All contributors, who on the occasion of reaching retirement age, have over €3,000 (three thousand euros) saved in KPST, will withdraw their funds in phases (monthly installments), in accordance with the Law on Pension Funds and CBK Regulations.

For phased withdrawal, KPST has concluded agreements with commercial banks in Kosovo, which provide the phased withdrawal service according to the terms set out in the contract.

Some of the conditions are:

• Banks are obliged to open a Principal (Savings) Account for each retired person in which account their funds will stay and interest is paid on that account. The selection of the bank is made by the contributor at the time of applying for withdrawal of pension contributions.

• The interest will be calculated on a daily basis and will be paid to the Principal’s Account on a monthly basis, on the last day of each month, based on the Principal’s Balance on each day of the month.

• The payment of the pension from the Principal’s Account to the Current Account remains unchanged until the bank’s bank account (savings) is exhausted.

• The bank is obliged to provide each pensioner, who opens a payment (current) account, with a debit card (with which he will be able to withdraw funds from ATMs) free of charge.

• The Bank will pay, or make available the amount for payment, in the Payment Account, no later than the second working day of each month,  in accordance with the instructions provided by KPST, until the Balance of Principal is reduced to zero (0).

• The Bank is obliged to deduct all taxes provided for by the applicable laws in the Republic of Kosovo for each monthly payment executed to the payment account.

• The Bank may charge standard fees for the transfer of the monthly payment to the payment account,  which is not open at that bank, but the pensioner has chosen another bank to accept the pension, in which case the payment that reaches the final account is reduced.

• The pensioner, or his/her heirs, will not be charged any fee for the initial issuance of the debit card (with which funds can be withdrawn at the ATM),  nor for the subsequent issuance of expired cards or for their maintenance. In case the contributor chooses to use an existing current account and not to open a new account for accepting the phased payment, the bank will apply its standard fees.

• In case of the death of the Pensioner, before the Balance in the Principal Account decreases to zero (0), the Bank undertakes that, in accordance with the regulations and laws applicable in the Republic of Kosovo,  transfer the monthly payments to his/her heir(s). The Bank will not charge a commission for the opening of the Principal Account or the Payment Account, nor for the maintenance of the Accounts, or for crediting the Payment Account with the payment in cases where the Payment Account is opened with that bank.

Currently, the banks with which the KPST has agreements are listed below and their interest is:

• TEB (6-month EURIBOR* +0%) or 1.5% per annum, whichever is higher.
• NLB (6-month EURIBOR* +0%) or 1.5% per annum, whichever is higher.
• RBKO (6-month EURIBOR* +0%) or 1.5% per annum, whichever is higher.
• BEK (6-month EURIBOR* +0%) or 1.5% per annum, whichever is higher.
• BKT (6-month EURIBOR* +0%) or 1.5% per annum, whichever is higher.
• BPB (6-month EURIBOR* +0%) or 1.5% per annum, whichever is higher.
• PriBank (6-month EURIBOR* +0%) or 1.5% per annum, whichever is higher.
• Credins (6-month EURIBOR* +0.7%) or 1.7% per annum, whichever is higher.

*The 6-month EURIBOR is the key interest rate at which banks in the euro area lend to each other, in euros.

The terms of the contracts are described as follows in the sample contract at the following link: Template contract with banks in Kosovo