Modernization of Kazakhstan pension system not aimed at budget saving

17 мая 2013, 11:54

Chairman of Kazakhstan National Bank Gregory Marchenko said at yesterday's meeting in the Senate that modernization of the pension system has no goal for saving budget money

“I don’t agree that the current system is a failure. And the Minister [Minister of Labor and Social Protection Serik Abdenov] was right in saying that these were just amendments to it. Nobody can to be blamed that people live longer and that the population of so-called “baby-boomers”, that most of us are (those who were born from 1945 to 1959), is retiring now. This is the biggest cohort and there will be a lot of them, that’s why the number of retired people will be growing in the nearest 10 years,” Marchenko said.

“Considering gradual implementation from 2014 to 2024, the savings will make $19.6 billion for the budget. Are you saving on our women?” Senator Gani Kassymov asked him.

“I would like to explain this amount of $19.6 billion, as it caused a lot of discussions in the Majilis (lower chamber of the Parliament). You have to understand: there is a profession called actuary. They make complicated calculations in areas like life insurance and pension benefits to calculate what will happen in 10, 20, 30 and 40 years. This is a very difficult area of work, and they have a tough licensing system. One needs to pass 6 levels of examinations to become a professional actuary. There are only 30 of them in Kazakhstan. That’s why we asked them to make these calculations. They made them and I published the result,” Marchenko replied.

“There was no special order there. It wasn’t me who calculated this on a piece of paper, because that’s just impossible. But it is wrong to say that the main goal is to save money,” he said.

Kazakhstan plans to gradually raise the retirement age for women from 58 to 63 starting from 2014.

The draft law on modernization of the pension system was approved by the Majilis, even though it caused an outrage of some of the deputies. It was later approved by the Senate as well.

By Altynai Zhumzhumina from

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