Procedure of assigment and calculation of social payments

ORDER OF ASSIGNMENT AND CALCULATION OF SOCIAL PAYMENTS

1. Application for assignation of social payments, time of document consideration and deductions from social payments

Appeal for assignation of social payments is fulfilled by the application submission of determined form into organization department of the Center where the applicant resides. Documents which list is determined by the Law are enclosed to the application.

(name of territorial authority of the
Ministry of Labor and Social Protection of the
people of the Republic of Kazakhstan,
full name of the head)

APPLICATION

From ________________________________________________________________________________________
              (full name of the applicant)
residing to the address: ______________________________________________________________________
______________________________________________________________________________________________
Personal account in the bank No. ______________________________ Branch of the bank No. _________________
Post office No. __________________________________________________________________________________
Payer Registration Number _______________________________________ SIC ___________________________
Data of the identity card (passport): No. _____________________________________________________________
Issued by ________________________________ Date of issue ___________________________________________
Appeal to assign me
______________________________________________________________________________________________
(social payment in case of disablement, loss of supporter of the family , loss of job – to underline the necessary)
I enclose the following documents: (documents are submitted in accordance with articles 21, 22, 23 of the Law of the Republic of Kazakhstan “On Obligatory Social Insurance”).
All changes resulting in reconsideration of social payment rate as well as change of the place of residence (including departure from the Republic of Kazakhstan) are subject to notification into department of State Center for Pension Payments.                                                                                                     Date of application ___________________________ Signature of applicant _____________________________
Application from __________________________________________________________________________________ (full name of applicant)
Received by (date of application receipt with documents)
«____» ___________ 200 ___  No. ___________
Full name, office and signature of the person received documents:
____________________________________________________________________________________________
----------------------------------------------------------------------------------------------------------------------------
(tear off here)
Application from _________________________________________________________________________________ (full name of applicant)
Registered with No. _____ Date of document receipt «____» _____________ 200 __
Full name, office, and signature of the person received documents:
_________________________________________________________________________

Social payments are fulfilled through organization departments of the Center till the 15^th day of the month following the month when the decision on the assignment of social payment has been made by entering into personal accounts of the recipient.

Organization departments of the Center during five working days:

1) establish file layout of the recipient of social payments in each recipient;

2) fill in the certificate confirming the duration of standing of participation of the recipient in obligatory social insurance system;

3) calculate the rate of social payment in accordance with the order of its determination stipulated by the Law;

4) fill in the project of the decision on the assignment (or denial of assignment) and submit them to territorial Department of labor and social protection of people for the approval.

Decision on assignment or denial of assignment of social payments is made during ten working days from the date of document receipt by territorial Departments of labor and social protection of people which, in case of the denial of assignment of social payments, shall notify the applicant in

the written form on reasons of the denial and return submitted documents to the applicant through organization departments of the Center.

Territorial Departments of labor and social protection of people have the right to examine the reliability of submitted documents. In these purposes they may send submitted documents to expertise and check the availability of documents being the basis of their issue. At that the applicant shall be notified on occurred delay in the decision-making on the assignment of social payments and time of prolongation of the decision-making in the written form, but no more than one month.

The day of application submission into organization departments of the Center is considered as the day of appeal for assignment of social payments from the Fund.

Amounts of social payments not received timely or received partially because of social payments assignment authorized body, Center or Fund, are paid for the last time without time restriction and subject to indexation at the rate of no more than 2-times official rate of refinancing determined by the National Bank of the Republic of Kazakhstan on the day of these amounts payment for each day of delay (including date of payment) in the order determined by the Government of the Republic of Kazakhstan.

Rules of amounts payment of social payments not received timely or received partially because of social payments assignment authorized body, Center or Fund approved by the Resolution of the Government of the Republic of Kazakhstan No. 787 of 22 July 2004, determine the order of amounts payment of social payments not received timely or received partially because of social payments assignment authorized body, Center or Fund.

At that amounts payment of social payments not received timely or received partially taking into consideration indexation is fulfilled by the Center in following cases:

1) appeal of the recipient of social payment with application into organization department of the Center in case of independent revelation of untimely or partial payment of social payments;

2) receipt of court decision on payment (assignment) of social payment amounts to the recipient;

3) revelation of untimely or partial payment of social payments by social payments assignment authorized body, Center or Fund.

