On the Accumulative Pension Provision of Citizens

I. General Provisions

Article 1. Purpose of this Law

The purpose of this Law is to regulate relations in the field of accumulative pension provision of citizens.

Article 2. Legislation on Accumulative Pension Provision of Citizens

Legislation on accumulative pension provision of citizens consists of this Law and other acts of legislation.

If international treaties of the Republic of Uzbekistan establish rules other than those provided for by the legislation of the Republic of Uzbekistan on accumulative pension provision of citizens, the rules of the international treaty shall apply.

Article 3. Basic Concepts

The following basic concepts are used in this Law:

• voluntary accumulative pension contributions — monetary funds deposited into an individual accumulative pension account on a voluntary basis;
• mandatory accumulative pension contributions — monetary funds deposited into an individual accumulative pension account on a mandatory basis;
• contributor of accumulative pension contributions (contributor) — a legal entity — employer (hereinafter — employer) or an individual making contributions on behalf of the recipient of accumulative pension payments;
• accumulative pension provision — provision of citizens with additional monetary funds to the state pension from the funds of individual accumulative pension accounts;
• individual accumulative pension account — a named account of a citizen at the People's Bank, into which the accumulative pension contributions of contributors and interest accrued on the funds of the individual accumulative pension account are deposited and accounted for.

Article 4. Right to Accumulative Pension Provision

Citizens of the Republic of Uzbekistan, as well as foreign citizens and stateless persons permanently residing on the territory of the Republic of Uzbekistan, have the right to accumulative pension provision.

Article 5. State Guarantees for Accumulative Pension Provision

The State guarantees to citizens participating in the accumulative pension system the safety and payment of funds accumulated in individual accumulative pension accounts.

II. Organization of the Accumulative Pension System

Article 6. Participation in the Accumulative Pension System

For employers, as well as for citizens carrying out labor activities under an employment contract, participation in the accumulative pension system is mandatory, unless otherwise provided by legislation.

Individual entrepreneurs, members of dekhkan farms without the formation of a legal entity, as well as other citizens, participate in the accumulative pension system on a voluntary basis.

Article 7. Registration of Citizens in the Accumulative Pension System

Registration of citizens who have reached the age of 16 in the accumulative pension system is carried out simultaneously with the issuance of their identification ID cards.

Registration of citizens not registered in the accumulative pension system before June 1, 2021, is carried out by a branch of the People's Bank at their place of residence using the personal identification number of an individual.

(Parts one, two, and three of Article 7 were replaced by parts one and two by the Law...)

Republic of Uzbekistan dated February 7, 2024 No. ZRU-905 — National Legislation Database, 07.02.2024, No. 03/24/905/0106)

Registering in the accumulative pension system includes:

• opening individual accumulative pension accounts;
• issuing an accumulative pension book.

The People's Bank maintains personal records of citizens in the accumulative pension system in the manner established by the Cabinet of Ministers of the Republic of Uzbekistan.

LexUz Comment For detailed information see: Regulation on the procedure for maintaining personal records of citizens in the accumulative pension system by the People's Bank, approved by the Resolution of the Cabinet of Ministers of the Republic of Uzbekistan dated December 21, 2004 No. 595.

Data on personal records of citizens in the accumulative pension system and on individual accumulative pension accounts are formed and stored in the unified electronic database of the People's Bank.

OKOZ: 1. 06.00.00.00 Legislation on social security and social insurance. Social protection / 06.03.00.00 Financing of social security and social insurance / 06.03.05.00 Accumulative pension account (see also 06.06.12.00)

Article 8. Opening of individual accumulative pension accounts

See previous edition.

OKOZ: 1. 06.00.00.00 Legislation on social security and social insurance. Social protection / 06.03.00.00 Financing of social security and social insurance / 06.03.05.00 Accumulative pension account (see also 06.06.12.00)

Upon registration in the accumulative pension system by the People's Bank, individual accumulative pension accounts with a permanent personal number established for life are opened for citizens. Assignment of numbers to individual accumulative pension accounts is carried out based on passport data or data from the citizen's identification ID card.

(part one of Article 8 in the edition of the Law of the Republic of Uzbekistan dated March 14, 2022 No. ZRU-759 — National Legislation Database, 14.03.2022, No. 03/22/759/0213)

See previous edition.

