Selected Issues Papers

This paper examines the evolution and challenges of Kosovo's pension system. Since its inception, a basic pension and mandatory individual accounts have formed the key element of Kosovo’s pension system. Over the years, the pension system has expanded to include a variety of merit pensions, occupational pensions, and a legacy pension. While spending on the basic pension remains relatively low compared to international standards, there should be a more restrictive approach to special pension benefits. To enhance the clarity and effectiveness of pension indexation, it is essential to clearly define the index used for adjustments of the basic pension.