Kosovo Pension Savings (KPST) is an independent not-for-profit public institution of the Republic of Kosovo. KPST is established as a mandatory plan to administer and manage pension contributions until retirement.

KPST has been established in December 2001 and started operating in August 2002 to administer and manage mandatory pension contributions of Kosovo’s employees. KPST is engaged primarily in keeping and investing pension contributions, saved by Kosovo’s citizens during their employment.

Administering these individual accounts is a legal responsibility of KPST, while savings remain a property of account holders. Although a private property, the mandate of these savings is specific – they are to be used only upon retirement, and cannot be used or withdrawn earlier for any other purpose (e.g borrow against, medical emergencies, etc.)

While with KPST, pension assets are invested according to prudent investment principles set by law. The investments are made by the Governing Board of KPST with the aim of increasing the value of pension savings of contributors, and in the long run enabling the best possible pension on their retirement. KPST investments are done in different asset classes, markets and industries, to reduce the possible investment risk as deemed appropriate by the Governing Board.

Law no. 04/L-101 on Pension Funds of Kosovo, together with its subsequent amendments, give KPST (through Governing Board) the authority and the rights of a management over Pension Assets (Section 5.1), and the rights of the KPST with respect of Pension Assets shall include but not be limited to (Section 5.2):

• Conducting a selection of Asset Manager(s), Custodians, or Open-end Vehicles in accordance with this Law;
• Executing agreements with the Asset Manager(s), Custodians, Open-end Vehicles, Accountants, Auditors, Attorneys and other service providers of the KPST;
• Demanding and receiving information from Asset Managers, Open-end Vehicles and Custodians and other service providers with respect to all transactions on behalf of the KPST including the voting of shares of stock held by the KPST;
• Adopting investment principles for the KPST;
• Removing and replacing Asset Managers, Open-end Vehicles, Custodians and other service providers of the KPST;
• Paying the proceeds of Individual Accounts for Savings Pensions to Annuity providers for the purpose of purchasing Pensions for Participants and Beneficiaries in accordance with this Law;
• Entering into agreements for the purchase, sale, lease or rental of real property or equipment necessary for the operation of the KPST;
• Hiring executive and non-executive personnel for the KPST;
• Entering into insurance agreements, including Fiduciary indemnity insurance for the Governing Board, with insurance companies licensed in Kosovo or in the member states of the OECD;
• Preparing a budget to be approved by the Governing Board;
• Charging reasonable fees on a cost basis to each Participant for the administration of Individual Accounts as approved by the Assembly on annual basis.

KPST has its head office in Pristina, and offers services to contributors and beneficiaries of pension savings in six other centers of Tax Administration of Kosovo (TAK) in: Mitrovica, Peja, Gjakova, Prizren, Gjilan and Ferizaj.

KPST is governed by the Governing Board, which consists of eight members: five professional members with at least 10 years of professional pension or investment expertise; two representative members, one representing employers and the other employees of Kosovo; and a single representative of the Government who has no voting rights. All Board members are appointed by the Assembly with a 4-year term, with possibility of reelection. If the mandate of a member of the Board expires and no new member is appointed, the existing Board member will continue the mandate once for ninety days.