If a citizen changes their place of residence, place of work, or changes passport data or identification ID card data, the number of the individual accumulative pension account remains unchanged and opening a new individual accumulative pension account is not required.

(part two of Article 8 in the edition of the Law of the Republic of Uzbekistan dated March 14, 2022 No. ZRU-759 — National Legislation Database, 14.03.2022, No. 03/22/759/0213)

Article 9. Accumulative pension book

OKOZ: 1. Pension provision / Accumulative pension book

The accumulative pension book, certifying the citizen's right to receive accumulative pension payments, is issued by the People's Bank to the citizen after the opening of an individual accumulative pension account.

OKOZ: 1. 01.00.00.00 Constitutional structure / 01.11.00.00 Cabinet of Ministers of the Republic of Uzbekistan (see also 02.01.00.00)

The accumulative pension book indicates the date of registration, the citizen's personal data, including the number of the individual accumulative pension account, as well as other necessary information. The procedure for issuing and the form of the accumulative pension book are established by the Cabinet of Ministers of the Republic of Uzbekistan.

LexUz Comment For detailed information see: Regulation on the accumulative pension book, approved by the Resolution of the Cabinet of Ministers of the Republic of Uzbekistan dated December 21, 2004 No. 595.

In case of loss (theft) of the accumulative pension book, a duplicate is issued with the same number of the individual accumulative pension account.

Article 10. Formation of funds in individual accumulative pension accounts

OKOZ: 1. 05.00.00.00 Labor and employment legislation / 05.05.00.00 Labor discipline / 05.05.01.00 General provisions. Duties of employees and employers

The employer makes mandatory accumulative pension contributions monthly at the expense of the corresponding reduction in the amount of personal income tax accrued in accordance with legislation.

OKOZ: 1. 07.00.00.00 Legislation on finance and credit. Banking activity / 07.05.00.00 Republican budget / 07.05.01.00 General provisions

The amount of mandatory accumulative pension contributions is calculated from the sum of wages and other income of employees, including retired workers, and is established annually by the Cabinet of Ministers of the Republic of Uzbekistan when forming the State Budget of the Republic of Uzbekistan for the upcoming year.

OKOZ: 1. 05.00.00.00 Labor and employment legislation / 05.02.00.00 Labor / 05.02.05.00 Collective agreement. Collective agreements

The employer has the right to make additional contributions to the individual accumulative pension accounts of its employees from its own funds. The amount of additional contributions and the deadlines for their payment are determined by the collective agreement, or if it is not concluded, by the employer in agreement with the representative body of employees.

Mandatory accumulative pension contributions by the employer cannot be made on behalf of third parties.

Citizens participating in the accumulative pension system on a mandatory basis have the right to make additional contributions to their individual accumulative pension accounts, as well as on behalf of third parties, in amounts and deadlines determined by them independently.

Citizens participating in the accumulative pension system on a voluntary basis independently determine the amount and deadlines for contributions to their individual accumulative pension accounts, including on behalf of third parties.

The People's Bank, in the manner established by legislation, accrues interest on the funds of individual accumulative pension accounts at rates exceeding inflation rates. The interest rate is determined by the People's Bank in agreement with the Ministry of Finance of the Republic of Uzbekistan and the Central Bank of the Republic of Uzbekistan, taking into account income received from the placement of accumulative pension system funds.

LexUz Comment See: Resolution of the Cabinet of Ministers dated October 13, 2022 No. 592 "On approval of the regulation on the procedure for appointing and paying state pensions."

Article 11. Formation of accumulative pension system funds

Funds of the accumulative pension system are formed in the People's Bank by accumulating funds in individual accumulative pension accounts.

Sources for the formation of funds in individual accumulative pension accounts are:

• mandatory accumulative pension contributions;
• voluntary accumulative pension contributions;
• interest accrued on the funds of individual accumulative pension accounts;
• other funds not contradicting legislation.

Article 12. Use of accumulative pension system funds

OKOZ: 1. 06.00.00.00 Legislation on social security and social insurance. Social protection / 06.06.00.00 Pensions / 06.06.12.00 Accumulative pension provision (see also 06.03.05.00)

Funds of the accumulative pension system are used to make accumulative pension payments.

Funds of the accumulative pension system cannot be used to fulfill obligations unrelated to the accumulative pension system.

