawyers from incomes, paid by the employees, - not later than the 25th of the month following the month of payment of incomes;
      2) the individual entrepreneurs (except of applying the special tax regime for the entities of small business on the basis of patent or summary declaration and peasant or farm enterprises), as well as private notaries, private officers of justice and lawyers for its own benefit - not later than the 25th of the month following the reporting month;
      3) the peasant or farm enterprises, applying the special tax regime in the manner and at the times, which are provided by the tax legislation of the Republic of Kazakhstan;
      4) the entities of small business, applying the special tax regime on the basis of summary declaration, - within the term, provided by the tax legislation of the Republic of Kazakhstan;
      5) individual entrepreneurs, applying the special tax regime on the basis of patient, - within the terms, provided by the tax legislation of the Republic of Kazakhstan for the payment of the cost of patent;
      6) the Center – not later than 15th of the month following the month of the social payments.
      7. Control of full and prompt implementation of the payment of compulsory profession pension contributions and (or) fine, charged in accordance with paragraph 1 of Article 28 of this Law, shall be exercised by the tax bodies in accordance with the legislation of the Republic of Kazakhstan.
      8. The compulsory pension contributions may not be paid for the benefit of other persons.
      9. The compulsory pension contributions, deducted and not transferred by the agents from the incomes of former employees, the location of which is unknown, due to the absence as of 1 January, 2005 of social individual code and (or) taxpayer identification number and (or) an agreement on pension insurance with the pension savings funds shall be transferred by the agents with the fine, charged until 1 January, 2005 to the budget according to the procedure, established by the Government of the Republic of Kazakhstan until 1 January, 2014. Upon that the fine, charged after 1 January, 2005 shall subject to deduction.
      The sums of compulsory pension contributions and (or) fine, transferred to the budget, may be demanded by the former employees, an in the case of their death or declaration of death – by the heirs in accordance with the civil legislation of the Republic of Kazakhstan.
      10. By the decision of legal resident entity, his (her) branches, representations may be considered as the agents.
      Footnote. Article 24 as amended by the Laws of the Republic of Kazakhstan dated 10.01.2014 No. 156-V (shall be enforced from 01.01.2014); dated 23.04.2014 No. 200-V (shall be enforced upon expiry of ten calendar days after its first official publication).

Article 25. the rate of compulsory pension contributions

      1. The compulsory pension contributions, repayable in a unified pension savings fund shall be established in the amount of 10 percent of the monthly income of the employee, receiving for calculation of pension contributions according to the procedure, determined by the Government of the Republic of Kazakhstan. Upon that the monthly income, receiving for calculation of compulsory pension contributions shall not exceed 75-fold minimum earnings, established on the relevant financial year by the Law on republican budget.
      2. The compulsory pension contributions in a unified pension savings fund in the amount of 10 percent from the monthly income of judge shall be additionally established for the judges of the Republic of Kazakhstan at the expense of budget means.
      Upon release of judge from office on negative appeals, the specified contributions are withdrawn and transferred to the budget.
      2-1. The compulsory pension contributions, which subject to subsidization at the expense of budget means shall be additionally established from the State fund of social insurance for the recipients of social payments in case of loss of income due to the childcare upon reaching the age of one year.
      The total rate of compulsory pension contributions for the specified recipients is 10 percent from the income, considered as the entity of calculation of social expenditures in accordance with the legislation of the Republic of Kazakhstan on compulsory social insurance.
      Upon that the sum of compulsory pension contributions shall consist of the sums of compulsory pension contributions, subsidizing at the expense of budget means and the sums of compulsory pension contributions, deducted from social payments in case of loss of income due to the childcare upon reaching the age of one year.
      Upon transfer of compulsory pension contributions by the agents, the subsidization of additionally established compulsory pension contributions shall be terminated at the expense of budget means.
      3. The compulsory pension contributions for its own benefit, repayable in a unified pension savings fund shall be established for the lawyers, private officers of justice, private notaries, as well as individual entrepreneurs in the amount of 10 percent from the stated income, but not less than 10 percent of the minimum earnings, established on the relevant financial year by the Law on republican budget, calculated for each month of the tax period.
      The compulsory pension contributions for the benefit of the adult member (participant) and head of peasant and farm enterprise, repayable in a unified pension savings fund shall be established for the peasant and farm enterprises, applying the special tax regime in the amount of not less than 10 percent of the minimum earnings and not more than 10 per cent of 75-fold of minimum earnings, established on the relevant financial year by the Law on republican budget, calculated for each month of the tax period. The compulsory pension contributions for the benefit of the adult member (participant) of peasant or farm enterprise shall subject to calculation and payment from the beginning of the calendar year following the year, attaining them the majority.
      The stated income shall be the income, independently determined by the lawyer, private officer of justice, private notary, as well as individual entrepreneur for calculation of compulsory pension contributions in a unified pension savings fund for its own benefit.
      Footnote. Article 25 as amended by the Law of the Republic of Kazakhstan dated 10.01.2014 No. 156-V (shall be enforced from 01.01.2014).

Article 26. The rate and procedure for exercising of compulsory profession pension contributions

      1. The compulsory profession pension contributions, repayable in a unified pension savings funs shall be established in the amount of 5 percent from the monthly income of employee, receiving for calculation the pension contributions according to the procedure, determined by the Government of the Republic of Kazakhstan.
      2. The compulsory profession savings contributions shall be carried out by the contributors of compulsory profession pension contributions at the expense of own funds for the benefit of employees, engaged in work with harmful (particularly harmful) labour conditions, profession of which are provided by the list of productions, works, profession of employees.
      In case of exclusion of harmful (particularly harmful) labour conditions, approved by the results of certification of production facilities, the contributors of compulsory profession pension contributions shall not make the payment of compulsory profession pension contributions.
      Footnote. Article 26 is in the wording of the Law of the Republic of Kazakhstan dated 10.01.2014 No. 156-V (shall be enforced from 01.01.2014).

Article 27. The rate of voluntary pension contributions

      1. The voluntary pension contributions in a unified pension savings fund and (or) voluntary pension savings fund shall be deposited by the contributors – individuals for its own benefit at the expense of its income upon conclusion an agreement by them on retirement insurance at the expense of pension contributions.
      2. A contributor of voluntary pension contributions shall have a right to choose a unified pension savings fund and (or) voluntary pension savings fund for the payment of voluntary pension contributions.
      3. Individuals and legal entities may be the contributors of voluntary pension contributions for the benefit of recipient.
      4. The rate of voluntary pension contributions, procedure of their payment, as well as procedure of pension payments shall be established by agreement of the parties of the agreement on retirement insurance at the expense of voluntary pension contributions.

Article 28. Responsibility for untimely deduction and transfer of compulsory pension contributions, compulsory profession pension contributions

      1. The sums of compulsory pension contributions, compulsory profession pension contributions, not deducted (not charged) in due time and (or) not transferred by the agents, upon condition of actual payment and acquisition of income by the employee shall subject to calculation by the agents for the benefit of contributors of compulsory pension contributions, employees, for the benefit of which the compulsory profession pension contributions with assessed fine in the amount of 2,5 – fold of official rate of refunding, established by the authorized body, for each day of delay (including the day of payment to the Center) are paid.
      2. In the cases of incomplete and (or) untimely transfer of compulsory pension contributions, compulsory profession pension contributions, the tax bodies shall have a right to recover money from the bank accounts within created debts on compulsory pension contributions, compulsory profession pension contributions.
      A debt recovery on compulsory pension contributions, compulsory profession pension contributions shall be made on the basis of notification, directed to the agent according to the procedure, established by the Government of the Republic of Kazakhstan.
      Such notification shall not be directed in the case, if the debts on compulsory pension contributions, compulsory profession pension contributions is not exceed the sum in the amount of one monthly calculation index, established on the relevant financial year by the Law on republican budget.
      3. The agent shall be obliged to present the lists of contributors of compulsory pension contributions, for the benefit of which the debts on compulsory pension contributions is recovered, as well as the lists of employees, for the benefit of which the debts on compulsory profession pension contributions is recovered in the tax body during five business days from the date of reception of notification.
      A debt recovery on compulsory pension contributions, compulsory profession pension contributions from the bank accounts shall be made on the basis of collection order of tax body.
      In case of absence or insufficiency of money in the bank (banking) account (accounts) for satisfaction of all requirements, specified to the client, the bank shall carry out withdrawal of client’s money according to the order of precedence, established by the Civil Code of the Republic of Kazakhstan.
      In the absence of money in the bank account of the agent, the debt recovery on compulsory pension contributions, compulsory profession pension contributions shall be made in the national currency from the banking accounts of the agent in a foreign currency on the basis of collection orders, presented by the tax bodies in a national currency.
      4. The banks and organizations, carrying out the separate types of bank operations, shall be obliged to suspend the debit operations on banking accounts of the agents by order of tax bodies and execute instructions, concerning the transfer of compulsory pension contributions, compulsory profession pension contributions, social expenditures and debts for tax according to the procedure, established by the legislation of the Republic of Kazakhstan.
      Suspension of debit operations on banking accounts of the agent shall be made in the following cases:
      1) nonpresentation of the lists of contributors of compulsory pension contributions of unified pension savings fund and existence of debts on compulsory pension contributions, as well as the lists of employees by the agents, for the benefit of which the compulsory profession pension contributions, and existence of debts on it are paid – upon the expire of 5 business days from the date of service of a notice, provided by paragraph 2 of this Article. Upon that suspension of debit operations on banking accounts of the agent shall be made within the sums of debts on compulsory pension contributions, compulsory profession pension contributions, specified in order of tax body on suspension of debit operations on banking accounts of the agent;
      2) nonredemption of debts on compulsory pension contributions, compulsory profession pension contributions – upon the expire of fifteen business days from the date of service of a notice, provided by paragraph 2 of this Article. Upon that suspension of all debit operations shall be made on banking accounts of the agent.
      The order of tax body on suspension of debit operations on banking accounts of the agent shall be cancelled by the tax body, issued an order on suspension of debit operations, not later than one business days, following the date of elimination the reasons of suspension of debit operations on banking accounts.
      5. Upon the expire of fifteen business days from the date of service of a notice, provided by paragraph 2 of this Article, the tax body shall suspend the debit operations on agent cash according to the procedure, established by the Government of the Republic of Kazakhstan.
      6. Banks and organizations, carrying out the separate banking activities, shall be obliged to transfer the sums of compulsory pension contributions, compulsory profession pension contributions through the Center on the date of charging of the sums from the banking accounts of the agents.
      7. The bodies of tax administration shall annually publish the lists of the agents, involved in debt on compulsory pension contributions, compulsory profession pension contributions, not extinguished on terms more than six months from the date of its occurrence, with notification of identification number of the agent, surname, name, patronymic (in its existence) of the head and total debt on compulsory pension contributions, compulsory profession pension contributions in the mass media.
      Footnote. Article 28 as amended by the Laws of the Republic of Kazakhstan dated 05.12.2013 No. 152-V (shall be enforced from 01.01.2014); dated 10.01.2014 No. 156-V (shall be enforced from 01.01.2014).

Article 29. Presentation of information on transferred of compulsory pension contributions, compulsory profession pension contributions

      1. The agents shall present the declaration on individual income tax and social tax quarterly within the terms, established by the tax legislation of the Republic of Kazakhstan, in which shall express the information on calculated, deducted (charged) sums of compulsory pension contributions, compulsory profession pension contributions, unless otherwise established by the legislation of the Republic of Kazakhstan.
      The form of declaration and order of its drawing up shall be established by the authorized body.
      2. Information shall not be expressed in the declaration on individual income tax and social tax in a part of compulsory pension contributions, compulsory profession pension contributions in relation of persons, except from payments of compulsory pension contributions, compulsory profession pension contributions in accordance with paragraphs 2-4 of Article 24 of this Law.
      3. The agents shall be obliged to maintain the primary record of calculated, deducted (charged) and transferred compulsory pension contributions, compulsory profession pension contributions on each employee in accordance with the procedure, established by the legislation of the Republic of Kazakhstan.
      4. The agent shall be obliged to present the information on calculated, deducted (charged) and transferred compulsory pension contributions, compulsory profession pension contributions to the contributors of compulsory pension contributions and employees, for the benefit of which the compulsory profession pension contributions are paid, on a monthly basis not later than the 15th of the month following the reporting.
      Footnote. Article 29 as amended by the Laws of the Republic of Kazakhstan dated 05.12.2013 No. 152-V (the order of enforcement see Article 9); dated 10.01.2014 No. 156-V (shall be enforced from 01.01.2014).

