10% issue: KPST in a meeting with the Prime Minister of Kosovo

Prishtina, 2 July 2020 – Members of the Governing Board and Management of KPST, held yesterday, July 1, 2020, a consultative meeting with the Prime Minister of the country, Mr. Avdullah Hoti. The topic of the meeting was the Government’s plan to give KPST contributors the opportunity to withdraw 10% of their pension savings balance from the KPST. The meeting was also attended by the Minister of Finance as well as the Governor and Deputy Governor of the CBK.

The Chairman of the KPST Board stressed that there are other modalities and alternatives that would enable the Government to achieve its goals – which is to increase aggregate demand in the country – and that these alternatives would be more effective, especially from the point of view of operationalization, respectively the practical implementation of the existing proposal.

Furthermore, the Chairman of the Governing Board of the KPST elaborated on the proposals that could contribute to supporting the country’s economy, at this very challenging time.

On the other hand, the Prime Minister of the country, Mr. Hoti confirmed that the possibility of withdrawing 10% is part of the Government’s work plan and only the technical preparation for implementation remains. He also stated that the KPST should look at opportunities to expand operational capacities to cope with the implementation of this withdrawal plan.

Regarding the preparation of the implementation of this plan, the Minister of Finance, Mrs. Hykmete Bajrami, who said that the working groups will start working immediately to prepare the legal basis for submission for approval by the Government, and then proceeding with this proposal for consideration in the Assembly. Mrs. Bajrami also stated that they are not in favor of keeping the tax in the amount withdrawn, but at the same time there will be no compensation from the government for the withdrawn amount.

KPST, on this occasion, reaffirms its position that it agrees to consider all possibilities to help overcome the difficult economic and social situation in the country, always having as primary the long-term interest of contributors and the pension scheme itself.

KPST will keep the contributors informed of new developments in a timely manner and through all communication channels.