Skip to content

Private Pension Fund "Albsig"

DOWNLOAD THE DOCUMENT

Private Pension Fund "Albsig"

The Private Pension Fund “Albsig” offers an alternative to have additional income in addition to the guaranteed state pension. It was created to address the challenges of the state system, especially for those facing increased life expectancy and the lack of sufficient resources at retirement age.

Target of the Fund: Conservative clients with low risk tolerance.

Investments: Only in long-term bonds of the Republic of Albania, which are considered among the lowest-risk assets in the capital market.

Ownership Structure: The Fund consists of a group of bonds invested from members’ contributions, with common ownership of all participants, which is represented by the quota in the fund.

This fund aims to provide financial stability and a stable source of additional income for the retirement period.

Please see the section: Benefits of Membership in the Private Pension Fund, to be informed about the advantages of joining the Albsig Pension Fund.

Key elements of the investment policy:

  • Objective: Rritje të të ardhurave duke ruajtur principalin.
  • Risk Tolerance: Low.
  • Investment Horizon: Long-term (10-30 years).
  • Liquidity: Low.
  • Investment Strategy: The fund will follow the asset-to-liability investment strategy.

Contributions of Members to the Pension Fund

Any contribution payment will be made to the Fund’s account number IBAN AL76 2061 1004 0000 1003 2114 7100, opened with the depository bank, Banka Tirana Sh.a, with which the Management Company has concluded an agreement, deposited with the AFSA.

Contributions invested in the Fund are converted by the Management Company into pension shares. Each share represents a proportional share of ownership in the Fund’s assets. The Net Asset Value of the Fund is calculated by multiplying the total number of shares by their current price.

Example of purchasing a pension quota:

If after a certain period the price of the quota were to increase to 1,600 Lekë, the value of the member’s assets would be equal to 2 (quota) x 1,600 Lekë = 3,200 Lekë.

When a member of the Fund temporarily or permanently discontinues the payment of contributions, he remains a member of the Fund with rights like other members of the pension fund.

MEMBERSHIP AND MEMBER RIGHTS

How to Join the Fund

Professional Scheme: In the professional scheme, the employer and the employee (individual) contribute together to the account opened for the employee (individual).

Individual Scheme: In the individual scheme, only the individual (employee) contributes to the desired amount.

Any person may join the Fund by signing an individual membership contract if he/she wishes to join individually, or a declaration of acceptance of participation in a private pension fund selected by his/her employer. According to the signed contract or declaration, the Management Company will open a personal account for each Member in the Fund’s register.

The member has the following rights:

  • The Member, within 30 calendar days from the date of making the first contribution to the Fund's account, may terminate the Fund's membership contract without penalty, without giving any specific reasons, by notifying the Management Company in writing or by e-mail. The Management Company must return to the Member the value of the contributions paid into the account, including the return on investment, excluding the annual management fee for that period.
  • To have at all times ownership of the assets invested in the Fund and a return on the investment;
  • To receive immediate payment of the net asset value or periodic payments in the form of an annuity according to legal conditions and procedures;
  • To be informed at least 1 (one) time per year electronically about the status of the pension account.
  • Be provided with a document confirming the payment of contributions to his account and their conversion into quotas.
  • To transfer the accumulated assets to another fund, which is managed by the same or by another management company. In the case of transferring assets, the Member terminates the previous contract and enters into a membership contract with the other Fund.
  • To have a heritable Pension Fund in cases where the Member dies.
  • Determine the amount of contributions to be paid, the frequency and method of payment of the contribution, change this amount as well as the dynamics of payment of contributions, according to choice.

PAYMENT OF PENSIONS

The Management Company will also carry out the activity of making pension payments.

  1. Each Fund Member, at his/her option, has the right to benefit from the immediate payment of the net asset value in his/her account, or from periodic payments in the form of annuities corresponding to this value, without penalty, only when he/she meets the following conditions:
  2. When reaching the retirement age provided by law for the mandatory pension system applicable to that Member;
  3. 5 years before reaching the retirement age provided by law for the mandatory pension system;
  4. When he becomes permanently incapable of work and this is proven, in accordance with the legislation in force.

Upon the emergence of the right to receive pension payments without penalty, accumulated assets can be withdrawn in the following forms:

  1. Immediate payment;
  2. Monthly periodic payment scheduled for no less than 2 years;
  3. Using the net asset value of the account to purchase a life insurance contract in “annual” form issued by a life insurance company;
  4. Combination of the methods cited in points 1, 2 and 3 above.

In the case of premature withdrawal, the Management Company will apply penalties which will be calculated on the net asset value and more specifically:

  • 2% (two percent), for any early withdrawal made after 20 years from the date of the first contribution;
  • 5% (five percent), for each early withdrawal made in the period starting after 10 years from the date of the first contribution until 20 years from the date of the first contribution, including the 20th year;
  • 10% (ten percent), for any early withdrawal made in the period starting after 5 years from the date of the first contribution until 10 years from the date of the first contribution, including the 10th year;
  • 15% (fifteen percent), for any early withdrawal made in the period up to 5 years from the date of the first contribution, including the 5th year;
  • In the event of the Member's death, the early withdrawal penalty does not apply.

The Management Company will apply the following fees:

The Fund’s management fee shall be 2.5% (two point five percent) per annum of the net asset value of the Fund. The net asset value shall consist of the total value of the assets reduced by the deduction of liabilities and fees up to the valuation date;

In the case of the transfer of assets by the Member to another Fund managed by another Management Company, the fee to be applied shall be 0.5% (zero point five percent) of the amount transferred.

Other committees:

There is no membership fee.

There is no fee for transferring funds to another fund (within 30 days of notification of changes in investment policy).

There is no fee for closing or discontinuing contributions.

TAX BENEFITS FOR THE MEMBER

Based on Law No. 29/2023 “On Income Tax” and Law No. 76/2023 “On Private Pension Funds”, the following facilities are offered to members:

  1. Deductions from personal income: Contributions to the Fund are reduced to the minimum wage level approved at the national level.
  2. Tax exemption for investment returns: Profits from the Fund’s investments are not taxed.
  3. Tax-free employer contributions: It is not considered the Member’s personal income.
  4. VAT Exemption: Purchase of shares and depository services are exempt from VAT.
  5. Low tax on periodic payments: Payments over 2 years are taxed only on the return on investment.
  6. Tax on instant payments: Payments made before 2 years are taxed according to personal income legislation.
  7. Ease for life insurance contracts: Treated as periodic pension payments.