Chapter 4. PENSION PAYMENTS FROM THE UNIFIED PENSION SAVINGS FUND AND (OR) VOLUNTARY PENSION SAVINGS FUND

Article 30. Organization of payments of pension savings

      1. Pension payments from the unified pension savings fund and (or) voluntary pension savings fund shall be made by the recipient, having the pension savings in the individual pension accounts.
      2. Persons, specified in paragraphs 1-3 of Article 11, paragraph 4 of Article 24 of this Law, as well as disabled persons of first and second groups, if the disability permanently, on their own option, shall have a right to reception of pension savings from the unified pension savings fund in the form of pension payments on the established schedule and (or) insurance payments from the insurance organization in accordance with the agreement of retirement annuity at the expense of pension savings.
      In case if the sum of pension savings of persons, specified in the first part of this paragraph, exceeds the sum of the agreement of retirement annuity, concluded with the insurance organization, this difference shall be paid to the contributor (recipient) from the unified pension savings fund in the form of pension payments on established schedule.
      3. The sum of monthly pension payments, admitted to the recipient from the Center and pension payments from the unified pension savings fund and (or) voluntary pension savings fund may not be less than the minimum amount of pension.
      4. The pension payments shall be transferred by the unified pension savings fund and (or) voluntary pension savings fund into the bank account of the recipient, the requisites of which is specified in application of the recipient on award of pension payments.
      Payment of banking services, related with transmissions, deposits and payments of pension savings at the expense of compulsory pension contributions, compulsory profession pension contributions, except of the sums from conversion may not be made at the expense of pension savings of contributor (recipient).

Article 31. Pension payments at the expense of compulsory pension contributions

      1. The persons, having the pension savings in a unified pension savings fund shall have a right to the pension payments from the unified pension savings fund at the expense of compulsory pension contributions:
      1) upon occurrence of the conditions, provided by paragraphs 1-3 of Article 11 of this Law;
      2) men upon reaching the age of fifty five and women of the age of fifty upon sufficiency of pension savings for ensuring the payments of not less than the minimum pension in accordance with paragraph 2 of Article 59 of this Law;
      3) disabled persons of first and second groups, if the disability is permanently established;
      4) specified in paragraph 1 of Article 65 of this Law;
      5) leaving or left for the permanent place of residence beyond the Republic of Kazakhstan, the foreigners and persons without citizenship, presenting the documents, determined by the legislation of the Republic of Kazakhstan, approving intendment or the fact of departure.
      2. In case of the death, the persons, having the pension savings in a unified pension savings fund, shall be inherited according to the procedure, established by the legislation of the Republic of Kazakhstan at the expense of compulsory pension contributions.

Article 32. Pension payments at the expense of compulsory profession pension contributions

      1. The persons, having the pension savings in a unified pension savings fund shall have a right to the pension payments from the unified pension savings fund at the expense of compulsory profession pension contributions:
      1) reached the age of fifty in existence of the labour experience not less than five years on the works with harmful (particularly harmful ) labour conditions and sufficiency of pension savings for ensuring the payments of not less than the minimum pension in accordance with paragraph 4 of Article 59 of this Law;
      2) leaving or left for the permanent place of residence beyond the Republic of Kazakhstan, the foreigners and persons without citizenship, presenting the documents, determined by the legislation of the Republic of Kazakhstan, approving intendment or the fact of departure.
      2. In case of the death, the persons, having the pension savings in a unified pension savings fund, shall be inherited according to the procedure, established by the legislation of the Republic of Kazakhstan at the expense of compulsory pension contributions.
      Footnote. Article 32 as amended by the Law of the Republic of Kazakhstan dated 10.01.2014 No. 156-V (shall be enforced from 01.01.2014).

Article 33. Pension payments at the expense of voluntary pension contributions

      1. The right to the pension payments from the unified pension savings fund and (or) voluntary pension savings fund of the following persons, having the pension savings in a unified pension savings fund and (or) voluntary pension savings fund at the expense of voluntary pension contributions shall arise as follows:
      1) reached the age of fifty;
      2) being disabled;
      3) leaving or left for the permanent place of residence beyond the Republic of Kazakhstan, the foreigners and persons without citizenship, presenting the documents, determined by the legislation of the Republic of Kazakhstan, approving intendment or the fact of departure.
      2. In case of the death, the persons, having the pension savings in a unified pension savings fund and (or) voluntary pension savings fund, shall be inherited according to the procedure, established by the legislation of the Republic of Kazakhstan at the expense of voluntary pension contributions.
      Footnote. Article 33 as amended by the Law of the Republic of Kazakhstan dated 10.01.2014 No. 156-V (shall be enforced from 01.01.2014).

Chapter 5. LEGAL STATUS OF THE UNIFIED PENSION SAVINGS FUND

Article 34. Organization of activity of the unified pension savings fund

      1. A unified pension savings fund shall carry out attraction of compulsory pension contributions, compulsory profession pension contributions, voluntary pension contributions and payments of pension savings.
      Conclusion of agreements on retirement insurance shall be prohibited to other persons at the expense of compulsory pension contributions, compulsory profession pension contributions.
      2. A unified pension savings fund shall be established in the form of joint-stock society, being a noncommercial organization.
      3. The name of the unified pension savings fund shall contain the words “unified pension savings fund”.
      Abbreviation of the name of unified pension savings fund shall be allowed with the use in the name the abbreviations “UPSF”.
      4. Legal persons, except of the unified pension savings fund, shall be prohibited to use in their name the words “unified pension savings fund” in full and abridgment in any language.
      5. The sole shareholder of the unified pension savings fund shall be the Government of the Republic of Kazakhstan.
      6. Trust management of actions of the unified pension savings fund, belonging to the Government of the Republic of Kazakhstan shall be exercised by the National Bank of the Republic of Kazakhstan.
      7. Bodies of the unified pension savings fund, their functions and powers, procedure of formation and adoption of decisions by them shall be determined by this Law, the Government of the Republic of Kazakhstan, charter and internal documents of the unified pension savings fund.
      The representative of the authorized body shall enter into the composition of board of directors of the unified pension savings fund on the permanent basis.
      8. A unified pension savings fund shall have a right to:
      1) attract the voluntary pension contributions;
      2) receive a commission for own activity;
      3) represents the interests of the contributor (recipient) in a court according to the procedure, provided by the legislation of the Republic of Kazakhstan on issues, linked with the retirement insurance;
      4) rent the property, received for own needs;
      5) open the branches and representatives in the territory of the Republic of Kazakhstan;
      6) exercise other rights according to the pension rules of the unified pension savings fund.
      9. A unified pension savings fund shall be obliged to:
      1) attract the compulsory pension contributions, compulsory profession pension contributions;
      2) make the pension payments to the recipients according to the procedure, established by the Government of the Republic of Kazakhstan;
      3) carry out an individual account of the pension savings and payments;
      4) provide information to the contributor (recipient) on state of its pension savings at least once a year, as well as upon the request on any requested date without recovery of payment and ensure the electronic and other methods of access to information on its pension savings in recognition of regulations, provided by Article 57 of this Law.
      The method of transfer the information on state of pension savings by the unified pension savings fund shall be determined by the pension rules of the unified pension savings fund.
      A unified pension savings fund shall not direct the information on state of pension savings over the past year to the contributor (recipient) in the cases of lack of money in the individual pension account as of 1 January of the current year or non-notification on change of place of residence by the contributor (recipient) of the unified pension savings fund in accordance with the pension rules of the unified pension savings fund;
      5) publish information in the mass media, as well as in its own web-site, information on investment portfolio profile of the unified pension savings fund at the expense of pension assets according to the procedure and terms, established by the regulatory legal acts of the authorized body;
      6) render the uncompensated consulting services to the contributors (recipients) on issues of functioning of defined contribution pension system and activity on portfolio management;
      7) ensure confidentiality of information on state of pension savings of the contributor (recipient);
      8) bear responsibility for violation of the legislation of the Republic of Kazakhstan on retirement insurance and pension rules of the unified pension savings fund in accordance with the Law of the Republic of Kazakhstan;
      9) transfer the pension savings of the contributor (recipient) to the insurance organization according to the procedure, provided by this Law and regulatory legal act of the authorized body;
      10) conclude an agreement on trust pension assets management with the National Bank of the Republic of Kazakhstan;
      11) transfer the pension savings of the contributor (recipient) at the expense of voluntary pension contributions to the voluntary pension savings fund according to the procedure, provided by this Law and regulatory legal acts of the authorized body;
      12) publish a financial accountability and audit report in the mass media and post on its own web-site according to the procedure and terms, established by the authorized body and the legislation of the Republic of Kazakhstan on book records and financial accountability, other accounts and information on its activity according to the procedure, determined by the authorized body. Upon that publication of information, containing the guarantees and promises of incomes on contributions to the unified pension savings fund, as well as other information, prohibited by the legislation of the Republic of Kazakhstan shall not be allowed;
      13) represent an annual report on activity of the unified pension savings fund to the Council on management of pension assets of the unified pension savings fund for consideration;
      14) provide the equal conditions to all its contributors (recipients);
      15) exchange information with the Center on individual pension accounts of the contributors (recipients) according to the procedure, established by the Government of the Republic of Kazakhstan;
      16) use the certified hardware and software in its activity;
      17) have a reserve center for information storage;
      18) carry out an audit of program and technical support, including informative, communications systems and technologies, used by the unified pension savings fund in its activity, at least once every three years;
      19) have an internal audit service.
      10. In order of protection of rights and interests of the contributors (recipients) a unified pension savings fund shall be prohibited:
      1) carrying out of other entrepreneurial activity, except of the types of activity, provided by this Law;
      2) use of pension assets for the purposes, not provided by the legislation of the Republic of Kazakhstan;
      3) rendering of financial assistance without compensation at the expense of its own assets of the unified pension savings fund, except of the financial assistance to its employees to the amount, not exceeding 100-fold amount of the monthly calculation index, established on the relevant financial year by the Law on republican budget;
      4) transfer the pension and (or) owned assets to the pledge;
      5) issue of securities, except of the shares;
      6) proceeds from borrowings;
      7) granting of loans by any means;
      8) issue of warranties and guarantees of any kind;
      9) attraction of persons, a labour contract with whom is not concluded by the unified pension fund, for discharge of duties, specified in subparagraph 6) of paragraph 9 of this Article;
      10) participation in creation and activity of legal entities, except of the cases, established by the regulatory legal act of the authorized body.
      Footnote. Article 34 as amended by the Law of the Republic of Kazakhstan dated 10.01.2014 No. 156-V (shall be enforced from 01.01.2014).

Article 35. Procedure of pension assets management of the unified pension savings fund. Investment thesis of the unified pension savings fund

      1. Trust management of pension assets of the unified pension savings fund shall be carried out by the National Bank of the Republic of Kazakhstan on the basis of agreement on trust management, concluded between the National Bank of the Republic of Kazakhstan and unified pension savings fund.
      2. National Bank of the Republic of Kazakhstan may instruct to other person to commit actions, necessary for management of trusted him (her) pension assets in accordance with an agreement to investment assets management and this Law. Upon that the trust manager shall be responsible for the actions of chosen by them attorney as for his own.
      3. An investment thesis of the unified pension savings fund, as well as amendments and additions to it shall be approved by the management of the National Bank of the Republic of Kazakhstan.

Article 36. Council on management of pension assets of the unified pension savings fund

      1. Council on management of pension assets of the unified pension savings fund shall be the consultative and advisory body under the President of the Republic of Kazakhstan.
      Decision on creation of the Council on management of pension assets of the unified pension savings fund shall be adopted by the President of the Republic of Kazakhstan.
      2. The functions of the Council on management of pension assets of the unified pension savings fund shall be:
      1) consideration and preparation of suggestions on improvement of the effectiveness of the management of pension assets of the unified pension savings fund;
      2) preparation of suggestions on the list of permitted financial instruments for placement of pension assets of the unified pension savings fund and approval of this list;
      3) consideration of the annual report on activity of the unified pension savings fund.
      3. Personal composition of the Council on management of pension assets of the unified pension savings fund and regulation on it shall be approved by the President of the Republic of Kazakhstan.
      4. Council meeting on management of pension assets of the unified pension savings fund shall be held within the terms, established by the regulation on the Council on management of pension assets of the unified pension savings fund.
      5. The Council on management of pension assets of the unified pension savings fund is competent to make a decision with the participation of at least two thirds of the members of the Council on management of pension assets of the unified pension savings fund.
      The Council decision on management of pension assets of the unified pension savings fund shall be adopted by a simple majority of votes of members of the Council on management of pension assets of the unified pension savings fund.
      Footnote. Article 36 as amended by the Law of the Republic of Kazakhstan dated 10.01.2014 No. 156-V (shall be enforced from 01.01.2014).

