Regulation of the Pension System
Based on Law No. 04/L-101 on Pension Funds of Kosovo, the pension system in Kosovo is divided into three pillars:
First pillar: The Basic Pension is a pension paid by the Pension Administration (within the Ministry of Labour and Social Welfare) to all permanent residents of Kosovo who have reached the pension age.
Second pillar: Individual Savings Pensions provided by the Kosovo Pension Savings Trust. The Pension Savings Trust was established with the sole and exclusive purpose of administering and managing individual accounts for savings-based pensions.
Based on the current Law No. 04/L-101 on Pension Funds of Kosovo, each employer shall contribute on behalf of its employees to the KPST, while the employee shall contribute on his/her behalf.
Third pillar: Supplementary Employer Pension Funds, Supplementary Individual Funds
The first two pillars are mandatory pensions, i.e. the Basic Pensions provided by the Ministry of Labour and Social Welfare and the Individual Savings Pensions provided by the Kosovo Pension Savings Trust.
Under the third pillar, the Supplementary Employer Pension Funds and the Supplementary Individual Funds are voluntary funds where employers can provide supplementary pensions for their employees, but also individuals may provide supplementary individual pensions through supplementary individual pensions.
The funds cannot be withdrawn until the pension age, and the pension age is 65.