Your contributions paid in the Trust are not taxes; they are mandatory savings. The new pension system of Kosova enables Kosovar employees to save for their future. The amount of your pension will directly depend from the amount contributed and from the growth of the assets invested.

In the following, we present the flow of your contributions from the beginning to the end:

Payment
Payment of pension contributions is made each month through employers, or by self-employed each quarter. This payment has to be followed by a report, which in fact represents the initial phase of savings allocation in contributors’ accounts. Therefore, if only the payment is made but the report remains not submitted, money, even though paid, remain unallocated at the employee level.

Ownership     
Pension savings will have only one owner – you, on whose behalf contributions have been made. Each contributor will have his/her individual account at KPST, as in the bank. The greater the collected contributions amount will be, the higher will be your pension

Investment
Your money will not be spent, it will be invested. Governing Board of KPST selects Asset Manager who invests and manages Trust’s assets. Investments must meet diversification, security and transparency standards. The gain from investments will belong to the contributors.

AccountStatements
In order to help you with monitoring your individual accounts, KPST will send individual account statements where contributed amounts and the balance of your account will be shown.

Addresses
Providing your address to the Trust is very important, as this is going to be the address where we send you the account statement of your contributions previously made.

Withdrawal of your contributions
There are three cases when contributions can be withdraw: Old Age Retirement, death of the contributor, disability status.

Old Age Retirement
When the contributor reaches the retirement age, depending on the balance, his/her contributions can be paid out in a lump sum or with phased withdrawal. If the account balance is below €2000, savings will be paid out in a lump sum, whereas if the balance is over €2000, savings will be paid out through phased withdrawals.

Annuities
In the future, when savings pensions account balances are expected to further increase, Kosova insurance market is expected to provide annuities. Annuity is a financial product that converts savings into a regular (monthly) stream of money. Contributors will be able to buy their pension with the money saved as pension contribution.

Inheritance of contributions of the deceased contributor
If the contributor passes away before the pension age, his/her family can inherit the whole amount of the accumulated savings. Savings will be inherited according to the Law on Inheritance.

Disability Pension
If the contributor proves he/she has become a disabled person, thus unable to work, then he/she will have the opportunity to withdraw his/her savings even before the pension age.