Article 37. Agreements on retirement insurance at the expense of compulsory pension contributions, compulsory profession pension contributions of the contributor (recipient) with the unified pension savings fund

      Footnote. The title of Article 37 is in the wording of the Lawof the Republic of Kazakhstan dated 10.01.2014 No. 156-V (shall be enforced from 01.01.2014).

      1. Agreements on retirement insurance at the expense of compulsory pension contributions, compulsory profession pension contributions which establish the rights, obligations, responsibility and other legal relations of the unified pension savings fund and contributors (recipients), shall be developed by the unified pension savings fund on the basis of pension rules of the unified pension savings fund, approved by the Government of the Republic of Kazakhstan.
      2. Opening of an individual pension account in a unified pension savings fund shall be carried out on the basis of application of a contributor, drawn up in the form, provided by the pension rules of the unified pension savings fund.
      3. A unified pension savings fund shall direct an electronic notification to the Center for introduction of information on agreement on retirement insurance at the expense of compulsory pension contributions, compulsory profession pension contributions in a unified list of individuals, concluded an agreement on retirement insurance at the expense of compulsory pension contributions, compulsory profession pension contributions on the basis of application of the contributor on opening of individual pension account.
      A contributor shall considered as acceded to the agreement on retirement insurance at the expense of compulsory pension contributions, compulsory profession pension contributions from the date of receipt of electronic notification of the Center by the unified pension saving fund on introduction of information on agreement on retirement insurance at the expense of compulsory pension contributions, compulsory profession pension contributions in a unified list of individuals, concluded an agreement on retirement insurance at the expense of compulsory pension contributions, compulsory profession pension contributions.
      Footnote. Article 37 as amended by the Law of the Republic of Kazakhstan dated 10.01.2014 No. 156-V (shall be enforced from 01.01.2014).

Article 38. Storage and recording of pension assets of a pension savings fund

      1. Pension assets of the unified pension savings fund shall be stored and considered in the accounts of the National Bank of the Republic of Kazakhstan in accordance with the custodial agreement, concluded between the National Bank of the Republic of Kazakhstan and unified pension savings fund.
      2. National Bank of the Republic of Kazakhstan in order of recording and storage of pension assets of the unified pension savings fund shall have a right to open the accounts in the foreign custodians, determined by the authorized body.
      3. National Bank of the Republic of Kazakhstan shall carry out control of objective placement of pension assets of the unified pension savings fund according to the procedure, established by the regulatory legal acts of the authorized body.
      4.National Bank of the Republic of Kazakhstan shall maintain a record of all operations on accumulation of pension assets, their placement, reception of investment income according to the procedure, established by the regulatory legal act of the authorized body, and shall monthly inform a unified pension savings fund on state of its accounts.

Article 39. Rights and obligations of contributors (recipient) of the unified pension savings fund and the agents

      1. The contributors of compulsory pension contributions, compulsory profession pension contributions and recipients from the unified pension savings fund shall have a right to:
      1) receive information on the state of their pension savings;
      2) appeal the actions of the unified pension savings fund in a judicial procedure;
      3) receive the pension payments from the unified pension savings fund according to the procedure, established by the legislation of the Republic of Kazakhstan as of the date of effecting of pension payments;
      4) give their pension savings in will in accordance with the legislation of the Republic of Kazakhstan;
      5) withdraw the pension savings upon leaving for the permanent place of residence beyond the Republic of Kazakhstan in accordance with the legislation of the Republic of Kazakhstan;
      6) conclude an agreement of the retirement annuity with the retirement organization at the expense of its pension savings;
      7) conclude an agreement on retirement insurance with the unified pension savings fund and (or) voluntary pension savings fund at the expense of voluntary pension contributions;
      8) exercise other rights according to the legislation of the Republic of Kazakhstan.
      2. The agents shall have a right to receive a confirmation on availability of the individual pension account in the hands of the employee from the Center according to the procedure, established by the Government of the Republic of Kazakhstan.
      3. An individual shall be obliged to present an application on opening of individual pension account at the expense of compulsory pension contributions, compulsory profession pension contributions in a unified pension savings fund for accession to agreement on retirement insurance at the expense of compulsory pension contributions, compulsory profession pension contributions.
      4. Contributors of compulsory pension contributions, compulsory profession pension contributions and recipients from the unified pension savings fund shall be obliged to:
      1) inform of all changes, affecting to execution of obligations of the unified pension savings fund in a unified pension savings fund according to the procedure, established by the Government of the Republic of Kazakhstan during ten calendar days from the date of such changes;
      2) conclude an agreement of the retirement annuity in the cases, provided by this Law;
      3) perform other obligations in accordance with the legislation of the Republic of Kazakhstan on retirement insurance.
      5. The agents shall be obliged to calculate, deduct (charge) and pay the compulsory pension contributions, compulsory profession pension contributions in a timely manner in a unified pension savings fund according to the terms and procedure, established by the Government of the Republic of Kazakhstan.

Article 40. An agreement on retirement insurance at the expense of voluntary pension contributions of the contributor (recipient) with the unified pension savings fund

      An agreement on retirement insurance at the expense of voluntary pension contributions shall be concluded between the unified pension savings fund and contributors (recipient) in a written form in accordance with the model agreement on retirement insurance at the expense of voluntary pension contributions.
      The procedure of conclusion and model form of agreement on retirement insurance shall be established by the regulatory legal act of the authorized body at the expense of voluntary pension contributions.

Chapter 6. LEGAL STATUS OF THE VOLUNTARY PENSION SAVINGS FUNDS

Article 41. Organization of activity of the voluntary pension savings funds

      1. A voluntary pension savings fund shall be created in the form of joint-stock society.
      A voluntary pension savings fund shall carry out an activity on the basis of a license to portfolio management with the right of attraction of voluntary pension contributions, issued by the authorized body, and shall attract the voluntary pension contributions according to the procedure and on conditions, established by the regulatory legal act of the authorized body and an agreement on retirement insurance at the expense of voluntary pension contributions.
      2. The resident individual of the Republic of Kazakhstan, legal entities may be the contributors and (or) shareholders of the voluntary pension savings fund.
      A voluntary pension savings fund may be act as the contributor or shareholder of other voluntary pension savings fund.
      3. The name of the voluntary pension savings fund shall contain the words “voluntary pension savings funs”.
      Abbreviation of the name of the voluntary pension savings fund with the use in the name the abbreviation “VPSF” shall be allowed.
      Legal entities, except of the voluntary pension savings fund shall be prohibited to use the words “voluntary pension savings fund” in its name in full or abridgment in any language.
      4. Voluntary pension savings fund shall have a right to:
      1) attract the voluntary pension contributions;
      2) receive commission remuneration for its activity;
      3) represent the interests of the contributor (recipient) on issues, linked with the retirement insurance on its written request in a court according to the procedure, provided by the legislation of the Republic of Kazakhstan;
      4) rent the property, received for own needs;
      5) manage the pension assets of the unified pension savings fund in accordance with the agreement on investment assets management, concluded with the National Bank of the Republic of Kazakhstan;
      6) independently carry out broker and (or) dealing activity on the security market without the right of maintenance the clients’ accounts as the nominee shareholder on the basis of a license, issued by the authorized body;
      7) exercise other rights according to the legislation of theRepublic of Kazakhstan and conditions of agreement on retirement insurance at the expense of voluntary pension contributions.
      5. Voluntary pension savings fund shall be obliged to:
      1) make the pension payments to the recipients according to the procedure, established by the agreement on retirement insurance at the expense of voluntary pension contributions;
      2) carry out an individual record of pension savings and payments;
      3) provide information to the contributor (recipient) on state of its pension savings according to the procedure, provided by the agreement on retirement insurance at the expense of voluntary pension contributions, and shall provide an electronic and other access methods to information on its pension savings in recognition of regulations, provided by Article 57 of this Law.
      Method of transmission of information by the voluntary pension savings fund on state of pension savings shall be determined in agreement with the contributor (recipient);
      4) render the consulting services to the contributors (recipients), as well as persons, intended to conclude an agreement on retirement insurance at the expense of voluntary pension contributions with the voluntary pension savings fund, on issues of functioning of the defined contribution pension system and activity on portfolio management;
      5) ensure confidentiality of information on state of pension savings of the contributor (recipient);
      6) bear responsibility for violation of the legislation of the Republic of Kazakhstan on retirement insurance and conditions of agreement on retirement insurance at the expense of voluntary pension contributions in accordance with the Laws of the Republic of Kazakhstan;
      7) transfer the pension savings of the contributor (recipient) to other voluntary pension savings fund or unified pension savings fund, or insurance organization according to the procedure, provided by this Law and regulatory legal acts of the authorized body;
      8) publish a financial accountability and audit report in the mass media and post on its own web-site according to the procedure and terms, established by the authorized body and the legislation of the Republic of Kazakhstan on book records and financial accountability, other accounts and information on its activity according to the procedure, determined by the authorized body. Upon that publication of information, containing the guarantees and promises of incomes on contributions to the voluntary pension savings fund, as well as other information, prohibited by the legislation of the Republic of Kazakhstan shall not be allowed;
      9) exercise other obligations according to the legislation of the Republic of Kazakhstan and conditions of agreement on retirement insurance at the expense of voluntary pension contributions.
      6. In order of protection of rights and interests of the contributors, a voluntary pension savings fund shall be prohibited to:
      1) make transactions, in the results of which the requirements, established by the legislation of the Republic of Kazakhstan is violated;
      2) carry out an entrepreneurial activity, except of the types of activity, established by this Article;
      3) use the pension assets to the purposes, not provided by the legislation of the Republic of Kazakhstan;
      4) adopt the investment decisions on gratuitous alienation of the pension assets;
      5) use the pension assets for ensuring performance of own obligations and obligations of third persons, not related with activity on management of retirement portfolio;
      6) sell (transfer) assets, belonging to it, to the composition of pension assets;
      7) sell assets on credit;
      8) receive money or other returnable property on conditions of loan agreements at the expense of the pension assets, except of the cases of settlement of transactions with financial instruments in the trade systems of organizers of the auctions in accordance with the investment thesis;
      9) acquire the pension assets, that it manages, except for the cases of compensation of expenses and reception of compensation in accordance with an agreement on retirement insurance at the expense of voluntary pension contributions and investment thesis;
      10) specify information in advertisement and mass media onearning capacity of pension assets of the voluntary pension savings fund for the period of less than one year;
      11) pledge the pension and (or) own assets;
      12) issue securities, except of the shares;
      13) provide loans by any means, except of the acquisition of debt securities by the voluntary pension savings fund.
      7. In order to ensure the financial stability and paying capacity of voluntary pension savings funds shall be established the compulsory for observance the prudential regulations. The list of prudential regulations, their regulatory value, calculation methodology, as well as the forms of relevant accounts and the terms of its presentation shall be established by the regulatory legal acts of the authorized body.
      Footnote. Article 41 as amended by the Law of the Republic of Kazakhstan dated 10.01.2014 No. 156-V (shall be enforced from 01.01.2014).

Article 42. An agreement on retirement insurance at the expense of voluntary pension contributions of the contributor (recipient) with the voluntary pension savings fund

      An agreement on retirement insurance at the expense of voluntary pension contributions shall be concluded between the voluntary pension savings fund and contributor (recipient) in a written form in accordance with the model agreement on retirement insurance at the expense of the voluntary pension contributions.
      Procedure of conclusion and model form of agreement on retirement insurance shall be established at the expense of voluntary pension contributions by the regulatory legal act of the authorized body.

