Various private businesses can create pension funds for their employees to bring about increased participation in these private schemes. Otherwise called "Pension fund with closed participation" is one of the innovations of the law on private pensions, which came into force in the first days of November.
"For the first time, the law also recognizes the form of the pension fund with closed participation. The fund with closed participation can be created by an employer, several employers, or an entity organized as a union of employers, trade union, unions or associations, in the capacity of the sponsor who creates a pension fund with closed participation", reads the law.
Efforts to save the pension scheme through the private sector have also been supported by the Minister of Finance, Ervin Mete, when he defended the law that was presented to the Assembly: "Private pension schemes are a useful instrument for increasing retirement savings, improving the standard of living through the provision of an additional pension in addition to the pension received through the pension scheme".
Private pension funds in the country explain that undertaking such an innovation could encourage citizens even further if it becomes mandatory as in other countries. Elvis Ponari, chairman of the Private Pension Association, says: "The fiscal benefits will be higher for both the individual and the employer. This is a product for the employer, he pays the employee an additional payment so that he does not increase his salary because there is tax. This is tax free. I will pay the reward or salary of the 13th to this account or a monthly allowance".
Data from the AMF at the end of June show that the number of those who are contributing to aging with dignity reached 37,594 from 36,518 at the end of last year. The private pension scheme offered by 4 companies is embraced by less than 3% of the country's workforce.
Ponari emphasizes: "It should be 20-30%, they should have a private pension fund with at least 1,000 ALL per month or even per year. Have it in case something happens to you".
According to Ponar, the high level of pensions in other countries is precisely thanks to the combination of public and private schemes of contributions, while in Albania only the pension from the state and, at low levels, the one from the private sector are embraced. (A2 Televizion)
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