Kazakhstan’s Agency for Regulation and Development of the Financial Market has introduced new rules for calculating the surrender value of retirement annuities, factoring in investment income when a client transfers from one life insurer to another.
Previously, when switching insurers, clients could be offered a lump-sum payout drawn from investment income, which could later lead to lower lifetime pension payments. Investment income is now determined based on an effective annual rate of return set according to the Agency’s methodology.