Article 43. Storage and recording of pension assets of a voluntary pension savings fund in the custodian bank

      1. Pension assets of the voluntary pension savings fund shall be stored and considered on the accounts in the custody, not affiliated with the voluntary pension savings fund in accordance with the custodian agreement.
      2. Custodian agreement shall be concluded between the custodian bank and voluntary pension savings fund.
      3. The form of custodian model agreement shall be developed and approved by the authorized body.
      4. A custodian bank shall carry out control of objective placement of pension assets of the voluntary pension savings fund and shall be obliged to block (not execute) its instructions in the case of their inconsistency to the legislation of the Republic of Kazakhstan with notification on that the authorized body and the voluntary pension savings fund no later than the next business day.
      Procedure of carrying out control of objective placement of the pension assets of the voluntary pension savings fund by the custodian bank shall be determined by the authorized body.
      5. The custodian bank shall maintain a record of all operations on accumulation the pension assets, its placement, reception of investment income and shall monthly inform a voluntary pension savings fund on state of its accounts.
      6. A voluntary pension savings fund shall have the one custody.
      7. A custodian agreement shall be terminated on the basis of the relevant decision of the executive body of the voluntary pension savings fund in unilateral procedure on request of the voluntary pension savings fund with notification the custodian bank and termination of transfer procedure of the pension assets to the new custodian bank during twenty calendar days until intended date of termination.
      8. A voluntary pension savings fund shall inform their contributors and agent by relevant publications in two print publications in Kazakh and Russian languages during thirty calendar days from the moment of conclusion the custodian agreement with the new custody.
      9. The relevant agreement on transfer the pension contributions, receiving to it by the former custodian bank to the new custodian bank shall be concluded for the term up to six months from the date of termination of the custodian agreement between the voluntary pension savings fund, former and new custodian bank.

Article 44. Pension rules and investment thesis of the voluntary pension savings fund

      1. Pension rules of the voluntary pension savings fund shall include:
      1) procedure of alteration and termination of agreements on retirement insurance at the expense of the voluntary pension contributions;
      2) procedure and conditions of making the pension contributions and payments;
      3) responsibility on obligations of the voluntary pension savings fund before the contributors (recipients);
      4) procedure for informing on state of pension savings;
      5) presentation of information to the contributors (recipients) on the shareholders of the voluntary pension savings fund and custodian bank;
      6) other peculiarities of legal relations between the voluntary pension savings fund and contributors (recipients).
      2. Investment of pension assets shall be independently carried out in accordance with the regulatory legal act of the authorized body and investment thesis.
      3. Pension rules of the voluntary pension savings fund and investment thesis, as well as amendments and additions to it shall be approved by the management body of the voluntary pension savings fund.

Article 45. Reorganization of the voluntary pension savings fund

      1. Reorganization of the voluntary pension savings fund shall be carried out by the decision of the general meeting of shareholders upon authorization of the authorized body in the form joining. Conditions and procedure of grant of permission to conduct the reorganization of the voluntary pension savings fund shall be established by the regulatory legal acts of the authorized body.
      Peculiarities of conducting the reorganization of the voluntary pension savings fund with participation of the state, National Wealth Fund and (or) the authorized body shall be determined by the regulatory legal act of the authorized body.
      Permission of the authorized body to conduct the reorganization shall act during nine months from the date of its issuance.
      An application on obtaining a permit to conduct the reorganization of the voluntary pension savings fund shall include the following documents:
      1) decision of general meeting of shareholders of the voluntary pension savings fund on its reorganization;
      2) established the assumed conditions, procedure and terms of reorganization of the voluntary pension savings fund;
      3) financial forecast of consequences of reorganization, including an account balance of the voluntary pension savings fund after its reorganization.
      An application on obtaining a permit to reorganization of the voluntary pension savings fund shall be considered by the authorized body during three months from the date of presentation of complete package of documents.
      2. Reorganized voluntary pension savings fund shall be obliged to inform on coming changes all of their contributors (recipients) by publication of advertisement in two print publications in Kazakh and Russian languages during fifteen calendar days from the date of obtaining a permit of the authorized body to conduct the reorganization.
      3. Reorganized voluntary pension savings fund shall have a right to attract the voluntary pension contributions and make the pension payments on the basis of a license of the voluntary pension savings fund, adjoining other voluntary pension savings fund.
      4. Pension assets and obligations of adjoined voluntary pension savings fund by agreements on retirement insurance shall subject to transmission to the reorganized voluntary pension savings fund at the expense of the voluntary pension contributions according to the procedure, established by the regulatory legal acts of the authorized body.
      Footnote. Article 45 as amended by the Law of the Republic of Kazakhstan dated 10.01.2014 No. 156-V (shall be enforced from 01.01.2014).

Article 46. Dismissal of license to reorganization of the voluntary pension savings fund

      Dismissal of license of the authorized body to reorganization of the voluntary pension savings fund shall be made on any of the following grounds:
      1) violation in the result of supposed reorganization of the interests of the contributors (recipients);
      2) violation in the results of supposed reorganization of requirements of the antimonopoly legislation of the Republic of Kazakhstan;
      3) inconsistency of documents, represented for obtaining a permit of the authorized body to reorganization, to the requirements of the legislation of the Republic of Kazakhstan.

Article 47. Liquidation of the voluntary pension savings fund

      1. A voluntary pension savings fund shall be liquidated:
      1) by the decision of the general meeting of the shareholders of the voluntary pension savings fund in existence of permission of the authorized body, issued according to the procedure, established by them;
      2) under the court decision in the cases, provided by the legislative acts of the Republic of Kazakhstan.
      2. Rules for conducting of voluntary or compulsory liquidation, as well as transfer of pension assets and obligations by agreements on retirement insurance shall be approved by the regulatory legal act of the authorized body at the expense of the voluntary pension contributions.

Article 48. Voluntary liquidation of the voluntary pension savings fund

      1. An application of the voluntary pension savings fund on obtaining a permit to the voluntary liquidation shall be considered by the authorized body during three months from the date of reception of properly executed documents.
      An application shall be attached the following documents:
      1) decision of general meeting of shareholders on voluntary liquidation;
      2) a documents, approving a lack of obligations of the voluntary pension savings fund, provided by the agreement on retirement insurance at the expense of the voluntary pension contributions;
      3) bookkeeping balance sheet and explanatory note to it, certifying a lack of obligations, provided by agreement on retirement insurance at the expense of voluntary pension contributions;
      4) an act of acceptance and transfer of pension assets and obligations of the voluntary pension savings fund by agreements on retirement insurance at the expense of the voluntary pension contributions;
      5) the documents, approving a lack of obligations of the voluntary pension savings fund and current agreements on activity, carrying out on the basis of a license to portfolio management with the right of attraction the voluntary pension contributions and a license for carrying out other types of activity on the securities market. The list of the documents, specified in this subparagraph, shall be established by the regulatory legal acts of the authorized body.
      An application of the voluntary pension savings fund on obtaining a permit to the voluntary liquidation and the document, approving a lack of obligations of the voluntary pension savings fund, provided by agreement on retirement insurance at the expense of the voluntary pension contributions, as well as obligations of all licenses of the voluntary pension savings fund for carrying out an activity on the securities market, shall be signed by the chief executive officer of the voluntary pension savings fund and affixed with the seal of the voluntary pension savings fund.
      2. In case of refusal in giving permission to the voluntary liquidation, an authorized body shall justify its decision and bring a refusal to the notice of leading employees and shareholders of the voluntary pension savings fund.
      3. In case of deficiency of means for satisfaction of requirements of all creditors, a voluntary pension savings fund shall subject to the compulsory liquidation on the basis of bankruptcy.
      Footnote. Article 48 as amended by the Law of the Republic of Kazakhstan dated 10.01.2014 No. 156-V (shall be enforced from 01.01.2014).

Article 49. Peculiarities of termination of validity of a license to portfolio management with right of attraction of the voluntary pension contributions

      1. In case of termination of a license to portfolio management with right of attraction of the voluntary pension contributions, a voluntary pension savings fund shall transfer the voluntary pension savings of the contributors (recipients) in a unified pension savings fund according to the procedure, established by the regulatory legal acts of the authorized body.
      2. Voluntary return of the license to portfolio management with right of attraction the voluntary pension contributions shall be carried out on the basis of application of the voluntary pension savings fund and executed only after performance of all obligations under this type of activity by the voluntary pension savings fund.
      3. Rules of the voluntary return of the license to portfolio management with right of attraction the voluntary pension contributions, as well as transfer of pension assets and obligations by agreements on retirement insurance shall be determined by the regulatory legal act of the authorized body at the expense of the voluntary pension contributions.

Chapter 7. PROCEDURE OF CARRYING OUT OF ACTIVITY OF THE UNIFIED PENSION SAVINGS FUND AND THE VOLUNTARY PENSION SAVINGS FUND

Article 50. Pension assets of the unified pension savings fund and the voluntary pension savings fund

      1. Pension assets of the unified pension savings fund and the voluntary pension savings fund shall be formed at the expense of the pension contributions, investment income, means, received as a fine and compensation of losses, minus of the commission remuneration.
      2. The rights of individuals and legal entities to pension assets shall be referred to the category of proprietary rights, provided by this Law.
      3. An arrest or levy of execution on compulsory pension contributions, compulsory profession pension contributions, fines, pension assets and pension savings on debts of the contributor (recipient), the Center, unified pension savings fund, custodian bank and manager of investment portfolio shall not be allowed, as well as in the cases of liquidation and (or) bankruptcy of mentioned subjects.
      4. Pension assets of the unified pension savings fund, voluntary pension savings fund may be used exclusively for the following purposes:
      1) placement in the financial instrument, the list of which is determined by the authorized body and investment thesis;
      2) making of pension payments in accordance with the legislation of the Republic of Kazakhstan;
      3) transfer of pension payments in the insurance organization by agreement of the retirement annuity according to the procedure, provided by this Law and regulatory legal act of the authorized body;
      4) transfer of pension savings at the expense of the voluntary pension contributions from the unified pension savings fund in the voluntary pension savings fund, from the voluntary pension savings fund in a unified pension savings fund, as well as from one of the voluntary pension savings fund to another voluntary pension savings fund;
      5) return of incorrectly credited pension contributions and other credited money;
      6) commission payment to the unified pension savings fund, voluntary pension savings fund in the cases and amount, established by this Law.
      5. In case of the death of recipient, as well as the persons, having the pension savings in a unified pension savings fund, voluntary pension savings fund and not reached the retirement age, the one-time payment to burial in the amount of 52,4 fold monthly calculation index, established on the relevant financial year by the Law on republican budget, but not more of available means on the individual pension account shall be paid to his (her) family or person, executed the burial by the unified pension savings fund, voluntary pension savings fund in accordance with paragraphs 1-3 of Article 11 of this Law.
      In case if the balance of pension savings in the individual pension account of the recipient after making of one-time payment to burial shall be the amount, not exceeding the amount of minimum pension, established on the relevant financial year by the Law on republican budget, this balance shall be included in the sum of one-time payment to burial.
      Footnote. Article 50 as amended by the Laws of the Republic of Kazakhstan dated 10.01.2014 No. 156-V (shall be enforced from 01.01.2014); dated 31.03.2014 No. 180-V (shall be enforced from 01.04.2014).

Article 51. Recording and accounting in a unified pension savings fund and voluntary pension savings fund

      1. A unified pension savings fund and voluntary pension savings fund shall keep accounting records and present financial accountability and primary statistics separately on its own means and pension assets in the authorized body according to the procedure, established by the legislation of the Republic of Kazakhstan.
      2. A record of pension savings shall be separately kept on the individual pension accounts of the contributors (recipients) at the expense of the compulsory pension contributions, compulsory profession pension contributions and voluntary pension contributions according to the procedure, determined by the authorized body.
      3. An automated information system in the form of software of the unified pension savings fund, voluntary pension savings fund shall be used for carrying out of a record of the pension assets and savings on the individual pension account and assurance of reliability, protection and information protection from unauthorized access.
      Requirements to the automated information system for recording of pension assets and savings shall be specified by the regulatory legal act of the authorized body.
      4. A record of pension savings shall be kept by the voluntary pension savings fund at the expense of the voluntary pension contributions of the contributors (recipients) according to the procedure, determined by the authorized body.
      5. Control of correctness of record keeping of pension assets and charging of investment income to the contributors (recipient) shall be carried out by the authorized body.
      6. A unified pension savings fund and voluntary pension savings fund shall be obliged to provide a record and documents custody, used in the book records and upon preparation of reporting. The list of the documents, subject to keeping, and terms of its keeping shall be established by the authorized body.
      Footnote. Article 51 as amended by the Law of the Republic of Kazakhstan dated 10.01.2014 No. 156-V (shall be enforced from 01.01.2014).

Article 52. The system of management of risks and internal control

      A unified pension savings fund, voluntary pension savings fund shall form the system of management of risks and internal control, which shall contain:
      1) powers and functional obligations on management of risks and internal control of the board of directors, government, subdivisions of the unified pension savings fund, voluntary pension savings fund, its responsibility;
      2) internal policy and procedure on management of risks and internal control;
      3) limits on the allowable amount of the risks;
      4) internal procedure of presentation of accounts on management of risks and internal control of the bodies of unified pension savings fund, voluntary pension savings fund;
      5) intrinsic criterion of systems effectiveness evaluation of risks management.
      Procedure of formation the system of management of risks and internal control shall be established by the regulatory legal act of the authorized body.

