Accumulative Pension System of the Republic of Kazakhstan ,

Bangkok, April 27-28, 2005Prepared by Gulnara Alimbayeva

Accumulative Pension Fund

Custodian Asset Management Company

Functions of Accumulative Pension Fund:

collecting obligatory pension contributions

keeping pension accounts of depositors and pension payments

pension asset management (by license)

O p en C orp ora te

A ccu m u la tive p en s ion fu n d s can b e

All accumulative pension funds are created in corporation form of

organization. Accumulative pension fund cannot be stockholder of any other accumulative

pension fund.

Pension Asset Management Company invests

pension assets

Custodian saves pension assets

One depositor - one Accumulative Pension Fund by one treaty

Accumulative Pension Fund

Accumulative Pension Fund

Accumulative Pension Fund

Accumulative Pension Fund

Depositor

Depositor

Depositor

Depositor

Depositor

Depositor

Depositor

1.1. Obligatory pension contributions - required for paying in accumulative pension fund, are fixed in the amount of 10% of employees monthly income.

2.2. Voluntary pension contributions to accumulative pension funds are entered by depositor — physical person — in depositor’s favour from his income.Rate of voluntary pension contributions, its payment procedure and pension payments procedure are established according to agreement between both sides of contract.3.3. Voluntary professional pension contributions are implemented by depositor from his own sources in favour of employees. Rate of voluntary professional pension contributions is established according to agreement between both sides of contract excepting rate more than 10 % of employees monthly income.

Types of pension contributionsTypes of pension contributions

Individual choice

By law every depositor can choose

any accumulative pension fund

The main criteria of Individual choice

Criteria Source Priority

Yield ofpensionassets

Web site ofFSA

High

Quantitiesof depositors

Mass media Middle

Financialstatement

Mass media Low

By law depositor can change Accumulative Pension Fund at most

two per annual

At the beginning pension age (male - 63/ female - 58) depositor can choose one of the methods

of pension payments

by accum ulative pension fund by insuarance com pany

pension paym ents

Pension assets

pension contributions

investment revenues

reimbursement of losses

minus commission interest of accumulative

pension fund

investments in financial instruments

(FSA list)

pension payments

transfer of pension fundsinto another accumulative

pension fund or insurance company

Thank you