Tashkent, Uzbekistan (UzDaily.uz) — Citizens’ accumulated pension savings are planned to be transferred to investment companies for management after the savings are moved from People’s Bank to the Pension Fund.
Murodbek Atajanov, executive director of the Off-Budget Pension Fund under the Ministry of Economy and Finance, said this on 25 September at a press conference dedicated to the pension reform draft.
According to Atajanov, at the first stage, the savings will be transferred to the Pension Fund. At the same time, the funded pension system and the Pension Fund will retain their status as separate legal entities. They will have independent supervisory boards and management bodies, as well as separate strategic and institutional policies.
The supervisory board is planned to include representatives of local authorities, businesses and foreign experts. This body, rather than the Ministry of Economy and Finance, will make decisions on the management of pension funds and investment policy, Atajanov said.
At the same time, a competition is planned among investment managers, who will subsequently be entrusted with managing the accumulated funds. According to the head of the Pension Fund, the funds need to be consolidated in one place at the initial stage.
The pension reform draft provides for the transfer of the funded pension system from People’s Bank to the Pension Fund starting in 2027.
Under the draft, funds in citizens’ funded pension accounts, including additional payments from the state budget and social tax, as well as income from investing the savings in investment and financial instruments, are proposed to be considered the personal property of citizens. The right to inherit these funds is also planned to be retained.
Public discussion of the draft presidential decree on pension reform will continue until 30 September.