Article 53. Commission remuneration of the unified pension savings fund and voluntary pension savings fund

      1. Limiting amount of commission remuneration of the unified pension savings fund shall be established within no more than:
      1) 7,5 percent of the investment income;
      2) 0,025 percent per month from pension assets.
      2. Limiting amount of commission remuneration of the voluntary pension savings fund shall be established within no more than:
      1) 15 percent of the investment income;
      2) 0,05 percent per month from pension assets.
      Procedure of recovery and amount of commission remuneration of the voluntary pension savings fund shall be established by the agreement on retirement insurance at the expense of the voluntary pension contributions.
      3. The amount of commission remuneration may be changed more than once a year.
      The amount of commission remuneration of the unified pension savings fund shall be annually approved by the administrative board of the National Bank of the Republic of Kazakhstan.
      The amount of commission remuneration shall be declared by the unified pension savings fund to the contributors (recipients) not later than one month before beginning of the calendar year by publication not less than two print publications in Kazakh and Russian languages.

Article 54. An audit of the unified pension savings fund or voluntary pension savings fund

      1. An audit of the unified pension savings fund or voluntary pension savings fund shall be performed by the audit organization, authorized to performance of an audit in accordance with the legislation of the Republic of Kazakhstan on auditing activity.
      2. An audit report of financial accountability of the unified pension savings fund or voluntary pension savings fund shall not have a commercial secret.
      3. On the results of annually audit of the unified pension savings fund or voluntary pension savings fund of audit organization shall consist of two audit reports:
      1) on financial accountability of the unified pension savings fund or voluntary pension savings fund;
      2) on pension assets of the unified pension savings fund or voluntary pension savings fund.
      An annual audit report on pension assets of the unified pension savings fund or voluntary pension savings fund shall include verification of procedure of maintenance of accounting records and preparation of financial accountability in relation of the pension assets of the unified pension savings fund or voluntary pension savings fund in order to compliance with the requirements, established by the legislation of the Republic of Kazakhstan.
      Expenses on of an annual audit of the unified pension savings fund or voluntary pension savings fund shall be carried out at the expense of the own means of the unified pension savings fund or voluntary pension savings funs.

Article 55. Requirements, specified to the leading employees of the unified pension savings fund, voluntary pension savings fund

      1. A unified pension savings fund, voluntary pension savings fund shall create an internal audit service in a mandatory manner and form the following collegial bodies:
      1) board of directors – management body;
      2) administrative board – an executive body.
      Leading employees of the unified pension savings fund, voluntary pension savings fund shall be recognized a chief executive officer and members of the administrative board, accounting manager, except of the chief executive officer and accounting manager of separate subdivision of the unified pension savings fund or voluntary pension savings fund, other heads of the unified pension savings fund, voluntary pension savings fund, carrying out coordination and (or) control of activity of one or several structural subdivisions of the unified pension savings fund, voluntary pension savings fund and possessing a right to sign the documents, representing in the authorized body, provided by the regulatory legal acts of the authorized body.
      2. A person may not be appointed (elected) as the leading employee of the unified pension savings fund or voluntary pension savings fund:
      1) not having a higher education;
      2) not having a labour experience, established by this Article in the international financial organizations, the list of which is established by the authorized body and (or) a labour experience in the scope of provision and (or) regulation of financial services and (or) services on performance of an audit of the financial organizations and (or) in the state bodies, carrying out regulation and control of economy and finances;
      3) not having an unblemished business reputation (the existence of the facts, approving professionalism, trustworthiness, absence of unexpunged and outstanding convictions);
      4) previously being a chief executive officer of the board of directors, chief executive officer of administrative board and its assistant, accounting manager, major participant – an individual, chief executive officer of the major participant – a legal entity of financial organization in the period of not more than one year before adoption of decision by the authorized body on preservation of a financial organization, as well as compulsory liquidation of financial organization or its recognition as a bankrupt according to the procedure, established by the legislation of the Republic of Kazakhstan.
      Specified requirement shall be applied during ten years after adoption of decision by the authorized body on preservation of a financial organization, compulsory redemption of its shares, termination of a license of financial organization or its recognition as a bankrupt according to the procedure, established by the legislation of the Republic of Kazakhstan;
      5) the consent of which was revoked to the appointment (election) to office of the leading employee in the period of being of this person in the position of leading employee in other financial organization. Specified requirements shall be applied during twenty consecutive calendar months after adoption of decision by the authorized body on revocation of consent to the appointment (election) to office of the leading employee.
      The leading employee of the unified pension savings fund may not be appointed (elected) a person, committed a corruption crime or appeared to disciplinary responsibility for commission of corruption offense during three years from the date of appointment (election).
      3. For the compliance with the requirements, provided by subparagraph 2) of paragraph 2 of this Article, is necessary a labour experience:
      1) for the officer candidates of the chief executive officer of the administrative board of the unified pension savings fund or voluntary pension savings fund – not less than three years;
      2) for the officer candidates of the chief executive officer of the administrative board of the unified pension savings fund or voluntary pension savings fund – not less than five years;
      3) for the officer candidates of the chief executive officer of the administrative board of the unified pension savings fund or voluntary pension savings fund – not less than two years;
      Availability of labour experience, provided by subparagraph 2) of paragraph 2 of this Article shall not be required for the officer candidates of the member of board of directors, as well as members of the administrative board, exclusively supervised the issues of safety of the unified pension savings fund or voluntary pension savings fund, administrative and economic issues.
      The work in subdivisions of financial organization, linked with carrying out of economic activity shall not be included in the labour activity, determined by this paragraph.
      4. The leading employee shall have a right to hold its office without coordination with the authorized body, no more than sixty calendar days from the date of appointment (election).
      Upon expiration of the specified in this paragraph, and in the cases of nonpresentation of complete package of documents to coordination in the authorized body or refusal of the authorized body in coordination, the unified pension savings fund or voluntary pension savings fund shall be obliged to revoke an employment agreement with this person or in the case of absence of the employment agreement to take measures on termination of powers of this leading employee.
      Discharge of obligations (substitution of temporarily absent) of the leading employee of the unified pension savings fund or voluntary pension savings fund shall be prohibited without coordination with the authorized body over the term, specified by this paragraph.
      An authorized body shall consider the documents, represented for giving a consent for appointment (election) of the leading employee of the unified pension savings fund, voluntary pension savings fund, during thirty calendar days from the date of its presentation.
      5. Procedure of giving a consent of the authorized body to appointment (election) of the administrative body of the unified pension savings fund or voluntary pension savings fund, the documents, necessary for reception of a consent, shall be established by the regulatory legal acts of the authorized body.
      6. In the cases of refusal of the authorized body in giving a consent to appointment (election) of the leading employee of the unified pension savings fund or voluntary pension savings fund or dismissal from office of the leading employee of the unified pension savings fund or voluntary pension savings fund or its transfer to another position in the unified pension savings fund or voluntary pension savings fund, this person may be repeatedly appointed (elected) to the office of the leading employee of the unified pension savings fund or voluntary pension savings fund not earlier than ninety calendar days after reception of refusal in giving a consent on its appointment (election) or dismissal or transfer to other position, but not more than twice during twelve consecutive calendar months.
      7. In the cases of two consecutive refusals of the authorized body in giving a consent to appointment (election) to the office of the authorized body of the unified pension savings fund or voluntary pension savings fund, this person may be appointed (elected) as the leading employee of the unified pension savings fund or voluntary pension savings fund upon expire of the twelve consecutive calendar months from the date of adoption of decision by the authorized body on the second refusal in giving a consent to its appointment (election) in the unified pension savings fund or voluntary pension savings fund.
      8. An authorized body shall have a right to revoke the given consent to appointment (election) to office of the leading employee of the unified pension savings fund or voluntary pension savings fund on the following grounds:
      1) revelation of inaccurate information on the basis of which the consent was given;
      2) extensive (three or more times during twelve consecutive calendar months) use of the sanctions by the authorized body to the leading employee and (or) unified pension savings fund, voluntary pension savings fund;
      3) systematic (three or more times during twelve consecutive calendar months) violation of requirements, provided by the legislation of the authorized body of the Republic of Kazakhstan by the unified pension savings fund, voluntary pension savings fund on counteracting of legalization (laundering) of incomes, received by illegal means and financing of terrorism;
      4) suspension by the authorized body from discharge of official duties of persons, specified in this Article, on the basis of adequate data for recognition of actions of the specified leading employee (employees) of the unified pension savings fund or voluntary pension savings fund as not relevant to the requirements of the legislation of the Republic of Kazakhstan;
      5) possession of unexpunged or unspent convictions.
      Withdrawal of consent by the authorized body to appointment (election) of the leading employee of the unified pension savings fund or voluntary pension savings fund shall be the ground for withdrawal of previously given (given) consent (consents) to this leading employee in other financial organizations.
      In case of withdrawal of consent by the authorized body to appointment (election) of the leading employee of the unified pension savings fund or voluntary pension savings fund, a unified pension savings fund or voluntary pension savings fund shall be obliged to revoke an employment agreement with this person or in the case of absence of the employment agreement to take measures on termination of powers of this leading employee.
      Footnote. Article 55 as amended by the Law of the Republic of Kazakhstan dated 10.06.2014 No. 206-V (shall be enforced upon expiry of ten calendar days after its first official publication).

Article 56. Ban on advertising, inconsistent to the reality

      1. An advertisement of activity, inconsistent to the reality shall be prohibited to the unified pension savings fund, voluntary pension savings fund on the day of its publication.
      2. An authorized body shall have a right to require introduction of amendments in advertisement, inconsistent to the reality, its termination or publication of its refutation from the unified pension savings fund, voluntary pension savings fund.
      In case of nonfulfillment of this requirement in the term, established by the authorized body, an authorized body shall have a right to publish information on discrepancy with the reality of information, containing in the advertisement, or specify them at the expense of the unified pension savings fund, voluntary pension savings fund, published such advertisement.
      3. Information on incomes on pension assets shall be represented only with specification of the period, during of which the relevant investment income is received.

Article 57. The secret of pension savings

      1. The secret of pension savings shall involve information on balance and monetary movement in the individual pension accounts of the contributors (recipients).
      A unified pension savings fund, voluntary pension savings fund and the Center shall guarantee the secret of the pension savings.
      2. Civil servants, employees of the unified pension savings fund, voluntary pension savings funds, Center, service centers of population and other persons, which by virtue of carrying out of its official and functional responsibilities received an access to information, containing a secret of pension savings, shall not have a right to disclose information, containing the secret of pension savings, and shall bear responsibility for its disclosure in accordance with the Laws of the Republic of Kazakhstan, except of the cases, provided by paragraphs 3-5 of this Article.
      3. The secret of pension savings may be disclosed to the contributor, making the pension contributions, the recipient, any third party on the basis of the written consent of the contributor (recipient), formed in accordance with the requirements of the legislation of the Republic of Kazakhstan.
      4. Certificates on balance and monetary movement in the individual pension accounts may be issued to:
      1) the inquire bodies and preliminary investigation – on criminal cases, being in their production;
      2) the courts - on cases, being in their production on the basis of decision of the court;
      3) officers of justice – on enforcement documents, being in their production on the basis of regulation of officer of justice, authorized by court;
      4) tax bodies – on issues, linked with the tax assessment of verified person;
      5) the authorized body – on issue, arising due to application of the contributor (recipient) or due to carrying out by them the verification of activity of the unified pension savings fund, voluntary pension savings fund;
      6) the prosecutor – on the basis of regulation on production of verification within its competence on material, being under consideration;
      7) the authorized body on financial monitoring – according to the purposes and procedure, provided by the Law of the Republic of Kazakhstan “On counteracting of legalization (laundering) of incomes, received by illegal means and financing of terrorism”;
      8) the representatives of the contributor (recipient) – on the basis of the notarized power of attorney or court decision;
      9) the Center – for database creation of the contributors (recipients) on compulsory pension contributions, compulsory profession pension contributions and calculation of preservation of compulsory pension contributions, compulsory profession pension contributions in the unified pension savings fund in the amount of actually contributed compulsory pension contributions, compulsory profession pension contributions in recognition of the rate of inflation as of the date of acquisition of a right to pension payments by the recipient;
      10) the central executive body – on issue, arising due to the application of the contributor(recipient);
      11) the audit organizations, conducting an annual compulsory audit of the unified pension savings fund, voluntary pension savings fund;
      12) the center service of population – for rendering of state services on the basis of application of the contributor (recipient) or its representative on notarized power of attorney or court decision.
      5. Certificates on existence of individual pension account, balance and monetary movement on it shall be issued to the persons, specified in the application, courts on written request, in the case of the death of contributor (recipient) on the basis of determination of probate cases, being in its production.
      6. Certificates on existence of individual pension account and money on it shall be issued in the case of the death of the contributor (recipient) by the notary and foreign consular institutions on probate cases, being in its production.
      Footnote. Article 57 as amended by the Law of the Republic of Kazakhstan dated 10.06.2014 No. 206-V (shall be enforced upon expiry of ten calendar days after its first official publication).

