KPST implements the portfolio by age groups

Pursuant to the responsibilities and powers defined by the Law on Pension Funds and in the course of the investment strategy on pension assets, KPST Governing Board, in the last meeting held on February 2002, reviewed and decided on the functioning of an additional investment portfolio for persons who are 18 months before retirement age in order to reduce volatility for contributors who are close to retirement.

The decision to allocate pension funds according to certain age groups is based on Article 9.4 of the Law on Pension Funds 04/L-101 and is also a concept which the Governing Board has considered for a long time and has been actively working, analyzing different implementation factors and modalities. In the course of the decision-making for the implementation of the division of contributors in age groups, the Governing Board took into account the recent developments in the financial markets, the unstable geopolitical situation, as well as the positive returns from investments over the previous years.

It should be noted that designing several investment plans is a novelty in our pension system and as such is at the service of contributors as a safeguarding mechanism. The breakdown of contributors by age enables the base portfolio (which will include younger contributors) to have a risky investment strategy and potential return on investment, as their age allows for such an approach. Regarding the designed plan (for contributors close to retirement) investments will be more conservative, where the primary goal is to safeguard and maintain the profits accumulated over the years. More specifically, the decision is that, on a monthly basis, contributors reaching the age of 63.5 years (or 18 months before retirement age) will be transferred to a special investment portfolio which will consist mainly of Kosovo Treasury Bills (over 90% ), offering a constant return on investment without significant oscillations.

KPST staff is working to submit key information related to the above-mentioned plan on the KPST website in the coming days.

The Governing Board believes that through this decision it has acted in the best possible way for contributors both in maintaining their accumulated contributions but also returning on investment over the years.