Authorities plan to overhaul how pensions are calculated and expand the funded pension system starting in 2027, under a draft presidential decree on pension reform published for public discussion.
Beginning January 1, 2027, the earnings period used to calculate pension benefits would increase by one year annually until it reaches 20 years. At the same time, the 10 percent of a person's lowest-earning years would be excluded when calculating average income.
For high earners who continue working past retirement age, the maximum earnings figure used to calculate an initial pension would rise starting April 1, 2028. For those retiring at the standard age, the earnings cap would increase from 12 to 13 times the base pension calculation unit — from 6.048 million to 6.552 million soums. Delaying retirement by six months would raise the cap to 14 times the base unit, while a one-year delay would push it to 15 times, or 7.56 million soums.
Government to match voluntary pension contributions
Starting January 1, 2027, individuals earning a monthly average below 15 times the base pension calculation unit would become eligible for government contributions matching their voluntary pension savings.
Under the proposal, a individual who voluntarily deposits 5 percent of their salary into a funded pension account could receive an additional government contribution of up to 50 percent of that amount, with the exact match rate varying by income level.
In addition, 1 percent of any salary portion exceeding 15 times the base pension calculation unit would be funneled from the social tax into an individual savings account — a rate set to rise to 2 percent in 2033 and 3 percent in 2040.
Individuals would also gain the ability to choose among investment and financial instruments for managing their pension savings, with any returns credited directly to their accounts. Starting in 2030, accumulated funds could be used not only after retirement but also to cover treatment for serious illnesses or as a down payment on a mortgage.
Funded pension system to move under Pension Fund oversight
Starting January 1, 2027, oversight of the funded pension system would shift from Halq Bank to the Pension Fund under the Ministry of Economy and Finance.
Funds held in individual savings accounts — including government contributions, social tax transfers and investment income — would be legally recognized as personal property, with inheritance rights preserved. Data on contributions and savings is to be gradually migrated from Halq Bank's information system to the Pension Fund's system by the end of 2027.
Authorities also intend to establish a legal framework enabling private and corporate pension funds, with a corresponding bill to be submitted to the Cabinet of Ministers by the end of 2027.
As previously reported, the same reform package proposes raising the retirement age by three months annually starting in 2028, reaching 63 for men and 58 for women by 2039. The minimum work record required to qualify for a pension would also rise, from 7 to 15 years, by 2034.
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