Article 58. Limited enforcement actions and sanctions, applied by the authorized body

      1. In the cases of detection of violations of the legislation of the Republic of Kazakhstan by the authorized body, revelation of illegal acts or omissions of civil servants and employees of the unified pension savings fund, voluntary pension savings fund, as well as nonfulfillment of other requirements of the authorized body, provided by this Law, an authorized body shall have a right to apply to the unified pension savings fund, voluntary pension savings fund one of the following restricted enforcement actions:
      1) to give the compulsory for execution the written order;
      2) raise a question before the shareholders on suspension from discharge of official duties of the leading employees of the unified pension savings fund, voluntary pension savings fund;
      3) to direct the requirement on presentation of letter of commitment;
      4) to compose an agreement in writing, which is subject to the compulsory signing.
      2. A letter of commitment of the unified pension savings fund or voluntary pension savings fund shall contain the fact of recognition of the available violations of the legislation of the Republic of Kazakhstan, as well as a guarantee of administration of the unified pension savings fund, voluntary pension savings fund on their elimination in the strictly defined terms and (or) non-award of further similar violations of the legislation of the Republic of Kazakhstan with notification of the list of planned measures.
      3. A written consent on necessity of elimination of the detected violations of the legislation of the Republic of Kazakhstan and approval of high priority measures on elimination of these violations shall be concluded between the unified pension savings fund, voluntary pension savings fund and the authorized body.
      4. A unified pension savings fund, voluntary pension savings fund shall be obliged to notify an authorized body on performance of the letter of commitment, written consent or written order in the terms, specified in these documents.
      5. Procedure of application of restricted enforcement actions shall be established by the regulatory legal acts of the authorized body.
      6. An authorized body shall have a right to apply the sanction to the unified pension savings fund, voluntary pension savings fund regardless of enforcement actions, earlier applied to them.
      7. As the sanction an authorized body shall have a right to apply the following measures:
      1) impose and collect the penalties according to the procedure, established by the legislation of the Republic of Kazakhstan;
      2) suspend the action or terminate a license of the voluntary pension savings funds;
      3) dismiss the persons, specified in Article 55 of this Law from discharge of official duties, on the basis of adequate data for recognition the actions of the specified leading employee (employees) of the unified pension savings fund or voluntary pension savings fund as not relevant to the requirements of the legislation of the Republic of Kazakhstan with simultaneous revocation of a consent to appointment (election) to office of the leading employee (employees) of the unified pension savings fund, voluntary pension savings fund.
      8. An authorized body shall have a right to suspend validity of a license to portfolio management with the right of attraction of the voluntary pension contributions for the term up to six months on any of the following grounds:
      1) unreliability of information, on the basis of which a license was issued;
      2) suspension of the beginning of activity of the voluntary pension savings fund more than one year from the date of issue of the license;
      3) systematic (three or more times during twelve consecutive calendar months) nonfulfillment or improper nonfulfillment of obligations by the voluntary pension savings fund on the agreements on retirement insurance at the expense of the voluntary pension contributions;
      4) systematic (three or more times during twelve consecutive calendar months) violation of the normative standards, established by the authorized body and other obligations to performance the regulations and limits by the pension fund;
      5) systematic (three or more times during twelve consecutive calendar months) violation of the regulatory legal acts of the Republic of Kazakhstan, provisions, provided by the pension rules and (or) investment thesis of the voluntary pension savings fund;
      6) nonfulfillment of requirements of restricted enforcement actions, used by the authorized body;
      7) refusal to sign an agreement in writing with the authorized body;
      8) non-elimination of violations, specified in the account of audit organization by the voluntary pension savings fund on conducted audit, during three months from the date of reception of the audit report by the voluntary pension savings fund;
      9) non-presentation or presentation of knowingly inaccurate accounts and information;
      10) systematic (three or more times during twelve consecutive calendar months) violation of the requirements, provided by the legislation of the Republic of Kazakhstan by the voluntary pension savings fund on counteracting of legalization (laundering) of incomes, received by illegal means and financing of terrorism.
      9. Suspension of validity of a license shall entail a prohibition to attraction of the new contributors (recipients).
      10. A decision, adopted by the authorized body on suspension of validity of a license of the voluntary pension savings fund shall be brought to the notice of the contributors (recipients) by the voluntary pension savings fund by advertising in two print publications in Kazakh and Russian languages during ten calendar days.
      11. Non-elimination of reasons in the established procedure by the voluntary pension savings fund, on which validity of a license is suspended, shall be the ground for termination of a license by the authorized body.
      12. A voluntary pension savings fund or the person, in relation of which an authorized body took the restricted enforcement actions or sanction, shall have a right to appeal its decision in a judicial procedure. An appeal of the specified decisions of the authorized body shall not suspend its execution.
      Footnote. Article 58 as amended by the Law of the Republic of Kazakhstan dated 10.06.2014 No. 206-V (shall be enforced upon expiry of ten calendar days after its first official publication).

Chapter 8. PROCEDURE OF MAKING OF INSURANCE PAYMENTS FROM THE INSURANCE ORGANIZATIONS

Article 59. Insurance payments from the insurance organizations

      1. Persons, specified in paragraphs 1-3 of article 11 and subparagraph 3) of paragraph 1 of Article 31 of this Law, shall have a right to conclude an agreement of the retirement annuity with the insurance organization on making the insurance payments for the life term with the use of the insurance savings, formed at the expense of the compulsory pension contributions. Upon that the amount of the monthly insurance payment from the insurance organization may not be lower than the amount of minimum pension, current at the date of conclusion of agreement of the retirement annuity.
      2. Persons, specified in subparagraph 2) of paragraph 1 of Article 31 of this Law shall have a right to reception of pension savings upon conclusion of agreement of the retirement annuity with the insurance organization.
      Insurance payments shall be made to the persons, specified in this paragraph, by the insurance organization for the life term in accordance with the agreement of retirement annuity. An agreement of retirement annuity shall be concluded with the insurance organization in the case, if the amount of monthly insurance payment is not less than the minimum pension, current at the date of conclusion an agreement of retirement annuity.
      3. Persons, specified in subparagraph 4) of paragraph 1 of Article 31 of this Law shall have a right to receipt the pension savings only upon conclusion of agreement of retirement annuity with the use of no more than 50 percent of their pension savings, formed at the expense of compulsory pension contributions, for the term up to reaching the age, specified in paragraph 1 of Article 11 of this Law.
      The balance of pension savings, formed at the expense of the compulsory pension contributions shall be paid to the contributor (recipient) from the unified pension savings fund in the form of pension payments on established schedule upon reaching them the age, specified in paragraph 1 of Article 11 of this Law.
      4. Persons, specified in subparagraph 1) of paragraph 1 of Article 32 of this Law shall have a right to conclude an agreement of retirement annuity with the insurance organization on making the insurance payments for the life term with the use of pension savings, formed at the expense of compulsory pension contributions and (or) compulsory profession pension contributions. Upon that the amount of monthly insurance payments from the insurance organization may not be lower than the amount of minimum pension, current at the date of conclusion an agreement of retirement annuity.
      5. In the case, if the sum of pension savings of persons, specified in paragraphs 2 and 4 of this Article exceeds the sum of agreement of retirement annuity, this difference shall be paid from the unified pension savings fund in the form of pension payments on established schedule upon reaching them the age, specified in paragraph 1 of Article 11 of this Law.
      6. Insurance payments shall be transferred by the insurance organization to the bank account of insurant, the requisites of which are specified in the agreement of retirement annuity.
      The payment of banking services, related with transmissions, deposits and payments of the sums of insurance payments shall be made at the expense of own funds of insurance organization.

Article 60. Conclusion of an agreement of retirement annuity

      1. A model agreement of the retirement annuity shall be developed and confirmed by the authorized body.
      2. An agreement of retirement annuity shall be concluded between the insurant (recipient) and insurance organization for the term, determined by the requirement of this Law.
      3. A person, concluding an agreement of retirement annuity, s free to choose the insurance organization.
      4. An agreement of retirement annuity shall be concluded on the basis of written application of recipient.
      5. An agreement of retirement annuity shall enter into force and become compulsory for the parts from the date of transfer of sums of pension savings of insurance organization by the unified pension savings fund or voluntary pension savings fund.
      6. A person, concluded an agreement of retirement annuity shall not have a right to terminate it during two years from the date of its conclusion.
      Early termination of agreement of retirement annuity is possible upon condition of conclusion of agreement of retirement annuity with other insurance organization. Upon early termination of agreement of retirement annuity:
      redemption sum, provided by them, shall be not less than the sum of paid insurance premium with the deduction of the sum of insurance payments and expenses of insurance organization to conduct of the case;
      the amount of monthly insurance payment from insurance organization of newly concluded agreement of retirement annuity may not be lower than the amount of minimum pension, current at the date of conclusion an agreement of retirement annuity.
      7. If the sum of pension savings of persons, specified in paragraphs 1-3 of Article 11, subparagraphs 2) and 3) of paragraph 1 of Article 31 and subparagraph 1) of paragraph 1 of Article 32 of this Law, exceeds the sum of agreement of retirement annuity, concluded with the insurance organization, this difference shall be paid to the contributor (recipient) from the unified pension savings fund in the form of pension payments according to the procedure, established by this Law, or shall be used by the contributor (recipient) for conclusion of an agreement of retirement annuity with other insurance organization.

Article 61. Rights and obligations of the parties of agreement of retirement annuity

      1. An insurant shall have a right to:
      1) introduction with the calculation of the amounts of insurance payments conducted by the insurance organization;
      2) use the voluntary pension contributions, as well as money of contributor (recipient), if the sum of pension savings of persons, specified in paragraphs 1-3 of Article 11, subparagraphs 2) and 30 of paragraph 1 of Article 31 and subparagraph 1) of paragraph 1 of Article 32 of this Law, at the expense of compulsory pension contributions and (or) compulsory profession pension contributions is insufficient for conclusion of an agreement of retirement annuity for payment of insurance premium on this agreement;
      3) attraction of independent experts for performing calculations of the amounts of insurance payment from insurance organization;
      4) receive the copy of agreement of retirement annuity in the case of its loss.
      2. An insurant shall be obliged to:
      1) inform a unified pension savings fund, voluntary pension savings fund during ten calendar days from the date of conclusion an agreement of retirement annuity with presentation of original of such agreement;
      2) upon early termination of agreement of retirement annuity during ten calendar days from the date of conclusion an agreement of retirement annuity with other insurance organization to renounce unilaterally from performance of obligations on previously concluded agreement of retirement annuity with presentation of original of new agreement by the former insurance organization.
      3. An insurance organization shall receive the sum of insurance premium according to the agreement of retirement annuity simultaneously and in a full volume.
      4. An insurance organization shall be obliged to:
      1) introduce the insurant with the calculation of the amount of insurance payments from the insurance organization;
      2) formalize an agreement of retirement annuity in a set of three, two of which are issued to the insurant;
      3) transfer the cash surrender value to the insurance organization, specified in the agreement of retirement annuity, during twenty calendar days from the date of reception of the original of agreement of retirement annuity, provided in subparagraph 2) of paragraph 2 of this Article;
      4) pay the insurant fine in the amount of 1,5 percent from the unpaid amount for each day of delay upon making the insurance payments untimely from insurance organization, provided by the agreement of retirement annuity;
      5) make the insurance payment in the form of funeral grant to the family or person, executed the burial, in the case of the death of insurant, in the amount, established by the agreement of retirement annuity, but not less than 15 – fold of the amount of monthly calculation index, established on the relevant financial year by the Law on republican budget.

Article 62. Procedure of transfer the pension savings to the insurance organization

      1. A unified pension savings fund, voluntary pension savings fund shall be obliged to transfer the pension savings of the recipient to the insurance organization in the term not later than five business days from the date of reception the documents, relevant to the requirements, established by the regulatory legal act of the authorized body.
      2. A unified pension savings fund shall bear responsibility before the recipient in the case of delay in fulfilling obligations, specified in paragraph 1 of this Article in accordance with the Laws of the Republic of Kazakhstan.