The People's Bank maintains separate accounting of accumulative pension system funds.

OKOZ: 1. 07.00.00.00 Legislation on finance and credit. Banking activity / 07.28.00.00 Investments and external borrowing (see also 07.05.04.00, 09.12.03.00, 10.01.05.00) / 07.28.08.00 Other investment issues

For the purpose of multiplying and protecting against inflation, funds of the accumulative pension system may be used as investment and credit resources, as well as for placement in financial instruments.

OKOZ: 1. 02.00.00.00 Foundations of state administration / 02.03.00.00 Republican executive bodies and economic management bodies / 02.03.02.00 Ministries

The use of accumulative pension system funds as investment and credit resources is carried out by the People's Bank in agreement with the Ministry of Finance of the Republic of Uzbekistan.

OKOZ: 1. 07.00.00.00 Legislation on finance and credit. Banking activity / 07.19.00.00 Banking system / 07.19.01.00 Central Bank, its structural subdivisions and institutions

The procedure for placing accumulative pension system funds in financial instruments is established by the Ministry of Finance and the Central Bank of the Republic of Uzbekistan.

Article 13. Control over the receipt of funds into individual accumulative pension accounts and their use

OKOZ: 1. 06.00.00.00 Legislation on social security and social insurance. Social protection / 06.06.00.00 Pensions / 06.06.01.00 General provisions

Control over compliance with the procedure for opening and maintaining individual accumulative pension accounts, the correctness and completeness of the calculation, and the timeliness of making mandatory accumulative pension contributions into individual accumulative pension accounts is carried out by the bodies of the Ministry of Finance of the Republic of Uzbekistan, the state tax service, and the People's Bank in the manner established by legislation.

LexUz Comment See: Resolution of the Cabinet of Ministers dated October 13, 2022 No. 592 "On approval of the regulation on the procedure for appointing and paying state pensions."

Control over the targeted use of funds in individual accumulative pension accounts and the correctness of interest accrual is carried out by the Ministry of Finance of the Republic of Uzbekistan, as well as by a specially created subdivision of the People's Bank for these purposes.

Article 14. Exemption of accumulative pension system funds from taxation

OKOZ: 1. 07.00.00.00 Legislation on finance and credit. Banking activity / 07.09.00.00 Tax legislation / 07.09.05.00 Tax and fee benefits and preferences; 2. 07.00.00.00 Legislation on finance and credit. Banking activity / 07.13.00.00 Tax proceedings

Mandatory accumulative pension contributions, interest and other income received by citizens and the People's Bank from the use of funds in individual accumulative pension accounts, accumulative pension payments, as well as the turnover of accumulative pension system funds are not subject to taxation and other mandatory payments.

Article 15. Provision of information on accumulative pension contributions

The employer is obliged to monthly provide a copy of the payment document on the payment of accumulative pension contributions, a register of employees indicating the numbers of individual accumulative pension accounts, surnames, the amount of accrued wages, other income, and accumulative pension contributions for each employee to the branch of the People's Bank at its location.

The People's Bank, based on the payment document and register specified in part one of this article, credits funds to individual accumulative pension accounts.

III. Procedure for receiving accumulative pension payments

Article 16. Right to receive accumulative pension payments

OKOZ: 1. 06.00.00.00 Legislation on social security and social insurance. Social protection / 06.06.00.00 Pensions / 06.06.01.00 General provisions

Citizens participating in the accumulative pension system as recipients have the right to receive accumulative pension payments upon arising the right to a state pension in accordance with legislation.

LexUz Comment For detailed information see. Law of the Republic of Uzbekistan "On State Pension Provision of Citizens."

Article 17. Right to receive accumulative pension payments in special cases

OKOZ: 1. 03.00.00.00 Civil legislation / 03.16.00.00 Inheritance law / 03.16.01.00 General provisions

In the event of the death of a citizen, the funds accumulated in the individual accumulative pension account are inherited in the manner established by legislation and paid to the heir in a lump sum in full.

LexUz Comment See: Section V of the Civil Code of the Republic of Uzbekistan.

In the event of a citizen's departure from the territory of the Republic of Uzbekistan for permanent residence, the funds accumulated in the individual accumulative pension account are paid in a lump sum in full.

See previous edition.

