AFS of Kazakhstan characterized the republic's accumulative pension system as of January 1, 2008

/IRBIS, February 5, 08/ - Kazakhstan agency for financial market and financial organizations regulation and supervision (FSA) in its scheduled press-release dedicated to the republic's financial market has characterized the country's accumulative pension system in January 1, 2008. Beginning of citation As of January 1, 2008 a total of 14 accumulative pension funds were functioning in Kazakhstan, they had 75 branches and 46 representatives in the regions of the Republic. Investment management of pension assets of accumulative pension funds were carried out by 11 organizations, 6 of them were accumulative pension funds, which had licenses for independent management of pension assets: APF SAPF JSC, APF of Halyk Bank of Kazakhstan JSC and Daughter organization of Bank TuranAlem JSC Accumulative pension fund BTA Kazakhstan, Accumulative pension fund Capital JSC, Accumulative pension fund Kazakhmys JSC and Opened accumulative pension fund Otan JSC. The number of individual pension accounts (further - account) depositors (recipients) on compulsory pension fees as of January 1, 2008 was 9,223,712 persons with total sum of pension accumulations KZT1,203.3 bn.. For year 2007 amount of accounts of depositors, charging to compulsory pension fees increased by 687,610 or by 8.06%. Amount of accounts of depositors (recipients) on voluntary pension fees increased within year 2007 by 7,925 (24.03%) and totaled 40,904 with total sum of pension accumulation KZT803.1 m. as of January 1, 2008. Amount of accounts of depositors (recipients) on voluntary professional pension fees increased within year 2007 by 96 (2.56%) and, as of January 1, 2008, totaled 3,848 with total sum of pension accumulation KZT52.5 m. As of January 1, 2008 total pension savings of depositors (recipients) made KZT1,208.1 bn. or with growth over year 2007 by KZT298.4 bn. or 32.8%. At that general inflows of pension deposits, having increased over reporting period by KZT228.2 bn. (33.37%) totaled as of January 1, 2008 KZT912.1 bn. Total net investment income from investing pension assets (minus commission payments), distributed for individual pension accounts of depositors, increasing for December by KZT20.3 bn. (6.35%) as of January 1, 2008 made KZT339.7 bn. In total sum of pension savings of depositors, stake of net investment earning as of January 1, 2008 made 28.12%, increasing compared to January 1, 2007 by 0.01%. Pension payments and transfers to insurance organizations from accumulative pension funds made KZT63.1 bn. as of January 1, 2008. In 2007 by funds were made pension payments for amount of KZT15.2 bn. (31.62%). Transfers of pension savings of depositors from one fund to other increased for reporting period by KZT72.5 bn. (1.5 times) and as of January 1, 2008 totaled KZT209.8 bn. As of January 1, 2008 average weighted coefficients of nominal income on pension assets of accumulative pension funds made: - For December 2002 - December 2007 : 46.15%. Corrected average weighted coefficient of nominal income - 40.16% (accumulated inflation level for similar period - 57.90%); - For December 2004 - December 2007: 32.90% (accumulated inflation level for similar period - 38.57%); - For December 2006 - December 2007: 9.47% (inflation level for similar period - 18.8%). As of January 1, 2008, one accumulative pension fund is in the process of mandatory liquidation by the court decision. In December 2007 for non-execution of norms of acting legislation of Republic of Kazakhstan for accumulative pension system 1 written notification was directed by Agency, and 1 letter-liability was claimed. In December 2007 concerning questions of regulating the activity of accumulative pension funds by the Board of Agency were accepted the next resolutions: - "About inclusion of changes and additions to resolution of Board of Agency of Republic of Kazakhstan for regulating and supervision over financial market and organizations dated October 27, 2006 #222 "About confirmation of Instruction about normative values of prudential norms, methods of their calculation for accumulative pension funds and inclusion of change to resolution of Board of Agency of Republic of Kazakhstan for regulating and supervision over financial market and organizations dated August 27, 2005 #310 "About inclusion of changes and additions to some legal norms of Republic of Kazakhstan concerning questions of regulating and supervision over financial market and organizations"; - "About inclusion of changes and additions to resolution of Board of Agency of Republic of Kazakhstan for regulating and supervision over financial market and organizations dated June 25, 2007 #188 "About confirmation of Rules of provision of aggregated reports of accumulative pension funds and organizations, conducting the investment management with pension assets and also their publication in mass media' sources". End of citation [2008-02-05]