Skip to content

Private Pension Fund "Smart Pension"

DOWNLOAD THE DOCUMENT

Private Pension Fund "Smart Pension"

The Private Pension Fund “Smart Pension” offers an internationally recognized defined contribution savings method, enabling individuals to have an additional source of income beyond the state pension. This fund was created as an alternative to address the challenge of the state pension system, which does not guarantee a satisfactory level of income for the majority of the population in Albania.

Licensing and Supervision:

“Smart Pension” is licensed by the Financial Supervisory Authority (AMF), with decision no. 96, dated 28.04.2022, ensuring that the fund operates in accordance with legal standards and the best financial management rules.

Professional Management:

The fund is managed by the Management Company “Albsig Invest” sh.a, licensed by the AFSA for the management of pension funds and investment funds. The company offers high expertise to guarantee the growth and stability of your savings.

Why choose “Smart Pension”?

  • Stable financial future: A structured savings system that meets your income needs in retirement.
  • Added benefits: The opportunity to build an effective savings plan and benefit from the advantages of a licensed and supervised fund.
  • Flexibility and transparency:Choose a periodic monthly savings plan tailored to your needs.

For more information on the complete characteristics of the fund, we invite you to read the document “Prospectus of the Smart Pension Private Pension Fund”.

By adhering to and activating a regular savings plan, you guarantee the maximum benefit from this fund.

Invest today with “Smart Pension” for a more stable financial future!

Investment Policy:

  • Objective: Increase income while preserving principal.
  • Risk Tolerance: Low.
  • Investment Horizon: Long-term (10-30 years)..
  • Liquidity: Low.
  • Investment Strategy: The Fund will follow the asset-liability investment strategy. The Fund will invest primarily in long-term debt securities (bonds) issued or guaranteed by the government of the Republic of Albania that match as closely as possible the duration of the Members' retirement.

How to Join the Fund

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

The Management Company, in cooperation with the National Commercial Bank (BKT), has enabled members to apply to join the fund through the BKT SMART application. Any individual who holds an account with BKT and uses the BKT SMART application can easily apply for membership. For other individual clients who wish to join the fund, they must appear at our offices at: Bulevardi “Bajram Curri”, Albsig HQ, 16th Floor, 1010 Tirana, Albania.

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

Contributions of Members to the Pension Fund

Each contribution payment will be made to the Fund’s account number: ALBSIG SMART PENSION FUND at BANKA KOMBTARE TRETGARE IBAN: AL3620511007000803BLFIRLALLF, opened at 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.

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 20 (quota) x 1,600 Lekë = 32,000 Lekë. When a Member in the Fund temporarily or permanently ceases to pay contributions; the Law gives him the right to remain a Member in the Fund with the same rights as other members of the Fund.

Pension Payment and Benefits

Accumulated assets can be withdrawn in the following forms:

  1. Immediate payment;
  2. Periodic monthly payment scheduled for no less than 2 years;
  3. Using the net asset value of one’s 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.

PAYMENT OF PENSIONS

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

  1. Each Member of the Fund, at his/her option, has the right to benefit from the immediate payment of the net value of the assets in his/her account, or from periodic payments in the form of a pension corresponding to this value, without penalty, only when he/she meets the following conditions:
  2. When he/she reaches 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/she becomes permanently incapable of work and this is proven, in accordance with the legislation in force.

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.

Management Company Fees and Commissions

  1. Fund Fees:
    • Annual administration commission: 1.2% of net asset value, held and paid monthly.
    • Depositary Commission: Maximum 0.17% of net worth, held and paid monthly.
    • AFSA Commission: 0.05% of asset value, held and paid monthly.
    • External Auditor Committee: According to the agreement, held daily and paid once a year.
    • Transaction fees: They will be charged at the time of transaction..

The total annual cost will not exceed 1.5% of the net asset value.

  1. Committees for Members:
    • Bank commissions: For fund transfers according to bank terms.
  2. Transfer of Assets:
    • The fee for transferring to another Fund is 0.5% of the amount transferred.
  3. Notice of Tariff Increase:
    • Fee increases will be notified to members at least 6 months in advance.
  4. Tariffs Direction:
    • The Management Company may waive certain fees/commissions to maintain the Fund’s performance.