Article 18. Grounds for receiving accumulative pension payments

Information on the arising of a citizen's right to a state pension, sent in electronic form through the information system of the non-budgetary Pension Fund under the Ministry of Economy and Finance of the Republic of Uzbekistan, serves as the basis for the citizen to receive accumulative pension payments.

(article 18 in the edition of the Law of the Republic of Uzbekistan dated March 18, 2024 No. ZRU-922 — National Legislation Database, 19.03.2024, No. 03/24/922/0224)

Article 19. Right to choose when receiving accumulative pension payments

Recipients have the right to choose between receiving monthly accumulative pension payments for a period established by them independently, or receiving accumulative pension payments in a lump sum.

Article 20. Implementation of accumulative pension payments

See previous edition.

Accumulative pension payments are made by the branch of the People's Bank at the recipient's place of residence based on information on the arising of the citizen's right to a state pension, sent in electronic form through the information system of the non-budgetary Pension Fund under the Ministry of Economy and Finance of the Republic of Uzbekistan.

(part one of Article 20 in the edition of the Law of the Republic of Uzbekistan dated March 18, 2024 No. ZRU-922 — National Legislation Database, 19.03.2024, No. 03/24/922/0224)

Accumulative pension payments are made from the month following the month of application for them, but no earlier than the arising of the recipient's right to a state pension.

Recipients may receive funds from individual accumulative pension accounts through authorized persons based on documents issued in accordance with legislation.

LexUz Comment For detailed information see. Articles 134–137 of the Civil Code of the Republic of Uzbekistan.

Article 21. Rights and duties of the recipient of accumulative pension payments

OKOZ: 1. 01.00.00.00 Constitutional structure / 01.06.00.00 Rights, freedoms and duties of man and citizen / 01.06.02.00 Basic (constitutional) personal rights and freedoms / 01.06.02.07 Right to the possibility of familiarization with documents, decisions and other materials affecting their rights and interests of man; 2. 03.00.00.00 Civil legislation / 03.16.00.00 Inheritance law / 03.16.02.00 Inheritance by will; 3. 06.00.00.00 Legislation on social security and social insurance. Social protection / 06.06.00.00 Pensions / 06.06.01.00 General provisions

The recipient of accumulative pension payments has the right:

• to receive payments from the individual accumulative pension account in the established manner;
• to receive information on the state of accumulations in the individual accumulative pension account, as well as on interest accrued on the funds of the individual accumulative pension account;
• to bequeath accumulations in the individual accumulative pension account in accordance with legislation.

The recipient of accumulative pension payments is obliged to report to the branch of the People's Bank about changes affecting the fulfillment of the People's Bank's obligations to him.

The recipient of accumulative pension payments may have other rights and bear other duties in accordance with legislation.

Article 22. Duties of depositors of accumulative pension contributions

See previous edition.

Depositors of accumulative pension contributions are obliged to provide the branch of the People's Bank with necessary information for registration in the accumulative pension system and to report all changes related to citizens' personal data (conclusion or termination of an employment contract, change of passport data or identification ID card data, and other information necessary for maintaining individual accumulative pension accounts).

(part one of Article 22 in the edition of the Law of the Republic of Uzbekistan dated March 14, 2022 No. ZRU-759 — National Legislation Database, 14.03.2022, No. 03/22/759/0213)

Employers are obliged to timely make contributions to individual accumulative pension accounts and provide citizens, upon their request, with information on accrued and paid accumulative pension contributions.

Article 23. Rights and duties of the People's Bank

OKOZ: 1. 07.00.00.00 Legislation on finance and credit. Banking activity / 07.21.00.00 Banking activity / 07.21.21.00 Other issues of banking activity

The People's Bank has the right:

• to receive from depositors of accumulative pension contributions the necessary information for opening and maintaining individual accumulative pension accounts;
• to receive a margin from the income received from investing accumulative pension system funds. The size of the margin is established by the Ministry of Finance of the Republic of Uzbekistan.

OKOZ: 1. 07.00.00.00 Legislation on finance and credit. Banking activity / 07.21.00.00 Banking activity / 07.21.02.00 Procedure for opening and maintaining bank accounts

The People's Bank is obliged:

• to open individual accumulative pension accounts and maintain them in the manner provided by legislation;

LexUz Comment For detailed information see. Regulation on the procedure for opening and maintaining individual accumulative pension accounts of citizens in the People's Bank and making mandatory and voluntary contributions to them, approved by the Resolution of the Cabinet of Ministers of the Republic of Uzbekistan dated December 21, 2004 No. 595.

