Pension increases in Kyrgyzstan

AKIPRESS.COM - The first stage of pension increases began in Kyrgyzstan on July 1 and two stages are planned for 2024.
As of May 1, there are 779,000 pensioners, and the Social Fund forecasts this number will rise to 787,000 by October 1.
The first stage started from July 1 with equalizing the basic part of pensions. In Kyrgyzstan, a pension consists of two parts: the basic part and the insurance part. The basic part is the state-guaranteed portion of the pension.
Out of the 779,000 people receiving pensions, 80,000 pensioners receive the basic part of their pensions based on proportional work experience. According to the law, the required work experience for retirement is 20 years for women and 25 years for men, but some citizens do not meet this requirement.
The basic part of the pension for those who do not have sufficient insurance experience for an age-related pension is calculated proportionally to their work experience. This calculation is done by multiplying the basic part of the pension by the work experience and dividing by the required work experience.
Since October 1, 2022, the state has set the basic part of the pension at 3,170 soms. Now, on July 1, 2024, this part will be equalized for all pensioners. Thus, all pensioners will receive more than 3,170 soms.
The second stage of the increase will affect the insurance part, which will be increased by 18% from October 1, 2024.
The second stage, beginning October 1, 2024, will increase the insurance part by 18%. The insurance part varies for each individual based on their work experience. To ensure meaningful increases, a minimum threshold of 1,000 soms has been set.  
New amendments to pension policy also come into effect on July 1. Key provisions include:

The basic part is guaranteed for those whose insurance part is less than three times the minimum pensioner's subsistence level.
The Cabinet of Ministers sets the basic part of the pension.
The basic part is maintained at no less than 12% of the average salary through indexation.
Unclaimed pension amounts are paid retroactively for up to five years.
Individuals involved in terrorism or convicted of crimes against children are prohibited from receiving pensions during their sentence.
A funeral allowance of 300 calculation indicators is paid to the person who arranges the funeral.

Additionally, heads and members of peasant households owning less than 1 hectare of land are exempt from paying insurance contributions. Individuals with disabilities (groups I and II) and pensioners engaged in individual entrepreneurial activities are also exempt.