Court orders pension boost for elderly worker from Uralsk region
In a recent ruling, the Supreme Court of Kazakhstan has sided with an elderly man who had been fighting for a fair pension since 2023. The man, who had worked continuously for 20 years at an automobile transport enterprise, found himself in a predicament when his employer delayed mandatory pension contributions from April to August 2023.
The man applied for an age pension in 2023, but his application was initially rejected. Undeterred, he filed a request to review the pension size. The request was considered formally, but the initial review did not yield a favourable outcome. The man then took his case through the regional and Supreme Courts, where the initial court's findings were supported.
The court ruled in favour of the pensioner, ordering a review of his pension size. The delay in pension contributions was found to have affected the size of the appointed pension payment. The man had chosen the period from May 2020 to April 2023 as the basis for calculating his pension payment, which the court deemed as the most favourable period for the pensioner.
However, the court stated that the employer's delay in contributions could not be a reason to limit the worker's rights. The man's awareness of his income and contributions for April-August at the time of the pension appointment in 2023 was also noted.
It's important to note that the pension calculation process in Kazakhstan is primarily based on mandatory contributions to the Unified Accumulative Pension Fund (UAPF). Employers are legally required to correctly withhold and remit pension contributions, and payroll must be accurately processed, reported, and documented to avoid penalties or audits for non-compliance.
The pension system in Kazakhstan is increasingly automated for accuracy, with a digital pension calculation and assignment system in place. This system automatically forms pension files based on age and records without requiring paper documents or physical visits, reducing errors related to manual calculations and discrepancies.
If employers fail to make correct pension contributions, the UAPF monitors these payments, and non-payment can lead to penalties and the need for correction through legal or administrative channels. Employees or the state may initiate checks, and employers must rectify underpayments to correctly accumulate an employee’s pension savings.
Pension sufficiency thresholds are determined based on age and socio-demographic factors. Thus, if contributions are missing, the accumulated pension savings might be below these thresholds, potentially reducing pension benefits or delaying eligibility until enough funds accumulate.
In this case, the court's ruling underscores the importance of employers adhering to their legal obligations regarding pension contributions. The pensioner's persistence in seeking justice serves as a reminder of the need for a fair and transparent pension system in Kazakhstan.
[1] Pension Fund of Kazakhstan [2] Labour Code of the Republic of Kazakhstan [3] Digitalisation of the pension calculation and assignment system in Kazakhstan [4] Pension sufficiency thresholds in Kazakhstan [5] Compliance and enforcement procedures for pension contributions in Kazakhstan
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