• to maintain personal accounting of contributions to individual accumulative pension accounts and accrued interest;

ensure the timely and full crediting of accumulative pension contributions and interest accrued on the funds of individual accumulative pension accounts; Submit a proposal for the document Listen to the audio Get a link from the document element ensure the timeliness and correctness of determining the amount of accumulative pension payments, as well as their full issuance to recipients; Submit a proposal for the document Listen to the audio Get a link from the document element ensure the safety of funds in individual accumulative pension accounts, their multiplication and protection from inflation by investing the funds of the accumulative pension system in financial instruments and using them as investment and credit resources; Submit a proposal for the document Listen to the audio Get a link from the document element inform citizens annually about the status of their individual accumulative pension accounts, as well as upon their request; Submit a proposal for the document Listen to the audio Get a link from the document element ensure the storage of documents and records related to individual accumulative pension accounts. Submit a proposal for the document Listen to the audio Get a link from the document element The People's Bank may have other rights and bear other obligations in accordance with the legislation. Submit a proposal for the document Listen to the audio Get a link from the document element IV. Final Provisions Submit a proposal for the document Listen to the audio Get a link from the document element Article 24. Termination of Accumulative Pension Payments [ OKOZ: 1. 06.00.00.00 Legislation on social security and social insurance. Social protection / 06.06.00.00 Pensions / 06.06.12.00 Accumulative pension provision (see also 06.03.05.00); 2. 06.00.00.00 Legislation on social security and social insurance. Social protection / 06.06.00.00 Pensions / 06.06.16.00 Appointment and payment of pension] Submit a proposal for the document Listen to the audio Get a link from the document element Accumulative pension payments are terminated in the following cases: Submit a proposal for the document Listen to the audio Get a link from the document element full depletion of funds accumulated in the individual accumulative pension account; Submit a proposal for the document Listen to the audio Get a link from the document element written refusal of the recipient, notarized, for the purpose of transferring the entire amount accumulated in the individual accumulative pension account to inheritance; Submit a proposal for the document Listen to the audio Get a link from the document element loss of the right to a state pension. Submit a proposal for the document Listen to the audio Get a link from the document element Article 25. Deduction and Suspension of Accumulative Pension Payments [ OKOZ: 1. 17.00.00.00 Justice / 17.05.00.00 Civil procedural legislation / 17.05.07.00 Execution of court decisions and acts of other bodies] Submit a proposal for the document Listen to the audio Get a link from the document element Deduction or suspension of accumulative pension payments may be carried out on the basis of court decisions and acts of other bodies, the execution of which is carried out in accordance with the legislation. LexUz Comment For additional information see. Law of the Republic of Uzbekistan dated August 29, 2001 "On the Execution of Court Decisions and Acts of Other Bodies" Submit a proposal for the document Listen to the audio Get a link from the document element Article 26. Resolution of Disputes Submit a proposal for the document Listen to the audio Get a link from the document element Disputes in the field of accumulative pension provision of citizens are resolved in the manner established by legislation. Submit a proposal for the document Listen to the audio Get a link from the document element Article 27. Liability for Violation of the Legislation on Accumulative Pension Provision of Citizens Submit a proposal for the document Listen to the audio Get a link from the document element Persons guilty of violating the legislation on accumulative pension provision of citizens bear responsibility in the established manner. LexUz Comment See: Article 179 2 of the Code of Administrative Liability of the Republic of Uzbekistan. Submit a proposal for the document Listen to the audio Get a link from the document element President of the Republic of Uzbekistan I. KARIMOV Submit a proposal for the document Listen to the audio Get a link from the document element c. Tashkent, Submit a proposal for the document Listen to the audio Get a link from the document element December 2, 2004, Submit a proposal for the document Listen to the audio Get a link from the document element No. 702-II (Collection of Legislation of the Republic of Uzbekistan, 2004, No. 51, Art. 512; 2010, No. 35-36, Art. 300; 2015, No. 33, Art. 439; National Database of Legislation, 14.03.2022, No. 03/22/759/0213; 07.02.2024, No. 03/24/905/0106; 19.03.2024, No. 03/24/922/0224)