Indexation of social payment amounts not received timely or received partially is calculated from the 16^th day of the month following the month of the decision-making by social payments assignment authorized body, or from the16^th day of the month when the next payment has not been fulfilled or fulfilled partially by division of number of overdue days by the rate of social payment and 2-times rate of refinancing. At that 2-times rate of refinancing is determined by multiplication of the official rate of refinancing determined by the National Bank of the Republic of Kazakhstan on the day of these amounts payment by two and division of received amount by hundred.

Indexation of social payment amounts paid to the recipient untimely or partially is fulfilled at the expense of assets of the Fund.

The obligatory pension payments are deducted from social payments and sent into accumulation pension fund of the recipient in the case of disablement and loss of job. At that recipients of social payments shall submit the copy of pension agreement with accumulation pension fund into organization departments of the Center after the decision-making on assignment of social payments in the case of disablement and loss of job.

2. Determination of average monthly income of employee.

Transfer of social assignments is fulfilled by payers separately for each month.

Monthly income is taken for calculation of social assignments at the rate not exceeding tenfold rate of minimum salary determined by the republican budget law for corresponding year.

Subject to the letter of the Ministry of Labor and Social Protection of people of the Republic of Kazakhstan No. 08-02-19/3144 of 07.06.2006 taking into consideration that the obligatory social insurance system in the Republic of Kazakhstan began to operate from January 1, 2005, during the first two years of the functioning of the obligatory social insurance system (2005 and 2006) upon calculation of social payment rate, the average monthly income taken into account as the object of social assignments calculation and standing of participation in the obligatory social insurance system is determined on the basis of the certificate of the Center “On Standing of Participation in Obligatory

Social Insurance System” approved by the resolution of the Government of the Republic of Kazakhstan No. 780 of 21.07.2004.

Average monthly income (AMI) shall be calculated by addition of monthly income for all months of participation in social insurance system formed on the moment of social risk occurrence and division of received amount by the number of calendar days past from the moment of social insurance system introduction, i.e., from January 1, 2005 to the month of social risk occurrence inclusive, if social assignments for the month have been received by the Fund on the date of appeal for social payment.

Income for each month shall be calculated by division of social assignments amount received from the employer for said month by the rate of social assignment valid in this month and multiplication of received result by 100. At that monthly income shall not exceed tenfold rate of minimum salary determined by legislative act of the Republic of Kazakhstan.

Received social assignments shall be taken into consideration for month indicated in the field “PERIOD”, and months indicated in the field of payment purpose shall not be taken into consideration.

If social assignments from some employers have been received for the same month for the benefit of the participant of obligatory social insurance system, monthly income on social assignments received from each employer shall be summarized taking into consideration monthly income from each employer at the rate not exceeding tenfold rate of minimum salary.

Standing of participation in obligatory social insurance system is calculated by addition of month number for which social assignments have been received by the Fund to the month of social risk occurrence. Month of social risk occurrence is included into calculation of standing of participation, if social assignments have been received by the Fund for this month.

Beginning from January 1, 2007 AMI shall be calculated by addition of monthly income for the last 24 calendar months to the month of social risk occurrence (independently on breaks in social assignments or their absence in this period), including the month of social risk occurrence, if social assignments for this period have been received by the Fund, and division of the result by twenty four.

3. Assignment and rate of social payments in the case of disablement.

Social payment in the case of disablement is assigned from the date of the person’s appeal for such assignment, i.e., from the date of filing for all determined period of disablement independently on whether the job has been stopped on the moment of appeal for social payment or such job continues.

In order to assign social payment in the case of disablement the following documents shall be enclosed to application:

1) document identifying the personality;

2) information on the place of residence;

3) information on carrying out of examination and determination of disablement degree.

Disablement degree is the value of deviation from human ability to execute labor activity (any unqualified activity) expressed in percentage to the disablement.

Upon stable reasonably expressed abnormalities of organism functions resulted in reasonably expressed restriction of ability to work, the disablement degree is determined from 30 to 60 percent.

Upon expressed abnormalities of organism functions resulted in expressed restriction of ability to work, the disablement degree is determined from 60 to 80 percent.

