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Payments to children from the National Fund: to whom, how much, when
The Majilis at the plenary session approved in the first reading the amendments on payments to children from the National Fund of the Republic of Kazakhstan, Kazpravda.kz correspondent reports .
The document provides that from January 1, 2024, the state will open savings accounts for all Kazakhstani children, into which 50% of the investment income of the National Fund will be received and shared annually.
“According to the developed draft, half of the investment income of the National Fund is recommended to be distributed equally between minors annually for two purposes. The first is the improvement of living conditions or the purchase of housing. For this purpose, it is allowed to use funds only on the territory of Kazakhstan. The second is education. To this end, we consider it necessary not to limit the child in paying for education in foreign educational institutions, as well as in domestic educational institutions,” explained Majilis deputy Unzila Shapak.
At the same time, children will be able to use this money only after reaching the age of 18, and the average annual return of the National Fund for the previous 18 years to the reporting year will be used to calculate the annual accruals. According to the developers, this will reduce the impact of short-term volatility on long-term returns.
Until the child reaches the age of 18, the accrued funds will be in the National Fund, and the National Bank will invest in financial instruments.
“These funds represent only the child's right to claim payments upon reaching the age of 18. Withdrawal of funds from the National Fund will be made when the child reaches the age of 18 in the amount necessary for transfer and use and within the limits of the accumulated funds,” the conclusion to the bill says.
Accounting for targeted assets, crediting of savings and their payment will be carried out by the Unified Accumulative Pension Fund. And in order to comply with the intended use of funds on the accounts, it is proposed to determine authorized operators - second-tier banks with which the UAPF will work. However, in case of cancellation, loss or transfer of citizenship of Kazakhstan, the child will lose the right to receive payments from the National Fund.
According to the estimates of the National Bank, with the current profitability of the National Fund for 18 years, about 3.5 thousand dollars will be accumulated in the child's account.
Photo: Kazpravda.kz