Use of target savings following the results of 9 months of implementation of the National Fund for Children program
ANNOUNCEMENT
Use of target savings following the results of 9 months of implementation of the National Fund for Children program
As of October 1, 2024, since the beginning of the year, within the framework of the National Fund for Children program, UAPF JSC has executed (transferred to authorized operators for crediting to applicants’ bank accounts) 27,547 applications for a total of about 2.8 million US dollars. Of these, 15,003 applications for the amount of more than 1.5 million US dollars were executed for the purpose of improving housing conditions, and 12,544 applications for the amount of about 1.3 million US dollars were executed for paying for education. Let us remind you that recipients of target savings can use the entire amount or part of it, the remainder of the unused amount remains in the target savings account (TSA).
The most popular sub-goals for using funds for home improvement were: replenishment of a contribution to housing construction savings for further accumulation (14,512 applications were completed for a total of approximately 1.5 million US dollars), acquisition of housing in ownership through civil law transactions (final settlement) – 166 applications for a total of over 16.6 thousand US dollars, making a down payment to obtain a mortgage loan for the acquisition of housing – 136 applications for a total of approximately 13.7 thousand US dollars.
The most frequently used sub-goals in the context of paying for education were: payment for educational services of educational organizations located in the territory of the Republic of Kazakhstan, in installments (for each academic period or academic year) or in full at one time (for the entire period of study) (10,171 applications for more than 1 million US dollars were completed), replenishment of an educational savings deposit under an agreement on an educational savings deposit (1,725 applications for more than 173.2 thousand US dollars were completed), payment for educational services of foreign educational organizations in installments (for each academic period or academic year) or in full at one time (for the entire period of study) (555 applications for about 55.7 thousand US dollars were completed). Statistics show that the use of target savings for education has increased over the past two months compared to the beginning of summer by about 2-3 times. This is probably due to the beginning of the school year and the admission of young people to educational institutions.
At the same time, refunds from authorized operators to target savings accounts of program participants in the UAPF are also noted. As of October 1, 2024, more than 198.5 thousand US dollars were returned to the UAPF according to 1,993 applications for housing and about 200.4 thousand US dollars according to 2,046 applications for education. Refunds are mainly made due to the fact that the authorized operators were not provided with the necessary documents within 45 working days. Program participants can reapply for targeted savings within 10 years, after which the funds will be transferred to voluntary pension accounts.
Detailed information on payments of targeted savings for the purpose of improving housing conditions and (or) paying for education by authorized operators and regions can be found on the website enpf.kz.
Let us remind you that according to the National Fund for Children program, 50% of the investment income of the National Fund of the Republic of Kazakhstan is distributed once a year among children who are citizens of the Republic of Kazakhstan who were born in 2006 and later. In February 2024, based on the results of 2023, the first target requirements were accrued to all children in the UAPF, and citizens who reached the age of 18 in 2024 were credited with target savings (TS) on target savings accounts (TSA) and payments began to be made. The total number of program participants is 6,919,131 children (children born from 01.01.2006 to 31.12.2023, inclusive). Of these, 304,815 participants will turn or have already turned 18 years old in 2024 (children born from 01.01.2006 to 31.12.2006, inclusive).
You can read the terms of the program, get instructions, and answers to your questions on the website kids.enpf.kz and on the БЖЗҚ ЕНПФ YouTube channel. We also note that a video instruction on the implementation of the National Fund for Children program, the algorithm of actions before and after the child reaches adulthood is posted on the БЖЗҚ ЕНПФ YouTube channel at the link: https://www.youtube.com/watch?v=HHQNAxfskX8.
UAPF was founded on August 22, 2013 on the basis of GNPF APF JSC. The founder and shareholder of the UAPF is the Government of the Republic of Kazakhstan represented by the State Institution Committee of State Property and Privatization of the Ministry of Finance of the Republic of Kazakhstan. Trust management of UAPF pension assets is carried out by the National Bank of the Republic of Kazakhstan. In accordance with the pension legislation, the UAPF attracts compulsory pension contributions, employer’s compulsory pension contributions, compulsory occupational pension contributions, voluntary pension contributions, as well as carries out enrollment and accounting of voluntary pension contributions formed at the expense of the unclaimed amount of guaranteed compensation for the guaranteed deposit, transferred by the organization carrying out mandatory guarantee of deposits, in accordance with the Law of the Republic of Kazakhstan “On mandatory guarantee of deposits placed in second-tier banks of the Republic of Kazakhstan”, ensures the implementation of pension benefits. The Fund also carries out accounting of target assets and target requirements, accounting and crediting of target savings (TS) to target savings accounts, payments of TS to their recipients in bank accounts, accounting for returns of TS in the manner determined by the Government of the Republic of Kazakhstan within the framework of the National Fund for Children program (More details at www.enpf.kz).