Upon stable significantly and deeply expressed abnormalities of organism functions resulted in deeply expressed restriction or disablement, the disablement degree is determined from 80 to 100 (inclusive) percent.

Health care organization sends the participant of social insurance system to medical-social expertise (hereinafter referred to as MSE) for carrying out of examination after 120 day of temporary disablement of the participant of social insurance system permanently (or 150 days with breaks during one year) from the date of disablement occurrence after carrying out of necessary diagnostic, medical and rehabilitation measures and upon stable abnormalities of organism functions. Disablement degree is determined for the following periods: 6 months, 1, 2 years or to the achievement of age by the participant of obligatory social insurance system giving the right to receive pension payments in age.

The certificate of disablement, general disablement degree issued by the department of MSE is submitted by the participant of social insurance into organization department of the Center for assignment of social payments.

Rate of monthly social payments in the case of disablement is determined by multiplication of average monthly rate of income taken into consideration as the object of social assignments (calculated by addition of monthly income for all months of participation in social insurance system formed on the moment of social risk occurrence, and division of received amount by number of calendar months past from the moment of social insurance system introduction, i.e., from January 1, 2005 to the month of social risk occurrence inclusive, if social assignments for this month have been received by the Fund on the date of appeal for social payment), minus eighty percent from minimum salary determined by legislative act of the Republic of Kazakhstan, by corresponding coefficients of income substitution, disablement and standing of participation.

Vyt = (AMI-(80% from MS)) x C1 x C2 x C3, where:

Vyt – rate of social payment on disablement

AMI – average monthly income of employee

MS – minimum salary determined by legislative act of the Republic of Kazakhstan

C1 – coefficient of income substitution

C2 – coefficient of disablement

C3 – coefficient of standing of participation.

Coefficient of income substitution (C1) is determined by the Law and constitutes 0,6.

Coefficient of disablement (C2) is determined depending on the rate of disablement which is determined by carrying out of MSE by territorial Departments of labor and social protection of people. Coefficient of disablement for disabled persons, which general disablement degree constitutes:

from 80% to 100% - 0,7;

from 60% to 80% - 0,5;

from 30% to 60% - 0,3.

Coefficient of standing of participation (C3) for the participant of obligatory social insurance system for which social assignments have been made, constitutes:

less than 6 months – 0,1

from 6 to 12 months – 0,7

from 12 to 24 months – 0,75;

from 24 to 36 months – 0,85

from 36 and more – 1,0.

Example of social payment calculation in the case of disablement.

Subject to the certificate of standing of participation in obligatory social insurance system, social assignments for the participant of the system Dosmukhambetov A.A. have been made from April 2005 to February 2006. Actual standing of participation in the system constitutes 11 months.

1. Calculate average monthly income taken into consideration as social assignments.

Determining average monthly income we divide income taken into consideration as the object of social assignments by the number of calendar months past from January 1, 2005. Date of social risk occurrence is March 9, 2006, the number of months past from January 1, 2005 constitutes 14 months (from January 2005 to February 2006). Determine income taken into consideration as the object of social assignments in 2005

11430 X 100% : 1,5% = 762000 Tenge, where

1430 is the amount of social assignments in 2005,

1,5% is the rate of social assignments in 2005.

Determine income taken into consideration as the object of social assignments in 2006

3680 X 100% : 2% = 184000 Tenge, where

3680 is the amount of social assignments in 2006,

2% is the rate of social assignments in 2006.

The total income taken into consideration as the object of social assignments constitutes

762000 + 184000 = 946000 Tenge.

Determine average monthly income taken into consideration as the object of social assignments

946000 : 14 = 67571 Tenge, where

14 is the number of months past from January 1, 2005.

2. Calculate the rate of social payment at the rate of disablement 70% determined in accordance with the certificate of disablement degree.

(67571 – 7360) X 0,6 X 0,5 X 0,7 = 12644 Tenge – calculated rate of social payment, where

67571 is average monthly income;

7360 is 80% from minimum salary (9200 Tenge);

0,6 is the coefficient of income substitution;

0,5 is the coefficient of disablement degree upon 70%

0,7 is the coefficient of standing of participation upon the actual participation 11 months.

