Pardje was voted to be taken from 2 euros to the people: What's the two new RRUST taxes for?

The Kosovo Pension Trust's two demands were that the annual investment tax be approved in a fee of 0.32 per cent, while the operational tax of 0.057 per cent, or 0.15 cents per month for all contributors. More precisely, active contributors to the Trust will pay about 2 euros per year for the tax.

But where will these vehicles go, and for what will they be used?

The Kosovo Pension Savings Fund has declared to the Economic Bulletin that all tariffs charged by the Trust will be used to cover only the expenses for investing pension tools and the daily operation of this institution, and no other reason.

Does Demi, a Trust official, say that according to changes under Law No. 04/L-168, The FKPK has charged the investment fee for contributors to cover spending related to investing pension means in global financial markets and operational fee for covering other expenditures in FKPK offices.

According to Demi, the reasonableness of these tariffs is directly linked to the existence and functioning of the institution, but also the investment of pension means, to preserve and raise their value simultaneously.

“The KKP is not the institution that is funded from Kosovo's budget but is funded in a similar way, like all pension funds with defined contributions, namely. Loading management fees on tools under management (retirement vehicles)”, they have said from the Trust, explaining the way this institution is funded.

As far as tariff levels are concerned, the Trust add that they are done according to the Steering Board's recommendations, then the same are approved by the Assembly of Kosovo, thus providing the Assembly with an indirect way of control of FKPK spending.

According to Demit, The FKPK thus charges extremely low management tariffs, which make this institution one of the lowest pension funds in the Organization for Economic Co-operation and Development (x0> member states.

In terms of that, he says that in 2020, The FKPK had charged tax contributors of 0.15 euros per month for each account for operational spending, and this has been the lowest fee for any similar, public and private service in Kosovo.

Currently, there are 44,000 active accounts on the Kosovo Pension Savings Fund, and about 750 thousand open accounts of the foundation (from the latter one must be dropped retirement accounts around 62 thousand).

According to our calculations, the FKPK is expected to generate revenues from operational taxes of 62 thousand and 100 euros per month. For a year, however, this institution will have a total of 745 thousand euros available.