The European Voluntary Pension Fund is the first voluntary pension fund in Republika Srpska and Bosnia and Herzegovina.
For a long period, there were initiatives and negotiations between Pension Reserve Fund Of Republika Srpska, the European Bank for Reconstruction and Development (EBRD) and the Skupna Pokojninska Družba d.d. from Ljubljana for the joint establishment of the Voluntary Pension Fund in Republika Srpska.
In July 2016., a final list of conditions was defined and all basic elements of this project were harmonized. Among other things, it is defined that the amount of the fixed capital will be 4.400.000 BAM. Also, the ownership structure is defined, and according to it, the EBRD will have a 33% stake (16,5% of the EBRD and 16,5% the ENEF – Enterprise Development Fund managed by the EBRD) Pension Reserve Fund of Republika Srpska – PREF will own 33% of shares and Skupna d.d. 34%.
Finally, at the end of November 2017, the European Voluntary Pension Fund (EPF) officially began its work, and several company representatives from public and private sector signed a memorandum on the accession process. Over the past year, more than twenty subjects – small, medium and large enterprises – have joined the Fund.
Since voluntary supplementary pension insurance – the third pillar of pension insurance, is newness in Republika Srpska, but also in Bosnia and Herzegovina, one of the primary goals of the European Voluntary Pension Fund is the education of employers, employees and individuals about a voluntary pension insurance system.
In the first year of work, the Fund operated positively and achieved its investment goals. Promotion and recognition of voluntary pension insurance as an option for citizens, were some of the main goals. Also, the first steps in cooperation with trade unions were established as an extremely important link in the process of initiation of voluntary pension insurance. Cooperation with all involved institutions such as Insurance Agency, Republika Srpska Tax Administration, Ministry of Finance, is continued, and they all proved to be responsible institutions, open to a new type of product on the financial market. At the beginning of the year 2019., the Fund will have 3500 members, and it ended 2018. year in line with plans and expectations. Also, s monthly premium of about 100,000 BAM will be reached.
The fund’s development plans refer to an increase in the number of members per cca. 9000, and the promotion of a voluntary pension system, with a special focus on small and medium-sized enterprises. Cooperation with institutions will continue, and simplification of access procedures will be done.
M.B.