Thus, the social payment at the rate of 12644 Tenge for one year is assigned to the participant of obligatory social insurance system Dosmukhambetov A.A.

At the expiration of the period for which the disablement degree is determined, the reexamination is fulfilled upon the order of medical organizations (form 088u).

In case of disablement degree change the social payment is fulfilled at the rate corresponding to newly determined disablement degree from the date of disablement degree change. Recalculation of previously assigned monthly amount of social payment is fulfilled on the basis of input data, only coefficient of disablement is subject to change. In case if the examined person is recognized as able to work, the social payment is stopped from the date of the decision-making by the territorial Departments of labor and social protection of people notifying the Center and its organization departments on the decision-making during three working days.

4. Assignment and rate of social payment in case of loss of supporter of the family

The following family members of the deceased (declared by the court to be missing or declared to be deceased) supporter of the family – participant of obligatory social insurance system for whom the social payments have been fulfilled, have the right for assignment and receiving of social payments in case of loss of the supporter of the family:

1) children including adopted children, brothers, sisters and grandchildren under eighteen years and elder, if they became invalids under eighteen years under conditions that brothers, sisters and grand children have no parents able to work and if they don’t receive alimony from their parents. In case if said persons study in educational institutions, the social payment is fulfilled to graduation from such educational institution;

2) one of the parents, spouse, grandfather, grandmother, brother or sister independently of age and ability to work, if he (she) takes care of children, brothers, sisters or grandchildren under one-and-a-half-year-old of the deceased (declared by the court to be missing or declared to be deceased) supporter of the family.

The following documents are enclosed to the application for assignment of social payment in case of loss of the supporter of the family:

1) document identifying the personality;

2) information on family members;

3) copy of the certificate of the death of the supporter of the family or court decision on declaration of the person to be missing or declared to be deceased;

4) copy of the document confirming familiar relations with deceased (declared by the court to be missing or declared to be deceased) (certificate of marriage, certificate of children’s birth of deceased supporter of the family, certificate of adoption);

5) certificate from educational institution that family members are students (to be renewed annually at the beginning of academic year);

6) documents of tutorship (upon the necessity);

7) information on examination and determination of disablement group (in case if children including adopted children, brothers, sisters and grandchildren under eighteen years and elder are considered as invalids of I or II groups from the childhood).

Social payments assigned to children remained without parents care – participants of obligatory social insurance system for whom social assignments have been fulfilled, are paid to adopter, tutor for each lost parent.

Social payments are assigned to persons considered as invalids of I and II groups from childhood to the period of disablement determination.

One social payment is assigned to family members depending on the deceased (declared by the court to be missing or declared to be deceased) supporter of the family, having the right for assignment and receiving of social payments in case of loss of the supporter of the family.

Upon the written request of the family member depending on the supporter of the family, its share of social payments is allocated and paid to him separately. Allocation of social payment share is fulfilled from the date of filing.

Rates of monthly social payments in case of loss of the supporter of the family are determined by multiplication of average monthly income taken into consideration as the object of social assignments (calculated by means of addition of monthly income for all months of participation in social insurance system formed on the moment of social risk occurrence, and division of received amount by the number of calendar months past from the moment of social insurance system introduction, i.e., from January 1, 2005 to the month of social risk occurrence inclusive, if social assignments for this months have been received by the Fund on the date of appeal for social payment) minus eighty percent from minimum salary fixed by legislative act of the Republic of Kazakhstan, by correspondent coefficients of income substitution, standing of participation and number of dependants.

Vlsf = (AMI-(80% from MS)) x C1 x C3 x C4, where:

Vlsf – rate of social payment in case of loss of the supporter of the family

AMI – average monthly rate of employee’s income

MS – minimum salary fixed by legislative act of the Republic of Kazakhstan

C1 – coefficient of income substitution

C3 – coefficient of standing of participation

C4 – coefficient of numbers of dependants.

Coefficient of income substitution (C1) is determined by the Law and constitutes 0,6.

Coefficient of standing of participation (C3) for participants of obligatory social insurance system for whom social assignments have been fulfilled constitutes:

less than 6 months – 0,1;

from 6 to 12 months – 0,7;

from 12 to 24 months – 0,75;

from 24 to 36 months – 0, 85;

from 36 and more – 1,0.

