Pension Funds Management: Case Study Kosovo Pension Savings Fund – Trust

Presenter Information

Hasan MetinFollow
Nora Blaku

Session

Management, Business and Economics

Description

The pension system in Kosovo over the last three decades has gone through successive changes. The reason for these changes were undoubtedly enormous economic and political developments, due to the fact that after the last war Kosovo did not have a pension fund where people could contribute for their retirement. Based on the above considerations, the purpose of the research is to introduce the pension scheme in Kosovo, the differences between the pillars of the pension system and the impact of the pension system on the economy and also this research is focused on the institution’s responsibility for the management of pension funds which have an essential role in the most efficient running of the retirement process, providing social funding in accordance with the legal provisions of Kosovo, and to identify the factors who assist or hinder the management of the Pension System in Kosovo. The methodology of this research is case study. The comparative and historical method has been used to compare on a quarterly basis from 2010 onwards, Assets under Trust Management, Unit Price, Investments in Financial Markets and the Local Market,Return on Investment, Pensions Paid, and breakdown for each category. SPSS had been used for statistical analysis, more specifically we used multiple linear regression and correlation.

The three pillars of the pension system are discussed, while a more detailed analysis will be made for pillar II, for the Kosovo Pension Savings Fund. KPST is an institution established in December 2001 and started operating in August 2002 to administer and manage mandatory pension (and voluntary) contributions of employees in Kosovo. The results of this research reveal the assets under management, asset management and most importantly the investment policies and investment strategies that Fund pursues in order to increase the flexibility of the fund to improve performance in times of crisis. As well as from the analysis of multiple linear regression we have the following results: If Paid Pension increase per unit, Assets under Management will increase by 0.015, while Total Placements in Financial Markets will decrease by 0.008. And, If Financial Market Placement increases per unit, Assets under Management will increase by 0.851.

Keywords:

assets under management, investment strategies, investment policies, fund, savings, pension.

Proceedings Editor

Edmond Hajrizi

ISBN

978-9951-550-47-5

Location

UBT Kampus, Lipjan

Start Date

30-10-2021 12:00 AM

End Date

30-10-2021 12:00 AM

DOI

10.33107/ubt-ic.2021.490

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Oct 30th, 12:00 AM Oct 30th, 12:00 AM

Pension Funds Management: Case Study Kosovo Pension Savings Fund – Trust

UBT Kampus, Lipjan

The pension system in Kosovo over the last three decades has gone through successive changes. The reason for these changes were undoubtedly enormous economic and political developments, due to the fact that after the last war Kosovo did not have a pension fund where people could contribute for their retirement. Based on the above considerations, the purpose of the research is to introduce the pension scheme in Kosovo, the differences between the pillars of the pension system and the impact of the pension system on the economy and also this research is focused on the institution’s responsibility for the management of pension funds which have an essential role in the most efficient running of the retirement process, providing social funding in accordance with the legal provisions of Kosovo, and to identify the factors who assist or hinder the management of the Pension System in Kosovo. The methodology of this research is case study. The comparative and historical method has been used to compare on a quarterly basis from 2010 onwards, Assets under Trust Management, Unit Price, Investments in Financial Markets and the Local Market,Return on Investment, Pensions Paid, and breakdown for each category. SPSS had been used for statistical analysis, more specifically we used multiple linear regression and correlation.

The three pillars of the pension system are discussed, while a more detailed analysis will be made for pillar II, for the Kosovo Pension Savings Fund. KPST is an institution established in December 2001 and started operating in August 2002 to administer and manage mandatory pension (and voluntary) contributions of employees in Kosovo. The results of this research reveal the assets under management, asset management and most importantly the investment policies and investment strategies that Fund pursues in order to increase the flexibility of the fund to improve performance in times of crisis. As well as from the analysis of multiple linear regression we have the following results: If Paid Pension increase per unit, Assets under Management will increase by 0.015, while Total Placements in Financial Markets will decrease by 0.008. And, If Financial Market Placement increases per unit, Assets under Management will increase by 0.851.