Baktiyar Aliev, Chairman of the Social Fund of the Kyrgyz Republic, announced the agency's plans to change the structure of pension contributions. Currently, the fund is conducting the necessary calculations for a full transition to a solidarity-cumulative system.
What will change for citizens
The new system model involves dividing payments into two components. Upon reaching retirement age, citizens will be guaranteed a basic portion of payments, while the cumulative portion will provide the option to choose how to receive the funds.
- keep the savings to receive regular insurance payments
- withdraw the entire accumulated amount in a lump sum
Context
This refers to the reform of the pension system in Kyrgyzstan through the implementation of mechanisms that combine solidarity and cumulative principles.