Coefficient of number of dependants (C4) is determined according to number of persons depending on the participant of obligatory social insurance system for whom social assignments have been fulfilled to the death, and constitutes:

upon one dependant – 0,4;

two dependants – 0,5;

three dependants – 0,6;

four and more dependants – 0,8.

Example of social payments calculation in case of loss of the supporter of the family.

Social assignments have been fulfilled for the system participant Bekishev A.M. from June 2005 to January 2006 by two employers in accordance to the certificate of standing of participation in obligatory social insurance system. Actual standing of participation in the system constitutes 8 months.

Upon assignment of social payment from the Fund, average monthly incomes of the employee received from two or more employers are subject to summation and it is necessary to assign social payment from the total summarized average monthly income for corresponding months taking into consideration monthly income from each employer at the rate not exceeding tenfold rate of minimum salary.

1 Calculate average monthly rate of income taken into consideration as the object of social assignments. Upon determination of average monthly income we divide income taken into consideration as the object of social assignments by the number of months past from January 1, 2005. Date of social risk occurrence is January 29, 2006, the number of months past from January 1, 2005 constitutes 13 months (from January 2005 to January 2006).

Determine income taken into consideration as the object of social assignments in 2005.

9952 X 100% : 1,5% = 663466 Tenge, where

9952 is the amount of social assignments in 2005,

1,5% is the rate of social assignments in 2005.

Determine income taken into consideration as the object of social assignments in 2006

1485 X 100% : 2% = 74250 Tenge, where

1485 is the amount of social assignments in 2006,

2% is the rate of social assignments in 2006.

The total income taken into consideration as the object of social assignments constitutes 663466 + 74250 = 737716 Tenge.

Determine average monthly income taken into consideration as the object of social assignments

737716 : 13 = 56747 Tenge, where

13 is the number of months past from January 1, 2005.

2. Calculate the social payment taking into consideration two dependants depending on this participant with standing of participation 8 months in accordance with submitted documents.

(56747 – 7360) X 0,6 X 0,5 X 0,7 = 10372 Tenge – calculated rate of social payment, where

56747 – average monthly income;

7360 – 80% from minimum salary (9200 Tenge);

0,6 – coefficient of income substitution;

0,5 – coefficient of number of dependants;

0,7 – coefficient of standing of participation upon actual participation 8 months.

Thus, one social payment at the rate of 10372 Tenge will be paid monthly for two dependants to the children’s achievement of eighteen years. In case if children will study in educational institutions, the social payment will be paid to the graduation from such educational institution.

Upon written request of the family member depending on the supporter of the family, its share of social payment is allocated and paid to him separately.

Amounts to the payment are calculated pro rata the number of all dependants in each share matter upon allocation of share from the total amount of social payment in case of loss of the supporter of the family.

Decision on change of the family members depending of the deceased supporter of the family is made by territorial Departments of labor and social protection of people.

Recalculation of the social payment rate is fulfilled correspondently increasing or reducing according to the number of the family members having the right for receiving of social payments in case of change of the family members depending on deceased.

Social payments in case of loss of the supporter of the family are paid monthly to the family members of deceased supporter of the family during the period when the family members reserve the right for receiving of social payments.

If the recipient of social payment on loss of the supporter of the family submits the certificate from educational institution untimely, the social payment is stopped on all recipients.

Recalculation of social payment on remained dependants is fulfilled on the basis of the written application of the family member depending on deceased (declared by the court to be missing or declared to be deceased) supporter of the family, at that the decision on assignment or denial of assignment of social payment on loss of the supporter of the family is made by authorized body.

Upon submission of certificate from educational institution, the social payment is resumed on the basis of submitted application and the rate of social payment is calculated according to the number of dependants, and the decision is approved by authorized body on social payment assignment.

5. Assignment and rate of social payment in case of loss of the job.

Social payment in case of loss of the job is assigned from the date of person’s appeal to employment authorized body for registration as unemployed.

The following documents are enclosed to the application in order to assign social payment in case of loss of the job:

1) document identifying the personality;

2) information on place of residence;

3) certificate of employment authorized body.

