Economic sciences / 15 State regulation of economy

Senior teacher Akhmetzhanova B. K.

Kostanaysky state university of a name of A.Baytursynov, Kazakhstan

Regulation of pension system in the Republic of Kazakhstan

As it is known all people are baked about the old age and try to provide somehow itself not to remain out-of-pocket, to existence, at disabled age. Also many people want themselves to secure if the production trauma or accident suddenly will deprive of the person of working capacity or even life (if the profession is connected with constant risk for life; for example quick worker, professional soldier). For many years the state pension payments were the only guaranteed source of the income after leaving on deserved rest on reaching a retirement age, or owing to disability.

Thus, all funds were accumulated on the state accounts and then redistributed. In recent times in the financial market there were new participants – pension funds which far not necessarily were public institutions. Their purpose was – capital accumulation by means of pension expels of those people who are interested in the welfare after active employment. Today there are serious problems on provision of pensions. It is insufficiency of pension accumulation for level of pension payments at old age approach, low level of financial literacy and investment culture of the population, insufficient extent of development of system of voluntary pension accumulation.

Pension prosperity of an old age of citizens is one of actual social and economic problems of the Republic of Kazakhstan. It consequences of change of economic opportunities of Kazakhstan in recent years owing to decrease in rates of economic growth and employment, decrease in birth rate, population aging, and, respectively, increases in a share of persons in it are more senior than able-bodied age. At the same time there is a modification of social and economic relationship of the state and the citizen, employers and hired workers.

The Republic of Kazakhstan — the first of the countries of the Commonwealth of Independent States, carried out reform of provision of pensions of the population. Gradual transition from the distributive system of social security founded on solidarity of generations, to the accumulative pension system providing individual pension savings in accumulative pension funds [1] became the main thing in pension reform.

The pension system of the Republic of Kazakhstan consists of two systems: solidary (provision of pensions from the State center for payment of pensions) and accumulative pension system (provision of pensions from accumulative pension funds).

Main objectives of domestic pension system is a preservation and enhancement of pension accumulation of investors.

The solidary system of provision of pensions relies on the principle of solidarity of generations when workers (and/or their employers) paid part of a salary on financing of social programs which provide the income for pensioners in exchange for the guaranteed income to these workers at a retirement. This system leans on a transfer between generations – from younger generation to the senior therefore this system is called "solidary".

For decrease in the predicted growth and excessive strengthening of pension load of the working population, the prevention of deterioration of a standard of living both working, and pensioners, providing in the future of uninterrupted payment of pensions RK Government as an alternative solution of this ripened problem carried out reforming of pension system. Pension reform the Chilean model was assumed as a basis. The pension system doesn't contain the distributive mechanism in Chile and is completely based on accumulation of means on individual accounts of workers and capitalization of contributions. Everyone, entering the accumulative pension scheme, receives the personal account on which its pension contributions which size is established and recorded accumulate. These means collect and invested by private pension funds, and on reaching the investor of a retirement age they become a source of its pension payments. Besides bases of the Chilean system the Kazakhstan model apprehended and adapted under the features experience and other countries.

Provision of pensions of Kazakhstan represents now system from three levels combining at the same time mechanisms of solidary and accumulative systems.

The first level is the solidary pension system inherited by Kazakhstan from the USSR after disintegration of the last and founded on "solidarity of generations" in which the state budget due to tax assignments of working part of the population and other receipts becomes a source of pension payments. The amount of pension payments is defined by the seniority. The second level is an obligatory accumulative pension system with a fixed 10 percent amount of pension assignments from the monthly income for citizens of Kazakhstan, foreigners and the stateless persons who are constantly living in Kazakhstan.

The third level – the accumulative system founded on voluntary and voluntary professional pension contributions. Transformation of domestic pension system has long-term character – full transition to accumulative pension system is predicted till 2040 [2].

Literature:

1 . K.Tulebayev Kazakh model of provision of pensions of the population. Alma-Ata. Gylym, 2003. - page Z

2 . The concept of reforming of provision of pensions to the Republic of Kazakhstan.