The KPST has a legal mandate to administer and invest citizens’ pension savings, always acting as a trustee that protects the interests of participants and beneficiaries.
To fulfill this mandate, the Law on Pension Funds grants the KPST a set of powers that enable it to function in an independent, transparent, and professional manner.
By ensuring prudent management of funds, full implementation of the legal framework, regular publication of information, and easy access for citizens, the KPST guarantees the integrity, independence, and protection of participants’ pension assets.
In accordance with the Law on Pension Funds, the KPST exercises the following functions:
Main Functions
• Administration of individual pension accounts for all participants in the second-pillar scheme.
• Prudent investment of pension assets, in accordance with the principles of security, diversification, and risk management.
• Increasing the value of savings through investment income attributable to individual accounts.
• Payment of pension benefits to participants and beneficiaries who meet the legal requirements.
• Acting as a fiduciary, protecting the interests of participants and beneficiaries above any other interest.
Institutional Responsibilities
• Ensuring transparent and professional management of pension funds.
• Always acting in the best interest of contributors and beneficiaries.
• Full implementation of the legal and regulatory framework of the CBK and the Assembly of Kosovo.
• Safeguarding and protecting participants’ assets.
• Regular publication of information on investment performance, fees, and operating expenses.
• Maintaining institutional independence and integrity in all decision-making processes.
• Ensuring easy access for citizens to information, individual accounts, and benefit services.
Main Authorizations
To fulfill its functions and the purpose for which it was established, the KPST has the following authorizations:
1. Investment and External Partner Management
The KPST has the authority to:
• select and contract asset managers, asset holders, and open-ended investment funds through open and competitive processes;
• implement and supervise agreements with all service providers, including asset managers, accountants, lawyers, auditors, and other professional providers;
• adopt investment principles and policies that guide the fund’s long-term strategy;
• terminate or replace service providers when this is in the best interest of participants.
These powers ensure that citizens’ savings are invested in a secure, diversified, and professional manner.
2. Administration of Pension Accounts and Payments
To ensure the proper functioning of individual accounts, the KPST:
• ensures the accurate allocation and updating of returns in individual accounts;
• transfers funds from individual accounts to annuity providers for the purchase of annual pensions (due to market conditions, there are currently no annuity providers in the Republic of Kosovo);
• proposes annual administration fees, which are approved by the Assembly of Kosovo.
This ensures that retirement processes based on savings are accurate, transparent, and in accordance with the law.
3. Daily Functioning of the Institution
To fulfill its mandate, the KPST has the authority to:
• enter into agreements for the purchase, sale, or lease of assets and equipment necessary for its operations;
• employ executive and non-executive personnel in accordance with the Labor Law;
• contract various types of insurance, including fiduciary insurance for governing bodies;
• prepare the annual budget and manage expenses in accordance with legal authorizations.
These authorizations enable the KPST to function as an independent public institution in managing citizens’ pension savings.