KOSOVO - The Kosovan pension scheme will open up its membership to employees of small and medium-sized companies and the self employed from this month.
The Kosovo Pensions Savings Trust was set up under the auspices of the UN interim administration of the country after the conflict and its first phase, implemented in August 2002, covered 100,000 members from large employers and the public sector.
The KPST, a mandatory DC system, takes contributions of 5% of salary from both employer and employee. Members can also contribute a further 10% voluntarily.
Around e2m a month is flowing into the scheme and assets currently stand at e20m. These are invested in a eurozone money market fund managed by BAN Arm.
Chairman of the trustees, Neil McPherson, said the KPST has to contend with a low level of trust in local institutions among the population.
But the scheme is blessed with probably the most benign dependency ratio in Europe of 0.1.
McPherson added: “The demographics are good in Kosovo for pensions.
“It’s very young with lots of children and they don’t have transition costs that have bedevilled the west. But wages are very low and contributions are very high.”
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