Kozzhanova M.S. "Providing employment (solidarity) pension payments".
PAYG pension system, until recently prevailed in most countries, is based on the principle of "solidarity between generations", when pensions are paid out of mandatory payments, which are currently paying working citizens. This system in the West is called "Pay as You Go" (PAYG), which can be translated as "payment on the go." However, this system, as experience shows, is becoming increasingly shaky, unreliable, mainly due to an aging population and changes in the ratio of the number of employees and retirees.
For example, if in 1986, for every retiree EU countries on average, five people of working age, in 1996 there were just over four. It is assumed that by 2020 will account for every retiree has no more than three people of working age by 2050 demographic burden (defined as the ratio of the population of retirement age and older to the working-age population) should be doubled.
The UN predicts that by 2050, people over 60 years will be one-half of the adult population. At the same time, the number of those who pay taxes, that is, the working age population is decreasing.
Besides demographics, pension problems associated with changing socio-economic conditions in the first place, with rising unemployment. Most pension systems in the world are based on contributions from employees' salaries, and therefore very sensitive to any fluctuations in the ratio between the number of economically active, dues-paying population, and recipients of pension benefits.
Pension security of any country has, of course, a number of features, but they are united that the participants of the pension system are the state, the employer and the employee.
Currently, the world is common three-tier pension system, characterized by the following:
First level - protection against poverty, implemented as a rule, under the public distribution system. At this level of pension provision is carried out independently of the labor input and wages;
Second level is designed to ensure a dignified old age. It is designed for working and stimulating, and sometimes obliges them to participate in the formation of additional pensions. It is possible to use and distribution, and storage principles of financing;
Third level - voluntary contributions, in which every individual is entitled to exercise at their own expense to fund its pension plans.
Modern Kazakhstan pension system begins in 1998, in line with international practice.
For example, in Kazakhstan on a basic level, in order to prevent poverty for all pensioners and disabled people who have reached retirement age, paid basic pension payment. Its size is currently 50% of the subsistence minimum (9330 KZT), which is almost more than three times its size when administered - in 2005.
On the second (mandatory) level, it is represented as:
- Pension payments from the State Center for Pension Payments from the national budget (solidary pension)
- Pension payments to pension system at the expense of mandatory pension contributions.
On the third (voluntary) level paid by pension payments pension system by voluntary pension contributions. Voluntary system enables every citizen to increase their retirement savings for more pensions. Today, more than 40,000 citizens have voluntary retirement accounts.
More detail on solidarity pensions. They are also called labor pensions because they are substituting lost due to reaching retirement age and access to well-deserved rest preretirement income.
The right to have solidarity pension entity as at January 1, 1998 with no less than six months of employment. At the moment they are the recipients of more than 1.8 million people.
The right to retire jointly have men on reaching 63 years of age, women reaching 58 years (between 2018 and 2027 females age increased every year for 6 months).
Legislation provides for retirement at an earlier age only for the following two categories of citizens:
- Citizens living in emergency zones and the maximum radiation risk during the period from 29 August 1949 to 5 July 1963 at least 5 years, in accordance with the Law of the Republic of Kazakhstan "On social protection of citizens affected by nuclear tests at the Semipalatinsk nuclear test site" have the right to appoint pension payments - men at the age of 50 at the general experience of not less than twenty-five years, women - at age 45 years with a total work experience of no less than twenty years;
- Women who have given birth (adoptive, adopt) 5 or more children and raised them to the age of eight are entitled to retire on reaching 53 years of age.
Amount of cumulative pension depends on the length of the existing on January 1, 1998 seniority and average monthly income earned in the pre-retirement period.
Full pension prescribed for mandatory work experience of 20 years for women and 25 years - for men and account for 60% of their monthly income (hereinafter - MI) provided for any three consecutive years, starting in 1995. Maximum size SMD, be taken into consideration when assigning the cumulative pension currently is 39 MCI (or 67 509 KZT).
If seniority is more than required, the pension is increased by one percent for each year in excess of the required, but may not exceed 75% MI.
If citizens do not have full-time required, the size of the cumulative pension is calculated as a percentage of the full pension is proportional to the one available on January 1, 1998 seniority. For example, if a woman on January 1, 1998 has 15 years’ experience at the required length of service of 20 years, the size of its joint pension will be ¾ of a full pension.
Level pension participant’s solidarity pension system is characterized by an increase in pension payments. Since the beginning of the minimum pension reform pension benefits increased from 2440 to 28,396 KZT average - from 3964 to 40 298 KZT, maximum - from 7256 to 59 962 KZT. Expenses for pension plan during the period from 1999 to 2013, taking into account the basic pension payments increased by 9.3 times and made in the current year 919.0 billion KZT.
However, the challenge is to ensure the adequacy of pensions received by that means, on the one hand, the adequacy of pensions to address the problems of poverty among disabled people, and on the other hand, the provision of socially acceptable proportions between the revenues obtained during employment and after its completion. This reflects an indicator such as the rate of substitution.
International Labour Organization (ILO) as the target value of the pension age recommends 40% of lost earnings. In Kazakhstan, the replacement rate tends to decline: from 46.4% - in 1998 to 33.3% - in 2002, 33.9% - in 2007, 43.1% - in 2011, 41.3% - in 2013, mainly due to reduction in the number of years of seniority as of January 1, 1998 (retirement leaves the younger generation).
Under these conditions, it is assumed that the appointment and payment of cumulative pension will remain until about 2043. In connection with the "folding" the solidarity system, increasing role in providing citizens allocated pension system, which is the long-term goal of the reform.
I want to draw readers' attention to the need for legalization of proceeds compulsory transfer of pension contributions to a funded pension system.
States shall take all possible measures to ensure employment. Primarily, this contributes to the state implemented Roadmap employment - 2020 aimed at promoting productive employment and labor income growth.
This program is a logical continuation of the implementation of the road maps of 2009 and 2010 and the Employment Program in 2020.
Program provided an opportunity to:
Free training for professions in demand in the market, the direction of social jobs subsidized by the state, youth practice. In this case the period of training they receive financial assistance for travel and accommodation, payment of scholarships;
Opening or expanding their own business through Microcredit and learning the basics of entrepreneurship;
Implementation of a voluntary move to locations with high potential for socio-economic development, where there is a need for labor. These families will be assisted in finding employment in the new location, to provide office accommodation and subsidies for relocation.
In order to improve the competitiveness of employment centers, in accordance with the labor laws, provide training, if necessary, retraining and getting a new specialty in demand due to the state budget.
In addition, in order to leveling the risks associated with the gradual increase in the retirement age for women , the Government Decree approved the Comprehensive Plan to promote the employment of persons older than 50 years ( 50 + initiative ) .
"Initiative 50 + " is aimed primarily at promoting the employment of people approaching retirement age ( over 50 years) and includes employment activities at workplaces to be created in the ongoing government and industry programs.
A number of measures aimed at the use of women's labor, the use of remote forms of employment, the development of home-based work , as well as business development services.
Participation in the pension system is a prerequisite for a secure old age, so you need to participate in it as much as possible of citizens, including the self-employed, in order to be able to secure sufficient retirement savings.