Personal deposits cannot be used for pension payments to other people. As of the beginning of 2000 there were 15 private and 1 state-owned pension accumulation funds. Pension funds attract depositors and engage pension assets management companies and custodians . The market is now represented by 7 pension assets management companies , which decide on where funds on depositors' accounts should be invested, as well as carry out regular revaluation of assets. The only exception are assets of the state pension accumulation funds, which may be invested in state and municipal securities, securities of international financial organizations and bank deposits only.
Custodian banks accept deposits and make pension payments.
They are also in charge of placing deposits in investment instruments in accordance with decisions of pension assets management companies. As of February 1st 2000, there were 67.5 billion tenge on individual accounts maintained by depositors in pension funds. Half of this amount is held by private funds, and the other half by the state fund.