The rate of social payment in case of loss of the job is determined by multiplication of average monthly income rate taken into consideration as the object of social assignments (calculated by addition of monthly income for all months of participation in social insurance system formed on the moment of social risk occurrence, and division of received amount by the number of calendar months past from the moment of social insurance system introduction, i.e., from January 1, 2005 to the month of social risk occurrence inclusive, if social assignments for this months have been received by the Fund on the date of appeal for social payment) by corresponding coefficients of income substitution and standing of participation.

Vlsf = x C1 x C3, where:

Vlsf – rate of social payment in case of loss of the job

C1 – coefficient of income substitution

C3 – coefficient of standing of participation

Coefficient of income substitution (C1) for calculation of social payment in case of loss of the job is determined by the Law and constitutes 0,3.

Coefficient of standing of participation (C3) for participants of obligatory social insurance system for whom social assignments have been fulfilled constitutes:

from 6 to 12 months – 0,7;

from 12 to 24 months – 0,75;

from 24 to 36 months – 0, 85;

from 36 and more – 1,0.

In case when social assignments have been fulfilled for the participant of obligatory social insurance system, he has the right to receive social payment in case of loss of the job according to calendar calculation:

- from 6 to 12 months – not less than for one month;

- from 12 to 24 months – during two months;

- from 24 to 36 months – during three months;

- over 36 months – during four months.

Example of social payment calculation in case of loss of the job.

Subject to submitted documents, the day of registration by unemployed Pan V.H. is March 19, 2006. Subject to the certificate of standing of participation in obligatory social insurance system, the social assignments have been fulfilled for the participant of the system Pan V.H. from April to December 2005. Actual standing of participation in the system constitutes 9 months independently of that the social assignments for April have been transferred three times.

Calculate average monthly income rate taken into consideration as the object of social assignments.

Income taken into consideration as the object of social assignments is limited by ten fold rate of minimum salary determined in paragraph 2, article 15 of the Law. Social assignments at the rate of 1995Tenge have been transferred in April for this participant. Maximum rate of social assignment in April 2005 constituted 1050Tenge (1,5% from 7000Tenge). Thus, the rate of social assignments will be limited to maximum possible rate of 1050Tenge in order to determine average monthly income.

Income taken into consideration as the object of social assignments is divided by the number of months past from January 1, 2005. Date of appeal for assignment is January 19, 2006, the number of months past from January 1, 2005 constitutes 12 months (from January 1, 2005 to December 2005).

Determine average monthly income taken into consideration as the object of social assignments

6682 X 100% : 1,5% : 12 = 37122Tenge, where

6682 is the amount of social assignments in 2005 limited by maximum possible rate.

1,5% is the rate of social assignments in 2005.

12 is the number of months past from January 1, 2005

2. Calculate the social payment in case of loss of the job.

37122 X 0,3 X 0,7 = 7796Tenge, where

56747 – average monthly income;

0,3 – coefficient of income substitution determined by the Law

0,7 – taken coefficient of standing of participation upon actual participation 9 months.

Thus, the social payment at the rate of 7796 Tenge is assigned to the participant of obligatory social insurance system Pan V.H. for one month. In case when the participant of obligatory social insurance system for whom social assignments have been fulfilled receives social payments in case of loss of the job, but he has lost the right to receive social payments in case of loss of the job in connection with employment, the next social payments are assigned on the assumption of deduction of twelve months from standing of participation for each month of social payment receiving in case of loss of the job during which social assignments have been fulfilled for such participant of obligatory social insurance system.

Regulation on increase and calculation of social payments rate from the State Social Insurance Fund has been approved by the resolution of the Government of the Republic of Kazakhstan of 21 July 2004.

Regulation has been developed in accordance with the Law and determines the order of increase and calculation of social payments rate from the Fund.

Increase of social payments rate is fulfilled at the expense of the Fund assets.

Decision on the increase of social payments rate is made by the Fund as well.

After the Fund makes the decision to increase the social payments rate, the Center prepares projects of decisions to change the social payments rates based on this decision in connection with the increase on each recipient of social payments and sends them to authorized body on social payments assignment for the approval.

Based on decisions to change social payments rates, the Fund transfers assets necessary for the increase of social payments rates to the account of the Center in connection with such increase determined by authorized body on social payments assignment on each recipient. At that social payments are paid by the Center according to the schedule determined between the Center and the Fund taking into consideration executed increase.