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Central Bank Governor to manage assets of Single Pension Fund

Kairat Kelimbetov. Marat Abilov© Kairat Kelimbetov. Marat Abilov©
Central Bank Governor Kairat Kelimbetov will be managing the assets of the State-run Single Pension Fund, the Fund’s website reports.
The members of the Assets Management Board was approved of by Kazakhstan’s President Nursultan Nazarbayev February 14, 2014. The Board comprises Central Bank Governor Kairat Kelimbetov, Aide to President Erbol Orynbayev, Vice PM-Finance Minister Bakhyt Sultanov, Vice Governor of the Central Bank Daniyar Akishev. Besides, the Board includes Serik Akhanov, Chairman of the Association of Financiers of Kazakhstan; Tevfik BİLGİN, Chairman of NUH Cimento Sanayi A.S., Boris Borozan, managing partner at Global Sovereign Advisors, Ulf Wokurka, Head of Deutsche Bank AG Kazakhstan, Michael Sze, President of Sze Associates Ltd., will be independent experts. Tengrinews.kz reported, citing the country’s Central Bank Governor Kairat Kelimbetov as saying in the Majilis (lower chamber) November 13, 2013 that all the pension assets would be united into the state-run single pension fund before April 2014. Kazakhstan’s President Nursultan Nazarbayev instructed the Government late January to merge all the pension funds into a single government-owned entity. The Single Pension Fund was launched in August 2013. As of December 1, 2012 there were 11 pension funds operating in Kazakhstan, with combined savings standing at around $21 billion. Before the decision on merging all the country’s private pension funds, PM Serik Akhmetov said that “the current service fee rates applied by the country’s pension funds have been reducing the people’s pension savings by 26%”. “According to experts, within the average saving period, the applicable service fee rates have been slashing people’s savings by about 26%. It is an excessively high rate. Given all that, the decision to launch a single pension fund [to replace all the pension funds operating in Kazakhstan] was very reasonable on the part of the Government”, the PM said May 5. “This scheme of managing has brought about a number of problems … It’s obvious that private pension funds have failed to cover all working people with saving plans”, the PM admitted at that time. According to him, only 5.6 million out of 8.4 million working people were covered with saving plans, with only 4 million people making pension deductions on a regular basis, which was less than half of working population.