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Kazakhstan to transform basic pension into guaranteed minimum pension

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As part of expanding the coverage of the employed population by pension system services it is planned to transform the basic pension into a guaranteed minimum pension, Minister of Labor and Social Protection Serik Abdenov announced on March 12.

"It is planned to take a set of measures to formalize employment and income of wage earners, self-employed population and encourage their participation in pension savings through greater guarantees of a minimum pension. For this purpose it is planned to transform the basic pension into a guaranteed minimum pension," Abdenov said.

According to the Ministry of Labor, the total number of employed population as of January 1 this year is 8.5 million, of which - 5.7 million people are contributors to the national pension system.

In turn, according to the agency, the number of persons engaged in pension contributions regularly 12 times a year is only 3.7 million, and it is about 41% of the economically active population.

The Minister noted that the small number of contributors to pension system "is a serious problem and if do not take timely action, these people will have no pension benefits and will join the ranks of socially vulnerable groups of the population."

CA News

March 14 2013, 13:10

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