Article 63. Payments settlement of insurance premium and insurance payments on agreements of retirement annuity

      1. Calculation of insurance premium and insurance payment shall be settled by the insurance organization or independent expert in accordance with the method, established by the authorized body.
      2. An accepted level of expenses of insurance organization to conduct of the case on concluded agreements of retirement annuity shall be established by the authorized body.
      3. Insurance payments on agreement of retirement annuity shall include the periodical insurance payments and at the wish of insurant the one-time insurance payment.
      Periodical insurance payments shall be made on a monthly and quarterly basis or in other procedure by agreement of the parties of agreement of retirement annuity, but not less than once a year in accordance with the requirements of Article 60 of this Law.
      First periodic insurance shall be made by the insurance organization not later than ten business days from the date of transfer the pension payments to the insurance organization by agreement of pension annuity.
      4. One-time insurance payment shall be established in the following amounts depending on the sum of transferred pension savings from the unified pension savings fun, voluntary pension savings fund to the insurance organization:
      1) not more than 10 percent from the sum of insurance premium, if the sum of transferred pension savings is not exceeds the amount of 7000 – fold of monthly calculation index, established on the relevant financial year by the Law on republican budget and current at the date of conclusion an agreement of retirement annuity;
      2) not more than 20 percent from the sum of insurance premium, if the sum of transferred pension savings exceeds the amount of 7000 – fold of monthly calculation index, established on the relevant financial year by the Law on republican budget and current at the date of conclusion an agreement of retirement annuity;
      3) not more than 30 percent from the sum of insurance premium, if the sum of transferred pension savings exceeds the amount of 15000 – fold of monthly calculation index, established on the relevant financial year by the Law on republican budget and current at the date of conclusion an agreement of retirement annuity;
      One-time insurance payment shall be made once upon conclusion of first agreement of retirement annuity.
      5. Intermediary services on conclusion of an agreement of retirement annuity for insurance organization may render only the persons, with which an employment agreement is concluded by the insurance organization.
      6. The amount of commission remuneration, paid by the insurance organization for rendering of intermediary services on conclusion of an agreement of retirement annuity with the condition, provided by paragraph 4 of this Article, shall be calculated by the insurance organization without regard to one-time insurance payments.

Chapter 9. PECULARITIES OF RETIREMENT INSURANCE OF CERTAIN CATEGORIES OF CITIZENS

Article 64. Right to pension payments from the Center for the age in grade

      1. Military servants (except of the compulsory-duty servicemen), servants of special state and law-enforcement bodies, state courier service, to whom the special ranks, grade ranks are awarded, as well as the persons, the right of which to have the special ranks, grade ranks and wear the uniform is abolished from 1 January, 2012, shall have a right to pension payments for the age in grade:
      1) having a length of service on military service, service in the special state and law-enforcement bodies, state courier service, to whom the special ranks, grade ranks are awarded, not less than twenty five years, reaching the limiting age, established by the legislation of the Republic of Kazakhstan of the state in the service;
      2) having a length of service on military service, service in the special state and law-enforcement bodies, state courier service, to whom the special ranks, grade ranks are awarded, not less than twenty five years, redundant, dismissed by personal wish and state of health;
      3) officers personnel, ensigns (midshipmen), servants of special state bodies, persons of middle, senior and top officers of the law enforcement bodies, state courier service, to whom the special ranks, grade ranks are awarded, as well as the persons, passing military service under the contract, dismissed upon reaching the limiting age, established by the legislation of the Republic of Kazakhstan of the state in the military service and service in the special state and law-enforcement bodies, to whom the special ranks, grade ranks are awarded, on personnel reduction or state of health, having the general labour experience twenty-five years and more, of which at least twelve years and six months is continuous military service, service in the special state bodies and law-enforcement bodies, state courier service.
      2. Military servants, officers of special state and law-enforcement bodies, state courier service, to whom the special ranks, grade ranks are awarded, persons, the right of which to have the special ranks, grade ranks and wear the uniform is abolished from 1 January, 2012, dismissed from service and having 10 age in grade and more, in the absence of the right to seniority pension, the pension payments shall be admitted on a regular basis according to the paragraph 1 of this Article in accordance with this Law.
      3. Upon assignment of pensioners from the amount of military servants, officers of special state and law-enforcement bodies, state courier service, former State investigation committee, as well as persons, the right of which to have the special ranks, grade ranks and wear the uniform is abolished from 1 January, 2012, to the state service on awarding a military (special) rank, grade rank, the pension payment shall be terminated from the date of appointment to office.
      4. Officers of law-enforcement bodies, state courier service, the right of which to have the special ranks, grade ranks and wear the uniform is abolished from 1 January, 2012, shall have a right to pension payments for the age in grade, upon reaching the age, relevant to the limiting age of the state in the military and law-enforcement services for this category of persons, committed on military (special) rank, grade rank on 1 January, 2012 on the grounds, specified in paragraph 1 of this Article.
      Footnote. Article 64 is in the wording of the Law of the Republic of Kazakhstan dated 23.04.2014 No. 200-V (shall be enforced upon expiry of ten calendar days after its first official publication).

Article 65. The amounts of pension payments from the Center for the age in grade

      1. Pension payments shall be admitted from the Center:
      1) in a full volume – to the persons, having a right to pension payments on the grounds, specified in paragraph 1 of Article 64 of this Law, upon availability of the experience of military service, service in the special state and law-enforcement bodies, state courier service, ten years and more as of 1 January, 1998;
      2) in incomplete volume – to the persons, having a right to pension payments on the grounds, specified in paragraph 1 of Article 64 of this Law, upon availability of the experience of military service, service in the special state and law-enforcement bodies, state courier service, ten years and more as of 1 January, 1998.
      2. Pension payments from the Center shall be established in full volume at the rate of 50 percent from the monetary pay, determined in accordance with Article 67 of this Law.
      3. Pension payments from the Center shall be established in incomplete volume at the rate of 50 percent from the monetary pay, determined in accordance with Article 67 of this Law, for each year of longevity and labour experience as of 1 January, 1998.
      4. For each year of longevity in the military service, service in the special state and law – enforcement bodies, state courier service, over than twenty – five years, the amount of pension payments in a full volume, admitted in accordance with subparagraph 1) and 2) of paragraph 1 of Article 64 of this Law shall be increased by 2 percent, for each year of labour experience – to 1 percent from the monetary pay, determined in accordance with Article 67 of this Law. For each year of general labour experience over than twenty – five years, the amount of pension payments in a full volume, admitted in accordance with subparagraph 3) of paragraph 1 of Article 64 of this Law shall be increased by 1 percent from the monetary pay, determined in accordance with Article 67 of this Law.
      5. The general amount of pension payments, calculated in accordance with paragraphs 1 – 4 of this Article, may not exceed 65 percent from the monetary pay, determined in accordance with Article 67 of this Law. Maximum amount of monthly pension payments to the military servants, officers of special state and law-enforcement bodies, state courier service, as well as persons, the right of which to have the special ranks, grade ranks and wear the uniform is abolished from 1 January, 2012, may not exceed the amount of 109 – fold of monthly calculation index. Established on the relevant financial year by the Law on republican budget.
      Footnote. Article 65 as amended by the Laws of the Republic of Kazakhstan dated 31.03.2014 No. 180-V (shall be enforced from 01.04.2014); dated 23.04.2014 No. 200-V (shall be enforced upon expiry of ten calendar days after its first official publication).

Article 66. Calculation of age in grade

      Calculation of age in grade shall be made to the military servants, officers of special state and law-enforcement bodies, state courier service, as well as persons, the right of which to have the special ranks, grade ranks and wear the uniform is abolished from 1 January, 2012 according to the procedure, determined by the Government of the Republic of Kazakhstan.
      Upon that the age in grade for award of pension payments shall be calculated on a calendary basis, except of the cases, established by the legislation of the Republic of Kazakhstan.
      Footnote. Article 66 as amended by the Law of the Republic of Kazakhstan dated 23.04.2014 No. 200-V (shall be enforced upon expiry of ten calendar days after its first official publication).

Article 67. The amount of monetary pay, considered for retirement insurance

      1. The amount of monetary pay, considered for retirement insurance, of military servants, officers of special state and law-enforcement bodies, state courier service, as well as persons, the right of which to have the special ranks, grade ranks and wear the uniform is abolished from 1 January, 2012, shall be determined on the date of dismissal (exclusion from the lists of personnel) from service.
      2. An amount of monetary pay, considered for retirement insurance, of military servants, officers of special state and law-enforcement bodies, state courier service, as well as persons, the right of which to have the special ranks, grade ranks and wear the uniform is abolished from 1 January, 2012, shall be included an official salary, salary (additional payment) on military (special) rank, grade rank.
      3. The amount of monetary pay, considered for retirement insurance, of military servants, officers of special state and law-enforcement bodies (except of the customs bodies), state courier service, as well as persons, the right of which to have the special ranks, grade ranks and wear the uniform is abolished from 1 January, 2012, shall be approved by the certificate of established standard form of the relevant body on the last place of employment.
      Footnote. Article 67 is in the wording of the Law of the Republic of Kazakhstan dated 23.04.2014 No. 200-V (shall be enforced upon expiry of ten calendar days after its first official publication).

Article 68. Terms of award and making of pension payments

      1. Pension payments, awarded to the military servants, officers of special state and law-enforcement bodies, state courier service, as well as persons, the right of which to have the special ranks, grade ranks and wear the uniform is abolished from 1 January, 2012, shall be made at the expense of budget means from the date of dismissal from office (exclusion from the lists of personnel), but not earlier than the day on which they were paid salaries.
      2. Making pension payments to military servants, officers of special state and law-enforcement bodies, state courier service, as well as persons, the right of which to have the special ranks, grade ranks and wear the uniform is abolished from 1 January, 2012, shall be executed in full at the expense of means, provided for the maintenance of appropriate services, independent from availability of earnings or other income of recipients.
      3. Pension payments to the military servants, officers of special state and law-enforcement bodies, state courier service, to whom the special ranks, grade ranks are awarded, as well as persons, the right of which to have the special ranks, grade ranks and wear the uniform is abolished from 1 January, 2012, shall be executed at the expense of means of individual pension payments in accordance with pension agreement.
      4. Upon renewal of previously admitted pension payments to the pensioners from the list of military servants, officers of special state bodies and procuracy bodies, internal affairs bodies, state courier service and former Committee of correctional system of Ministry of justice, bodies of financial policy and state fire-fighting service, to whom the special ranks, grade ranks are awarded and whereon the procedure, established by the legislation of the Republic of Kazakhstan for the law enforcement officials, former State investigation committee, procuracy, Customs committee, Committee for emergency situations is distributed, or in the case of reassignment of pensions from the Center to the pension for the age in grade, the pension shall be paid in the amount, determined as of the date of termination of pension payments for the age in grade, in recognition of indexation, made according to the procedure, established by the legislation of the Republic of Kazakhstan, for the period on which the pension payment was suspended.
      5. Upon renewal of previously admitted pension payments to the pensioners from the list of military servants, officers of special state and law-enforcement bodies, state courier service, as well as persons, the right of which to have the special ranks, grade ranks and wear the uniform is abolished from 1 January, 2012, in the case of reassignment of pensions from the Center to the pension for the age in grade, the pension shall be paid in the amount, determined as of the date of termination of pension payments for the age in grade, in recognition of indexation, made according to the procedure, established by the legislation of the Republic of Kazakhstan, for the period on which the pension payment was suspended.
      Footnote. Article 68 is in the wording of the Law of the Republic of Kazakhstan dated 23.04.2014 No. 200-V (shall be enforced upon expiry of ten calendar days after its first official publication).

Article 69. Means and procedure of pension payments

      1. Retirement insurance of persons, reached retirement until 1 January, 1998, from the list of military servants, officers of law-enforcement bodies, state courier service, to whom the special ranks, grade ranks are awarded and whereon the procedure, established by the legislation of the Republic of Kazakhstan for the officers of procuracy bodies, internal affairs bodies and former State investigation committee, shall be executed at the expense of budget means with preservation of established amount of pension.
      2. Retirement insurance of military servants, officers of law-enforcement bodies, state courier service, having experience of military service or service in the law-enforcement bodies and state courier service, shall be made at the expense of budget means as of 1 January, 1998 more than ten years.
      3. Retirement insurance of military servants, officers of special state and law-enforcement bodies, state courier service, to whom the special ranks, grade ranks are awarded and whereon the procedure, established by the legislation of the Republic of Kazakhstan for the officers of procuracy bodies, internal affairs bodies and former State investigation committee, having experience of military service or service in the procuracy bodies, internal affairs and former State investigation committee shall be made at the expense of budget means as of 1 January, 1998 more than ten years.
      4. Procedure of compulsory pension contributions in a unified pension savings fund shall be introduced in the amount of twenty percent from the amount of monetary pay, established by paragraph 2 of Article 67 of this Law, for the military servants, officers of special state and law-enforcement bodies, state courier service, as well as persons, the right of which to have the special ranks, grade ranks and wear the uniform is abolished from 1 January, 2012, containing at the expense of budget means, having an experience of military service, service in the law-enforcement bodies and state courier service less than ten years as of 1 January, 1998, to the individual pension account at the choice of contributor at the expense of budget means.
      Pension payments of military servants, officers of special state and law-enforcement bodies, state courier service, as well as persons, the right of which to have the special ranks, grade ranks and wear the uniform is abolished from 1 January, 2012, shall be made from the unified pension savings fund on the basis of individual pension savings, as well as at the expense of budget means.
      5. Procedure of formation the pension savings shall be distributed to military servants, officers of special state and law-enforcement bodies, state courier service, as well as persons, the right of which to have the special ranks, grade ranks and wear the uniform is abolished from 1 January, 2012, in accordance with paragraph 4 of this Article. Pension payments shall be made for them from the unified pension savings fund on the basis of individual pension savings.
      Footnote. Article 69 is in the wording of the Law of the Republic of Kazakhstan dated 23.04.2014 No. 200-V (shall be enforced upon expiry of ten calendar days after its first official publication).

Article 70. Bodies, making retirement insurance of military servants and officers of special state and law-enforcement bodies, state courier service

      1. Award of pension payments to the military servants, officers of special state and law-enforcement bodies, state courier service, as well as persons, the right of which to have the special ranks, grade ranks and wear the uniform is abolished from 1 January, 2012, shall be made by the relevant state bodies according to the procedure, determined by the Government of the Republic of Kazakhstan.
      2. Retirement insurance of military servants, officers of special state and law-enforcement bodies, state courier service, as well as persons, the right of which to have the special ranks, grade ranks and wear the uniform is abolished from 1 January, 2012, shall be made according to the procedure, determined by this Law at the expense of compulsory pension contributions and voluntary pension contributions in a unified pension savings fund and (or) voluntary pension savings fund.
      Footnote. Article 70 is in the wording of the Law of the Republic of Kazakhstan dated 23.04.2014 No. 200-V (shall be enforced upon expiry of ten calendar days after its first official publication).

Article 71. The state social disablement allowances, on the occasion of loss of breadwinner and at the age of those having the right to receipt the social disability pension, on the occasion of loss of breadwinner and according to the age

      1. Awarded disablement pension, on the occasion of loss of breadwinner, social pension shall be paid at the expense of budget means in the form of the state social disablement allowances, on the occasion of loss of breadwinner and according to the age from 1 January, 1998.
      2. The amount of state social allowance may not be less than the amount of pension, received until 1 January, 1998. 3. Disablement allowance upon availability of conditions, established by Article 11 of this Law, may be changed by the pension payments from the Center at the request of the citizen according to the procedure, established by the legislation of the Republic of Kazakhstan.
      4. Conditions, procedure of award and the amounts of the state social allowances shall be determined by the legislative acts of the Republic of Kazakhstan.

Chapter 10. FINAL AND TRANSITIONAL PROVISIONS

Article 72. Responsibility for violation of the legislation of the Republic of Kazakhstan on retirement insurance

      Violation of the legislation of the Republic of Kazakhstan on retirement insurance shall entail responsibility in accordance with the Laws of the Republic of Kazakhstan.

Article 73. Transitional provisions

      1. The Government of the Republic of Kazakhstan shall create the unified pension savings fund during one month from the date of introduction into effect of this Law.
      2. Transfer of pension assets and obligations of pension savings funds by agreement on retirement insurance shall be carried out in a unified pension savings fund on schedule according to the procedure, established by the regulatory legal act of the authorized body.
      Transfer of pension assets and obligations of pension savings funds by agreement on retirement insurance shall be formed by the acts of receipt and transfer of pension assets and obligations, signed by the authorized representatives of the unified pension savings fund, pension savings fund, former custodian bank, organization, exercising investment management of pension assets, Center and National Bank of the Republic of Kazakhstan.
      Pension savings fund, having a debt to the contributors (recipients) on pension assets at the date of introduction into effect of this Law, shall be obliged to extinguish it up to the date of signing of an act of receipt and transfer of pension assets and obligations.
      Expenses, related with the transfer of pension assets and obligations in a unified pension savings fund shall be carried out at the expense of own funds of pension savings funds.
      An audit of annual financial accountability of pension savings fund, drawn up in accordance with international financial reporting standards as of 1 January, 2013, shall be represented by the pension savings fund in the authorized body until transfer of pension assets in a unified pension savings fund.
      An annual audit report of pension savings fund shall contain independent opinion of auditor – executor and audit organization on financial accountability of the pension savings fund and information on the results of verification for compliance with the requirements of the legislation of the Republic of Kazakhstan of the procedure of maintaining of records and preparation of reporting in relation of pension assets of this pension savings fund.
      3. From the date of effect of this Law and until termination of transfer in a unified pension savings fund of pension assets and obligations by agreement on retirement insurance shall be terminated:
      1) transmissions of pension savings of contributors (recipients) from the pension savings funds in the insurance organization;
      2) transfer of pension savings of contributors (recipients) from one pension savings fund to another, except of the transmission in a unified pension savings fund, in terms, determined by the schedule.
      4. Validity of a license of pension savings fund to attraction of pension contributions and making of pension payments and organization, carrying out the investment management of pension assets, carrying out of activity on investment management of pension assets, issued by the authorized body, shall be terminated from the date, following the date of signing of an act of receipt and transfer of pension assets and obligations by all authorized representatives, specified in paragraph 2 of this Article.
      5. A unified pension savings fund shall be successor of all agreements on retirement insurance, concluded until introduction into effect of this Law with the contributors (recipients), the pension savings on which were transferred in a unified pension savings fund in accordance with paragraph 2 of this Article.
      Agreements on retirement insurance, concluded by the contributors (recipients) with the pension savings fund shall effect in the part, not contradicted to the pension rules of the unified pension savings fund until introduction into effect of this Law.
      6. Pension savings funds shall be obliged to:
      1) make a transfer of pension assets and obligations in a unified pension savings fund by agreements on retirement insurance according to the procedure and terms, established by the regulatory legal acts of the authorized body;
      2) return the forms of licenses to the authorized body not later than ten calendar days from the date of termination of a license to attraction of pension contributions and making of pension payments.
      7. In case of non-fulfilment of requirements, provided by this Article by the pension savings funds, an authorized body shall have a right to take enforcement actions and sanction, provided by the Laws of the Republic of Kazakhstan.
      8. Organization, having a license at the date of introduction into effect of this Law to carrying out of investment management of pension assets, shall have a right to apply to the authorized body with application on issuance of a license to carrying out of activity on portfolio management after return of the form of a license to the authorized body to carrying out the investment management of pension assets.
      An authorized body shall issue a license to carrying out of activity on portfolio management during thirty business days from the date of reception of documents, specified in the first part of this paragraph.
      9. Requirements, established by paragraph 3 of Article 39 and Article 40 of this Law shall not be distributed to the contributors, the pension savings of which were transferred to the unified pension savings fund according to the procedure, provided by paragraph 2 of this Article.
      10. Legal relations, one of the party of which shall be the pension savings fund (organization, carrying out investment management of pension assets), related with retirement insurance from the pension savings fund, organization of activity of pension savings fund (organization, carrying out investment management of pension assets), commission remuneration of the pension savings fund, reports and accounts of pension savings fund (organization, carrying out investment management of pension assets), the secret of pension savings and management of pension assets of the pension savings fund, shall be regulated in accordance with provision of the Law of the Republic of Kazakhstan from 20 June, 1997 “On retirement insurance in the Republic of Kazakhstan” to the date of termination of validity of a license of the pension savings fund (organization, carrying out investment management of pension assets).
      Regulations of the Law of the Republic of Kazakhstan from 20 June, 1997 “On retirement insurance in the Republic of Kazakhstan”, determining the legal and social grounds of citizens in the Republic of Kazakhstan at the expense of voluntary profession pension contributions, shall effect until 1 January, 2014.
      11. Pension savings funds, validity of licenses of which to attraction of pension contributions and making of pension payments, and carrying out the investment management of pension assets, issued by the authorized body, shall be terminated in accordance with this Law, not receiving a license to portfolio management, as well as the pension savings funds, being in the process of compulsory liquidation on the date of introduction into effect of this Law in accordance with the civil legislation of the Republic of Kazakhstan.
      Assignment of liquidation commission of pension savings funds, being in the process of compulsory liquidation shall be carried out by the authorized body.
      Footnote. Article 73 as amended by the Law of the Republic of Kazakhstan dated 10.01.2014 No. 156-V (shall be enforced from 01.01.2014).

Article 74. Procedure of introduction into effect of this Law

      1. This Law shall be shall be enforced upon expiry of ten calendar days after its first official publication, except of:
      1) paragraph 1 of Article 34, which is enforced from the date of creation the unified pension savings fund;
      2) the regulations of this Law, determining the legal and social grounds of retirement insurance of citizens in the Republic of Kazakhstan at the expense of compulsory profession pension contributions, which are enforced from 1 January, 2014.
      2. Suspend the effect of paragraph 4 of Article 28 until 1 January, 2014. In the period of suspension the specified paragraph shall effect in the following wordings:
      “4. Banks and organizations, carrying out the separate bank operations, shall be obliged to suspend all debit operations in the bank accounts of the agents and execute instructions, relating the transfers of compulsory pension contributions, social expenditures and debts for tax by order of tax bodies in the case, if the agent is not represent the lists of contributors of the unified pension savings fund, for the benefit of which the debts of compulsory pension contributions is recovered, and upon availability of debts on compulsory pension contributions.
      Regulation of tax body on suspension of debit operations on bank accounts shall be canceled by the tax body, decreed on suspension of debit operations, not later than one business day, following the day of elimination of reasons of suspension of debit operations on bank accounts.”.
      3. Shall be considered to have lost force the Law of the Republic of Kazakhstan dated 20 June, 1997 “On retirement insurance in the Republic of Kazakhstan” (Bulletin of the Parliament of the Republic of Kazakhstan, 1997, No. 12, Article 186; 1998, No. 24, Article 437; 1999, No. 8, Article 237; No. 23, Article 925; 2001, No. 17-18, Article 245; No. 20, Article 257; 2002, No. 1, Article 1; No. 23-24, Article 198; 2003, No. 1-2, Article 9; No. 11, Article 56; No. 15, Article 139; No. 21-22, Article 160; 2004, No. 11-12, Article 66; No. 23, Article 140, 142; 2005, No. 7-8, Article 19; No. 11, Article 39; No. 14, Article 55, 58; No. 23, Article 104; 2006, No. 3, Article 22; No. 8, Article 45; No. 12, Article 69; No. 23, Article 141; 2007, No. 2, Article 18; No. 3, Article 20; No. 4, Article 28, 30; No. 9, Article 67; No. 10, Article 69; No. 24, Article 178; 2008, No. 17-18, Article 72; No. 20, Article 88; No. 23, Article 114, 123; 2009, No. 17, Article 81; No. 19, Article 88; No. 23, Article 111; 2010, No. 5, Article 23; No. 7, Article 28; No. 15, Article 71; No. 24, Article 140; 2011, No. 1, Article 3; No. 6, Article 49; No. 11, Article 102; No. 14, Article 117; No. 24, Article 196; 2012, No. 2, Article 14, 15; No. 3, Article 26; No. 4, Article 32; No. 10, Article 77; No. 13, Article 91; No. 14, Article 95; No. 21-22, Article 124; No. 23-24, Article 125; 2013, No. 1, Article 3; No. 3, Article 15; the Law of Republic of Kazakhstan dated 15 April, 2013 “On introduction of amendments and additions to the several legislative acts of the Republic of Kazakhstan on issues of the state services”, published in the newspapers “Egemen Kazakhstan” and “Kazakhstanskaya pravda” 20 April, 2013), except of the cases, provided by paragraph 10 of Article 73 of this Law.

      The President
      of the Republic of Kazakhstan              N.Nazarbayev